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11 - Economics

Book Back One Mark

English Medium – Study Material

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
E-mail: [email protected]
Mobile: 9786868699
 www.nammakalvi.com

11 - Economics
Table of Contents

S. No. Chapter Title Page No.

Chapter 1 Introduction to Micro Economics 1

Chapter 2 Consumption Analysis 2

Chapter 3 Production Analysis 4

Chapter 4 Cost and Revenue Analysis 5

Chapter 5 Market Structure and Pricing 6

Chapter 6 Distribution Analysis 8

Chapter 7 Indian Economy 9

Chapter 8 Indian Economy Before and After Independence 10

Chapter 9 Development Experiences in India 12

Chapter 10 Rural Economy 13

Chapter 11 Tamil Nadu Economy 14

Chapter 12 Mathematical Methods for Economics 16

Thank You

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
E-mail: [email protected]
Mobile: 9786868699
 www.nammakalvi.com

11 – Economics
Book Back One Mark Question & Answer

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
E-mail: [email protected]
Mobile: 9786868699

Chapter - 1
Introduction to Micro Economics
Multiple Choice Questions
1. „Economics is a study of mankind in the ordinary business of life‟ - It is the statement of ___
(a) Adam Smith (b) Lionel Robbins (c) Alfred Marshall (d) Samuelson
2. The basic problem studied in Economics is __________.
(a) Unlimited wants (b) Unlimited means (c) Scarcity (d) Strategy to meet all our wants
3. Micro economics is concerned with __________.
(a The economy as a whole (b) Different sectors of an economy
(c) The study of individual economic units behaviour
(d) The interactions within the entire economy
4. Which of the following is a micro economics statement?
(a) The real domestic output increased by 2.5 percent last year.
(b) Unemployment was 9.8 percent of the labour force last year.
(c) The price of wheat determines its demand
(d) The general price level increased by 4 percent last year.
5. Find the odd one out:
(a) “An inquiry into the nature and the causes of the Wealth of Nations”
(b) “Principles of Economics”
(c) “Nature and Significance of Economic Science” (d) “Ceteris paribus”
6. The equilibrium price is the price at which __________.
(a) Everything is sold (b) Buyers spend their money
(c) Quantity demanded equals quantity supplied (d) Excess demand is zero
7. Author of “An Inquiry into the Nature and Causes of Wealth of Nations” __________.
(a) Alfred Marshall (b) Adam Smith (c) Lionel Robbins (d) Paul A Samuelson
8. “Economics studies human behaviour as a relationship between ends and scarce means
which have alternative uses” is the definition of economics of _________.
(a) Lionel Robbins (b) Adam Smith (c) Alfred Marshall (d) Paul A Samuelson
9. Who is the Father of Economics?
(a) Max Muller (b) Adam Smith (c) Karl Marx (d) Paul A Samuelson
10. “Economics is a science”. The basis of this statement is __________.
(a) Relation between cause and effect
(b) Use of deductive method and inductive method for the formations of laws

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(c) Experiments (d) All of the above

11. Utility means __________.

(a) Equilibrium point at which demand and supply are equal
(b) Want-satisfying capacity of goods and services
(c) Total value of commodity (d) Desire for goods and services
12. A market is __________.
(a) Only a place to buy things (b) Only a place to sell things
(c) Only a place where prices adjust
(d) A system where persons buy and sell goods directly or indirectly
13. Which one of the following is not a point in the Welfare Definition of Economics?
(a) Study of an ordinary man (b) Economics does not focus on wealth alone
(c) Economics is the study of material welfare
(d) Economics deals with unlimited wants and limited means
14. Growth definition takes into account __________.
(a) The problem of choice in the dynamic framework of Economics
(b) The problem of unlimited means in relation to wants
(c) The production and distribution of wealth (d) The material welfare of human beings
15. Which theory is generally included under micro economics?
(a) Price Theory (b) Income Theory (c) Employment Theory (d) Trade Theory
16. _______ have exchange value and their ownership rights can be established and exchanged.
(a) Goods (b) Services (c) Markets (d) Revenue
17. Identify the correct characteristics of utility __________.
(a) It is equivalent to „usefulness‟ (b) It has moral significance
(c) It is same as pleasure (d) It depends upon consumer’s mental attitude
18. Who has given scarcity definition of economics?
(a) Adam Smith (b) Marshall (c) Robbins (d) Robertson
19. The process of reasoning from particular to general is __________.
(a) Deductive method (b) Inductive method
(c) Positive economics (d) Normative economics
20. Total revenue is equal to total output sold multiplied by ___________.
(a) Price (b) Total cost (c) Marginal revenue (d) Marginal cost

