TOPPERS Test - 1 1.

In the long run a firm in a perfectly competitive market earns (a) Normal profit (b) Abnormal profit (c) Average profits of the past five years (d) At least 15% profit on capital employed In the long run price is determined by (a) Market forces (b) Marginal utility of the product (c) Cost of production (d) None Point elasticity concept of demand was coined by (a) Alfred Marshall (b) JR Hicks (c) RGD Lipsey (d) Recardo If a firm is operating at any point inside the PPF, then the firm is (a) Inefficient firm (b) Efficient firm (c) Dominating firm (d) Poised for abnormal growth Economic growth is best depicted by (a) Outward shift in PPF curve (b) Upward movement in PPF curve (c) Downward shift in PPF curve (d) Inward movement in PPF curve Which of these is outside the scope of Micro Economics? (a) Consumer behaviour (b) National income (c) Factor pricing (d) None Adam Smith called price mechanism as (a) Invisible hand (b) Consumer sovernity (c) Price regulation (d) Consumer liberty Luxury goods have degree of elasticity (a) High (b) Low (c) Moderate (d) Completely inelastic Deductive method (a) Goes from particular to general (b) Goes from general to particular (c) Both ways (d) None The terms Micro economics and Macro economics were coined by (a) Professor A Samulson (b) Griffin (c) Eagle (d) Prof Ragner Frisch CIF stands for (a) Cost Insurance freights (b) Cost inclusive of freights (c) Cost in freights (d) Cost interest freights EOU stands for (a) Export oriented units (b) European oil Union (c) Export oil unity (d) Excellent official unit Engles curve depicts (a) Relationship between income and demand through a curve (b) Relationship between cost and price through a curve (c) Relationship between input and out put through a curve (d) Relationship between demand and price through a curve PPF curve stands for (a) Proportionate production frontier (b) Production possibility frontier (c) Probable production frontier (d) Possible production frontier U-86, Shakarpur, Delhi Ph 9899757670

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Sukesh Singh

TOPPERS Test - 1 15. ..measures the extent to which distribution of income / consumption among household or individual within the economy deviate from the perfectly equal distribution (a) GINI (b) Dolor (c) NASDAQ (d) None Which of these are exceptions to law of Demand? (a) Giffen effect / goods (b) Future change in prices (c) Change in fashion (d) All the three Social cost is the cost which is incurred by (a) The society (b) Industry / firm (c) Government (d) NGOs Which of the following statement is true? (a) For a monopoly firm AR can be zero (b) For a monopoly firm MR can be zero or even negative (c) For a monopoly firm MR and AR are identical (d) For a monopoly firm MR and AR are positive sloped Swarna Jayanti Shahari Rozgar Yojana was introduced in (a) 1980 (b) December 1997 (c) December 2001 (d) May 1980 SDR stands for (a) Small denomination receipts. (b) Special Drawing Rights (c) Silver Deposit Receipts (d) Special Deposit Rights Decreases in price of a product result in increased consumption of the product as the product becomes cheaper compared to other products. This effect is known as (a) Substitution effect (b) Income effect (c) Diminishing marginal utility concept (d) Law of diminishing returns A perfectly inelastic supply curve will be (a) Parallel to X axis (b) Parallel to Y axis (c) Upward sloping (d) Downward sloping Traditional approach to law of demand was propounded by (a) Giffen (b) A Samulson (c) Alfred Marshall (d) Pique According to traditional approach the factors responsible for operation of downward slope of demand cure are (a) Change in number of consumers (b) Law of decreasing marginal utility (c) Alternative uses of goods (d) All the three Average revenue of a monopolist firm is (a) Always more than the marginal revenue (b) Always less then the marginal revenue (c) Equal to marginal revenue (d) Any of the above three possible GINI index of ..represent perfectly inequality in distribution of income (a) 0 (b) 1 (c) 0.5 (d) 0.25 Agricultural sector contributes nearly .of GDP (a) 17% (b) 16% (c) 20% (d) 10% U-86, Shakarpur, Delhi Ph 9899757670

