101. Which economic term is used to measure the overall performance of an economy?
(A) GDP
(B) GNP
(C) Gini
(D) HDI

102. Productive efficiency occurs when an economy cannot produce _____ of one good without producing _____ of another good.
(A) more, more
(B) more, less
(C) less, less
(D) none of these

103. The concept of invisible hand in the organization of supply and demand in a well-functioning market mechanism refers to the
(A) self-regulating economy
(B) government-controlled economy
(C) command economy
(D) socialism

104. The increase in economic integration among nations is termed as
(A) specialization
(B) market economy
(C) globalization
(D) equilibrium condition

105. The price elasticity of demand is the percentage change in _____ demanded divided by the percentage change in _____.
(A) supply, price
(B) quantity, price
(C) price, supply
(D) price, quantity

106. When price of a commodity increased by 3%, the quantity demanded decreased by 5%. The quantity is said to have
(A) price-elastic demand
(B) price-elastic supply
(C) price-inelastic demand
(D) price-inelastic supply

107. When price of a commodity increased by 5%, the quantity demanded decreased by 3%. The quantity is said to have
(A) price-elastic demand
(B) price-elastic supply
(C) price-inelastic demand
(D) price-inelastic supply

108. When price of a commodity decreased by 4%, the quantity demanded increased by 4%. The quantity is said to have
(A) unit-elastic demand
(B) unit-elastic supply
(C) price equilibrium
(D) supply-demand equilibrium

109. The term “recession” refers to the
(A) high employment
(B) high unemployment
(C) high supply and demand
(D) low supply and demand

110. What from the following measures a government can take to reduce inequality in the distribution of income?
(A) Progressive taxation
(B) Transfer payments
(C) Subsidize consumption of low-income groups
(D) All of the above

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