Chapter - 2
Consumption Analysis

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. Pick the odd one out __________.
(a) Luxuries (b) Comforts (c) Necessaries (d) Agricultural goods
2. Choice is always constrained or limited by the __________ of our resources.
(a) Scarcity (b) Supply (c) Demand (d) Abundance

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3. The chief exponent of the Cardinal utility approach was __________.

(a) J.R.Hicks (b) R.G.D.Allen (c) Marshall (d) Stigler
4. Marginal Utility is measured by using the formula of __________.
(a) TUn-TUn-1 (b) TUn-TUn+1 (c) TUn+TUn+1 (d) TUn-TUn+1
5. When marginal utility reaches zero, the total utility will be __________.
(a) Minimum (b) Maximum (c) Zero (d) Negative
6. Gossen‟s first law is known as __________.
(a) Law of equi-marginal utility (b) Law of diminishing marginal utility
(c) Law of demand (d) Law of Diminishing returns
7. The basis for the law of demand is related to __________.
(a) Law of diminishing marginal utility (b) Law of supply
(c) Law of equi-marginal utility (d) Gossen‟s Law
8. The concept of consumer‟s surplus is associated with __________.
(a) Adam Smith (b) Marshall (c) Robbins (d) Ricardo
9. Given potential price is Rs.250 and the actual price is Rs.200. Find the consumer surplus ___.
(a) 375 (b) 175 (c) 200 (d) 50
10. Indifference curve approach is based on __________.
(a) Ordinal approach (b) Cardinal approach
(c) Subjective approach (d) Psychological approach
11. The concept of elasticity of demand was introduced by __________.
(a) Ferguson (b) Keynes (c) Adam Smith (d) Marshall
12. Increase in demand is caused by __________.
(a) Increase in tax (b) Higher subsidy (c) Increase in interest rate (d) Decline in population
13. The movement on or along the given demand curve is known as __________.
(a) Extension and contraction of demand (b) Shifts in the demand
(c) Increase and decrease in demand (d) All the above
14. In case of relatively more elastic demand the shape of the curve is __________.
(a) Horizontal (b) Vertical (c) Steeper (d) Flatter
15. A consumer is in equilibrium when marginal utilities from two goods are __________.
(a) Minimum (b) Inverse (c) Equal (d) Increasing
16. Indifference curve was first introduced by __________.
(a) Hicks (b) Allen (c) Keynes (d) Edgeworth
17. Elasticity of demand is equal to one indicates __________.
(a) Unitary Elastic Demand (b) Perfectly Elastic Demand
(c) Perfectly Inelastic Demand (d) Relatively Elastic Demand
18. The locus of the points which gives same level of satisfaction is associated with __________.
(a) Indifference Curves (b) Cardinal Analysis (c) Law of Demand (d) Law of Supply
19. Ordinal Utility can be measured by __________.
(a) Ranking (b) Numbering (c) Wording (d) None of these
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20. The indifference curve are __________.

