11- The entrepreneur gets Pure Profit for
(A) undertaking risk & uncertainty
(B) for innovation
(C) co-ordination & organizing production
(D) all of the above
12- Excess demand can be defined as
(A) quantity demanded equals quantity supplied
(B) quantity demanded minus quantity supplied
(C) quantity supplied minus quantity demanded
(D) none of the above
13- Excess supply can be defined as
(A) quantity demanded equals quantity supplied
(B) quantity demanded minus quantity supplied
(C) quantity supplied minus quantity demanded
(D) none of the above
14- Tea and sugar are
(A) Complimentary goods
(B) Substitute goods
(C) Necessity goods
(D) Inferior goods
15- In case of increase in the income, the rich person’s demand for goods will be
(A) less
(B) more
(C) no change
(D) depends upon the situation
16- The factor(s) of production is (are)
(A) Land
(B) Labor
(C) Capital
(D) All of the above
17- A firm is a unit of production, where production is done with the aim to maximize
(A) profits
(B) capital
(C) resources
(D) all of the above
18- Inflation is characterized by demand which is in
(A) surplus
(B) excess of supply
(C) both (A) and (B)
(D) none of the above
19- The prosperity phase is characterized by rise in the level of
(A) management
(B) economy
(C) employment
(D) production
20- In a market economy ________ is the best judge of personal interest.
(A) individual
(B) public
(C) employee
(D) none of the above
ANSWERS:
11-(D), 12-(B), 13-(C), 14-(A), 15-(B), 16-(D), 17-(A), 18-(B), 19-(C), 20-(A)