Economics
Economics HSC Maharashtra Board Multiple Choice Questions With Answers
Q.1) In the law of diminishing marginal utility, Alfred Marshall assumes that the marginal utility of money ________
A) IncreasesB) Remains constantC) DecreasesD) Rises and then falls
Ans : Remains constant
Q.2) As per the law of diminishing marginal utility, the measurement of utility is assumed to be _____.
A) OrdinalB) CardinalC) Both ordinal and cardinalD) None of the above
Ans : Cardinal
Q.3) MU of the commodity becomes negative when TU of a commodity is ______.
A) RisingB) ConstantC) FallingD) Zero
Ans : Falling
Q.4) Point of Satiety means _______
A) TU is rising and MU is fallingB) TU is falling and MU is negativeC) TU is maximum and MU is zeroD) MU is falling and TU is rising
Ans : TU is maximum and MU is zero
Q.5) When MU is falling, TU is _______.
A) RisingB) FallingC) Not changingD) Maximum
Ans : Rising
Q.6) The relationship between demand for a good and price of its substitute is ______.
A) DirectB) InverseC) No effectD) Can be direct and inverse
Ans : Direct
Q.7) The relationship between income and demand for inferior goods is ______.
A) DirectB) InverseC) No effectD) Can be direct and inverse
Ans : Inverse
Q.8) Symbolically, the functional relationship between Demand and Price can be expressed as ______.
A) Dx = f(Px)B) Dx = f(Pz)C) Dx = f(y)D) Dx = f(T)
Ans : Dx = f(Px)
Q.9) When less units are demanded at high price it shows ______.
A) Increase in demandB) Expansion of demandC) Decrease in demandD) Contraction in demand
Ans : Contraction in demand
Q.10) Price elasticity of demand on a linear demand curve at the X-axis is
________.
A) ZeroB) OneC) InfinityD) Less than one
Ans : Zero
Q.11) Price elasticity of demand on a linear demand curve at the Y-axis is equal to ________.
A) ZeroB) OneC) InfinityD) Greater than one
Ans : Infinity
Q.12) Demand curve is parallel to X-axis, in the case of ______.
A) Perfectly elastic demandB) Perfectly inelastic demandC) Relatively elastic demandD) Relatively inelastic demand
Ans : Perfectly elastic demand
Q.13) Ed = 0 in case of ______.
A) LuxuriesB) Normal goodsC) NecessitiesD) Comforts
Ans : Necessities
Q.14) When the percentage change in quantity demanded is more than the percentage change in price, the demand curve is ______.
A) FlatterB) SteeperC) RectangularD) Horizontal
Ans : Flatter
Q.15) When the supply curve is upward sloping, its slope is _______.
A) PositiveB) NegativeC) First positive then negativeD) Zero
Ans : Positive
Q.16) An upward movement along the same supply curve shows _______.
A) Contraction of supplyB) Decrease in supplyC) Expansion of supplyD) Increase in supply
Ans : Expansion of supply
Q.18) A rightward shift in supply curve shows _______.
A) Contraction of supplyB) Decrease in supplyC) Expansion of supplyD) Increase in supply
Ans : Increase in supply
Q.19) Other factors remaining constant, when less quantity is supplied only due to a fall in price, it shows ________.
A) Contraction of supplyB) Decrease in supplyC) Expansion of supplyD) Increase in supply
Ans : Contraction of supply
Q.20) Net addition made to the total revenue by selling an extra unit of a commodity is ______.
A) Total RevenueB) Marginal RevenueC) Average RevenueD) Marginal Cost
Ans : Marginal Revenue
Q.21) While estimating national income, we include only the value of final goods and services in order to _________.
A) Make computation easierB) Avoid double countingC) Maximize national welfare of the peopleD) Evaluate the total economic performance of a nation
Ans : Avoid double counting
Q.22) NDP is obtained by ___________.
A) Deducting depreciation from GNPB) Deducting depreciation from GDPC) Including depreciation in GDPD) Including depreciation in GNP
Ans : Deducting depreciation from GDP
Q.23) In India, national income is estimated using _________.
A) Output methodB) Income methodC) Expenditure methodD) Combination of output and income method
Ans : Combination of output and income method
Q.24) Development financial institutions were established to _________.
A) Provide short term funds.B) Develop industry, agriculture and other key sectors.C) Regulate the money market.D) Regulate the capital market.
Ans : Develop industry, agriculture and other key sectors.
Q.25) Money market faces shortage of funds due to ___________.
