CA Foundation Economics Ch 1 Quiz - Nature & Scope of Economics 47 Created on July 06, 2023 By admin Eco Ch 1 Quiz 1 1 / 20 The term ‘Economics’ owes its origin to the Greek word. Aikonomia Wikonornia Oikonomia None of the above 2 / 20 Adam Smith published his master piece “An enquiry into the nature and causes of wealth of nations” in the year __________. 1776 1786 1789 1790 3 / 20 Oikonomia means __________. Industry Management of household Services None of these 4 / 20 Economists regard decision making as important because: The resources required to satisfy our unlimited wants and needs are finite or scarce. It is crucial to understand how we can best allocate our scarce resources to satisfy society’s unlimited wants and needs. Resources have alternative uses. All of the above. 5 / 20 In Economics, we use the term scarcity to mean: Absolute scarcity and lack of resources in less developed coun¬tries. Relative scarcity i.e. scarcity in relation to the wants of the society. Scarcity during times of business failure and natural calamities. Scarcity caused on account of excessive consumption by the rich. 6 / 20 Economics is the study of: How society manages its unlimited resources How to reduce our wants until we are satisfied How society manages its scarce resources How to fully satisfy our unlimited wants. 7 / 20 According to Robbins, ‘means’ are: Scarce Unlimited Undefined All of these 8 / 20 Which one is the feature of Marshall’s definition? Limited ends Scarce means Study of wealth as well as study of man Study of allocation of resources 9 / 20 ‘Economics is the science of choice making’. It implies: No choice is to be made Choice to be made between alternative uses Choice to be made between means and ends None of the above 10 / 20 Economic goods are considered scarce resources because they __________. Cannot be increased in quantity. Do not exist in adequate quantity to satisfy the requirements of the society. Are of primary importance in satisfying social requirements. Are limited to man made goods. 11 / 20 In every economic system, scarcity imposes limitations on __________. Households, business firms, governments and the nation as a whole. Households and business firms, but not the governments. Local and state governments, but not the federal government. Households and governments, but not business firms. 12 / 20 Who defines Economics in terms of Dynamic Growth and Development? Robbins Paul A Samuelson Adam Smith None of these 13 / 20 Adam Smith defined Economics in terms of: The Science of welfare The Science of scarcity The Science of wealth The Science of wealth and welfare 14 / 20 What implication(s) does resource scarcity have for the satisfaction of wants? Not all wants can be satisfied. We will never be faced with the need to make choices. We must develop ways to decrease our individual wants. The discovery of new natural resources is necessary to increase our ability to satisfy wants. 15 / 20 The meaning of time element in Economics is: Calendar time Clock time Operational time in which supply adj usts with the market demand None of the above 16 / 20 Economic goods are considered as scarce resources because __________. Inadequate quantity to satisfy the needs of the society Not possible to increase in quantity Limited hands to make goods Primary importance in satisfying social requirements 17 / 20 Human wants are in response to satisfy their wants? Unlimited Limited Scarce Multiple 18 / 20 Consider the following and decide which, if any, economy is without scarcity: The pre-independent Indian economy, where most people were farmers. A mythical economy where everybody is a billionaire. Any economy where income is distributed equally among its people. None of the above 19 / 20 ‘Economics is the study of mankind in the ordinary business of life’ was given by: Adam Smith Lord Robbins Alfred Marshall Samuelson 20 / 20 All wants of an individual are not of: Equal importance Immediate importance Fixed importance All of the above Your score isThe average score is 79% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 28 Created on July 06, 2023 By admin Eco Ch 1 Quiz 2 1 / 20 __________ refers to the process of selecting an appropriate alternative that will provide the most efficient means of attaining a desired end, from two or more alterative courses of action. Decision making Strategy Problem Solving Effectiveness 2 / 20 Business Economics is __________. Abstract and applies the tools of Microeconomics. Involves practical application of economic theory in business decision making. Incorporates tools from multiple disciplines. (b) and (c) above. 