(a) vertical (b) horizontal (c) positive sloped (d) Negatively sloped

Chapter - 3
Production Analysis

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. The primary factors of production are __________.
(a) Labour and Organisation (b) Labour and Capital
(c) Land and Capital (d) Land and Labour
2. The man-made physical goods used to produce other goods and services are referred to as
__________.
(a) Land (b) Labour (c) Capital (d) Organization
3. Formula for calculating AP is __________.
(a) ΔTP/N (b) ΔTP/ΔN (c) TP/MP (d) TP/N
4. Which factor is called the changing agent of the Society __________.
(a) Labourer (b) Land (c) Organizer (d) Capital
5. Who said, that one of the key of an entrepreneur is “uncertainty-bearing” __________.
(a) J.B.Clark (b) Schumpeter (c) Knight (d) Adam Smith
6. The functional relationship between “inputs” and “outputs” is called as __________.
(a) Consumption Function (b) Production Function
(c) Savings Function (d) Investment Function
7. In a firm 5 units of factors produce 24units of the product. When the number of factor
increases by one, the production increases to 30 units. Calculate the Average Product _____.
(a) 30 (b) 6 (c) 5 (d) 24
8. The short-run production is studied through __________.
(a) The Laws of Returns to Scale (b) The Law of Variable Proportions
(c) Iso - quants (d) Law of Demand
9. The long-run production function is explained by __________.
(a) Law of Demand (b) Law of Supply (c) Returns to Scale (d) Law of Variable Proportions
10. An Iso - quant curve is also known as __________.
(a) Inelastic Supply Curve (b) Inelastic Demand Curve
(c) Equi-marginal Utility (d) Equal Product Curve
11. Mention the economies reaped from inside the firm ___________.
(a) financial (b) technical (c) managerial (d) all of the above
12. Cobb-Douglas production function assumes __________.
(a) Increasing returns to scale (b) Diminishing returns to scale
(c) Constant returns to scale (d) All of the above
13. Name the returns to scale when the output increases by more than 5%, for a 5% increase in
the inputs, __________.
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(a) Increasing returns to scale (b) Decreasing returns to scale

(c) Constant returns to scale (d) All of the above
14. Which of the following is not a characteristic of land?
(a) Its limited supply (b) It is mobile (c) Heterogeneous (d) Gift of Nature
15. Product obtained from additional factors of production is termed as __________.
(a) Marginal product (b) Total product (c) Average product (d) Annual product
16. Modern economists have propounded the law of __________.
(a) Increasing returns (b) Decreasing returns (c) Constant returns (d) Variable proportions
17. Producer‟s equilibrium is achieved at the point where ___________.
(a) Marginal rate of technical substitution (MRTS) is greater than the price ratio
(b) MRTS is lesser than the price ratio
(c) MRTS and price ratio are equal to each other
(d) The slopes of iso quant and iso cost lines are different
18. The relationship between the price of a commodity and the supply of commodity is ______.
(a) Negative (b) Positive (c) Zero (d) Increase
19. If average product is decreasing, then marginal product ____________.
(a) must be greater than average product (b) must be less than average product
(c) must be increasing (d) both a and c
20. A production function measures the relation between ___________.
(a) input prices and output prices (b) input prices and the quantity of output
(c) the quantity of inputs and the quantity of output
(d) the quantity of inputs and input prices

Chapter - 4
Cost and Revenue Analysis
M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,
PG Assistant in Economics
1. Cost refers to __________.
(a) price (b) value (c) fixed cost (d) cost of production
2. Cost functions are also known as __________ function.
(a) production (b) investment (c) demand (d) consumption
3. Money cost is also known as __________ cost.
(a) explicit (b) implicit (c) social (d) real
4. Explicit cost plus implicit cost denote __________ cost.
(a) social (b) economic (c) money (d) fixed
5. Explicit costs are termed as __________.
(a) out of pocket expenses (b) real cost (c) social cost (d) sunk cost
6. The costs of self–owned resources are termed as __________ cost.
(a) real (b) explicit (c) money (d) implicit

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7. The cost that remains constant at all levels of output is __________ cost.
(a) fixed (b) variable (c) real (d) social
8. Identify the formula of estimating average variable cost __________.
(a) TC/Q (b) TVC/Q (c) TFC/Q (d) TAC/Q
9. The cost incurred by producing one more unit of output is __________ cost.
(a) variable (b) fixed (c) marginal (d) total
10. The cost that varies with the level of output is termed as __________ cost.
(a) money (b) variable cost (c) total cost (d) fixed cost
11. Wage is an example for __________ cost of the production.
(a) fixed (b) variable (c) marginal (d) opportunity
12. The cost per unit of output is denoted by __________ cost.
(a) average (b) marginal (c) variable (d) total
13. Identify the formula of estimating average cost __________.
(a) AVC/Q (b) TC/Q (c) TVC/Q (d) AFC/Q
14. Find total cost where TFC = I00 and TVC = 125.
(a) 125 (b) 175 (c) 225 (d) 325
15. Long-run average cost curve is also called as __________ curve.
(a) demand (b) planning (c) production (d) sales
16. Revenue received from the sale of products is known as __________ revenue.
(a) profit (b) total revenue (c) average (d) marginal
17. Revenue received from the sale of additional unit is termed as __________ revenue.
(a) profit (b) average (c) marginal (d) total
18. Marginal revenue is the addition made to the __________.
(a) total sales (b) total revenue (c) total production (d) total cost
19. When price remains constant, AR will be __________ MR.
(a) equal to (b) greater than (c) less than (d) not related to
20. A book seller sold 40 books with the price of ` 10 each. The total revenue of the seller is
` __________.
(a) ` 100 (b) ` 200 (c) ` 300 (d) ` 400

