The branches of the subject Economics is

(a)

Wealth and welfare

(b)

production and consumption

(c)

Demand and supply

(d)

micro and macro

A steady increase in general price level is termed as_____________.

(a)

wholesale price index

(b)

Business Cycle

(c)

Inflation

(d)

National Income

Indicate the fundamental economic activities of an economy

(a)

Production and Distribution

(b)

Production and Exchange

(c)

Production and Consumption

(d)

Production and Marketing

Identify the economic system where only private ownership of production exists

(a)

Capitalistic Economy

(b)

Socialistic Economy

(c)

Globalisic Economy

(d)

Mixed Economy

Who is referred as ‘Father of Capitalism’?

(a)

Adam Smith

(b)

Karl Marx

(c)

Thackeray

(d)

J M Keynes

Macro means ________.

(a)

Large

(b)

Aggregate

(c)

Economy as a whole

(d)

All the above

Socialist Economy promote  __________.

(a)

Social welfare motive

(b)

Collective welfare motive

(c)

Profit motive

(d)

Both 'a' and 'b'

Capitalism leads to ___________.

(a)

Central planning

(b)

Class struggle

(c)

Welfare

(d)

All the above

Which of the following system leads to leads to frequent violent economic fluctuations and crises?

(a)

Free market system

(b)

Restricted market system

(c)

Black market system

(d)

New market system

Assertion: Planning is an integral part of a Capitalist economy.
Reason: In socialist system, all decisions are undertaken by the central planning authority

(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

Identify which of following is not a feature of mixed economy?

(a)

Coexistence of Public and Private Sectors

(b)

Solution to Economic Problems

(c)

Equality of Income

(d)

Freedom and Control

Given the chart, find the missing activity of an economy.

(a)

Foreign Activity

(b)

Excess Activity

(c)

Exchange Activity

(d)

Government Activity

Assertion: Economic System refers to the manner in which individuals and institutions are connected together to carry out economic activities in a particular area.
Reason: It is the methodology of doing economic activities to meet the needs of the society.

(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: Each individual and organization produce only those goods which ensure high profit.
Reason: Profit is the driving force behind all economic activities in a capitalistic economy

(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: National plans are drawn up by the Government and both private and public sectors abide.
Reason: The central planning authority prepares the economic plans.

(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 interaction of individuals and firms in a market can be described as a _______ of money, goods and services and resources through product and factor markets.

(a)

Constant flow

(b)

Stable flow

(c)

Circular Flow

(d)

Circular Flow

Which of the following statements regarding the circular-flow diagram is true?

(a)

If Vijay works for XYZ Solutions Ltd. and receives a salary payment, the transaction takes place in the market for goods and services.

(b)

If Vijay works for XYZ Solutions Ltd. and receives a salary payment, the transaction takes place in the market for goods and services.

(c)

None of these answers

(d)

The factors of production are owned by households.

Which of the following could not be considered a major economic system?

(a)

capitalism

(b)

communism

(c)

socialism

(d)

secularism

For an economy consisting of households and businesses only, which of the following is consistent with the circular flow of income and production?

(a)

Households are producers of goods and services and consumers of resources

(b)

Households are users of resources, and businesses are sources of saving

(c)

Households are suppliers of resources and consumers of goods and services

(d)

Businesses are users of taxes, and households are sources of taxes.

Match the correct codes

1	Govt. Internal Regulation only	i	Capitalism
2.	Complete Involvement of Gov.t	ii	Socialism
3.	Limited Role of Government	iii	Mixed Economy
4	Government Enterprise Naure	iv	Capitalist Economy

(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) – (iii) (4) – (iv)