3 / 20 Business Economics is also known as? Applied Economics Managerial Economics Micro Economics All of the above 4 / 20 The question of choice arises because our productive resources __________. Are limited Can be employed in alternatives Both (a) & (b) None of the above 5 / 20 Business Economics is essentially a component of __________ as it includes application of selected quantitative techniques. Pure Economics Applies Economics Statistical Economics None of the above 6 / 20 __________ defined Business Economics in terms of the use of eco-nomics analysis in the formulation of business policies. Joel Dean Karl Marks Adam Smith Schumpeter 7 / 20 Which one of the following is incorrect about Business Economics? It is applied economics that fills the gap between economic theory and business practice. Business Economics integrates economic theory with business practice. Business Economics is also referred to as Managerial Economics. Business Economics is more concerned with Macro Economics. 8 / 20 Concept of Business Economics was given by: Joel Dean Alfred Marshall Adam Smith L. Robbins 9 / 20 The management of a business unit generally needs to make __________. Strategic Decision Tactical Decision Operational Decision All of the above 10 / 20 Micro Economics is the study of: Individual parts of the economy The economy as a whole Choice making Development of the economy 11 / 20 Micro economics does not study __________. Consumer behaviour Factor pricing General price level Firms equilibrium 12 / 20 Which one of the following is not a subject matter of Micro-Economics? Behaviour of Firms External Value of Currency Factor Pricing Location of Industry 13 / 20 The heart of Business Economics is __________. Micro Economic Theory of the behaviour of consumers and firms in competitive markets. Macro-Economic Theory of the national income Income Economic analysis to analyze the industry. All of the above. 14 / 20 Which of the following is not included in Economics? Family Structure Managerial Economics Micro Economics Macro Economics 15 / 20 A study of how increase in the corporate income tax rate will affect the natural unemployment rate is an example of: Micro Economics Descriptive Economics Macro Economics Normative Economics 16 / 20 Micro Economics Covers: National Income and National Output External Value of Currency Overall level of Savings and Investment Location of Industry 17 / 20 The branch of economic theory that deals with the problem of allocation of resources is: Micro Economics Macro Economics Econometrics None of these 18 / 20 Which of the following is not the subject matter of Business Economics? Should our firm be in this business? How much should be produced and at price should be kept? How will the product be placed in the market? How should we decrease unemployment in the economy? 19 / 20 The branch of economic theory that deals with the problem of allocation of resources is __________. Micro-Economic theory. Macro-Economic theory. Econometrics. None of the above 20 / 20 __________ examines how the individual units (Consumers or firms) make decisions as to how to efficiently allocate their scare resources. Macro Economics Micro Economics Mathematical Economics Consumer Economics Your score isThe average score is 67% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 16 Created on July 06, 2023 By admin Eco Ch 1 Quiz 3 1 / 20 Which of the following falls under micro economics? National Income General price level Factor pricing National saving and investment 2 / 20 Which of these is a part of micro economics? Factor pricing National Income Balance of payment None of the above 3 / 20 Micro economics is also known as __________. Public economics Price theory Income theory Demand theory 4 / 20 Micro Economics is concerned with: Consumer behaviour Product pricing Factor pricing All of the above 5 / 20 Which of these is an example of macro economics: Problem of unemployment in India Rising price level in the country Increase in disparities of income All of the above 6 / 20 A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of __________. Macro-Economics. Descriptive Economics. Micro-economics. Normative economics. 7 / 20 Macro Economics is the study of __________. All aspects of scarcity. The national economy and the global economy as a whole. Big businesses. The decisions of individual businesses and people. 