Chapter - 5
Market Structure and Pricing

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. In which of the following is not a type of market structure Price will be very high?
(a) Perfect competition (b) Monopoly (c) Duopoly (d) Oligopoly
2. Equilibrium condition of a firm is __________.
(a) MC = MR (b) MC > MR (c) MC < MR (d) MR = Price

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3. Which of the following is a feature of monopolistic competition?

(a) One seller (b) Few sellers (c) Product differentiation (d) No entry
4. A firm under monopoly can earn __________ in the short run.
(a) Normal profit (b) Loss (c) Super normal profit (d) More loss
5. There is no excess capacity under __________.
(a) Monopoly (b) Monopolistic competition (c) Oligopoly (d) Perfect competition
6. Profit of a firm is obtained when __________.
(a) TR < TC (b) TR - MC (c) TR > TC (d) TR = TC
7. Another name of price is __________.
(a) Average Revenue (b) Marginal Revenue (c) Total Revenue (d) Average Cost
8. In which type of market, AR and MR are equal __________.
(a) Duopoly (b) Perfect competition (c) Monopolistic competition (d) Oligopoly
9. In monopoly, MR curve lies below __________.
(a) TR (b) MC (c) AR (d) AC
10. Perfect competition assumes __________.
(a) Luxury goods (b) Producer goods (c) Differentiated goods (d) Homogeneous goods
11. Group equilibrium is analysed in __________.
(a) Monopolistic competition (b) Monopoly (c) Duopoly (d) Pure competition
12. In monopolistic competition, the essential feature is __________.
(a) Same product (b) Selling cost (c) Single seller (d) Single buyer
13. Monopolistic competition is a form of __________.
(a) Oligopoly (b) Duopoly (c) Imperfect competition (d) Monopoly
14. Price leadership is the attribute of __________.
(a) Perfect competition (b) Monopoly (c) Oligopoly (d) Monopolistic competition
15. Price discrimination will always lead to __________.
(a) Increase in output (b) Increase in profit (c) Different prices (d) b and c
16. The average revenue curve under monopolistic competition will be __________.
(a) Perfectly inelastic (b) Perfectly elastic (c) Relatively elastic (d) Unitary elastic
17. Under perfect competition, the shape of demand curve of a firm is __________.
(a) Vertical (b) Horizontal (c) Negatively sloped (d) Positively sloped
18. In which market form, does absence of competition prevail?
(a) Perfect competition (b) Monopoly (c) Duopoly (d) Oligopoly
19. Which of the following involves maximum exploitation of consumers?
(a) Perfect competition (b) Monopoly (c) Monopolistic competition (d) Oligopoly
20. An example of selling cost is __________.
(a) Raw material cost (b) Transport cost (c) Advertisement cost (d) Purchasing cost

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Chapter - 6
Distribution Analysis

