ECONOMICS TEST

I. SELECT THE CORRECT ANSWER: (1 MARKS * 10 = 10)

1. Macro Economics studies:-
a. Employment opportunity in Economy
b. Law of supply of commodities
c. Elasticity of demand in scooter
d. Price of wheat in market

2. By Which method can we withdraw cash from Bank?

a. Withdrawal Form
b. Cheque
c. ATM
d. All of these

3. What is consumption of fixed capital called?

(A) Capital Formation
(B) Depreciation
(C) Investment
(D) All of these

4. Which one of the following is included in circular flow ?

(A) Real Flow
(B) Monetary Flow
(C) Both (A) and (B)
(D) None of these

5. The subject of the study of Macro Economics is :

(A) The Priniciple of National Income
(B) The Principle of Consumer
(C) The Principle of Producer
(D) None of these

6. Which of the following is a stock concept?

(A) Wealth
(B) Saving
(C) Export
(D) None of these
 7. Which of the following is not a factor of Production ?
(A) Land
(B) Labour
(C) Capital
(D) Money

8. Which one is included in National Income ?

(A) Rent, Wage, Interest
(B) Rent, Wage, Salary, Interest, Profit
(C) Rent, Wage, Salary
(D) Rent, Profit, Interest

9. Which one of the following is included in flow ?

(A) Consumption
(B) Investment
(C) Income
(D) All of the above

10.Which of the following is included in Real Flow ?

(A) Flow of Goods
(B) Flow of Services
(C) Both (A) and (B)
(D) None of these

II. ANSWER THE FOLLOWING (3 MARKS * 5 = 15 )

1. Differentiate between factor income and transfer income.
2. What do you mean by National Income? How is it measured?
3. What are the functions of money?
4. Explain circular flow of income with diagram.
5. Write a note on domestic territory.
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