8 / 20 Which of the following does not suggest a macro approach for India? Determining the GNP of India. Finding the causes of failure of ABC Ltd. Identifying the causes of inflation in India. Analyse the causes of failure of industry in providing large scale employment 9 / 20 Macro Economics is also called __________ economics. Applied Aggregate Experimental None of the above 10 / 20 The Macro Economics does not cover the area of __________. General price level and interest rates Level of employment and rate of economic growth Balance of trade & Balance of payments Product Pricing 11 / 20 Which of the following is a part of the subject matter of macro economics? Study of firms Aggregate profits of a firm Market demand for a product Net national product 12 / 20 Which of the following would be considered a topic of study in Macro-economics? The effect of increase in wages on the profitability of cotton industry The effect on steel prices when more steel is imported The effect of an increasing inflation rate on living standards of people in India The effect of an increase in the price of coffee on the quantity of tea consumed 13 / 20 Which of the following is not a subject matter of Micro-economies? The price of mangoes. The cost of producing a fire truck for the fire department of Delhi, India. The quantity of mangoes pro-duced for the mangoes market. The national economy’s annual rate of growth 14 / 20 Macro economics include __________. Product pricing Consumer behaviour External value of money Location of industry 15 / 20 An example of ‘positive’ economic analysis would be: An analysis of the relationship between the price of food and the quantity purchased. Determining how much income each person should be guaran-teed. Determining the ‘fair’ price for food. Deciding how to distribute the output of the economy. 16 / 20 Which of the following is a normative statement? Planned economies allocate re-sources via government depart-ments. Most transitional economies have experienced problems of falling output and rising prices over the past decade. There is a greater degree of consumer sovereignty in market economies than planned econo-mies. Reducing inequality should be a major priority for mixed economies 17 / 20 Business Economics relies heavily on the techniques of __________. Micro Economics Macro Economics Normative Science only Economics discipline only. 18 / 20 Business Economics enables appli-cation of economic logic and analytical tools to __________. Bridge the gap between theory and practice. Increase the implementation sci-ence. Increase the effectiveness. Apply tools of macro economics. 19 / 20 Shyam : This year due to heavy rainfall my option crop was damagedKrishna: Climates affects crop yields. Some years are bad, other are goodHari: Don’t worry – Price increase will compensate for the fall in quantity suppliedRadhe: The Government ought to guarantee that our income will not fall.In this conversation, the normative statement is made by Shyam Krishna Hari Radhe 20 / 20 Business Economics is __________ in its approach as it tackles practical problems which the firm faces in the real world. Scientific Programmatic Theoretical Mathematical Your score isThe average score is 84% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 18 Created on July 06, 2023 By admin Eco Ch 1 Quiz 4 1 / 20 The difference between positive and normative Economics is: Positive Economics explains the performance of the economy while normative Economics finds out the reasons for poor perfor¬mance. Positive Economics describes the facts of the economy while normative Economics involves evaluating whether some of these are good or bad for the welfare of the people. Normative Economics describes the facts of the economy while positive Economics involves evaluating whether some of these are good or bad for the welfare of the people. Positive Economics prescribes while normative Economics de-scribes. 2 / 20 Normative aspect of Economics is given by: Marshall Robbins Adam Smith Samuelson 3 / 20 Normative Economics is based on: Ethical Considerations Facts and Generalization What is? All of the above 4 / 20 Deductive and Inductive methods are complimentary to each other. It is: Absolutely correct Absolutely incorrect Partially incorrect None of the above 5 / 20 Under Inductive method logic proceeds from: General to particular Positive to normative Normative to positive Particular to general 6 / 20 Positive science only explains __________ What is? What ought to be? What is right or wrong None of the above 7 / 20 Ram: My corn harvest this year is poor.Krishan: Don’t worry. Price increases will compensate for the fall in quantity supplied.Vinod: Climate affects crop yields. Some years are bad, others are good.Madhu: The Government ought to guarantee that our income will not fall.In this conversation, the normative statement is made by Ram Krishan Vinod Madhu 8 / 20 Which of the following is a norma-tive economic statement? Unemployment rate decreases with industrialization Economics is a social science that studies human behaviour. The minimum wage should be raised to ₹ 200 per day India spends a huge amount of money on national defence. 