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. In Economics, distribution of income is among the __________.
(a) factors of production (b) individual (c) firms (d) traders
2. Theory of distribution is popularly known as, __________.
(a) Theory of product - pricing (b) Theory of factor - pricing
(c) Theory of wages (d) Theory of Interest
3. Rent is the reward for the use of __________.
(a) capital (b) labour (c) land (d) organization
4. The concept of „Quasi-Rent‟ is associated with __________.
(a) Ricardo (b) Keynes (c) Walker (d) Marshall
5. The Classical Theory of Rent was propounded by __________.
(a) Ricardo (b) Keynes (c) Marshall (d) Walker
6. „Original and indestructible powers of the soil‟ is the term used by __________.
(a) J.S.Mill (b) Walker (c) Clark (d) Ricardo
7. The reward for labour is __________.
(a) rent (b) wage (c) profit (d) interest
8. Money wages are also known as __________.
(a) real wages (b) nominal wages (c) original wages (d) transfer wages
9. Residual Claimant Theory is propounded by __________.
(a) Keynes (b) Walker (c) Hawley (d) Knight
10. The reward given for the use of capital __________.
(a) rent (b) wage (c) interest (d) profit
11. Keynesian Theory of interest is popularly known as __________.
(a) Abstinence Theory (b) Liquidity Preference Theory
(c) Loanable Funds Theory (d) Agio Theory
12. According to the Loanable Funds Theory, supply of loanable funds is equal to __________.
(a) S + BC + DH + DI (b) I + DS + DH + BM
(c) S + DS + BM + DI (d) S + BM + DH + DS
13. The concept of meeting unexpected expenditure according to Keynes is __________.
(a) Transaction motive (b) Precautionary motive
(c) Speculative motive (d) Personal motive
14. The distribution of income or wealth of a country among the individuals are
(a) functional distribution (b) personal distribution
(c) goods distribution (d) services distribution
15. Profit is the reward for
(a) land (b) organization (c) capital (d) labour

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16. Innovation Theory of profit was given by

(a) Hawley (b) Schumpeter (c) Keynes (d) Knight
17. Quasi-rent arises in
(a) Man-made appliances (b) Homemade items (c) Imported items (d) None of these
18. “Wages as a sum of money are paid under contract by an employer to a worker for services
rendered” –Who said this?
(a) Benham (b) Marshall (c) Walker (d) J.S.Mill
19. Abstinence Theory of Interest was propounded by
(a) Alfred Marshall (b) N.W Senior (c) Bohm-Bawerk (d) Knut Wicksell
20. Loanable Funds Theory of Interest is called as
(a) Classical Theory (b) Modern Theory (c) Traditional Theory (d) Neo-Classical Theory

Chapter - 7
Indian Economy

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. The main gold mine region in Karnataka is __________.
(a) Kolar (b) Ramgiri (c) Anantpur (d) Cochin
2. Economic growth of a country is measured by national income indicated by __________.
(a) GNP (b) GDP (c) NNP (d) Per capita income
3. Which one of the following is a developed nations?
(a) Mexico (b) Ghana (c) France (d) Sri Lanka
4. The position of Indian Economy among the other strongest economies in the world is _____.
(a) Fourth (b) Seventh (c) Fifth (d) Tenth
5. Mixed economy means __________.
(a) Private sectors and banks (b) Co-existence of Public and Private sectors
(c) Public sectors and banks (d) Public sectors only
6. The weakness of Indian Economy is __________.
(a) Economic disparities (b) Mixed economy
(c) Urbanisation (d) Adequate employment opportunities
7. A scientific study of the characteristics of population is __________.
(a) Topography (b) Demography (c) Geography (d) Philosophy
8. The year 1961 is known as __________.
(a) Year of small divide (b) Year of Population Explosion
(c) Year of Urbanisation (d) Year of Great Divide
9. In which year the population of India crossed one billion mark?
(a) 2000 (b) 2001 (c) 2005 (d) 1991
10. The number of deaths per thousand population is called as __________.
(a) Crude Death Rate (b) Crude Birth Rate (c) Crude Infant Rate (d) Maternal Mortality Rate

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11. The number of births per thousand population is called as __________.

(a) Crude death rate (b) Mortality rate (c) Morbidity rate (d) Crude Birth Rate
12. Density of population =
(a) Land area / Total Population (b) Land area / Employment
(c) Total Population / Land area of the region (d) Total Population / Employment
13. Who introduced the National Development Council in India?
(a) Ambedkar (b) Jawaharlal Nehru (c) Radhakrishanan (d) V.K.R.V. Rao
14. Who among the following propagated Gandhian Ecomomic thinkings __________.
(a) Jawaharlar Nehru (b) VKRV Rao (c) JC Kumarappa (d) A.K.Sen
15. The advocate of democratic socialism was __________.
(a) Jawaharlal Nehru (b) P.C. Mahalanobis (c) Dr. Rajendra Prasad (d) Indira Gandhi
16. Ambedkar the problem studied by in the context of Indian Economy is __________.
(a) Small land holdings and their remedies (b) Problem of Indian Currency
(c) Economics of socialism (d) All of them
17. Gandhian Economics is based on the Principle __________.
(a) Socialistic idea (b) Ethical foundation (c) Gopala Krishna Gokhale (d) Dadabhai Naoroji
18. V.K.R.V Rao was a student of __________.
(a) J.M. Keynes (b) Colin Clark (c) Adam smith (d) Alfred Marshal
19. Amartya Kumara Sen received the Nobel prize in Economics in the year __________.
(a) 1998 (b) 2000 (c) 2008 (d) 2010
20. Thiruvalluvar economic ideas mainly dealt with __________.
(a) Wealth (b) Poverty is the curse in the society (c) Agriculture (d) All of them

