MCQ for test-2-10-december-2023

Consider the following:

1. Resource Allocation

2. International Trade

3. Supply and Demand

4. Market Structures

How many of the options given above can be considered as the key aspects of economics?

Consider the following statements:

1. Study of economics helps to analyze policies at the micro or macro level for informed public discourse and policy-making.

2. Economics provides a framework for understanding the social issues such as poverty, inequality, and unemployment.

Which of the statements given above is/are correct?

Consider the following statements:

1. Developmental economics explores topics such as the valuation of natural resources and the trade-offs between economic development and environmental sustainability.

2. Environmental economics explores strategies for promoting economic growth, reducing poverty, and improving living standards.

3. Macroeconomics looks at the aggregate phenomena like overall economic output (GDP), inflation and national income.

4. Microeconomics examines the economic behavior of individual agents, such as households, firms, and industries.

How many of the above statement(s) is/are correct?

Consider the following statements:

Statement-I:

Central economic problems are the fundamental challenges faced by any society in managing its scarce resources to meet the unlimited wants of its members.

Statement-II:

Resources (such as time, money, labor, and natural resources) are limited and have alternative uses in comparison to the infinite wants and needs of individuals and society.

Which one of the following is correct in respect of the above statements?

Consider the following statements:

1. Allocation of resources to produce particular goods and services

2. Determining the most efficient methods and technologies for producing goods and services

3. Distribution of goods and services among individuals and groups in society

4. Inquiry about artistic endeavors

How many of the options given above can be considered as the core questions that a society must address to solve Central Economic Problem?

Consider the following statements:

1. Allocation of resources is determined by market forces of supply and demand in a capitalist economy.

2. Socialist economy prioritizes social welfare over individual profit to reduce income inequality.

3. Both market forces and government intervention coexist in a Mixed Economy.

How many of the above statements are correct?

Consider the following:

1. Inflation

2. Level of Unemployment in an economy

3. Wage levels in a company

4. External trade balance

How many of the above items is/are the components of macroeconomics?

Consider the following statements:

1. The demand for Giffen goods increases as the price of goods decreases.

2. The demand of Veblen Goods increases with increase in price.

3. The income elasticity of demand for Inferior Goods is negative.

How many of the above statements are correct?

“Market, in which there are few firms in the market and all of them decide to avoid competition through a formal agreement ”. Which type of Market is been discussed above?

Consider the following Statements:

1. A price floor is a measure that prevents the price of a good from exceeding a specific level.

2. A price ceiling is the mechanism by which the price of a good is prevented from falling below a certain level.

Which of the statements given above is/are incorrect?

A ‘laissez-faire’ economy can be identified by which of the following characteristics?

Which factors influence the price elasticity of demand?

1. Availability of substitutes.

2. If the good is a luxury or a necessity.

3. Proportion of income spent on the good.

How many of the statements given above are correct?

What does the Law of Supply indicate about the relationship between price and quantity supplied?

With reference to Indian economy, consider the following statements:

1. An increase in economic variables over a period of time is called an economic growth

2. Economic development implies an upward movement of the quality of life in the economy.

3. Economic growth only brings quantitative changes in the economy.

4. Economic development brings qualitative changes in the economy.

How many of the statements given above are correct?

With reference to the price elasticity of demand for a good, consider the following statements:

1. Demand for an essential item is always elastic.

2. Availability of substitutes makes demand elastic.

3. Demand for luxury goods is always inelastic.

How many of the above statements are correct?