Basics of Economics MCQs and Notes

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Basics of Economics

Q 1. Economic Laws are:

(A) statement of tendencies

(B) exact and predictable

(D) none

Q 2. Consumption of capital good in the process of production is called as:

(A) capital consumption

(B) depreciation

(D) none of the above

Q 3. In classical theory the level of employment is a function of:

(A) price level

(B) money wage rate

(D) real wage rate

Q 4. Laws of return shows ---------production function.

(A) short-term

(B) medium term

(D) annual

Q 5. Supply curve represents -------- relationship between quantity and price.

(A) direct

(B) inverse

(D) none of the above

Q 6. The want satisfying power of a commodity:

(A) satisfaction

(B) utility

(D) marginal utility

Q 7. Marginal efficiency of investment curve is:

(A) slopping downwards

(B) slopping upwards

(D) parallel to y axis

Q 8. The expected return on investment is called:

(A) marginal propensity to save

(B) marginal propensity to consume

(D) marginal efficiency of investment

Q 9. As income increases consumption also increases, but:

(A) proportionately

(B) more than proportionately

(D) equally

Q 10. Exports minus imports is termed as:

(A) net income

(B) net imports

(D) national income

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