Chapter - 8
Indian Economy
Before and After Independence

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. The arrival of Vasco da Gama in Calicut, India __________.
(a) 1498 (b) 1948 (c) 1689 (d) 1849
2. In 1614 Sir Thomas Roe was successful in getting permission from __________.
(a) Akbar (b) Shajakan (c) Jahangir (d) Noorjakhan
3. The power for governance of India was transferred from the East India Company (EIC) to
the British crown in __________.
(a) 1758 (b) 1858 (c) 1958 (d) 1658
4. Ryotwari system was initially introduced in __________.
(a) Kerala (b) Bengal (c) Tamil Nadu (d) Maharastra
5. First World War started in the year __________.
(a) 1914 (b) 1814 (c) 1941 (d) 1841

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6. When did the Government of India declared its first Industrial Policy?
(a) 1956 (b) 1991 (c) 1948 (d) 2000
7. The objective of the Industrial Policy 1956 was __________.
(a) Develop heavy industries (b) Develop agricultural sector only
(c) Develop private sector only (d) Develop cottage industries only
8. The industry which was de-reserved in 1993?
(a) Railways (b) Mining of copper and zinc (c) Atomic energy (d) Atomic minerals
9. The father of Green Revolution in India was __________.
(a) M.S. Swaminathan (b) Gandhi (c) Visweswaraiah (d) N.R. Viswanathan
10. How many commercial banks were nationalised in 1969?
(a) 10 (b) 12 (c) 14 (d) 16
11. The main objective of nationalisation of banks was __________.
(a) Private social welfare (b) Social welfare (c) To earn (d) Industries monopoly
12. The Planning Commission was setup in the year __________.
(a) 1950 (b) 1955 (c) 1960 (d) 1952
13. In the first five year plan, The top priority was given to __________ sector.
(a) Service (b) Industrial (c) Agriculture (d) Bank
14. Tenth Five year plan period was __________.
(a) 1992-1997 (b) 2002-2007 (c) 2007-2012 (d) 1997-2002
15. According to HDR (2016), India ranked __________ out of 188 countries.
(a) 130 (b) 131 (c) 135 (d) 145
16. Annual Plans formed in the year __________.
(a) 1989-1991 (b) 1990-1992 (c) 2000-2001 (d) 1981-1983
17. The Oldest large scale industry in India __________.
(a) cotton (b) jute (c) steel (d) cement
18. Human development index (HDI) was developed by __________.
(a) Jawaharlal Nehru (b) M.K. Gandhi (c) Amartiya Sen (d) Tagore
19. The main theme of the Twelth Five Year Plan __________.
(a) faster and more inclusive growth (b) growth with social Justice
(c) socialistic pattern of society (d) faster, more inclusive and sustainable growth
20. The PQLI was developed by __________.
(a) Planning Commission (b) Nehru (c) Morris (d) Morrisd.Biswajeet

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Chapter - 9
Development Experiences in India

