Mix Bag Question - 2 (XII)

In a centrally planned economy. The central problems are solved by -

• Market mechanism

• Demand for the goods in the market

• Supply of the goods in the market

• Central planning authority

The central problem of “for whom to produce in an economy” is a problem of -

• Distribution of income and wealth

• Equal distribution of income

• Unequal distribution of wealth

• Equal distribution of resources

Which of the following is related to microeconomics?

• Inflation in the economy

• Problem of unemployment

• National Income

• Income from Railways.

Which part of economic theory aims to determine income and employment level of the

economy?

• Microeconomics

• Macroeconomics

• Neither (a) nor (b)

• None of these

Which of these economic problem deals with technique of production?

• What to produce

• How to produce

• For whom to produce

• None of these

Which of the following statement is not correct?

• An economy is a system which provides people with the means to work, and earn a

  living

• In the words of Adam Smith, “An economy is a system by which people get a living

  and satisfy their wants”.

• Production is an activity which increases the utility or value of goods and services.

• Capital Formation is an economic activity which is concerned with production of

  capital goods.

Adam Smith is most famous for his book, “The Wealth of Nations”.

• 1786

• 1796

• 1776

• 1766

This problem deals with determining the final consumers of the goods produced.

• What to produce

• How to produce

• For whom to produce

• None of these

As the flatness of the demand curve increases, the elasticity of demand become:

• Higher

• Lower

• Equal to infinity

• Perfectly inelastic

The principal limitation of utility analysis relates to the basic assumption the utility can be expressed in terms of:

• Cardinal number

• Ordinal numbers

• Both (a) and (b)

• None of these