POSSI

BLEQUESTI
ONSI
NECO103

1.Whodef
ineeconomicsast
hesci
encewhi
chstudi
eshumanbehav
iorasar
elat
ionshi
p
bet
weenendandscarcemeanswhi
chhaveal
ter
nati
vesuses.

a.Li
onel
Robbi
ns(
b)Adam smi
th

2.Economicsadopt
ssci
ent
if
icappr
oachofstudyi
nghumanbehaviorbyappl
yi
ngsy
stemat
ic
sci
enti
fi
cinqui
rywhil
emaki
ngobservat
ionsofanexi
sti
ngphenomena

(
a)Tr
ue(
b)f
alse(
c)noneoft
heabov
e

3.Whatdoesmenneedt
oruni
sday
-to-
dayact
ivi
ti
es.

(
a)capi
tal
(b)money(
c)Ends

4.Whatar
ethef
act
orsofpr
oduct
ion

(
a)land,l
abourandentr
epreneur(
b)ent
repr
eneur
,land,
capi
tal
,l
abour(
c)
l
and,l
abour,
capi
tal
,
entr
epreneur

5.Al
loft
hesear
enat
ureofeconomi
cpr
obl
emsexcept

(
a)choi
ce(
b)capi
tal
(c)oppor
tuni
tycost

6..
..
..
..
..f
orcedmant
omakeachoi
ce

(
a)choi
ce(
b)scar
cit
y(c)scal
eofpr
efer
ence

7.Scal
eofpr
efer
encemeans
(
a)Ranki
ngofwant
sinor
derofpr
ior
it
y(b)Ranki
ngofwant
sinor
derofi
mpor
tant(
c)AandB

8..
..
..
..
..
..
..i
shappeni
ngwhengoodsandser
vicesar
enotav
ail
abl
einsuf
fi
cientquant
it
ies.

(
a)scal
eofpr
efer
ence(
b)scar
cit
y(c)oppor
tuni
tycost

9.Al
ter
nat
ivef
orgonei
sal
soknownas.
..
..
..
..
..
..

(
a)scal
eofpr
efer
ence(
b)scar
cit
y(c)oppor
tuni
tycost

10.Basi
ceconomi
cspr
obl
em i
s..
..
..
..
...
..
.

(
a)scar
cit
y(b)choi
ce(
c)oppor
tuni
tycost

11.Anot
hernamef
oroppor
tuni
tycosti
s..
..
..
..
..
.

(
a)pr
imecost(
b)f
ixedcost(
c)Real
cost

12..
..
..
..
..
..
..
.isthecombi
nati
onthatmeett
hetast
eandpr ef
erenceofmajor
it
yoft
heci
ti
zens
andshouldgivemaximum sat
isf
acti
ontoalar
gepropor
ti
onoft hepeopl
e.

(
a)whatt
opr
oduce(
b)f
orwhom t
opr
oduce(
c)wher
etopr
oduce

13.Wher
etopr
oducedependson.
..
..
..
..
..
..

(
a)t
hepol
i
tical
mov
ement(
b)pr
ior
it
yofpr
oducer(
c)economyr
eason

14.Encouragepr
icestabi
li
ty,
highl
evel
ofemployment
,promot
eeconomi
cgr
owt
h,
maintenanceahealt
hbalanceofpaymentar
eeconomicGoal
s

(
a)t
rue(
b)f
alse(
c)noneoft
heabov
e

15..
..
..
..
..
.descr
ibetherel
ati
onshi
pamongowner
shi
p,pr
oduct
ion,
dist
ri
buti
onandconsumption
ofgoodsandser v
icesaswellast
hepat
ter
nofor
gani
zat
ionandcontr
olofgoodsandser
vices
i
nanygi
veneconomy.

(
a)or
gani
zat
ionsy
stem (
b)economi
csy
stem (
c)economysy
stem

16.Moder
neconomi
ctheor
yisdi
vi
dedi
nto.
..
..
..
..
..
..

(
a)4(
b)2(
c)3

17.Macroeconomicisconcer
nedwi t
hthest
udyofpar
ti
cul
ari
nsti
tut
ion,househol
ds,
par
ti
cul
arl
y
goodsandservicesandthei
rrel
ati
vepri
ce;i
ndi
vi
duali
ncomesandprice.

