1. According to ………. sellers need not exhibit their products in a particular place or street.


2. Law of diminishing returns is not applicable to agriculture due to?

New methods of cultivation, new soil, insufficient capital.

3. State trading corporation of india is entrusted with the import and distribution of ………..

Edible oils

4. Factors affecting price elasticity of demand are?

Consumers income, nature of commodity, availability of substitute.

5. In the long run monopolistic competition the profits are?


6. The foundations of market system of economy are

Firms have profit motive, an individual is the best judge of his interest, consumer is king.

7. Resources are

Scarce, Can be used alternatively.

8. Innovator makes super normal profits in the long run?


9. The number of buyers & sellers operating under perfect competition is


10. Sick public enterprises should be referred to ………… for the purpose of rehabilition.


11. According to prof. clark the features of static society are

Population is stable, Demand is static.

12. Effective demand consists of Consumption demand and ……….. demand


13. Slope of supply curve is:-


14. Demand in economics also means demand per unit of:-


15. Anna hazare is:-

A social reformer.

16. Under imperfect competition:-

Installed capacity of a firm is very large.

17. When the external cannot be period in the market, with reference to demand and supply behaviour, they are termed as:-

non-market external effects.

18. Another importance criterion for setting standard of reasonable profit is the:-

Normal earnings of firms.

19. The dynamic theory of profit was explained by:-


20. Micro economics studies economic variables:-

In general, In aggregate, Individually.

21. Demand curve slopes downwards from left to right:-


22. The products sold by different sellers under pure competition are heterogeneous.


23. Under perfect competition single seller can influence the price.


24. Implicit costs are the cost of resources rented by the firm:-


25. The demand for a commodity depends on the prices of its substitutes:-


26. when the inputs increased from 4 units to 5 units and then to 6 units the total product went up from 100 units to 90 units and then to 85 units. This is an example of law of returns to scale.


27. Aggregate supply function refers to a schedule of the various minimum amounts of which must be expected to be received by the entrepreneur class from the sale of output result.


28. Demand for capital goods is demand


29. Chemical factory releasing its wastes in a nearby river is an example of:-

negative externality.

30. A downward movement from one point to the other on the same demand curve implies the:-

Expansion of demand.

31. Fiscal policy is also known as:-

Monetary policy.

32. The demand for consumer goods depends on the:-

Incomes of the consumers.

33. The subject matter of macro economics indicates:-

Theory of income and expenditure.

34. Selling cost under perfectly competitive market would be lead to:-

More sells.

35. Long period demand forecasts are:-

5 to 10 years.

36. A firm sells all units produced at the same price, what kind of a market is it in?


37. Where situation demands pricing policy of co-operative societies conforms with that of:-

Public sector pricing.

38. The costs of self-owned resources are:-

Implicit costs.

39. Paradox of thrift is also known as:-

Paradox of income.

40. The classical economists analysis of market is based on assumption of:-

Perfect competition.

41. Low income elasticity of demand is:-

Less than 0.

42. Production function denotes relationship between:-

Input & output.

43. Conditions for price discrimination are:-

Elasticities in different markets would be different, markets should be imperfect.

44. Examples of government enterprises running on no profit no loss basis could be:-

Hindustan insecticides, Hindustan antibiotics.

45. Normal profit are made by firms in:-

Monopolistic competition, monopoly, perfectly competitive market.

46. Prof. J. M. Keynes wrote a book on:-

Interest, employment, money.

47. Defects of market mechanism are:-

Inequalities in income and wealth, emergence of monopolies.

48. Two most important and widely acceptable economics policies are:-

monetary, fiscal.

49. Methods used for implementing disinvestment include:-

Liquidation, sale of stock and allotment, open auction.

50. Use of foreign investment and technology to a much greater degree was one of the objectives of new economic policy announced by Dr. Man Mohan Singh in 1991.


51. Perfectly inelastic demand, when e=1.


52. A firm in a perfectly competitive market earns profit less than that earned by a firm in oligopoly.


53. Fiscal measures are possible in bringing price controls.


54. Free entry and exit are possible under perfectly competitive market:-


55. profit should be ideally related to investment rather than to costs:-


56. Managerial economics is decidedly the applied branch of …………


57. The ability of a seller to supply a commodity, however, depends on the ……….


58.. Tax ……….. can contribute to emergence of black money.


59. Keynes theory addresses the causes of ……….. in the economy.


60. As a firm expands beyond a certain limit, it becomes ……… and unwieldy.


61. Law of variable proportion occupies an important place in …….. theory.


62. Export …….. contributes to higher exports.


63. When products are supplied according to specifications given by the customer, the minimum price can be decided by ……….. method.

full cost

 Match the following:-

64. Production function

combination of inputs to yield the maximum output.

65. Production

act of making goods and services.

66. Consumption

act of using goods to satisfy wants.

67. Gross national product

total output of all commodities of one country over a specific period.

Match the following:-

68. Short run cost curves are influence by

law of variable proportion.

69. All money costs can be regarded as

explicit cost.

70. Function of prices of inputs, the rate of output, the size of plant and technology

cost function.

71. Intersection of T.C. and T.R.

break-even point.

72. Indian Railways is a classic example of monopoly, Ques. Often these monopolies purposely keep certain factors of production idle, creating.

artificial scarcities

73. An ……… refers to stock of raw materials which a firm keeps


74. ASF < ADF

output tends to increase

75. ASF > ADF

Output tends to decrease

76. Excess profit during prosperity compensates the loss during depression.