Test (Chapter 1 and 2)

Question 1

e=0,

1. Relatively elastic
2. Relatively inelastic
3. Perfectly elastic
4. Perfectly inelastic

Answer 1

Perfectly inelastic

Question 2

Classification of economics into micro and macro was done by _____

1. Lionel Robbins
2. Adam smith
3. Alfred Marshall
4. Ragnar Frisch

Answer 2

Ragnar Frisch

Question 3

Change in quantity demanded _____

1. Expansion/contraction in demand
2. Increase/decrease in demand

Answer 3

Expansion/contraction in demand

Question 4

Government should bring prospective and progressive budget on 1 feb 2021

1. Positive
2. Normative
3. A&B both
4. None

Answer 4

Normative

Question 5

Administered prices are found in which economic system

1. Capitalist
2. Socialist
3. Mixed
4. None

Answer 5

Socialist

Question 6

Freedom of choice

1. Capitalist
2. Socialist
3. Mixed

Answer 6

Capitalist

Question 7

Which of the following is correct?

1. Product pricing is micro economics
2. General pricing in macro economics
3. Both A and B
4. None of the above

Answer 7

Both A and B

Question 8

Sales force opinion method_____

1. Customer interview method
2. Collective opinion method
3. Trend analysis
4. Simultaneous method

Answer 8

Collective opinion method

Question 9

Supply=Sale_____

True or False

Answer 9

False

Question 10

Price changes by 50 percent and demand changes 50 percent_____

1. e=0
2. e>1
3. e<1
4. e=1

Answer 10

e=1

Question 11

If particular good has many substitutes_____

1. Less elastic
2. More elastic
3. Zero elasticity
4. None of the above

Answer 11

Less elastic

Question 12

When increase in income causes quantity demanded for the goods to reduce_____

1. Zero
2. Positive
3. Elasticity is greater than zero but less than 1
4. Negative

Answer 12

Negative

Question 13

Horizontal curve parallel to X-axis_____

1. e=0
2. e=infinity
3. e=1
4. e>1

Answer 13

e=infinity

Question 14

Elasticity during peak time on very short time_____

1. More elastic
2. Less elastic
3. Both A and B
4. None

Answer 14

Less elastic

Question 15

When very small amount of income spent on goods elasticity in this case is____

1. Less elastic
2. More elastic
3. Unitary elastic
4. Perfectly elastic

Answer 15

Less Elastic

Question 16

Capital is a _____ concept.

1. Stock
2. Flow

Answer 16

Stock

Question 17

Yield/return on capital is _____ concept

1. Stock
2. Flow

Answer 17

Flow concept