ECONOMICS OBJECTIVES QUESTIONS FOR BOARD EXAM

1.       The term ‘microeconomics’ derived from the Greek Word _____________ 2.       Microeconomics is concerned with the study of

______________/__________________3.       Microeconomics is a _______________ equilibrium analysis.4.       Microeconomics adopts ______________approach5.       The credit for the development of micro economics approach goes to

____________6.       ________________ implies that every individual under consideration

behaves in an economically rational manner.7.       Microeconomics deals with Factor Pricing.8.       A rational Consumer wants ________________ Satisfaction.9.       Utility depends on the __________________ of the want.10.   Marshallassumes ____________________ measurement or utility.11.   _______________Utility is the sum of all the marginal utilities from the

consumption of a commodity.12.   The utility from an extra unit of consumption is called ______________ utility.13.   When Total utility falls, the marginal utility becomes___________________.14.   The Marginal utility tends to diminish with the ___________________ in the

units of consumption of a commodity.15.   When Marginal Utility is zero, the total utility will be the ________________.16.   The law of demand is based on the concept of ________________.17.   The Law of DMU is not applicable for ________________.18.   Producing Sugar from sugarcane is an example of _________________.19.   The law of DMU is useful for ________________.20.   A desire backed by ability to buy and willingness to pay for a commodity is

called_________.21.   The law of demand is based on the Law of _______________.22.   Other thing remaining constant, when the price of a product increases, the

demand for it_____.23.   The relationship between the price and demand is ______________.24.   The normal demand curve slopes ________________.25.   Electricity has Composite demand.26.   Salt has _________________ demand.27.   The demand for necessities is _______________ demand.28.   ______________ Demand curve is parallel to Y-axis.29.   Demand for Pin is ________________.30.   The demand for Luxuries is _______________.31.   The relation between the price of a commodity and its supply is

_____________.32.   The slope of the supply curve is _________________.33.   If monsoon fails, the supply of food grains would _______________.34.   Reservation price is _______________- expected price.

35.   The Law of Supply represents general tendency of Sellers.36.   Stock refers to the State Concept.37.   Discriminating monopoly implies that the monopolist charges Different Prices.38.   A single Seller market category is Monopoly.39.   Selling Cost is an important feature of Monopolistic Competition.40.   Demand Curve for a firm in a perfect competition is Horizontal line.41.   The land is a ________________ factor.42.   There are _______________ factor of production.43.   Labour has a _______________ bargaining power.44.   _____________is an activity that results in goods and services intended for

exchange.45.   Labour is _______________factors of production.46.   Reward paid for capital is known as _________________.47.   Land is subject to ___________ returns.48.   Capital is a _____________ factor of production.49.   _____________ is regarded as primary factors of production.50.   Reward obtained by entrepreneur is known as PROFIT .51.   The Captain of the Industry is ENTREPRENEUR .52.   Land does not include Machinery.53.   The Supply of labour in short run is _________________.54.   The term macroeconomics is derived from the Greek

word_________________.55.   Macroeconomics is concerned with the study of_________________.56.   Macroeconomics follows _________________ equilibrium.57.   In _________________, there was worldwide depression.58.   The credit for the development of macro – economic approach goes to

_________________.59.   Microeconomics assumes _________________.60.   Subject matter of macroeconomics deals with _________________.61.   The word ‘macro’ is derived from makros, which is a _________________

word.62.   Macroeconomics does not deal with _________________.63.   The revolutionary book named “The General Theory of Employment, Interest

and Money” was written by _________________.64.   The value of national _________________ indicates national income.65.   A _________________ economy does not have transactions with other

countries.66.   Real national income means the national income at _________________

prices.67.   Net _________________ is added to gross expenditure in order to derive

national income in an open economy.68.   By adding together rents, wages, interest and profits, national

_________________ is obtained.69.   When we deduct indirect taxes from National Income at Market Price, we get

National income at _________________.