9 / 20 In inductive method, logic proceeds from: General to Particular Particular to General Both (a) and (b) None of these 10 / 20 Who gave the positive aspect of science? Alfred Marshall A.C. Pigou Adam Smith Robbins 11 / 20 Under Inductive method, the logic proceeds from: General to particulars Particular to general Both (a) and (b) None 12 / 20 Which of the following statements is incorrect? Business economics is normative in nature. Business Economics has a close connection with statistics. Business Economist need not worry about macro variables. Business Economics is also called Managerial Economics. 13 / 20 Business Economics is generally in nature. Normative Prescriptive Normative or Prescriptive Theoretical 14 / 20 __________ analyses causes and effect relationship between variables in an objective and scientific manner. Positive Science Normative Science Negative Science Analytical Science 15 / 20 Economics which is concerned with welfare propositions is called __________. Socialistic economics Capitalistic economics Positive economics Normative economics 16 / 20 “Economics is neutral between ends”. The statement is given by: L. Robbins Mrs. Joan Alfred Marshall A.C. Pigou 17 / 20 Find out the correct statement __________ Higher the prices, lower the quality demanded of a product are a normative statement Micro and macro-economics are interdependent In a capitalist economy, the eco-nomic problems are solved by planning commission In deductive method logic pro-ceeds from particular to the general 18 / 20 Business Economics is __________. Normative in nature Interdisciplinary in nature Both None 19 / 20 Although business economics combines the essentials of normative and positive economic theory but the emphasis is on : Positive Normative Both Positive and Normative Neither Positive nor Normative. 20 / 20 The Business Economics incorpo-rates tools from other disciplines such as Mathematics, operations Research, Management theory, Accounting, etc. Therefore, Business Economics is Intra-disciplinary Inter-disciplinary Multi-disciplinary Flexi-disciplinary Your score isThe average score is 63% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 16 Created on July 06, 2023 By admin Eco Ch 1 Quiz 5 1 / 20 Business economy involves theory of Business economics with __________. Normative Economics Business practices Micro Economics Macro Economics 2 / 20 In which of the following methods conclusions are drawn on the basis of collection and analysis of facts? Deductive method Scientific method Inductive method Experimental method 3 / 20 Business Economics involves the elements of __________. Micro Environment Macro Environment Both (a) and (b) None of the above. 4 / 20 Under inductive method logic proceeds from: General to Particular Positive to narrative Normative to positive Particular to general 5 / 20 __________ explains the rela-tionship between inputs and output. Production Theory Demand Analysis Inventory Management None of the above 6 / 20 Which of the following is not within the scope of Business Economics? Capital Budgeting Risk Analysis Business Cycles Accounting Standards 7 / 20 Applied economics includes __________. Regression analysis and math-ematical linear programming Capital budgeting Both (a) and (b) None 8 / 20 Which factor is included in business Economics? Business Economics is an art Inter-disciplinary in nature Normative in nature All of the above 9 / 20 The operational or interval issues to which economic theories can be directly applied are related with. Micro Economics Macro Economics Business Economics Environmental Economics 10 / 20 Which of the following economic system has to deal with the control problem of scarcity of resources? Capitalist Socialist Mixed All of the above 11 / 20 Which of the following statement is false? The Resources are limited. The Resources have alternative uses. If resources are unlimited, people would be able to satisfy all their wants. The economics problem arises because resource has only a single use. 12 / 20 Which of the following Macro-Economic Factor is considered in Business Economics? Business Cycles Employment, Prices Saving & investment All of the above. 