(
a)t
rue(
b)f
alse(
c)noneoft
heabov
e

18..
..
..
.studi
estheaveragelev
elofpr
icesi
nal
lpr
oductmar
ket
sandt
heav
eragel
evel
ofmoney
wageratesinal
llabourmarket

(
a)macr
oeconomi
c(b)mi
croeconomi
c

19.Microeconomicstakesthet
otal
vol
umeof.
..
..
..
..
..
..
.asagivenandst
udi
eshowt
he
employedresourcesareall
ocat
edamongt
hei
ralt
ernati
vesuses.

(
a)empl
oymentofr
esour
ces(
b)pr
oduct
ionr
esour
ces

20.Demandi
neconomi
csmean

(
a)el
ast
icdemand(
b)i
nel
ast
icdemand(
c)ef
fect
ivedemand

21.Asexpl
ainby* ADAM SMI
TH*val
uewi
thoutanyqual
i
fyi
ngadj
ect
iveshoul
dbet
heor
eti
cal
l
y
ref
ertoas.
..
...
..
..
..i
nacommodit
ies

(
a)embodi
es(
b)cooper
ate(
c)humanhand

22..
..
..
..
..wi
l
lri
sewhent
her
eisexcessdemandandi
twi
l
lfal
lwhent
her
eisexcesssuppl
y

(
a)pr
ice(
b)equi
l
ibr
ium pr
ice(
c)pr
icet
heor
y
23...
..
..
..
..
..
.isamechani
sm t
hroughwhi
chbuy
erandsel
l
ersmeett
oexchangegoodand
serv
icesatapr i
ce.

(
a)mar
ket(
b)mar
ket
ing(
c)i
ndust
ry

Demandf
orcommodit
iesi
sthewi
l
li
ngnessbackedbyt
heabi
l
ityt
opur
chaseapar
ti
cul
ar
commodi
tyatagi
vent
ime.

(
a)t
rue(
b)f
alse(
c)noneoft
heabov
e

25.Whati
sdemandschedul
eofoneper
son

(
a)i
ndi
vi
dual
demand(
b)per
sonal
demand(
c)mar
ketdemand

26..
..
..
..
..
..
..i
sagr
aphi
cal
repr
esent
ati
onofoneper
son’
sdemandschedul
e

(
a)demandcur
ve(
b)per
sonal
demandcur
ve(
c)i
ndi
vi
dual
demandcur
ve

27.Marketdemandschedul
eist
he.
..
..
..
..
..
..
..
..
..summat
esofal
lthei
ndi
vi
dual
demandschedul
e
atthegi
venprice

(
a)gr
aphi
cal
(b)par
all
el(
c)hor
izont
al

28.Al
loft
hesear
efact
orst
hataf
fectquant
it
ydemandexcept

(
a)gov
ernmentpol
i
cy(
b)i
ncomeoft
heconsumer(
c)changei
nqual
i
tyofcommodi
ti
es

29.*
WHATARETHETYPESOFDEMAND*

30..
..
..
..
..
..
..
..ar
eluxur
ygoodswhi
chmaybeal
ter
nat
iveonl
ywhent
hei
rpr
icear
ehi
gh

(
a)goodsofost
ent
ati
on(
b)i
nfer
iorgoods(
c)f
earoff
utur
eri
sei
npr
ice
31.Thel
awofsuppl
yst
atest
hat

(a)t
hehighert
hepri
ce,t
hehigherthequant
it
ysuppl
y,thel
owerthepri
ce,
thel
owerthequant
it
y
suppl
ied(b)t
helowert
hepri
ce, t
hehighert
hequant
itysuppl
y,t
helowert
hequant
it
ysuppli
ed

32.Coatofproducti
on,pri
ceofcommodity
,changei
nwhet
her,
Gov
ernmentpol
i
cy,
innov
ati
on
ortechni
calchangearefactor
saff
ect
ingquant
it
ysuppl
y

(
a)t
rue(
b)f
alse

33.Ty
pesofsuppl
yar
eal
lexcept

(
a)compl
ement
arysuppl
y(b)compl
eti
vesuppl
y(c)pr
oduct
ivesuppl
y

34.Thedemandcur
vewi
l
lexhi
bitshapel
i
ket
hatofasuppl
ycur
ve

(
a)t
rue(
b)f
alse

35..
..
..
..
..
..
..
.showst
hepr
iceatwhi
cht
hequant
it
ydemandedi
sequal
tot
hequant
it
ysuppl
i
ed