70.   When we deduct Net factor Income from abroad from National Income, we get _________________.

71.   When we add net factor income from abroad to Domestic Income we get. _________________.

72.   For obtaining Net National Product, we deduct _________________ from Gross National Product.

73.   The estimates of National Income in India are prepared by _________________.

74.   The value of output within the country in an accounting year is called.75.   The value of output contributed by citizens of a country in an accounting year

is called _________________.76.   Macroeconomics is related to the study of the _________________.77.   The determination of national Income is a subject matter of

_________________ economics.78.   The distribution of national income among factors of production is known as

_________________ distribution.79.   National income refers to value of goods and services produced in a

_________________.80.   Depreciation is also called as _________________.81.   The economy, having foreign trade relations is called _________________.82.   The aggregate output is based on total _________________.83.   _________________ is the sum total of the output of goods and services

produced in an economy.84.   Except _________________, all the other factors of the aggregate supply

remain constant.85.   Effective demand is the point of _________________ employment

equilibrium.86.   Real investment implies creation of new _________________.87.   When exports are greater then imports, earnings will be

_________________.88.   The level of output has _________________ relationship with the level of

employment.89.   At full employment level, the aggregate supply function will be a

_________________straight line.90.   In a closed economy, AD is determined by ___________________.91.   Intersection between aggregate demand and aggregate supply curves

determines the point of effective   demand.92.   The General Theory of Employment, Interest and Money was propounded

by J.M. Keynes.93.   The Aggregate Demand constitutes the flow of Expenditure.94.   Lord Keynes gave the concept of Consumption Function.95.   Consumption Function is refers to the propensity to consume.96.   The expenditure incurred on railways, public parks, etc. is treated asPublic

Capital Expenditure.97.   Consumption Expenditure at Zero income level is

called autonomousconsumption Expenditure.

98.   Investment based on profit motive is called as Induced Investment.99.   Aggregate Demand is determined by Government Demand.100.            Aggregate Supply is determined by Natural Resources.101.            Net exports will be negative if Imports exceeds Exports.102.            Net exports are added toaggregate demand.103.            Investment made irrespective of the rate of interest or the profit motive is

called autonomous.104.            A cheque which bears a future date is called a

__________________cheque.105.            _____________ Cheques are not payable at the counter of the bank.106.            Loans advanced by banks create derivativedeposits.107.            A _____________ cheque is safest cheque.108.            Deposits on current account are referred to as ______________

deposits.109.            A current account is most suitable for __________________.110.            The payee gets cash on bank’s counter against ________________

cheque.111.            Investment Corporation of India is an example of

_________________bank.112.            Overdraft facility is given to _____________________ account holder.113.            Cash credit is given for a ____________________ period114.             Use of cheques, is a sign of ___________________money.115.            Saving bank account is suitable for people from ____________class.116.            _______________account holder earns lowest interest rate from the

commercial banks.117.            Safe deposit lockers facility provided by the bank is one of

theUtility functions.118.            Higher the cash reserve ratio loweris the power to create credit by

commercial bank.119.            E-Banking is provided through _______________.120.            Deposits received by a bank are its Liabilities.121.            Credit creation is a function of Commercialbank.122.            Money-at-call is a loan for a Very short Period.123.            ____________ Functions is not performed by the commercial bank.124.            Primary function of a commercial bank is accepting deposits.125.            ATM facility is available for 24 hours.126.            Cheque which can be Encashed immediately at bank counter

isbearer   cheque.127.            _____________ Banks that develops saving habits.128.            Loan facility is given to  all the account holders. 129.            Bills discounted method is popular in  developed countries.130.            The currency notes issued by the central banks are ____________legal

tender.131.            The monetary policy of the Central Bank regulates money supply to

realize_________goals.

132.            Quantitative Credit Control weapons aim at controlling the Volumeof Credit.

133.            To control inflation, the bank rate must be ______________________.134.            ____________________ acts as the banks of banks.135.            _________rate is a rate at which the Central Bank rediscounts bills of

exchange from commercial bank.136.            The bank of England is the oldest Central Bank in the World.137.            Cash reserve ratio is the Quantitativemeasures of credit control.138.            Central bank is the render of the last resort.139.            The Central banks lends loans to government and commercial bank140.            The number of Central Bank in a Country is one141.            During Depression, the Central Bank adopts the

_______________________.142.            The Budget is presented by the _____________________before the

parliament. (PM, HM,CM,FM)143.            _________________contains estimates of anticipated revenue by way of

taxes and other means.144.            In India budget is also known as ___________________________.145.            The Budget is a ______________________statement.146.            _______________________taxes are paid directly by the people to the

government.147.            _______________Policy is related with public revenue and pubic

expenditure.148.            The Income of government through all sources is called

public__________________________.149.            If the total expenditure exceeds revenue receipts, the budget is

