Q.1
The father of Economics is
  • Adam Smith
  • Marshall
  • Lionel Robbins
  • Hicks
Q.2
At equilibrium under ordinal approach the MRS should be equal to
  • MRTS
  • Price Ratio
  • Price
  • Income
Q.3
Demand Function explain relationship between demand for Commodity and its___________.
  • Determinants
  • Elasticity
  • Only Price
  • Elements
Q.4
Market situation where there is single seller. There is no close substitute and no free entry and exist. is refer as
  • Perfect Competition
  • Monopoly
  • Oligopoly
  • Monopolistic Competition
Q.5
An increase in the labor force would cause the PPF to
  • Shift inward
  • Shift outward
  • Do nothing
  • Turn into a straight line
Q.6
In this type of economy, the people decide the supply, demand, and price.
  • Market
  • Traditional
  • Command
  • Mixed
Q.7
The slope of indifference curve is equal to
  • price ratio
  • marginal opportunity cost
  • marginal rate of substitution
  • all of these
Q.8
The condition of consumer equilibrium under cardinal approach in case of one commodity is
  • price of commodity should be rising
  • price of commodity should equal to be marginal utility
  • price of commodity should be decreasing
  • none of these
Q.9
Efficiency is producing the maximum possible output from available resources
  • True
  • False
Q.10
What are Wants?
  • These are goods and services which human beings cannot live without.
  • These are goods and services which human beings desire but can live without.
  • All the above.
Q.11
What is Business Studies?
  • This is the study of how businesses are formed, how they grow & how the operate/managed.
  • This is the study of how human beings behave as they satisfy their unlimited wants and needs.
  • This is the value of the next best alternative forgone.
Q.12
What are Needs?
  • These are goods and services which human beings desire but can live without.
  • All the above.
  • These are goods and services which human beings cannot live without.
Q.13
The economic problem is that
  • resources are limited and wants are limited.
  • resources are unlimited and wants are limited.
  • resources are limited and wants are unlimited.
  • resources are unlimited and wants are unlimited.
Q.14
What is Opportunity Cost?
  • This is the study of how human beings behave as they satisfy their unlimited wants and needs.
  • The value of the next best alternative forgone.
Q.15
Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?
  • fishing with a friend
  • going to a concert
Q.16
Tamie has planned a trip to the beach for her family on Labor Day. Her daughter has been invited to the mountains by a friend. Her daughter decides to go to the beach. What is her opportunity cost?
  • a trip to the beach
  • a trip to the mountains
Q.17
Jason has been asked by his son to go ride 4-wheelers this weekend. His boss has asked him to work overtime and get paid double. Jason chooses to go ride 4-wheelers with his son. What is his opportunity cost?
  • ride 4-wheelers with his son
  • work overtime for his boss
Q.18
______________ is used to show opportunity cost.
  • Production Possibility Front/Curve
  • Production Possibility Cost
  • Production Possibility Opportunity
  • Production Possibility Level
Q.19
The concept that people have the right and privilege to control their possessions as they wish.
  • legal equality
  • open opportunity
  • private property
  • profit incentive
Q.20
The driving force behind people going into business is
  • profit margin
  • profit motive
  • opportunity cost
  • taxes
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