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Sukesh Singh

TOPPERS Test - 1 28. What is the average life expectancy in India as per the latest census 2001? (a) 61 years (b) 63.8 years (c) 65 years (d) 58.9 years What is the literacy ratio in India as per latest census 2001? (a) 64.1% (b) 69.3% (c) 65.38% (d) 60% Balance of Capital Account deals with (a) Debts and claims (b) Earning and expenditure (c) Foreign outgoing and incoming only (d) Interest obligations only Production possibility curves shows maximum combinations of ..Products (a) 1 (b) 2 (c) 3 (d) 4 In the short run which of the flowing is fixed (a) Labour (b) Capital (c) Raw material (d) None Indifference curves cannot be a straight line as it would implies (a) Constant marginal rate of substitution (b) Increasing marginal rate of substitution (c) Increasing returns to scale (d) None National Income is the . of all the goods and services produced by a country during a period of year (a) Physical quantity (b) Money value (c) Value (d) All the three CRR as on April, 2012 is . (a) 5.25% (b) 5.75% (c) 4.75% (d) 5.5% If price of sugar increase, the demand for tea will (a) Fall (b) Increase (c) Not affected (d) No relation The measurement of sensitivity of quantity demanded to change in price is called (a) Price elasticity (b) Income elasticity (c) Expansion in demand (d) None If price of X falls leading to increase in total outlay on X, the demand of X is (a) Elastic (b) Inelastic (c) Unitary elastic (d) Less than unit elastic Under the law of diminishing marginal return deployment of addition unit of factor input will lead to (a) A decline in marginal physical product (b) A decline in total product (c) A decline in average revenue (d) Decline in average cost of production The slope of an indifference curve measures (a) Returns to scale (b) The marginal rate of substitution (c) Income effect on demand (d) None The output and cost pattern of a product are given below: Output (q) 0 1 2 3 4 5 Total cost (in Rs.) 36 48 58 67 77 88 U-86, Shakarpur, Delhi Ph 9899757670

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Sukesh Singh

TOPPERS Test - 1 From the above details what is the fixed cost or sunk cost? (a) Rs. 36 (b) Rs. 19.5 (c) Rs. 21 (d) Rs. 30 In question No. 41 the marginal cost of producing 1st unit is (a) 17.5 (b) 12 (c) 14 (d) 11 Marginal cost is --------- in total cost as a result of production of one more unit of output (a) addition (b) subtraction (c) multiplication (d) division An industry where expansion of production leads to decrease in cost is called (a) Increasing cost industry (b) Decreasing cost industry (c) Constant cost industry (d) None Which of the following is a reason behind operation of law of demand? (a) Income effect (b) substitution effect (c) multiple uses of the commodity (d) All the three For measuring human well-being .. index is used (a) HDI (b) WPI (c) CPI (d) NIFTY Every person in the world is Indian (a) 4th (b) 6th (c) 5th (d) 8th Green revolution was successful because of use of seeds (a) HYV (b) Imported (c) Australian (d) Local seeds As per 2011 census (provisional) . states has lowest sex ratio. (a) Bihar (b) Punjab (c) Haryana (d) UP Hydel Energy Constituate. of India's electricity generation (a) 15% (b) 35 % (c) 25 % (d) 20%

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ANSWER SHEET
1. 6. 11. 16. 21. 26. 31. 36. 41. 46. (a) (b) (a) (d) (a) (b) (b) (a) (a) (a) 2. 7. 12. 17. 22. 27. 32. 37. 42. 47. (c) (a) (a) (a) (b) (a) (b) (a) (b) (b) 3. 8. 13. 18. 23. 28. 33. 38. 43. 48. (a) (a) (a) (b) (c) (b) (a) (a) (a) (a) 4. 9. 14. 19. 24. 29. 34. 39. 44. 49. (a) (b) (b) (b) (d) (c) (b) (a) (b) (c) 5. 10. 15. 20. 25. 30. 35. 40. 45. 50. (a) (d) (a) (b) (a) (a) (c) (b) (d) (d)

Sukesh Singh

U-86, Shakarpur, Delhi

Ph 9899757670