Test: Introduction To Microeconomics - 3


40 Questions MCQ Test Economics for CA CPT | Test: Introduction To Microeconomics - 3


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QUESTION: 1

The capital that is consumed by an economy or a firm in the production process is known as

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QUESTION: 2

The law of scarcity :

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QUESTION: 3

Who expressed the view that “Economics is neutral between end”?

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QUESTION: 4

Which of the following is the best general definition of the study of Economics?

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QUESTION: 5

What implications) does resource scarcity have for the satisfaction of wants?

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QUESTION: 6

Rational decision making requires that :

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QUESTION: 7

What is the “Fundamental Premise of Economics”?

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QUESTION: 8

Which of the following is a normative statement?

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QUESTION: 9

Which of the following statements would you consider to be a normative one?

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QUESTION: 10

An example of ‘positive’ economic analysis would be :

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QUESTION: 11

Identify the correct statement :

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QUESTION: 12

A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of

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QUESTION: 13

Which of the following does not suggest a macro approach for India?

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QUESTION: 14

Economic goods are considered scarce resources because they

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QUESTION: 15

From the national point of view which of the following indicates micro approach?

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QUESTION: 16

In a free market economy the allocation or resources is determined by

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QUESTION: 17

A capitalist economy uses ____________________ as the principal means of allocating resources.

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QUESTION: 18

In a free market economy, when consumers increase their purchase of a good and the level of ________________exceeds ______________ then prices tend to rise.

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QUESTION: 19

Which of the following would be considered a disadvantage of allocating resources using a market system?

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QUESTION: 20

In a mixed economy,

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QUESTION: 21

The central problem in economics is that of

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QUESTION: 22

If the PPF is linear, i.e., a straight line, which of the following is true?

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QUESTION: 23

Periods of less than full employment correspond to

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QUESTION: 24

Which of the following would not result in an rightward shift of the PPF?

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QUESTION: 25

During presidential election campaigns, candidates often promise both more “gun” and more “butter” if they are elected. Assuming unemployment is not a problem, what possible assumption are they making but not revealing to their audience?

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QUESTION: 26

What is one of the future consequences of an increase in the current level of consumption in the India?

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QUESTION: 27

(Direction 27 - 33) Use the figure at right to answer questions.

 

Q. Which of the following represents the concept of trade-offs?

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QUESTION: 28

 

Q. Which of the following would not move the PPF for this economy closer to point W?

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QUESTION: 29

 

Q. Moving from point A to point D, what happens to the opportunity cost of producing each additional unit of consumer goods?

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QUESTION: 30

 

Q. What is the opportunity cost of moving from point A to point B?

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QUESTION: 31

 

Q. Unemployment or underemployment of one or more resources is illustrated by production at point :

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QUESTION: 32

 

Q. Which of the following is a reason for the curvature or bowed-out shape of the PPF?

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QUESTION: 33

 

Q. Which of the following is a reason for the negative slope of the PPF?

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QUESTION: 34

Capital intensive technique would get chosen in a

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QUESTION: 35

Labour intensive technique would get chosen in a

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QUESTION: 36

 

Q. In this conversation, the normative statement is made by

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QUESTION: 37

Consider the following and decide which, if any, economy is without scarcity :

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QUESTION: 38

Which of the following is not a microe-conomic subject matter?

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QUESTION: 39

Which of the following is not one of the four central questions that the study of economics is supposed to answer?

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QUESTION: 40

If the marginal (additional) opportunity cost is a constant then the PPC would be

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