13 / 20 Business Economists use method(s) __________ to maintain optimum stock of inventories. ABC Analysis Simple simulation exercises Mathematical models All of the above 14 / 20 Business Economics with the help of advanced tools like __________ enables the firm to arrive at the best course of action for optimum utilisation of available resources. Accounting Finance Linear Programming Marketing Mix 15 / 20 Which of the following is not a part of central economic Problem? What to Produce? How to Produce? For whom to Produce? Price fixation of Production. 16 / 20 Capital intensive technique would get chosen in a __________. Labour surplus economy where the relative price of capital is lower. Capital surplus economy where the relative price of capital is lower. Developed economy where technology is better. Developing economy where technology is poor. 17 / 20 The central problem in economics is that of __________. Comparing the success of com-mand versus market economies. Guaranteeing that production oc¬curs in the most efficient manner. Guaranteeing a minimum level of income for every citizen. Allocating scarce resources in such a manner that society’s un-limited needs or wants are satis-fied in the best possible manner. 18 / 20 A developed economy uses technique in production. Labour intensive. Capital intensive Home-based Traditional 19 / 20 The Central problem in every eco-nomic society is: To ensure a minimum level of income for every individual. To allocate scarce resources in such a manner that societies unlimited wants are satisfied in the best possible manner. To ensure that production occurs in the most efficient manner. To provide job to every jobseeker. 20 / 20 refers to the sum total of arrangements for the production and distribution of goods and services in a Society. Economic System Social System Business system Comprehensive System Your score isThe average score is 74% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 10 Created on July 06, 2023 By admin Eco Ch 1 Quiz 6 1 / 20 Business economy involves theory of Business economics with __________. Normative Economics Business practices Micro Economics Macro Economics 2 / 20 In which of the following methods conclusions are drawn on the basis of collection and analysis of facts? Deductive method Scientific method Inductive method Experimental method 3 / 20 Business Economics involves the elements of __________. Micro Environment Macro Environment Both (a) and (b) None of the above. 4 / 20 Under inductive method logic proceeds from: General to Particular Positive to narrative Normative to positive Particular to general 5 / 20 __________ explains the rela-tionship between inputs and output. Production Theory Demand Analysis Inventory Management None of the above 6 / 20 Which of the following is not within the scope of Business Economics? Capital Budgeting Risk Analysis Business Cycles Accounting Standards 7 / 20 Applied economics includes __________. Regression analysis and math-ematical linear programming Capital budgeting Both (a) and (b) None 8 / 20 Which factor is included in business Economics? Business Economics is an art Inter-disciplinary in nature Normative in nature All of the above 9 / 20 The operational or interval issues to which economic theories can be directly applied are related with. Micro Economics Macro Economics Business Economics Environmental Economics 10 / 20 Which of the following economic system has to deal with the control problem of scarcity of resources? Capitalist Socialist Mixed All of the above 11 / 20 Which of the following statement is false? The Resources are limited. The Resources have alternative uses. If resources are unlimited, people would be able to satisfy all their wants. The economics problem arises because resource has only a single use. 12 / 20 Which of the following Macro-Economic Factor is considered in Business Economics? Business Cycles Employment, Prices Saving & investment All of the above. 13 / 20 Business Economists use method(s) __________ to maintain optimum stock of inventories. ABC Analysis Simple simulation exercises Mathematical models All of the above 14 / 20 Business Economics with the help of advanced tools like __________ enables the firm to arrive at the best course of action for optimum utilisation of available resources. Accounting Finance Linear Programming Marketing Mix 15 / 20 Which of the following is not a part of central economic Problem? What to Produce? How to Produce? For whom to Produce? Price fixation of Production. 16 / 20 Capital intensive technique would get chosen in a __________. Labour surplus economy where the relative price of capital is lower. Capital surplus economy where the relative price of capital is lower. Developed economy where technology is better. Developing economy where technology is poor. 17 / 20 The central problem in economics is that of __________. Comparing the success of com-mand versus market economies. Guaranteeing that production oc¬curs in the most efficient manner. Guaranteeing a minimum level of income for every citizen. Allocating scarce resources in such a manner that society’s un-limited needs or wants are satis-fied in the best possible manner. 