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. Which of the following is the way of Privatisation?
(a) Disinvestment (b) Denationalization (c) Franchising (d) All the above
2. Countries today are to be __________ for their growth.
(a) Dependent (b) Interdependent (c) Free trade (d) Capitalist
3. The Arguments against LPG is __________.
(a) Economic growth (b) More investment
(c) Disparities among people and regions (d) Modernization
4. Expansion of FDI __________.
(a) Foreign Private Investment (b) Foreign Portfolio
(c) Foreign Direct Investment (d) Forex Private Investment
5. India is the largest producer of __________ in the world.
(a) fruits (b) gold (c) petrol (d) diesel
6. Foreign investment includes __________.
(a) FDI only (b) FPI and FFI (c) FDI and FPI (d) FDI and FFI
7. The Special Economic Zones policy was announced in __________.
(a) April 2000 (b) July 1990 (c) April 1980 (d) July 1970
8. Agricultural Produce Market Committee is a __________.
(a) Advisory body (b) Statutory body (c) Both a and b (d) non of these above
9. Goods and Services Tax is __________.
(a) a multi point tax (b) having cascading effects
(c) like Value Added Tax (d) a single point tax with no cascading effects
10. The New Foreign Trade Policy was announced in the year __________.
(a) 2000 (b) 2002 (c) 2010 (d) 2015
11. Financial Sector reforms mainly related to __________.
(a) Insurance Sector (b) Banking Sector (c) Both a and b (d) Transport Sector
12. The Goods and Services Tax Act came in to effect on __________.
(a) 1st July 2017 (b) 1st July 2016 (c) 1st January 2017 (d) 1st January 2016
13. The new economic policy is concerned with the following __________.
(a) foreign investment (b) foreign technology (c) foreign trade (d) all the above
14. The recommendation of Narashimham Committee Report was submitted in the year
__________.
(a) 1990 (b) 1991 (c) 1995 (d) 2000
15. The farmers have access to credit under Kisan credit card scheme through the following
except __________.
(a) Co-operative banks (b) RRBs (c) Public sector banks (d) All the above
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16. The Raja Chelliah Committee on Trade Policy Reforms suggested the peak rate on import
duties at __________.
(a) 25% (b) 50% (c) 60% (d) 100%
17. The first ever SEZ in India was set up at __________.
(a) Mumbai (b) Chennai (c) Kandla (d) Cochin
18. „The Hindu Rate of Growth‟ coined by Raj Krishna refers to __________.
(a) Low rate of economic growth (b) High proportion of Hindu population
(c) Stable GDP (d) None
19. The highest rate of tax under GST is __________ (as on July1, 2017)
(a) 18% (b) 24% (c) 28% (d) 32%
20. The transfer of ownership from public sector to private sector is known as __________.
(a) Globalization (b) Liberalization (c) Privatization (d) Nationalization

Chapter - 10
Rural Economy

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. Which is considered as the basic unit for rural areas?
(a) Panchayat (b) Village (c) Town (d) Municipality
2. Which feature is identified with rural areas?
(a) Low population density (b) High population density
(c) Low natural resources (d) Low human resources
3. Identify the feature of rural economy __________.
(a) Dependence on agriculture (b) High population density
(c) Low level of population (d) Low level of inequality
4. What percentage of the total population live in rural area, as per 2011 censes?
(a) 40 (b) 50 (c) 60 (d) 70
5. How do you term people employed in excess over and above the requirements?
(a) Unemployment (b) Underemployment or Disguised Unemployment
(c) Full employment (d) Self-employment
6. What is the term used to denote the coexistence of two different features in an economy?
(a) Technology (b) Dependency (c) Dualism (d) Inequality
7. The process of improving the rural areas, rural people and rural living is defined as ______.
(a) Rural economy (b) Rural economics (c) Rural employment (d) Rural development
8. Identify the agriculture related problem of rural economy __________.
(a) Poor communication (b) Small size of landholding
(c) Rural poverty (d) Poor banking network
9. The recommended nutritional intake per person in rural areas __________.
(a) 2100 calories (b) 2100 calories (c) 2300 calories (d) 2400 calories

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10. Indicate the cause for rural poverty __________.

(a) Lack of non-farm employment (b) High employment
(c) Low inflation rate (d) High investment
11. What is the other name for concealed unemployment?
(a) Open (b) Disguised (c) Seasonal (d) Rural
12. How do you term the employment occurring only on a particular season?
(a) Open (b) Disguised (c) Seasonal (d) Rural
13. Identify an example for rural industries?
(a) Sugar factory (b) Mat making industry (c) Cement industry (d) Paper industry
14. How much share of rural families in India is in debt?
(a) Half (b) One fourth (c) Two third (d) Three fourth
15. Identify the cause for rural indebtedness in India ____________.
(a) Poverty (b) High population (c) High productivity (d) Full employment
16. In which year, Regional Rural Banks came into existence?
(a) 1965 (b) 1970 (c) 1975 (d) 1980
17. Identify the year of launch of MUDRA Bank?
(a) 1995 (b) 2000 (c) 2010 (d) 2015
18. Identify the year in which National Rural Health Mission was launched _________.
(a) 2000 (b) 2005 (c) 2010 (d) 2015
19. Identify the advantages of rural roads __________.
(a) Rural marketing (b) Rural employment (c) Rural development (d) All the above
20. “An Indian farmer is born in debt, lives in debt, dies in debt and bequeaths debt”- who said
this?
(a) Adam Smith (b) Gandhi (c) Amartya Sen (d) Sir Malcolm Darling

