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1. Choose the correct option Question 1.Optional functions of Government:a) Protection from external attackb) Provision of education and health servicesc) Provision of social security measuresd) Collection of taxOptions:1) b and c2) a, b and c3) b, c and d4) All of the aboveAnswer:1) b and c Question 2.Obligatory functions of the Government:a) Provision of employmentb) … Read more

1. Complete the following statements: Question 1.While estimating national income, we include only value of final goods and services in order toa) make computation easierb) avoid double countingc) maximize national welfare of the peopled) evaluate the total economic performance of a nationAnswer:b) avoid double counting Question 2.NDP is obtained bya) deducting depreciation from GNPb) deducting … Read more

1. Choose the correct option: Question 1.Statements that are incorrect in relation to index numbers.a) Index number is a geographical tool.b) Index numbers measure changes in the air pressure.c) Index numbers measure relative changes in an economic variable.d) Index numbers are specialized averages.Options :1) c and d2) a and b3) b and c4) a and … Read more

1. Choose the correct option: Question 1.In economic sense, market includes following activitiesa) The place where goods are sold and purchased.b) An arrangement through which buyers and sellers come in close contact with each other directly or indirectly.c) A shop where goods are sold.d) All of the above.Options :1) a and b2) b and c3) … Read more

1. Complete the following statements: Question 1.When supply curve is upward sloping, it’s slope is ……………….a) positiveb) negativec) first positive then negatived) zeroAnswer:a) positive Question 2.An upward movement along the same supply curve shows ………………..a) contraction of supplyb) decrease in supplyc) expansion of supplyd) increase in supplyAnswer:c) expansion of supply Question 3.A rightward shift in … Read more

1. Complete the following statements: Question 1.Price elasticity of demand on a linear demand curve at the X-axis is ……………a) zerob) onec) infinityd) less than oneAnswer:a) zero Question 2.Price elasticity of demand on a linear demand curve at the Y-axis is equal toa) zerob) onec) infinityd) greater than oneAnswer:c) infinity Question 3.Demand curve is parallel … Read more

1. Complete the following statements: Question 1.The relationship between demand for goods and the price of its substitute is ……………(a) direct(b) inverse(c) no effect(d) can be direct and inverseAnswer:(a) direct Question 2.The relationship between income and demand for inferior goods is …………….(a) direct(b) inverse(c) no effect(d) can be direct and inverseAnswer:(b) inverse Question 3.Symbolically, the … Read more

1. Complete the following statements by choosing the correct alternatives. Question 1.In the law of diminishing marginal utility, Alfred Marshall assumes that the marginal utility of money …………..(a) increases(b) remains constant(c) decreases(d) rises and then fallsAnswer:(b) remains constant Question 2.As per the law of diminishing marginal utility, measurement of utility is assumed to be ……………(a) … Read more

1. Choose the correct option: Question 1.The branch of economics deals with the allocation of resources.a) Microeconomicsb) Macroeconomicsc) Econometricsd) None of theseOptions:1) a, b and c2) a and b3) only a4) None of theseAnswer:3) only a Question 2.Concepts studied under Micro economics.a) National incomeb) General price levelc) Factor pricingd) Product pricingOptions :1) b and c2) … Read more

1. Objective questions: A. Select the most appropriate alternatives from those given below and rewrite the statements. Question 1.The primary document for recording all financial transactions in Tally is the ______________(a) Journal(b) Trial sheet(c) Voucher(d) FileAnswer:(c) Voucher Question 2.______________ displays the balance day-wise for a selected voucher type.(a) Record book(b) Ledger book(c) Journal book(d) DaybookAnswer:(d) … Read more