Question 1

Wear and tear of capital due to constant use means:

Accepted Answer

A)  Intermediate consumption
B)  Final consumption
C)  Depreciation
D)  Devaluation C

Question 2

Wages and prices are ----------, according to the Classicals.

Accepted Answer

A)  Rigid
B)  Flexible
C)  Both
D)  All of these B

Question 3

In India, the current base year is:

Accepted Answer

A)  1980-81
B)  1993-94
C)  1999-2000
D)  2004-05 D

Question 4

Say's Law of market was proved wrong by:

Accepted Answer

A)  Industrial revolution
B)  Great Depression
C)  Green revolution
D)  Gulf war

Question 5

Primary sector includes:

Accepted Answer

A)  Agriculture
B)  Industry
C)  Services
D)  Banking

Question 6

If the amount of the commodity purchased remains unchanged when the price of another commodity changes, the cross elasticity of demand between them will be:

Accepted Answer

A)  Positive
B)  Negative
C)  Zero
D)  One

Question 7

For complementary goods, the cross elasticity of demand:

Accepted Answer

A)  Positive
B)  Negative
C)  Zero
D)  None

Question 8

A market:

Accepted Answer

A)  Necessarily refers to a meeting place between buyer and sellers
B)  Does not necessarily refers to a meeting place between buyer and sellers
C)  Extends over the entire country
D)  Extends over a city

Exam 2: Economics Terminology: Markets, Equilibrium, Supply,cost ,demand and Elasticity