18 / 20 A developed economy uses technique in production. Labour intensive. Capital intensive Home-based Traditional 19 / 20 The Central problem in every eco-nomic society is: To ensure a minimum level of income for every individual. To allocate scarce resources in such a manner that societies unlimited wants are satisfied in the best possible manner. To ensure that production occurs in the most efficient manner. To provide job to every jobseeker. 20 / 20 refers to the sum total of arrangements for the production and distribution of goods and services in a Society. Economic System Social System Business system Comprehensive System Your score isThe average score is 93% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 14 Created on July 06, 2023 By admin Eco Ch 1 Quiz 7 1 / 20 The choice between labour and Capital intensive techniques is related with. What to Produce? How to Produce? For whom to Produce All of the above. 2 / 20 The classification of economies into Capitalist, Socialist and Mixed is based on their: Mode of Production, exchange and distribution Government’s role in economic activity. Both (a) and (b) Neither (a) nor (b) 3 / 20 Which of the following is not one of the four central questions that the study of economics is supposed to answer? Who produces what ? When are goods produced? Who consumes what? How are goods produced? 4 / 20 Economic Problem arises when: Wants are unlimited Resources are limited Alternative uses of resources All of the above 5 / 20 A capitalist economy uses __________ as the principal means of allocating resources. Demand Supply Efficiency Prices 6 / 20 In a free market economy the al-location of resources is determined by __________. Voting done by consumers A central planning authority Consumer preferences The level of profits of firms 7 / 20 A capitalist economy consists of __________. Central planning authority A mechanism to decide as what, how and for whom to produce Both (a) and (b) None of the above 8 / 20 Freedom of choice is the advantage of __________. Socialism Capitalist Mixed economy None of the above 9 / 20 Which one of the following is not an example of capitalist economy? Japan Mexico Germany Cuba 10 / 20 Exploitation and inequality will be more in __________. Socialism Capitalism Mixed All of the above 11 / 20 Which of the following is considered as a disadvantage of allocating resources using the market system? Income will tend to be unevenly distributed. People do not get goods of their choice People do not get goods of their choice Profits will tend to be low 12 / 20 __________ is an economic system in which all means of production are owned and controlled by private individuals for profit. Capitalist Socialist Mixed None of the above 13 / 20 Which out of these are the feature of capitalism?(i) Profit motive(ii) Human welfare(iii) Work through price mechanism (i) and (ii) (ii) and (iii) (i) and (iii) All of these 14 / 20 Price Mechanism is the main feature of which economy __________. Capitalistic Economy Mixed Economy Socialist Economy All of the above 15 / 20 Capitalistic Economy uses as principal means of allocating resources. Demand Supply Price All of the above 16 / 20 In a free market economy, when consumers increase their purchase of a goods and the level of exceeds then prices tend to rise: Demand, supply Supply, demand Prices, demand Profits, supply 17 / 20 The economic system in which all the means of production are owned and controlled by private individuals for profit. Socialism Capitalism Mixed economy Communism 18 / 20 In which type of economy do consumers and producers make their choices based on the market forces of demand and supply? Open Economy Controlled Economy Command Economy Market Economy 19 / 20 __________ means that buyers ultimately determine which goods and services will be produced and in what quantities. Capitalist Economic Socialist Economy Mixed Economy Consumer Sovereignty 20 / 20 In a capitalist economy, allocation of resources is done by: Producers Government Planners Price mechanism Your score isThe average score is 84% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 12 Created on July 06, 2023 By admin Eco Ch 1 Quiz 8 1 / 20 Capitalistic Economy uses as principal means of allocating resources. Demand Supply Price All of the above 2 / 20 Which one is not the characteristic of capitalistic economy? Profit motive Income inequality Free employment Collective ownership 3 / 20 A capitalist economy is by and large __________. A closed economy A free market economy A centrally controlled economy An economy in which a govern-ment neither collects any taxes nor incurs any expenditure. 