Unit 1 PDF - Module Multiple Choice Questions

CLA S S ES a VerandaEnterprise MODULE MULTIPLE CHOICE QUESTIONS 1. Economist regard decision making as important because: a. The resources required to satisfy our unlimited wants and needs are finite, or scares. b It is crucial to understand how w...

CLA S S ES a VerandaEnterprise MODULE MULTIPLE CHOICE QUESTIONS 1. Economist regard decision making as important because: a. The resources required to satisfy our unlimited wants and needs are finite, or scares. b It is crucial to understand how we can best allocate our scares resources to satisty society's (unlimited wants and needs, C. Resources have alternative uses All of the above. 2. Business economics is - -Reotihy Not inagiueng a. Abstract and applies the tools of microeconomics. Involves practical application of economic theory in business decision making. Incorporates tools from multiple disciplines. d (b) and (c) above 3. In Economics, we use the terms scarcity to mean; a. Absolute scarcity and Lack of resources in less developed countries. Lb Relative scarcity i.e. scarcity in relation to the wants)of the society.) C. Scarcity during times of business failure and natural calamities. -O.2 d. Scarcity caused an account of excessive consumption by the rich. 4. What implication(s) does resource scarcity have for the satisfaction of wants? Not dll wants can be satisfied. b. We wilL never be faced with the need to make choice. C. We must develop ways to decrease our individual wants. d. The discovery of new natural resources is necessary to increase our ability to satisfy wants. 5. Which of the following is anormative statement? a. Planned economies allocate resources via government department. b. Most transitional economies have experienced problem of falling output and rising price over the past decades. C. There is a greater degree of consumer sovereignty in market economies than planned economies. t. Reducing inequality should be a major priority of mixed economies. 7 K SHAH LA S S E S CA FOUNDATION - ECONOMICS Veranda Enterprise In every economic system, scarcity imposes limitations on? aHouseholds, business firms, governments, and the natioh asa whole. eb. Households and business firms, but not the government. C. Local and state governments, but not the federal government d. Households and governments, but not the business firm. Macro- economics are also called? a. Applied Aggregate C. Experimental d. None of the above An example of 'positive' economic analysis would be: g An analysis of the relationship between the price of food and the quantity purchased. Determining how much income each person should be guaranteed. C. Determining the fair 'price for the food. d. Deciding how to distribute the output of the economy. 9. A study of how increase in the coporate income tax rate will affect the national unemployment rate is an example of? Macro economics b. Descriptive Economics. C. Micro-economics. d. Normative economics 10. Which of the following does not suggest a macro approach for India? a. Determining the GNP of India. b Finding the cause of failure of ABC Ltd. C. Identifyingthe causes of inflation in India. d. Analyse the causes of failure of industry in providing large scale employment.  a Vcianda Enterprise 11. Ram: my corn harvest this year is poor.? Krishan: Don't worry. Price increases will compensate for the fall in quantity supplied. Vinod : Climate affects crop yields. Some years are bad, others are good. 0-25 Madhu : TheGovernment ought to quarantee that our income will not fall. Aopinoy In this conversation, the normative statement is made by a. Ram b. Krishan C. Vinod dh Madhu 12. Consider the followingand decide which, if any, economy is ithout carcity? > Inaqiro a. The pre- independent Indian economy, where most people were farmers. b. Amythical economy where everybody is a billionaire. C. Any economy where income is distributed equally among its people. t None of the above 13. Which of the following is not a subject matter of Micro-economies.? a. The price of mangoes. b. The cost of produçing a fire truck for the fire department of Delhi, India. C. The quantity of mangoes produced for the mangoes market. a. The national economy's annual rate of growth. 14. The branch of economic theory that deals with the problem of allocation of resources is Micro-Economic theory b. Macro-Economic theory C. Econometrics d. None of the above 15. Which of the following is not asubject matter of Business-economies? a. Should our firm be in this business? b. How much should be produced and at price should be kept? C. How will the product be placed in the market? d How shouldwe decrease unemployment in the economy?  a Veranda Enterprise economic statementr vwnich of the following is a normative industrialization a. Onemployment rate decrease with studies human behaviour o2r Econ EConomics is a social science opioy that per day. The minimum wage should be raised to Rs. 200/- national defense. d. mala spends a huge amount of money on wen of the following would be considered a topic of study in Macroeconomics? 17. a. The effect of increase in wages on the profitability of cotton industry. b. The effect of steel prices when more steel is imported. The effect of an increasing inflation rate on living standards of people in India. d. The effect of an increase in the price of coffee on the quantity of tea conSumed. 18. The difference between positive and normative Economics is: a. Positive Economics explains the performance of the Economics finds out the reasons for poor economy while normative Positive Economics describes the( facts of theperformance. involves economy while normative Economics evaluating whether some of these are good or bad people. for the welfare of the C. Positive Economics describes the facts of involves evaluatingwhether some of the economy while positive Economics people. these are good or bad for the welfare of the d. Positive economics prescribes while normative 19. Economics describes. Which is of the following is not within the scope of a. b. Capital Budgeting Risk analysis Business Economics? d C. Business cycles Accounting Standards (-o2r) 20. Which of the following statement is incorrect? a. Business economics is normative in nature b. Business Economics has a close connection ) Business Economist need not worry about with Business Economics is macro statistics. d. also called Managerial variables, Economics  21.CLAS Enterprise Veranda a d. C. wt a. Economic are Cannot Do S E ofnot goods S mary exist be to increased in are adequate ance considered in quantity. quantity. in scare fying resources to satisfy social because the ments. uirements they of the society.