An individual demand curve slopes downward to the right because of the:

A. Working of the law of diminishing marginal utility

B. substitution effect of decrease in price
C. income effect of fall in Price
D. All of the above
ANSWER: D

The cost of one thing in terms of the alternative given up is called:

A. Real cost
B. Production cost
C. Physical cost
D. opportunity cost
ANSWER: D

Which one is called a systematic record of all the economic transaction between one
country and rest of the world?
A. Balance of Trade
B. Balance of Transaction
C. Budget
D. Balance of payments
ANSWER: D

When the skills set of a worker does not match the skills demands of the jobs
available or if the worker cannot reach the geographical location of a job known
as:
A. Frictional unemployment
B. Structural unemployment
C. Voluntary unemployment
D. Demand deficient unemployment
ANSWER: B

“ Inflation is always and everywhere a monetary phenomenon” these are the famous
words of which author:
A. Milton Friedman
B. Adam Smith
C. David Ricardo
D. J M Keynes
ANSWER: A

Globalization can create problem for business because?

A. It can result in more competition
B. It increases vulnerability to political risk and uncertainty when operating
abroad
C. It means that they can increase price
D. All the options are correct
ANSWER: A

Which of the following is not a quantitative credit control tool of RBI?

A. Bank rate
B. Open market operation
C. SLR
D. Margin requirements
ANSWER: D

:
Which account shows, "A country's imports and exports of goods and services,
payments made to foreign investors, and transfers such as foreign aid":
A. Capital Account
B. Current Account
C. Special Drawing Right
D. None of these
ANSWER: B

IS curve shows that when income increases:

A. Interest rate must fall to restore equilibrium in the goods market
B. Interest rate must fall to restore Equilibrium in the asset market
C. Interest rate must rise to restore equilibrium in the asset market
D. Interest rate must rise t restore equilibrium in the goods market
ANSWER: A

What is concerned with the withdrawal of State from an industry or sector,

partially or fully?
A. Liberalization
B. Modernization
C. Privatization
D. Globalization
ANSWER: C