4 / 20 A Free Market economy solves its Central Problems through __________. Planning authority Market mechanism Both None 5 / 20 Where does price mechanism exists? Capitalist Economy Socialist Economy Both type of economies None of the above. 6 / 20 An economic system in which all means of production are owned and controlled by private individuals for profit is called: Mixed Economy Socialist Economy Capitalist Economy Developed Economy 7 / 20 A free market economy’s driving force is: Profit motive Welfare of the people Rising income and levels of living None of the above. 8 / 20 The merits of Capitalist economy do not include: Faster process of economic growth Efficient economic decisions and their implementation Incentives for innovation and technological progress Welfare of labour 9 / 20 Which one of the following is not true about capitalist economy? There is freedom of economic choice. Profit motive is the driving force. It is also called as free market economy or laissez Faire economy. Producer is the king under capitalism 10 / 20 Freedom of choice is the advan-tage of __________. Socialism Capitalism Mixed Economy Communism 11 / 20 Which of the following is not demerit of Capitalism? Precedence of property rights over human rights. Misallocation of resources. Punishment for inefficient & imprudent men. Environmental degradation due to excessive materialism. 12 / 20 Capitalistic Economy user __________ as principal means of allocating resources: Demand Supply Price All of the above 13 / 20 A system of economy in which all the means of production are owned and controlled by the private individuals for the purpose of profit, is called: Socialist Economy Capitalist Economy Mixed Economy All of the above 14 / 20 In which among the following systems the ‘right to property’ exists __________. Mixed economy Capitalist economy Socialist economy Traditional economy 15 / 20 A Capitalist Economy follows the policy of: Laissez faire Regulated markets Promoting public sector None of the above 16 / 20 Freedom of choice is the advan-tage of __________. Socialism Capitalism Communism None of the above 17 / 20 Which of the following is not a feature of a capitalist economy? Right to private property Restrictions on consumers Right to choose Profit motive Freedom of enterprise 18 / 20 Which of the following statements does not apply to a market economy? Firms decide whom to hire and what to produce. Firms aim at maximizing profits. Households decide which firms to work for and what to buy with their incomes. Government policies are the primary forces that guide the decisions of firms and households. 19 / 20 Under a free economy, prices are: Regulated Determined through free inter-play of demand and supply Partly regulated None of these 20 / 20 In a capitalist economy the allocation of resources is performed by: Producers Government Planners Price mechanism Your score isThe average score is 89% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 12 Created on July 06, 2023 By admin Eco Ch 1 Quiz 9 1 / 20 Socialist Economy was pro-pounded by: Karl Marx Samuelson A.C. Pigou Adam Smith 2 / 20 Exploitation and inequality are minimal under: Socialism Capitalism Mixed economy None of the above 3 / 20 Socialist economy is __________. Self regulation Profit Oriented Command economy Allocation of resources as per market requirements 4 / 20 The Concept of socialist economy was propounded by __________. Karl Mark Frederic Engels Adam Smith Both (a) & (b) 5 / 20 Socialism ensures __________. Rapid growth and balanced development Right to work Incentives for efficient economic decisions Both (a) and (b) 6 / 20 Administered prices refer to: Prices determined by forces of demand and supply Prices determined by sellers in the market Prices determined by an external authority which is usually the government None of the above 7 / 20 Inequalities of income do not perpetuate in __________. Socialism Mixed Economy Capitalism None 8 / 20 Although Price mechanism exists in __________, but it has only a secondary role. Capitalist Economy Socialist Economy Mixed Economy Price Economy 9 / 20 Socialist economy is also called as __________. Command Economy Centrally Planned Economy Free market Economy Both (a) & (b) 10 / 20 Under __________, the Consumers have no freedom of choice. Capitalist Socialist Mixed None of the above 11 / 20 The demerits of Socialism