Date - 29 /10/2021

Engineering Economics
Class Test -II (EE)
Marks-20
Q-1. Price Theory is also known as:
(a) Macro economics
(b)Development economics
(c) Public economics
(d) Micro economics
Q-2. When too much money is chasing too few goods the situation is:
(a) Deflation
(b) Inflation
(c) Recession
(d) Stagflation
Q-3. Cheap Money means:
(a) Low rates of interest
(b) Low level of saving
(c) Low level of income
(d) Low level of standard of living
Q-4. Which of the following taxes is not collected by the central govt.?
(a) Income tax
(b) Customs duty
(c) Professional tax
(d) Excise duty
Q-5. When the total product rises at an increasing rate, the
(a) Marginal product is zero
(b) Marginal product is rising
(c) Marginal product is falling
(d) Marginal product remains constant
Q-6.Excise duty on a commodity is payable with reference to its
(a) Production
(b) Production and sale
(c) Production and transportation
(d) Production, transportation and sale
Q-7.Knowledge, technical skill, education etc. in economics, are regarded as:
(a) Social-overhead capital
(b) Human capital
(c) Tangible physical capital
(d) Working capital
Q-8. Bank rate refers to the interest rate at which
(a) Commercial banks receive deposits from the public
(b) Central bank gives loans to commercial banks
(c) Government loans are floated
(d) Commercial banks grant loans to their customers
Q-9. Which of the following is a better measurement of economic development
(a) GDP
(b) Disposable income
(c) NNP
(d) Per capita income
Q-10. In India, disguised unemployment is generally observed in
(a) The agriculture sector
(b) The factory sector
(c) The service sector
(d) All these sectors
Q-11. The demand curve for a Giffen good is:
(a) Upward rising
(b) Downward falling
(c) Parallel to the quantity axis
(d) Parallel to the price axis
Q-12. The practice of selling goods in a foreign country at a price below their domestic selling
price is called
(a)Diplomacy
(b) Discrimination
(c) Dumping
(d) Double pricing
Q-13. If the tax rate increases with the higher level of income, it shall be called
(a) Proportional tax
(b) Progressive tax
(c) Lump sum tax
(d) Regressive tax
Q-14. If the price of tea falls, demand for coffee will
(a) Increase
(b)Decrease
(c) Remain constant
(d) None of these
Q-15. Seawater, fresh air, etc., are regarded in economics as
(a) Giffen goods
(b) Inferior goods
(c) Free good
(d) Normal good
Q-16. Inflation occurs when aggregate supply is
(a) More than aggregate demand
(b) Less than aggregate demand
(c) Equal to aggregate demand
(d) None of these
Q-17. How will a reduction in bank rate affect the availability of credit?
(a) Credit will increase
(b) Credit will not increase
(c) Credit will decrease
(d) None of these
Q-18. The Interest rate policy is a component of
(a) Fiscal policy
(b) Monetary policy
(c) Trade policy
(d) Direct policy
Q-19. A country’s BOP is unfavourable when
(a) Exports exceed imports
(b) Imports exceed exports
(c) Terms of trade become unfavourable
(d) None of these
Q-20. The process of curing inflation by reducing money supply is called
(a) Cost-push inflation
(b) Demand-pull inflation
(c) Disinflation
(d) Reflation