CA FOUNDATION ELITE

Adam Smith published his master piece “An enquiry into the nature and causes of wealth of nations” in the year __________.

• 1776

• 1786

• 1789

• 1790

Economics is the science of choice making’. It implies:

• No choice is to be made

• Choice to be made between alternative uses

• Choice to be made between means and ends

• None of the above

Consider the following and decide which, if any, economy is without scarcity:

• The pre-independent Indian economy, where most people were farmers.

• A mythical economy where everybody is a billionaire.

• Any economy where income is distributed equally among its people.

• None of the above

__________ refers to the process of selecting an appropriate alternative that will provide the most efficient means of attaining a desired end, from two or more alterative courses of action.

• Decision making

• Strategy

• Problem Solving

• Effectiveness

Micro economics does not study __________.

• Consumer behaviour

• Factor pricing

• General price level

• Firms equilibrium

This year due to heavy rainfall my option crop was damaged
Krishna: Climates affects crop yields. Some years are bad, other are good
Hari: Don’t worry – Price increase will compensate for the fall in quantity supplied
Radhe: The Government ought to guarantee that our income will not fall.
In this conversation, the normative statement is made by

• Shyam

• Krishna

• Hari

• Radhe

Normative aspect of Economics is given by:

• Marshall

• Robbins

• Adam Smith

• Samuelson

The Central problem in every eco-nomic society is:

• To ensure a minimum level of income for every individual.

• To allocate scarce resources in such a manner that societies unlimited wants are satisfied in the best possible manner.

• To ensure that production occurs in the most efficient manner.

• none

In a free market economy the al-location of resources is determined by __________.

• Voting done by consumers

• A central planning authority.

• Consumer preferences.

• The level of profits of firms.

A system of economy in which all the means of production are owned and controlled by the private individuals for the purpose of profit, is called:

• Socialist Economy

• Capitalist Economy

• Mixed Economy

• All of the above