641. The fundamental issue affecting all societies’ finances is:
A) Unemployment
B) Inequality
C) Poverty
D) Scarcity
642. Which of the following characteristics can exist both in perfect competition and in a monopoly?
A) Ease of entry
B) Many sellers
C) Many buyers
D) Perfectly elastic supply curve
643. A businessman or a company should accept investments that offer rates of return __ their opportunity costs of capital.
A) Equal to
B) Greater than
C) Less than
D) Related to
644. When price rises, the quantity demanded generally tends to fall because of:
I. Income effect
II. Substitution effect
A) I only
B) II only
C) I or II
D) I and II
645. If there are changes in factors other than a product’s own price that affect the quantity purchased, the phenomena is termed as
A) Law of upward-sloping demand
B) Law of downward-sloping demand
C) Shifts in demand
D) In-equilibrium of supply and demand
646. What is the function of a central bank (or a state bank)?
A) Taking deposits from the people
B) Implementing monetary policy
C) Lending to businesses
D) Determining inflation and tax rates
647. ———-is known as the father of economics:
A) Adam Smith
B) Professor A. Samuelson
C) Alfred Marshall
D) J. R. Hicks
648. In economic wealth is the stock of all those material and immaterial objects which………?
A) Are transferable
B) Have utility
C) Are scarce
D) All of the three
649. Scarcity of resources leads to:
A) Unsatisfaction of human wants
B) Evaluation of alternative uses of scarce resources
C) Both
D) None
650. Which of these resources would be called as land in economics:
A) Coal mines of Bihar
B) Water resources of Uttaranchal
C) Mineral deposits of Jharkhand;
D) All of the above
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