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Economics Questions and Answers

1. “An Enquiry into the Nature and Causes of Wealth of Nations” is the book of economist—
(A) Adam Smith (B) Marshall
(C) Robbins (D) None of above
Ans : (A)

2. “Economics is the Science of Wealth” who gave this definition ?
(A) J. K. Mehta (B) Marshall
(C) Adam Smith (D) Robbins
Ans : (C)

3. “Economics is what economists do.” It has been supported by—
(A) Richard Jones (B) Comte
(C) Gunnar Myrdal (D) All of the above
Ans : (D)

4. “Human Welfare is the subject of Economics.” This statement is associated with the name of which of the economists ?
(A) Marshall (B) Pigou
(C) Penson (D) All of the above
Ans : (D)

5. Who has given scarcity definition of economics ?
(A) Adam Smith (B) Marshall
(C) Robbins (D) Robertson
Ans : (C)

6. “Economics is a science” the basis of this statement is—
(A) Relation between cause and effect
(B) Use of deductive method and inductive method for the formations of laws
(C) Experiments
(D) All of the above
Ans : (D)

7. Characteristics of economic laws are—
(A) Mere statements of economic tendencies (B) Less certain
(C) Hypothetical (D) All of the above
Ans : (D)

8. Which theory is generally included under micro economics ?
(A) Price Theory
(B) Income Theory
(C) Employment Theory
(D) None of the above
Ans : (A)

9. Whose opinions have revolutionised the scope of macro economics ?
(A) Adam Smith (B) J.B. Say
(C) J.M. Keynes (D) All of the above
Ans : (C)

10. Which of the following is an economic activity ?
(A) Teaching of a teacher in the school (B) To teach son at home
(C) To serve her child by mother (D) To play football by a student
Ans : (A)

11. Passive factor of production is—
(A) Only land (B) Only capital
(C) Both land and capital (D) Neither land nor capital
Ans : (C)

12. Under law of demand—
(A) Price of commodity is an independent variable
(B) Quantity demanded is a dependent variable
(C) Reciprocal relationship is found between price and quantity demanded
(D) All of the above
Ans : (D)

13. For inferior commodities, income effect is—
(A) Zero (B) Negative
(C) Infinite (D) Positive
Ans : (B)

14. When total utility becomes maximum, then marginal utility will be—
(A) Minimum (B) Average
(C) Zero (D) Negative
Ans : (C)

15. Utility means—
(A) Power to satisfy a want (B) Usefulness
(C) Willingness of a person (D) Harmfulness
Ans : (A)

16. Marginal utility is equal to average utility at that time when average utility is—
(A) Increasing (B) Maximum
(C) Falling (D) Minimum
Ans : (B)

17. At point of satiety, marginal utility is—
(A) Zero (B) Positive
(C) Maximum (D) Negative
Ans : (A)

18. Which of the following is the second law of Gossen ?
(A) Law of equi-marginal utility (B) Law of equi-product
(C) Theory of indifference curve (D) Law of diminishing marginal utility
Ans : (A)

19. Total utility of a commodity is measured by which price of that commodity ?
(A) Value in use (B) Value in exchange
(C) Both of above (D) None of above
Ans : (A)

20. According to Marshall, the basis of consumer surplus is—
(A) Law of diminishing marginal utility (B) Law of equi-marginal utility
(C) Law of proportions (D) All of the above
Ans : (A) - See more at:

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