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Worksheets

Basic Economic Entities

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

What are the two main functions of an economy?

a)

To produce goods and services to satisfy human wants.

b)

To maintain a system of mutual exchange between entities.

c)

To provide employment opportunities to people.

d)

To solve problems related to production consumption and distribution.

2.

Select the the only way in which fiscal policy helps our country

a)

Balancing the export and import of commodities.

b)

controlling inflation.

c)

controlling and regulating the supply of money and availability of credit.

d)

decreasing capital accumulation.

3.

State the correct factor of production with its form of income generation.

a)

Land-Rent

b)

Labour-Profit

c)

Capital-Wages

d)

Organisation-Interest.

4.

To raise the rate of investment is an Indirect role of a government.

a)

True

b)

False

5.

How can the state check the concentration of economic power in a few hands?

a)

Nationalization of Industries

b)

Through progressive tax system.

c)

Through its expenditure policy.

d)

Through Demonetization

6.

Under basis of nature of consumption consumers may be classified as

a)

Direct Consumers

b)

Indirect Consumers

c)

Tertiary consumers

d)

Modern Consumers

e)

Consumers by exchanging goods.

7.

Households offer (a)   to the firms and recieve rewards in cash or kind for the services rendered.

8.

Firms play a dual role.

a)

True

b)

False

9.

When price increases purchasing power____________.

a)

decreases

b)

increases

c)

remains constant

10.

Which main activities does an economic entity perform?

a)

Acquiring assets or to obtain their ownership right.

b)

Taking up responsibilities and incur liabilities

c)

participating in economic activities.

d)

undertaking transactions with other economic entities in the economy.

e)

maintaining a system of co-operation among producers.

11.

(a)   is the administrative body or regulatory authority that maintains law and order.

12.

What are the economic entities?

a)

Consumers

b)

Households

c)

Firms

d)

Government

13.

Who are the source of demand?

a)

Consumers

b)

Producers

c)

Firms

d)

Citizens of India

14.

The process which causes the decrease in the purchasing power of the consumers is called____________

a)

Deflation

b)

Inflation

15.

Which is the main bank which conducts the Monetary policy?

a)

ICICI

b)

HDFC

c)

State Bank of India

d)

Reserve Bank of India

16.

Those aspects of the household behaviour that involve choice making and decision making form the part of (a)  

17.

"The system by which people get a living".Who stated this?

a)

A.J Brown

b)

Adam Smith

c)

Lionel Robbins

d)

Michael Jackson

e)

Bill gates

18.

The main objective of every ___________is to maximise satisfaction with its limited income or means.

a)

Households

b)

Consumers

19.

Which are one of the indirect roles of the government

a)

To direct the market forces

b)

Agricultural development

c)

Fiscal policy

d)

Foreign Trade Policy

20.

Which producers produce finished and manufactured goods?(Starting letters in capital only)

(a)