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Test: Introduction To Microeconomics - 2

30 Questions MCQ Test Economics for CA CPT | Test: Introduction To Microeconomics - 2

Description

Attempt Test: Introduction To Microeconomics - 2 | 30 questions in 30 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Economics for CA CPT for CA Foundation Exam | Download free PDF with solutions

QUESTION: 1

Which of the following statements is incorrect?

A.
Alfred marshall propagated the wealth definition of Economics
B.
L. Robbins introduced the “Scarcity” definition of Economics
C.
Samuelson emphasized upon the “growth” aspect of Economics
D.
A.C Pigou believed in “welfare” aspect of Economics

Solution:

QUESTION: 2

In a capitalist economy, allocation of resources is done by:

A.
Producers
B.
Government
C.
Planners
D.
Price mechanism

Solution:

QUESTION: 3

Which of these is an example of macroeconomics:

A.
Problem of unemployment in India
B.
Rising price level in the country
C.
Increase in disparities of income
D.
All of above.

Solution:

QUESTION: 4

Positive science only explains

A.
What is?
B.
What ought to be?
C.
What is right or wrong?
D.
None of the above.

Solution:

QUESTION: 5

Which of the following is not a feature of a capitalist economy?

A.
Right to private property
B.
Restrictions on consumers Right to choose
C.
Profit motive
D.
Freedom of enterprise

Solution:

QUESTION: 6

Who has defined economics as “Science which deals with wealth”?

A.
Adam Smith
B.
Canon
C.
J.B. Say
D.
A.C. Pigou

Solution:

Adam Smith defined economics as the 'Science of Wealth'. Adam Smith, the father of economics, published his master piece in 1776 and according to him, the main objective of any human activity is the acquisition and attainment of wealth and economics deals with the acquisition, accumulation and expenditure of wealth.

QUESTION: 7

The term “Mixed Economy” denotes:

A.
Co-existence of both consumers and producers good’s industries in the economy.
B.
Co-existence of both private and public sectors in the economy.
C.
Co-existence of both rural and urban sectors in the economy.
D.
Co-existence of both large and small industries in the economy.

Solution:

QUESTION: 8

A free market economy’s driving force is:

A.
Profit motive
B.
Welfare of the people
C.
Rising income and levels of living
D.
None of the above.

Solution:

QUESTION: 9

Economics which is concerned with welfare proposition is called

A.
Socialistic economics
B.
Capitalistic economics
C.
Positive economics
D.
Normative economics

Solution:

QUESTION: 10

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:

A.
Socialist Economy
B.
Capitalist Economy
C.
Mixed Economy
D.
All of the above.

Solution:

QUESTION: 11

‘Economics is the science of choice making’ it implies:-

A.
No choice is to be made
B.
Choice to be made between alternative uses
C.
Choice to be made between means and ends
D.
None of the above.

Solution:

QUESTION: 12

Dual system of pricing exist in:

A.
Free market economy
B.
Socialistic economy
C.
Mixed economy
D.
None of the above

Solution:

QUESTION: 13

A capitalist economy is by and large_________.

A.
A closed economy
B.
A free market economy
C.
A centrally controlled economy
D.
An economy in which a government neither collects any taxes nor incurs any expenditure.

Solution:

QUESTION: 14

The usual shape of production possibility curve is __________ towards the origin.

A.
Convex
B.
Concave
C.
Straight line
D.
A rectangular hyperbola

Solution:

QUESTION: 15

Which of the following are the features of a mixed economy?

A.
Planned economy
B.
Dual system of pricing exists
C.
Balanced regional development
D.
All of the above

Solution:

QUESTION: 16

Which one is not the characteristic of capitalistic economy?

A.
Profit motive
B.
Income inequality
C.
Free employment
D.
Collective ownership

Solution:

QUESTION: 17

In inductive method, logic proceeds from:

A.
General to Particular
B.
Particular to General
C.
Both (a) and (b)
D.
None of these.

Solution:

QUESTION: 18

Which of the following is a part of the subject matter of macroeconomics?

A.
Study of firms
B.
Aggregate profits of a firm
C.
Market demand for a product
D.
Net national product.

Solution:

QUESTION: 19

Micro economics is also known as _______

A.
Public economics
B.
Price theory
C.
Income theory
D.
Demand theory

Solution:

QUESTION: 20

A capitalist economy uses _______ as the principal means of allocating resources

A.
Demand
B.
Supply
C.
Efficiency
D.
price

Solution:

QUESTION: 21

Deductive and Inductive methods are complimentary to each other. It is:

A.
Absolutely correct
B.
Absolutely incorrect
C.
Partially incorrect
D.
None of the above.

Solution:

QUESTION: 22

Where does price mechanism exists?

A.
Capitalist Economy
B.
Socialist Economy
C.
Both type of economies
D.
None of the above.

Solution:

QUESTION: 23

According to Robbins, ‘means’ are:

A.
Scarce
B.
Unlimited
C.
Undefined
D.
All of these

Solution:

QUESTION: 24

Under a free economy, prices are:

A.
Regulated
B.
Determined through free interplay of demand and supply
C.
Partly regulated
D.
None of these

Solution:

QUESTION: 25

Which one in the following is not correct:

A.
There are limited wants
B.
Means are scarce
C.
Resources have alternative uses
D.
Economics is science

Solution:

QUESTION: 26

Mixed economy means:

A.
Co-existence of small and large industries
B.
Promoting both agriculture and industries in the economy
C.
Co-existence of rich and poor
D.
Co-existence of public and private sectors

Solution:

QUESTION: 27

The term “Mixed Economy” denotes:

A.
Co-existence of both consumers and producers good’s industries in the economy.
B.
Co-existence of both private and public sectors in the economy.
C.
Co-existence of both rural and urban sectors in the economy.
D.
Co-existence of both large and small industries in the economy.