TRUE OR FALSE
1.
Adam Smith is known as the 'Father of Economics'. (True)
2.
Microeconomics studies the theory of firm. –True
3.
Microeconomics deals with allocation of resources. – True
4.
Microeconomics theory assumes full employment. – True
5.
National Income is studied under Macroeconomics—True
6.
Scarcity of resources arises only in poor countries— False
7.
The subject matter of economics is divided into microeconomics
and macroeconomics – True
8.
Utility and usefulness are not different. - False
9.
Utility is a subjective concept—True
10. Making pots from clay is an example of form utility.
True
11. Utility depends upon
intensity of want. – True
12. Utility is the basis of
demand. – True
13. MU and TU are equal at
the initial stage.
14. The law of DMU explains
the economic behaviour of a rational consumer. – True
15. Negative MU denotes
more satisfaction. – False.
16. When the marginal
utility is maximum, the total utility will be zero— False
17. The marginal utility
derived from the consumption of extra unit of commodity—True
18. As consumption
increases the marginal utility also increases—False
19. Desire means demand -
False
20. Demand means a want or
desire—False
21. The demand of
complementary commodities is elastic. - False
22. There is inverse
relationship between Price and Demand—True
23. Demand Curve usually
slopes upwards from the left to the right— False
24. Demand curve slopes
downwards from the right to the left— True
25. The demand for durable
goods is inelastic. – False.
26. Electricity has
composite demand. – True
27. The Law of Demand is
not applicable to prestige goods. – True
28. Price is the sole
determinants of Demand— False
29. Concept of elasticity
of demand is useful to the finance minister. – True.
30. A rise in the price is
followed by a rise in the demand— False
31. Petrol and diesel have
positive cross elasticity of demand – True
32. A rise in the price
followed by a decrease in the demand— True
33. The factors of
production have indirect demand— True
34. Demand for food grains
is elastic—False
35. Car and Petrol have
negat9ive cross elasticity of demand. –True
36. The demand for luxuries
is highly inelastic—False
37. Larger the number of
substitutes, the more elastic is the demand—True
38. Fans and air conditioners
have positive cross elasticity of demand—True
39. Ink and pen have zero
cross elasticity of demand—False
40. The demand of all
consumers is market demand – True
41. Demand for luxuries is
elastic. – True
42. Perfectly inelastic
demand curve is parallel to X – axis. – False.
43. When demand increases,
the demand curve shifts to the left – False
44. Quantity demanded
varies directly with price. – False.
45. Total outlay is price
multiplied by quantity. – True.
46. Individual demand is a
demand by single buyer. – True.
47. Law of Demand is
explained by Prof. Robbins. – False.
48. Unitary elastic demand
rarely occurs in practice. – False
49. Supply is a relative
term—True
50. Stock cannot exceed
supply—False
51. Furniture is perishable
product—False
52. Labour supply curve
always slopes upward—false
53. The reservation price
for flowers is low—True
54. Supply inversely
related to the price— False
55. Supply can exceed
Stock— False
56. If price falls, supply
curve will shift to the left. – False
57. Stock is the source of
supply. – True
58. With a fall in the
price, supply tends to decrease. – False.
59. With a fall in price,
supply tends to contract. – True.
60. Supply is indirectly
related to the price. – False.
61. Supply is directly
related to the price. – True.
62. Supply Curve usually
slopes upwards from the left to the right— True
63. Supply curve slopes
downwards from the right to the left— False
64. Geometric method is
also known as point method. –True
65. Total cost is the total
expenditure incurred by a firm. – True.
66. Supply for perishable
goods is inelastic. – True.
67. Market supply is the
summation of supply of all individual sellers in the market. – True.
68. Under perfect
competition, commodities are heterogeneous in nature— False
69. Price discrimination is
not possible in perfect competition— True
70. In a monopoly market,
firm and industry are the same— True
71. Perfect competition is
a theoretical concept— True
72. The demand curve of
monopolistic competitive market is horizontal—False
73. There is no price
discrimination in the monopolistic competition. – False
74. Product differentiation
is not possible under perfect competition. – True
75. Under perfect
competition, price is determined by equilibrium of demand and supply. – True.
76. Land is free gift of
nature—True
77. Capital is a natural
factor—False
78. Labour cannot be
stored—True
79. Labour and Labourers
are inseparable— True
80. Demand for Labour is
direct demand— False
81. Labour is
geographically immobile— False
82. All wealth is Capital—False
83. All capital is wealth,
but all wealth is not capital. – True
84. Labourers bear risks in
business. – False.
85. Sunshine gets included
in land. – True
86. Land has occupational
mobility. – True.
87. Floating capital can be
used only in a specific business. –
False.
