THE LEARNING HOUSE HIGHER SECONDARY SCHOOL Teachers' Assesment Paper "Economics" Time Allowed: 30 Minutes Total Marks: 30

(Multiple Choice Questions) 1. The first book on economics of Wealth of Nations was written by ____________. a. Prof Marshall b. Adam Smith c. Prof Robbins d. Keynesian 2. According to Prof. Marshall Economics is science of _________________. a. Wealth b. Scarcity & Choice c. Material Welfare d. All of above 3. Economics is a science of Scarcity and Choice, this definition was presented by _____. a. Adam Smith b. Prof. Marshall c. Prof Robbins d. Non o above 4. Human wants or desires are: a. Unlimited b. Limited c. Nothing

d. None of above 5. Land, Labor, Capital and Organization are the factors of _______. a. Factory b. Supply c. Demand d. Production 6. The Law of Demand states that: a. Increase in price, decrease in quantity demand b. Decrease in price, increase in demand c. The inverse relationship between Price and Demand d. All of above 7. The demand curve moves from left to right ______. a. Upward b. Downward c. Straight d. None of Above 8. The slope of demand curve is __________. a. Positive b. Zero c. Negative d. Infinite 9. If the changes in demand and price are in the same ration, the elasticity of demand will be _____ unity. a. Greater than b. Equal to c. Less than

d. All of above 10. The Law of Supply states that, increase in price, _____ in quantity supplied and decreases in price, _______ in quantity supplied. a. Decrease, increase b. Increase, increase c. Decrease, decrease d. Increase, decrease 11. Supply is the part of ____________. a. Demand b. Supply c. Stock d. None of the above 12. Micro economics is the study of __________ a. Whole economy b. Individuals c. Both of them 13. When marginal utility becomes zero total utility will be ____________. a. Minimum b. Maximum c. Zero d. Income 14. The power of a Commodity to satisfy human wants is called ____________. a. Usefulness b. Utility c. Income d. None of the above

15. Net national can be calculated by: a. GNP + depreciation b. GNP depreciation c. G.N.P indirect taxes d. None of the above 16. Macro economies is the study of: a. Individual units of economy b. Aggregate and averages of economy c. Individual units aggregate and averages of economy d. None of the above 17. In inflation: a. Price raises b. purchasing power decreases c. poor become poorer d. all of the above 18. To avoid double counting in estimation of G.D.P only: a. Intermediate goods are included b. free goods are included c. final goods are included d. none of the above 19. GNP or GDP is the sum of: a. All goods are produced b. All goods and services are produced c. All goods and services consumed d. All final goods and services produced in a year.

20. The fundamental economic problem faced by all societies is: a. unemployment b. inequality c. poverty d. scarcity 21. Capitalism refers to: a. the use of markets b. government ownership of capital goods. c. private ownership of capital goods. d. private ownership of homes and cars. 22. The law of demand states that: a. as the quantity demanded rises, the price rises. b. as the price rises, the quantity demanded rises. c. as the price rises, the quantity demanded fails. d. as supply rises, the demand rises. 23. Which of the following is a characteristics of pure monopoly? a. one seller of the product. b. low barriers to entry c. close substitute products d. perfect information 24. Foreign trade differs from domestic trade: a. Because of terms of trade b. Due to differences in production costs. c. Because of territorial differences. d. None of the above

25. During inflation the prices of goods: a. Rises b. Falls c. Unchanged d. None of the above 26. During inflation the value of money: a. Increases b. Diminishes or decreases c. Unchanged d. All of the above 27. Trade cycle or business cycle consists of: a. 2 phases b. 4 phases c. 3 phases d. No phases 28. When the economic activities are at their peak, it is called: a. Boom b. Recession c. Depression d. recovery 29. Which one is not a direct tax? a. Income tax b. Sales tax c. Property tax d. Wealth tax

30. When the total monetary value of imports of a country is less than the total monetary value of exports, the balance of payment is: a. zero b. Positive c. Negative d. None of the above

Answer Key 1. B 2. C 3. C 4. A 5. D 6. A 7. B 8. C 9. B 10. D 11. C 12. B 13. B 14. B 15. B 16. B 17.D 18. C

19. B 20. D 21. B 22. C 23. D 24. C 25. A 26. B 27. B 28. A 29. B 30. C