(
a)l
egi
slat
ion(
b)f
avor
it
ism (
c)equi
l
ibr
ium

36..
..
..
..
..
..
..
..i
stheequi
l
ibr
ium pr
iceand.
..
..
..
..
..
..
..equi
l
ibr
ium quant
it
y

(
a)Opo,
Oqo(
b)Op1,
Oq1(
c)Op,
Oq

37.El
ast
ici
tyofdemandcanbedef
inedas

(a)Responsiv
enessofthedemandf oragoodsandser
vicest
otheincr
easeordecreasei
nits
pri
ce(b)isthedegreeofresponsi
venessofdemandt
ochangeinthepri
ceofthecommodi t
y

38.Ty
pesofel
ast
ici
tydemandar
eal
lexcept

(
a)uni
tar
yel
ast
icdemand(
b)i
n-el
ast
icdemand(
c)pr
opor
ti
onat
edemand
39.READWHATYOUWROTEI
NMARKETANDMARKETSTRUCTUREASSI
GNMENTVERY
WELL

40..
..
..
..
..measur
ethet
otal
sat
isf
act
iongai
nedf
rom consumpt
ionofagi
venquant
it
yofgoods
andservices.

(
a)ut
il
it
y(b)t
otal
uti
l
ity(
c)pr
oductut
il
it
y

41.Rati
onali
ty,cardi
nalut
il
it
yanddi
mini
shi
ngmar
ginal
uti
l
ityAREALLTHEassumpt
ionsof
cardi
nal
istut
ili
tytheor
y

(
a)t
rue(
b)f
alse

42.Whatar
ethet
heor
yofpr
oduct
ion.

(a)l
and,
labour,
capit
al,
ent
repr
eneur(
b)i
ncome,
house,
labour
,pr
ofi
t(c)pr
ofi
t,suppl
y,
demandandsupply

43.Whatar
ethedet
ermi
nantofl
aboursuppl
y

44.Oneofal
li
sanexampl
eoft
ert
iar
ypr
oduct
ion

(
a)br
idge(
b)col
a(c)banki
ng

45.Shor
trunpr
oduct
ionar
e..
..
..
..
..
..

(
a)t
otal
,av
erageandmar
ginal
product(
b)coal
,gasandshoe(
c)bui
l
ding

46.St
atet
hel
awofdi
mini
shi
ngr
etur
ns

47.Al
loft
hesear
eadv
ant
agesofsoci
ali
steconomyexcept
..
..
..
..
.

(
a)pr
oduct
ioni
sont
hebasi
cofneedr
athert
hanont
heef
fect
ivedemand(
b)t
hest
atedoesn’
t
respondqui
ckl
ytochangesi
ntheconsumpt
ionpat
ter
nsofpeopl
e(c)wast
eful
compet
it
ioni
s
absent

48.Commandeconomyi
sal
soknownassoci
ali
steconomy

(
a)noneoft
heabov
e(b)f
alse(
c)t
rue

49.Demer
itofcapi
tal
i
sm ar
eal
lexcept

(
a)anunequaldi
str
ibut
ionofi
ncome(
b)capi
tal
ism canl
eadtoexist
enceofmonopol
i
es
merger
sofacqui
sit
ion(c)i
tal
l
owconsumerstodetermi
newhatistobeproduce

50..
..
..
..
..i
saneconomi
csystem wher
etherei
sanact
ivepar
ti
cipat
ionofbot
hthegov
ernment
andpri
vatesect
orsi
nal
leconomicacti
vi
ti
es.

(
a)agr
icul
tur
aleconomy(
b)mi
xedeconomy(
c)manuf
act
uri
ngeconomy

51.Gov
ernmentandpr
ivat
eindi
vi
dual
spl
ayanact
iver
olei
nthe.
..
..
..
..
..
..
..
..
.

(
a)manuf
act
uri
ngsect
or(
b)agr
icul
tur
alsect
or(
c)Banki
ngsect
or

52.Pr
oduct
ionpossi
bil
i
tiescur
vei
sal
socal
l
edal
lexceptone

(
a)pr
oduct
ionpossi
bil
i
tiesf
ront
ier(
b)t
ransf
ormat
ioncur
ve(
c)pr
oduct
iver
esour
ces

“Bel
iev
einyoursel
f,t
akeony
ourchal
l
enges,di
gdeepwi
thi
nyour
sel
ftoconquerf
ear
s.Nev
erl
et
anyonebr
ingyoudown.Yougott
okeepgoing.
”
Fi
kky

✍ ✍ ✍