. Excess capacity 1.

Perfect competition

2. Public enterprises may incur some
social costs
3. The buyers and sellers may be
away from each other and
4. Under perfect competition, it is
assumed that the
2. Yet they may constitute a market over
telephone or through internet
3. Cost of transportation does not exist
4. Cost of transportation does exist
5. Monopolistic competition

The law of supply is not hypothetical.

True
False

17. The externality which causes an economic gain or an economic loss to other
economic units is also referred to as externality.

21. The use of a good by one more member of the society does not reduce its
availability to others. This applies in case of :-

a) Private good
Pure public good
b
Impure public good
)
Pure private good
c)
d
)

27. Factors leading to differences in the economic & the traditional concepts of
valuation are :-

a) Inventory Valuation
Depreciation
b Unaccounted value changes in the assets & liabilities
) Costs
c)
d
)
37. One of the serious limitations of market mechanism is that it results in distribution
 of income and wealth which is :-

a) Equal
Unequal
b Absolutely equal
) Optimum
c)
d
)

45.

1. No monopolist however powerful, 1. The monopolist to charge same

is
2. Ignorance of consumers, enables
3. Public utilities such as railway or
cooking gas supply companies
4. Monopsony is the monopoly
prices.
2. From the seller's side
3. From buyer’s side.
4. The monopolist to charge
different prices.
5. Are allowed under the law to
make price discrimination.
6. In a position to decide both the
price and the quantity.

53. Substantial reduction in the cost of production of a firm because of the use of
improved and up-to-date machinery is an example of economy known as :-

a) Commercial
Managerial
b Financial
) Technical
c)
d
)
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Your Answer Addition to the real capital assets , It leads to increase in level of
income , It increases supply immediately

Multiple Choice Single Answer

Question The city of Coimbatore has developed a big market for :-

Correct Answer Spinning

Your Answer Spinning

Multiple Choice Multiple Answer

Question Features of public sector enterprises are as follows :-

Correct Answer It is controlled by the state , Separate funds to undertake their

activity , They are accountable to public
Your Answer It is controlled by the state , Separate funds to undertake their
activity , They are accountable to public

Multiple Choice Multiple Answer

Question Features of market period are :-

Correct Answer Related to few hours or few days , Related to perishable goods ,
The entire supply is to be disposed off on the same day
Your Answer Related to few hours or few days , Related to perishable goods ,
The entire supply is to be disposed off on the same day

Match The Following

Question Correct Answer Your Answer

Human wants unlimited unlimited

General Theory of J. M. Keynes J. M. Keynes

Employment, Interest and
Money
Managerial economics Decision making and Decision making and
forward planning forward planning
Resources scarce scarce

Commodities goods and services goods and services

Multiple Choice Multiple Answer

Question The methods of calculating depreciation are :-

Correct Answer Diminishing Balance Method , Annuity Method , Service Unit

Method
Your Answer Diminishing Balance Method , Annuity Method , Service Unit
Method

True/False
Question Griffin goods are superior goods.

Correct Answer False

4. In case of indivisible goods, which are not priced, the decisions regarding their
demand preferences are taken through price mechanism.

True
False

. During Nineties & Eighties, the CRR was raised from 6% to statutory maximum of .

8.

1. Perfect competition 1. Automatic price mechanism

2. Equilibrium price 2. Administered price mechanism

3. Market period 3. Demand and supply
4. Long run 4. Large number of producers
5. Non perishable goods
6. Perishable goods

12. Market economy or private enterprise economy is an economy which is :-

a) Centrally directed
Planned
b
Planless
)
Socialist
c)
d
)

15.

1. Negative 1. Social costs

externalities
2. Pure public 2. Principle of exclusion and benefit of good to all
goods without sharing cost
3. Free riders 3. Social goal
4. Market economy 4. Freely fluctuating price mechanism
5. Employment generation
6. Indivisible goods
18. Under Perfect competition, when an individual buyer increases or reduces his
demand, the total market demand :-

a) Increases
Decreases
b
Is not at all affected
)
Is postponed
c)
d
)

31. In perfect competition various factors of production are assumed to be .

41. Every seller and a buyer under pure competition :-

a) Is Price taker
Is Price maker
b
Is Price organizer
)
Does not take part in determination of price
c)
d
)

44. The direct form in which the Government intervenes with private business is .

LIST OF ATTEMPTED QUESTIONS AND ANSWERS

Multiple Choice Single Answer
Question Often monopolies purposely keep certain factors of production
idle creating artificial scarcities of their products, as a result, the
prices :-
Correct Answer Rise

Your Answer Rise

Multiple Choice Single Answer

Question Under perfect competition, if demand increases, supply being
constant, the price would
Correct Answer rise

Your Answer rise

Multiple Choice Multiple Answer

Question Different types of business organizations are :-

Correct Answer Private sector , Public sector , Joint sector

Your Answer Private sector , Public sector , Joint sector

Multiple Choice Multiple Answer

Question In case of defense services, all the sections of the society are
equally protected and benefited. The defense services in other
words is :-
Correct Answer Indivisible in character , Cannot be priced in the market , A public
good
Your Answer Indivisible in character , Cannot be priced in the market , A public
good

True/False
Question Macro economic studies are based on empirical evidence.

Correct Answer True

Your Answer True

Select The Blank

Question Output rises in a lesser proportion to that of the increase in input,
under the case of ________.
Correct Answer Decreasing returns to scale

Your Answer Decreasing returns to scale

Match The Following

Question Correct Answer Your Answer