do not include: Predominance of bureaucracy Red tapism & favoritism Corruption Consumer Sovereignty 12 / 20 Which of the following is an example of Socialist economy? Erstwhile U.S.S.R. North Korea China and Cuba All of the above 13 / 20 Which one of the following is Not a feature of socialist economy? Collective ownership Absence of consumer choice Minimum role of Price Mechanism High Competition 14 / 20 The erstwhile U.S.S.R. is an example of __________ economy. Capitalist Socialist Mixed price 15 / 20 The term “Mixed Economy” denotes: Co-existence of both consumers and producers goods’ industries in the economy. Co-existence of both private and public sectors in the economy. Co-existence of both rural and urban sectors in the economy. Co-existence of both large and small industries in the economy 16 / 20 The Government itself must run important and selected industries and eliminate the free play of profit motive and self-interest. It is applicable in case of economy. Capitalist Socialist Mixed Price 17 / 20 Which economic system is de-scribed by Schumpeter as capitalism in the oxygen tent? Laissez-faire Economy Command Economy Mixed Economy Agrarian Economy 18 / 20 In which economy market and government both play on important role? Mixed economy Socialistic economy Capitalistic economy Business economy 19 / 20 Socialist Economy is also known as __________. Mixed Economy Planned Economy Capitalist Economy None of the above 20 / 20 Mixed economy means __________. All economic decisions are taken by Central Authority All economic decisions are taken by private entrepreneurs Economic decisions are partly taken by the state and partly by private entrepreneurs None of these Your score isThe average score is 73% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 16 Created on July 06, 2023 By admin Eco Ch 1 Quiz 10 1 / 15 Which Economic System is de-scribed by Schumpeter as ‘capitalism in the oxygen tent’? Laissez- Faire Economy Command Economy Mixed Economy Agrarian Economy 2 / 15 Dual system of pricing exist in: Free market economy Socialistic economy Mixed economy None of the above 3 / 15 In a mixed economy __________. All economic decisions are taken by the central authority. All economic decisions are taken by private entrepreneurs. Economic decisions are partly taken by the state and partly by the private entrepreneurs. None of the above. 4 / 15 Which of the following are the features of a mixed economy? Planned economy Dual system of pricing exists Balance regional development All of the above 5 / 15 In India Mixed Economy exists due to: Coexistence of public sector and private sector. Individual forces of demand and supply. Orders by government. None of these 6 / 15 __________ is a sector in which both the government and the private enterprises have equal access and join hands to produce commodities and services, leading to the establishment of joint sector. Private Sector Public Sector Combined sector Price 7 / 15 Mixed economy means: Co-existence of small and large industries Promoting both agriculture and industries in the economy Co-existence of rich and poor Co-existence of public and private sectors 8 / 15 Mixed economy means: Coexistence of both private and public sector Coexistence of poor and rich people Both (a) and (b) None 9 / 15 The existence of three sectors of industries (Private, Public and Combine sector) is one of the futures of __________. Capitalist Socialist Mixed Price 10 / 15 Who is the author of “The Nature and causes of wealth of Nation”? Karl Marx Adam Smith JB Say AC Pigou 11 / 15 Who has defined economics as “Science which deals with wealth”? Adam Smith Canon J.B. Say A.C. Pigou 12 / 15 Which of the following statements is incorrect? Alfred marshall propagated the wealth definition of Economics L. Robbins introduces the “Scarcity” definition of Economics Samuelson emphasized upon the “growth” aspect of Economics A.C. Pigou believed in “welfare” aspect of Economics 13 / 15 __________ refers to the work area where surplus manpower is employed out of which some individuals have zero or almost zero marginal productivity, such that if they are removed the total level of output remains unchanged. Voluntary Disguised Structural Technological 14 / 15 Larger production of __________ goods would lead to higher production in future. Consumer goods Capital goods Agricultural goods Public goods 15 / 15 “Features of the book wealth of __________. It was the first book user on economics It was created in 1776. It was also known as ‘wealth of nations” nations’. All of the above. Your score isThe average score is 79% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
