Important Questions

(CGL 2017)
Q Decrease of resources implies that production possibility curve:
1) shifts to right 2) shifts to left

3) rotates to the right 4) rotates to the left

Q Which of the following relation is INCORRECT between TU and MU?

1) TU increase as long as MU is positive.

2) TU is maximum when MU = 0.

3) TU starts declining when MU is negative.

4) Decrease in MU implies that TU increases at an increasing rate.

Q Indifference Curve is ______ at the point of equilibrium.

1) convex 2) concave

3) straight 4) zero

Q The two aspects: (1) Factorial distribution of Income. (2) Inter-personal distribution of Income are
parts of which of the following central problem of an economy?

1) What to produce? 2) How to produce?

3) For whom to produce? 4) Why to produce?

Q In which type of economy social justice is accorded higher priority than profit maximization?

1) Centrally Planned Economy 2) Mixed Economy

3) Capitalist Economy 4) Private Economy

CGl 2018
Q Indifference curve theory states that:
1. Consumer spending pattern changes with the change in his income
2. Consumers form preferences for some combination of products over others
3. Purchasing power is not the determinant of buying
4. Purchasing power is the real determinant of buying
Q The problem of choice arises on account of the pressure of three interrelated facts, viz, human
wants are unlimited, means required to satisfy these wants are limited and ______.

1. All means are freely available. 2. Means are incapable of being put to alternative uses.

3. Means are capable of being put to alternative uses. 4. All means are perishable.

Q "What to produce?" is a basic problem faced by an economy under which of the following central
problem?

1. Creation of resources 2. Allocation of resources

3. Growth of resources 4. Efficient use of resources

Q Macro economics is not a study of _____ .

1. Unemployment 2. inflation

3. national income 4. consumer surplus

Q __________ has defined Economics as the science of wealth.

1. Lionel Robbins 2. Alfred Marshall

3. Paul Samuelson 4. Adam smith

Q According to ______ theory, a consumer will continue to buy such products that will deliver him
the most utility or maximum satisfaction at relative prices.

1. Indifference 2. Income and savings

3. Marginal Utility 4. Rising income

Q The ____ is a hypothetical representation of the amount of two different goods that can be
obtained by shifting resources from the production of one, to the production of the other.

1. Consumption possibility curve 2. Gestation period

3. Product life cycle 4. Production possibility curve

Q The curve of production possibility is concave in nature because of _____.

1. Positive opportunity costs 2. Marginal rate of transformation

3. Negative opportunity cost 4. Average rate of transformation
 Other Questions
Q Scarcity is a situation when ____________?

(a) Supply of resources > demand of resources

(b) Supply of resources < demand of resources

(c) Supply of resources = demand of resources

(d) None of these

Q Positive economics does not involves statements which are related to :

(a) What ought to be (b) What was

(c) What would be (d)What is

Q Normative economics deal with:

(a) Facts (b)Opinions

(c) Both ( a )and (b) (d)None of these

Q Who is the father of Economics?

(a) Alfred Marshall (b) Adam Smith

(c) Robbins (d) Paul Samuelson

Q From the following who has given Growth Oriented definition.

(a) Alfred Marshall (b) Adam Smith

(c) Robbins (d) Paul Samuelson

Q Slope of production possibility curve can be:

(a) A downward sloping straight line (b) Convex to the point of origin

(c) Concave to the point of origin (d) Both (a) and (c)

Q The problem of 'what to produce' related to:

(a) the choice of technique (b) the choice of goods and services

(c) market value of the goods of services (d) distribution of income

Q Concavity of PPC implies:

(a) MOC is rising (b) MOC is Decreasing

(c) MOC is Constant (d) none of these

Q Output of good- X decreases by 200 units and output of good- y increases by 200 units, when
some resources are shifted from the production of good- X to production of good-Y. The marginal
opportunity cost is:

(a) 0.2 (b) 0.75

(c) 0.8 (d) 1.0

Q A set of ICs drawn is a graph is called:

(a) Indifference curve (b) indifference map

(c) Budget line (d) budget set

Q In an Indifference map, higher IC indicates:

(a) lower level of satisfaction (b) same level of satisfaction

(c) higher level of satisfaction (d) either same or higher level of satisfaction