________________________.150.            The right of minting coins is the monopoly of the State.151.            ___________________money is issued at the time of emergency.152.            Refusal to accept the legal tender isa punishable offence.153.            In India, all the currency notes, except one (1) rupee notes, are issued

by Reserve Bank of India.154.            Value expressed in terms of money is calledPrice.155.            Paper money was first initiated by Shroffs.156.            Paper money was first introduced in ______________. (China, Russia,

India, Canada, U.S.A)157.            At Break-even point Income=Consumption.158.            The part of income not spent on consumption is called as saving.159.            An increase income leads to Increase in consumption and saving.160.            In poor countries marginal propensity to save is Low.161.            Consumption is a Decreasingfunction of saving.

STATE WHETHER THE FOLLOWING STATEMENTS ARE TRUE OR FALSE

1.       Microeconomics adopts general equilibrium approach—2.       National Income is studied under Macroeconomics—3.       Scarcity of resources arises only in poor countries—4.       The subject matter of economics is divided into microeconomics and

macroeconomics—5.       Utility is a subjective concept—6.       The law of DMU is not applicable to music—7.       Utility means the power of the commodity to satisfy wants—8.       Utility can be measured cardinally—9.       When the marginal utility is maximum, the total utility will be zero—10.   The marginal utility derived from the consumption of extra unit of commodity

—11.   As consumption increases the marginal utility also increases--12.   Demand means a want or desire--13.   A desire backed by purchasing power is called a demand--14.   Demand is a relative term—15.   The law of demand is based on the Law of diminishing Marginal Utility—16.   The Law of Demand is Universal—17.   There is inverse relationship between Price and Demand—18.   Demand curve slopes downwards to the right—19.   Demand Curve usually slopes upwards from the left to the right—20.   Demand curve slopes downwards from the right to the left—21.   Price is the sole determinants of Demand—22.   A rise in the price is followed by a rise in the demand—23.   A rise in the price followed by a decrease in the demand—24.   Exceptional demand curve slopes upwards—25.   The factors of production have indirect demand—26.   Demand for food grains is elastic—False27.   The demand for luxuries is highly inelastic—False28.   Larger the number of substitutes, the more elastic is the demand—True29.   Fans and air conditioners have positive cross elasticity of demand—True30.   ink and pen have zero cross elasticity of demand—False31.   Supply is a relative term—True32.   Stock cannot exceed supply—False33.   Furniture is perishable product—False34.   Labour supply curve always slopes upward—false35.   The reservation price for flowers is low—True36.   Supply inversely related to the price—37.   Stock and price have inverse relationship—38.   Supply is a flow concept—39.   Supply can exceed Stock—40.   The law of supply is inapplicable in case of handicraft products—41.   Under perfect competition, commodities are heterogeneous in nature—

42.   Price discrimination is not possible in perfect competition—43.   In a monopoly market, firm and industry are the same—44.   Perfect competition is a theoretical concept—45.   the demand curve of monopolistic competitive market is horizontal—46.   Land is free gift of nature—47.   Capital is a natural factor—48.   Labour cannot be stored—49.   Labour and Labourers are inseparable—50.   Demand for Labour is direct demand—51.   Labour is geographically immobile—52.   All wealth is Capital—53.   Capital is a human factors—54.   Labours are homogeneous—55.   Machinery and factory building are fixed capital—56.   Rainfall is included in land—57.   Labours earn Profit—58.   Labours earns wages—59.   Capital is artificial in nature—60.   An entrepreneur should be rigid in thoughts—61.   Working capital is durable in nature—62.   Macroeconomics  provides solution to the problem to the problem rising

prices—63.   Macroeconomics studies individual economic unit—64.   Macroeconomics relies upon marginal utility analysis—65.   Inflation is a state of slowing down business activities—66.   Macroeconomics uses lumping method—67.   Macroeconomics estimates aggregates on the basis of homogeneity—68.   National income is a Macroeconomics aggregate—69.   National income is a heterogeneous whole—70.   NNP can exceed GNP—71.   NNP is derived from GNP by adding depreciation—72.   The net exports add to GNP—73.   Government borrows to invest in development projects—74.   Total expenditure means total income—75.   Autonomous consumption can be zero—76.   The consumption tends to increase with the rise in the income—True77.    For an open economy, aggregate demand is equal to C+I+G—False78.   Aggregate supply is equal to nation’s aggregate output—True79.   The state of technology affects the growth rate of the aggregate supply—