88. Capital is a human
factors—True
89. Labourers are
homogeneous—False
90. Machinery and factory
building are fixed capital— True
91. Rainfall is included in
land— True
92. Labour earn Profit—
False
93. Labour earns wages—
True
94. Capital is artificial
in nature— True
95. Working capital is
durable in nature— False
96. Macroeconomics studies
individual economic unit— False
97. Microeconomics deals
with the study of aggregates – False.
98. Macroeconomics deals
with the study of aggregates – True.
99. Macroeconomics uses
lumping method—True
100.
Macroeconomics is known as income analysis – True
101.
Increase in National income is a microeconomic goal. – False.
102.
Study of price determination ia a subject matter of macro –
economics. – False.
103.
National output is an example of macro variable. – True.
104.
National income is computer every year. – True.
105.
Inclusion of value of intermediate goods leads to double
counting. – True
106.
GDP includes net income from abroad. – False
107.
Financial year in India is a leap year. – False.
108.
Services of housewives are included in national income. – False.
109.
The consumption tends to increase with the rise in the
income—True
110.
Autonomous consumption is income elastic. – False.
111.
The equality between aggregate demand and aggregate supply
determines the equilibrium level of employment. – True
112.
For an open economy, aggregate demand is equal to C+I+G—False
113.
Aggregate supply is equal to nation’s aggregate output—True
114.
The state of technology affects the growth rate of the aggregate
supply—True
115.
The net export can be negative or positive—True
116.
The difference between a country's exports and imports is termed
as net earnings from foreign transactions. – True
117.
The part of income that is not consumed is called as
investment—False
118.
Saving function is a counterpart of consumption function—True
119.
At break even point, consumption is equal to income. i.e. C = Y.
True.
120.
MPC refers to the effect of additional income on
consumption—True
121.
According to Keynes, income and consumption increases by same
proportion—false
122.
As Income raises, Saving also rises—True
123.
As incomes rises, consumption rises more than
proportionately—False
124.
Consumption remains zero when income is zero—False
125.
There is no difference between MPC and APC—False
126.
Higher rate of interest reduces saving tendencies—False
127.
Even at zero income, consumption will be incurred—True
128.
credit facilities increase the consumption expenditure—True
129.
Consumption expenditure is the only component of aggregate
demand. –False.
130.
Money is what money does— True
131.
Metallic coins are easily portable than paper money. False.
132.
Token coins are coins whose face value is lesser than their
intrinsic value. –False.
133.
Token coins are those coins whose face value is greater than
their intrinsic value. True.
134.
Money aids in estimation of national income. True.
135.
A cheque is a fiat money. – False
136.
Money increases productivity of capital. – True.
137.
Money is not a good measure of value— False
138.
Token coins are made of silver or gold— False
139.
Money is not involved in transaction— False
140.
The face value is less than its intrinsic value in case of token
money— False
141.
Medium of exchange is a primary function of money— True
142.
A cheque is an optional money— True
143.
The primary function of money is that money serves as medium of
exchange— True
144.
A crossed cheque is safer than bearer cheque— True
145.
Bank mobilize the savings of people— True
146.
Acceptance of deposits from public is the secondary function of
the commercial bank— False
147.
Commercial bank controls the activities of Central Bank— False
148.
Every loan creates deposit—True
149.
Cheques are money—False
150.
Every account holder of a bank gets cheque book— False
151.
Bearer cheque is the safest cheque— False
152.
Current deposits yields high interest rate— False
153.
The reserve bank of India is a commercial bank— False
154.
ATM facilities are available for saving accounts holder—True
155.
Overdraft facilities are available for savings account holders—
False
156.
A bank usually does not pay interest in case of current account—
True
157.
It is necessary to give prior intimation to the bank for
withdrawing money from the current deposit— False
158.
The saving bank account can be opened with a small amount— True
159.
A central banks works solely for profit— False
160.
The central bank of India is India’s Central Bank
– False
161.
A central bank acts as the bankers to the public— False
162.
A central bank is the lender of money in the market—False
163.
A central bank is the lender of the last resort—True
164.
The Reserve Bank of India is the Central Bank
of India— True
165.
Entrepreneur is a captain of the Industry— True
166.
The demand for necessities is elastic—False.
167.
Commercial banks are the backbone of the modern economy. – True
168.
Credit money is created by Central bank of the country. – False.
169.
There is no difference between primary deposits and secondary
deposits of a commercial bank. – False.
170.
A commercial bank can utilize the entire amount of deposits for
lending loans. – False.
171.
Credit rating is quantitative credit control measures of Central
Bank. – False
172.
Regulation of consumer credit is a quantitative credit control
measure of Central bank. – False.
173.
Bank rate is the selective credit control measure used by
Central Bank of the country. – False.
174.
The budget is a monthly statement. – True
175.
Fiscal policy is related with public revenue and public
expenditure. – True
176.
Indirect taxes are paid directly by people to the government. –
False.
177.
During inflation surplus budget is followed. – True.
