Indicate the fundamental economic activities of an economy

(a)

Production and Distribution

(b)

Production and Exchange

(c)

Production and Consumption

(d)

Production and Marketing

Assertion: The means of production in a capitalistic economy are publicly owned.
Reason: Manufacturers produce goods and services with profit motive

(a)

Both A and R are true and R is the correct explanation of A.

(b)

Both A and R are true but R is not the correct explanation of A.

(c)

A is true but R is false

(d)

A is false but R is true

Assertion: Personal income is the total income received by the individuals of a country from all sources before payment of direct taxes in a year.
Reason: Personal income is never equal to the national income, because the former includes the transfer payments whereas they are not included in national income

(a)

Both A and R are true and R is the correct explanation of A

(b)

Both A and R are true but R is not the correct explanation of A.

(c)

A is true but R is false

(d)

A is false but R is true

The basic concept used in Keynes Theory of Employment and Income is__________

(a)

Aggregate demand

(b)

Aggregate supply

(c)

Effective demand

(d)

Marginal Propensity Consume

Match the correct codes

1	J.B. Say’s Market Law	i	A person receives his income from production which is spent on the purchase of goods and services produced by others
2.	Keynes theory of employment	ii	Denotes money actually spent by the people on products of industry
3.	Market Law Meaning	iii	Effective demand signifies the money spent on consumption of goods and services and on investment
4.	Effective demand	iv	Supply creates its own demand

(a)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

(b)

(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

(c)

(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

(d)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (iii)

Which of the following is not a kind of multiplier?

(a)

Tax multiplier

(b)

Employment multiplier

(c)

Foreign Trade multiplier

(d)

Technical Multiplier

Match the correct codes

1	The average propensity to consume	i	The ratio of change in saving to a change in income
2	The marginal propensity to consume	ii	The ratio of saving to income
3	Marginal Propensity to Save	iii	Defined as the ratio of the change in the consumption to the change in income
4	The average propensity to save	iv	The ratio of consumption expenditure to any particular level of income

(a)

(1) – (i) (2) – (ii) (3) – (iv) (4) – (i)

(b)

(1) – (ii) (2) – (iii) (3) – (iv) (4) – (i)

(c)

(1) – (iv) (2) – (iii) (3) – (i) (4) – (ii)

(d)

(1) – (i) (2) – (ii) (3) – (iii) (4) – (iv)

Inflation means

(a)

Prices are rising

(b)

Prices are falling

(c)

Value of money is increasing

(d)

Prices are remaining the same

Who among the following enunciated the concept of single factoral terms of trade?

(a)

Jacob Viner

(b)

G.S.Donens

(c)

Taussig

(d)

J.S.Mill

The difference between total expenditure and total receipts including loans and other liabilities is called

(a)

Fiscal deficit

(b)

Budget deficit

(c)

Primary deficit

(d)

Revenue deficit