Question # 1

The power of a good or service to satisfy a human want is called:

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Value

Price

Utility

All of them

During depression, a government prepares budget which is

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Balanced

Surplus

Deficit

Unbalanced

Economic laws are

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Definite and universal

Of Conditional nature

Of moral nature

Of political nature

A system where the goods are exchanged with money is known as:

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Monetary system

Barter system

Coins system

Modified system

Who said that economics is positive science ?

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Adam smith

Marshall

Robbins

Keynes

The duty of a market is not to

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make exchange of goods

contact buyers and sellers

determine price

give maximum output

If demand for a commodity changes due to change in price of its substitute, it is called

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Price elasticity

Point elasticity

Cross elasticity

Arc elasticity

If due to a very slight decrease in price, demand goes on increasing, elasticity of demand will be

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More than unity

Less than unity

Infinite

Zero

Gross national product means

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Total of price of all goods produced in a country in year

Total of price of all consumer goods produced in the economy during a year

Total of goods and services produced in the economy during a year

Total of monetary value of goods and services produced during a year in the economy

Laws which reflect religion of society

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Economic laws

State laws

Scientific laws

Moral laws

One of the following is not fiscal measure to control inflation

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Decrease in public expenditures

Increase in taxes

Encouragement of savings

Increase in investment

Concept of law of diminishing marginal utility was presented by professor

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Marshall

Robbins

Keynes

Pigou

Over investment theory is presented by

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Pigou

Hawtray

Hayek, Mises and Cassel

Prof Jugglar

If the rate of tax increase with the increase of level of income, is called

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Progressive tax

Proportional tax

Regressive tax

Value added tax

The term demand in economics means:

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Desire

Purchasing

Need

Both (a) and (b)

Finance minister in order to increase the public revenue imposes the tax on the commodities whose demand is more elastic

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At low rate

At high rate

Some times decreases the rate and some times increases

Does not change Tax rate

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