A) Inadequate savingsB) Growing demand for cashC) Presence of unorganized sectorD) Financial mismanagement
Ans : Inadequate savings
Q.26) Individual investors have lost confidence in the capital market due to __________.
A) Lack of financial instrumentsB) High transaction costsC) Low returnsD) Financial scams
Ans : Financial scams
Q.27) Commercial banks act as intermediaries in the financial system to ___________.
A) Make profitsB) Accelerate the country's economic growthC) Mobilize the savings and allocating them to various sectors of the economyD) Control the credit
Ans : Mobilize the savings and allocating them to various sectors of the economy
Q.28) Monopolistic competition differs from perfect competition primarily becaus—
A) In monopolistic competition firms can differentiate their products.B) In perfect competition firms can differentiate their products.C) In monopolistic competition entry into the industry is blocked.D) In monopolistic competition there are relatively few barriers to entry.
Ans : In monopolistic competition firms can differentiate their products.
Q.29) The firm and the industry are one and the same in:
A) Monopolistic competitionB) MonopolyC) DuopolyD) Oligopoly
Ans : Monopoly
Q.30) The demand curve of Oligopoly is?
A) KinkedB) VerticalC) HorizontalD) Rising left to Right
Ans : Kinked
Q.31) Under monopoly form of market, TR is maximum when
A) MR is maximumB) MR < 0C) MR > 0D) MR is zero
Ans : MR is zero
Q.32) Market which has two firms is known as
A) DuopolyB) Monopolistic CompetitionC) OligopolyD) None of These
Ans : Duopoly
Q.33) One characteristic not typical of Oligopolistic industry is its:
A) Horizontal demand curve.B) Too much importance to non-price competition.C) Price leadership.D) A small number of firms in the industry.
Ans : Horizontal demand curve.
Q.34) In perfect competition, a company earns an abnormal profit when average revenue exceeds the?
A) Total revenueB) Average costC) Total fixed costD) Marginal revenue
Ans : Average cost
Q.35) Which one is a merit of the flexible exchange rate?
A) Simple SystemB) Continuous AdjustmentsC) Improves Balance of PaymentsD) All the above
Ans : All the above
Q.36) In perfect competition, when the marginal revenue and marginal cost are equal, profit it?
A) ZeroB) AverageC) MaximumD) Negative
Ans : Maximum
Q.37) Who is known as the father of modern macroeconomics?
A) Adam SmithB) J.M.KeynesC) SamuelsonD) Hicks
Ans : J.M.Keynes
38) Which of the following is studied under Micro Economics ?
A) Individual unitB) Economic AggregateC) National IncomeD) None of these
Ans : None of these
Q.39) Macro-static equilibrium implies:
A) A complete absence of changeB) A change at an unchanged rateC) A change in only absolute valuesD) None of these
Ans : A complete absence of change
Q.40) Which of the following is studied under Macro Economics ?
A) National IncomeB) Full. EmploymentC) Total ProductionD) All of these
Ans : All of these
Q.41) What is known as the study of individual units?
A) MacroeconomicsB) MicroeconomicsC) Income and Employment TheoryD) Development economics
Ans : Microeconomics
42) When TR increases at constant rate, MR should be:
A) IncreasingB) DecreasingC) ConstantD) Zero
Ans : Constant
Q.43) Net investment is equal to
A) Gross investment + depreciationB) Gross investment – depreciationC) Gross investment × depreciationD) Gross investment ÷ depreciation
Ans : Gross investment – depreciation
Q.44) Example of micro economic variable is:
A) Wholesale price indexB) National incomeC) Market demandD) Aggregate demand
Ans : Market demand
Q.45) Study of aggregates is known as _________
A) MacroeconomicsB) MicroeconomicsC) Price theoryD) Factor price determination
Ans : Macroeconomics
Q.46) What is the name of the book written by J.M. Keynes?
A) Wealth of NationB) Political economyC) The General Theory of Employment, Interest and MoneyD) None of these
Ans : The General Theory of Employment, Interest and Money
Q.47) When was the famous book of Prof. Keynes published?
A) 1930B) 1931C) 1936D) 1940
Ans : 1936
Q.48) In which kind of market, a firm is a price- taker?
A) Perfect CompetitionB) MonopolyC) Monopolistic competitionD) Oligopoly
Ans : Perfect Competition
Q.49) Price of a goods is determined at a point where :
A) Demand > SupplyB) Demand < SupplyC) Demand = SupplyD) None of these
Ans : Demand = Supply
Q.50) Slope of production curve is:
A) A straight lineB) Convex to the point of origin ‘O’C) Concave to the point of ‘O’D) None of these
Ans : Concave to the point of ‘O’