Example for Mixed Economy ________.

(a)

India

(b)

France

(c)

China

(d)

Both 'a' and 'b'

Socialist Economy promote  __________.

(a)

Social welfare motive

(b)

Collective welfare motive

(c)

Profit motive

(d)

Both 'a' and 'b'

The right to property exists largely in _______.

(a)

Traditional society

(b)

Capitalism

(c)

Socialism

(d)

Mixed economy

Identify the Father of Scientific Socialism.

(a)

Adamsmith

(b)

J.M. Keynes

(c)

Karl Marx

(d)

Marshall

Identify the economic system where only public ownership of production exists.

(a)

Capitalistic economy

(b)

Socialistic economy

(c)

Globalistic economy

(d)

Mixed economy

The growth and development of an economy and the factors determining them could be understood only through________

(a)

macro analysis

(b)

micro analysis

(c)

positive analysis

(d)

rational analysis

Who defined the following statement for an economy? “An economy is a cooperation of producers and workers to make goods and services that satisfy the wants of the consumers".

(a)

A.J. Brown

(b)

J.R. Hicks

(c)

J.S. Mill

(d)

J.M. Keynes

Identify which is not an example of capitalistic economy.

(a)

The USA economy

(b)

Germany economy

(c)

Indian economy

(d)

Australia economy

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

Find the missing flow from households to government in the diagram

(a)

Revenue

(b)

Fees

(c)

Taxes

(d)

None of the above

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

(a)

Foreign Activity

(b)

Excess Activity

(c)

Exchange Activity

(d)

Government Activity

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.

Which of the following is a limitation of the simple circular flow model?

(a)

Product markets are ignored

(b)

Resource markets are ignored.

(c)

The determination of product and resource prices is not explained.

(d)

Households are included, but not businesses.

In the circular-flow diagram

(a)

Firms are sellers in the resource market and the product market

(b)

Households are sellers in the resource market

(c)

Firms are buyers in the product market

(d)

Spending on goods and services flow from firms to households

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.

A country which has no economic relations with other countries in termed as

(a)

Open economy

(b)

Closed economy

(c)

Planned economy

(d)

Command economy

Nobel laureate Smimon Kuznets introduced the first concept of _________

(a)

Percapita Income

(b)

National Income

(c)

Domestic Income

(d)

Personal Income

GDP by expenditure at ________ price.

(a)

Factor price

(b)

Market price

(c)

Real price

(d)

All the above

Goods and services produced in a year to satisfy immediate wants is known as ________.

(a)

Production

(b)

Consumption

(c)

Distribution

(d)

Exchange

The difference between value of exports and imports of goods and services is known as

(a)

X - M

(b)

G + I

(c)

X x M

(d)

All the above

Output = Income = _________

(a)

Price

(b)

Expenditure

(c)

Income

(d)

None of these

Under social accounting method the economy is divided into _______ sectors.

(a)

four

(b)

two

(c)

several

(d)

three

GDP indicates productive capacity for an ______.

(a)

economy

(b)

employment

(c)

income

(d)

population

The value of net national product will be more than the value of net domestic product, if ________.

(a)

imports exceed exports

(b)

exports exceed imports

(c)

exports equal imports

(d)

none of the above