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Worksheets

CA FOUNDATION ELITE

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

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

a)

1776

b)

1786

c)

1789

d)

1790

2.

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

a)

No choice is to be made

b)

Choice to be made between alternative uses

c)

Choice to be made between means and ends

d)

None of the above

3.

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

a)

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

b)

A mythical economy where everybody is a billionaire.

c)

Any economy where income is distributed equally among its people.

d)

None of the above

4.

__________ 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.

a)

Decision making

b)

Strategy

c)

Problem Solving

d)

Effectiveness

5.

Micro economics does not study __________.

a)

Consumer behaviour

b)

Factor pricing

c)

General price level

d)

Firms equilibrium

6.

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

a)

Shyam

b)

Krishna

c)

Hari

d)

Radhe

7.

Normative aspect of Economics is given by:

a)

Marshall

b)

Robbins

c)

Adam Smith

d)

Samuelson

8.

The Central problem in every eco-nomic society is:

a)

To ensure a minimum level of income for every individual.

b)

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

c)

To ensure that production occurs in the most efficient manner.

d)

none

9.

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

a)

Voting done by consumers

b)

A central planning authority.

c)

Consumer preferences.

d)

The level of profits of firms.

10.

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:

a)

Socialist Economy

b)

Capitalist Economy

c)

Mixed Economy

d)

All of the above

11.

Which of the following statements does not apply to a market economy?

a)

Firms decide whom to hire and what to produce.

b)

Firms aim at maximizing profits.

c)

Households decide which firms to work for and what to buy with their incomes.

d)

Government policies are the pri-mary forces that guide the deci-sions of firms and households

12.

Inequalities of income do not perpetuate in __________.

a)

Socialism

b)

Mixed economy

c)

Capitalism

d)

none

13.

In India Mixed Economy exists due to:

a)

Coexistence of public sector and private sector.

b)

Individual forces of demand and supply.

c)

Orders by government.

d)

None of these.

14.

__________ means that buyers ultimately determine which goods and services will be produced and in what quantities.

a)

Capitalist Economic

b)

Socialist Economy

c)

Mixed Economy

d)

Consumer Sovereignty

15.

Business Economics enables appli-cation of economic logic and analytical tools to __________.

a)

Bridge the gap between theory and practice.

b)

Increase the implementation sci-ence.

c)

Increase the effectiveness.

d)

Apply tools of macro economics.