True80.   The net export can be negative or positive—True81.   Propensity to consume means a mere desire to consume—82.   The part of income that is not consumed is called as investment—False83.   Saving function is a counterpart of consumption function—True84.   MPC refers to the effect of additional income on consumption—True

85.   According to Keynes, income and consumption increases by same proportion—false

86.   As Income raises, Saving also rises—True87.   As incomes rises, consumption rises more than proportionately—False88.   Consumption remains zero when income is zero—False89.   There is no difference between MPC and APC—False90.   Higher rate of interest reduces saving tendencies—False91.   Even at zero income, consumption will be incurred—True92.   credit facilities increase the consumption expenditure—True93.   Unexpected boom in stock market, reduces the consumption expenditure—94.   Aggregate Consumption depends upon he size of the income—95.   India’s one rupee coin is a token coin—96.   Money is what money does—97.   Money is not a good measure of value—98.   Token coins are made of silver or gold—99.   A cheque is an example of state money—100.            Credit cards are treated as money—101.            Near money is as liquid as currency—102.            paper money is regarded as token money—103.            Fifty paise coins are limited legal tender money in India—104.            Money is not a good store of value—105.            Money is not involved in transaction—106.            The face value is less than its intrinsic value in case of token money—107.            Medium of exchange is a primary function of money—108.            A cheque is an optional money— True109.            The primary function of money is that money serves as medium of

exchange— True110.            A crossed cheque is safer than bearer cheque— True111.            Bank mobilize the savings of people— True112.            A commercial bank is a trader and creditor of money—113.            Acceptance of deposits from public is the secondary function of the

commercial bank—114.            Commercial bank controls the activities of Central Bank—115.            The saving bank deposits can be opened with a small amount—116.            Every loan creates deposit—True117.            Cheques are money—False118.            A commercial bank is a profit making financial institution—119.            stale cheque is valid for payment for a period of one year—120.            Every account holder of a bank gets cheque book—121.            Bearer cheque is the safest cheque—122.            Deposits are created out of loans—123.            A cheque drawn on nationalized bank is a legal tender—124.            Current deposits yields high interest rate—125.            The reserve bank of India is a commercial bank—126.            Cash Credit is given for a long period—127.            ATM facilities are available for saving accounts holder—

128.            Overdraft facilities are available for savings account holders—129.            A bank usually does not pay interest in case of current account—130.            It is necessary to give prior intimation to the bank for withdrawing money form the current deposit—131.            The saving bank account can be opened with a small amount—132.            A central banks works solely for profit—133.            A central bank supplies bank money—134.            A central bank controls bank money—135.            The central bank of Indiais India’s Central Bank136.            A central bank acts as the bankers to the public—137.            A central bank is the lender of money in the market—138.            A central bank is the lender of the last resort—139.            Open market sales policy results in credit contraction—140.            Clearing house system economizes cash—141.            A central bank does not deal with the public money—142.            The Reserve Bank of Indiais the Central Bank of India—143.            RBI has no power to issue currency—144.            Coins, one and two rupee notes are issued by government of India—145.            Government is the lender of last resort—146.            RBI is the banker to the government—147.            The Central Bank does not control credit—148.            Raising bank rate is aimed at the expansion of credit—149.            Usually , a central bank has the monopoly of note-issue—150.            The values of mother’s service is not included in the nationals income—151.            Wine is not a Wealth—152.            In Surplus budget expenditure exceeds receipts—153.            Keynes advocated unbalanced budget approach—154.            Fiscal policy is a budgetary policy of government—155.            Modern concept of budgetary principle is sound finance—156.            Direct taxes are levied on goods and services—157.            Budget carries summarized information about government’s activities—158.            Excise duty is a indirect tax—159.            A government budget should not always be balanced—160.            Entrepreneur is a captain of the Industry—161.            The demand for necessities is elastic—false.