Chapter - 11
Tamil Nadu Economy

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. In health index, Tamil Nadu is ahead of __________.
(a) Kerala (b) Punjab (c) Gujarat (d) all the above
2. In sex ratio, Tamil Nadu ranks __________.
(a) first (b) second (c) third (d) fourth
3. Tamil Nadu is rich in __________.
(a) Forest resource (b) human resource (c) mineral resource (d) all the above
4. The main source of irrigation in Tamil Nadu is __________.
(a) river (b) tank (c) well (d) canals
5. Knitted garment production is concentrated in __________.
(a) Coimbatore (b) Tiruppur (c) Erode (d) Karur

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6. Which of the following is wrongly matched?

(a) Gateway of Tamil Nadu – Thoothukudi (b) Home textile city - Erode
(c) Steel city - Salem (d) Pump city – Coimbatore
7. Which of the following cities does not have international airport?
(a) Madurai (b) Tiruchirappalli (c) Paramakudi (d) Coimbatore
8. TN tops in the production of the following crops except __________.
(a) Banana (b) Coconut (c) Plantation crops (d) Cardamom
9. Largest area of land is used in the cultivation of __________.
(a) Paddy (b) Sugarcane (c) Groundnut (d) Coconut
10. In literacy rate, TN ranks __________.
(a) second (b) fourth (c) sixth (d) eighth
11. In investment proposals filed by MSMEs, TN ranks __________.
(a) I (b) II (c) III (d) IV
12. Which district in TN has the highest sex ratio?
(a) Nagapattinam (b) Nilgiris (c) Tiruchirappalli (d) Thanjavur
13. Which district has the lowest child sex ratio?
(a) Madurai (b) Theni (c) Ariyalur (d) Cuddalore
14. Which Union Territory has the highest sex ratio?
(a) Chandigarh (b) Pondicherry (c) Lakshadeep (d) Andaman Nicobar
15. The largest contribution to GSDP in Tamil Nadu comes from __________.
(a) agriculture (b) industry (c) mining (d) services
16. In human development index, TN is ranked __________.
(a) Second (b) fourth (c) sixth (d) seventh
17. SPIC is located in __________.
(a) Chennai (b) Madurai (c) Tuticorin (d) Pudukkottai
18. The TICEL park is __________.
(a) Rubber Park (b) Textile park (c) Food park (d) Bio park
19. In India‟s total cement production, Tamil Nadu ranks __________.
(a) third (b) fourth (c) first (d) second
20. The Headquarters of Southern Railway is at __________.
(a) Tiruchirappalli (b) Chennai (c) Madurai (d) Coimbatore

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Chapter - 12
Mathematical Methods for Economics

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
1. Mathematical Economics is the integration of __________.
(a) Mathematics and Economics (b) Economics and Statistics
(c) Economics and Equations (d) Graphs and Economics
2. The construction of demand line or supply line is the result of using __________.
(a) Matrices (b) Calculus (c) Algebra (d) Analytical Geometry
3. The first person used the mathematics in Economics is __________.
(a) Sir William Petty (b) Giovanni Ceva (c) Adam Smith (d) Irving Fisher
4. Function with single independent variable is known as __________.
(a) Multivariate Function (b) Bivariate Function
(c) Univariate Function (d) Polynomial Function
5. A statement of equality between two quantities is called __________.
(a) Inequality (b) Equality (c) Equations (d) Functions
6. An incremental change in dependent variable with respect to change in independent
variable is known as __________.
(a) Slope (b) Intercept (c) Variant (d) Constant
7. (y - y1) = m(x - x1) gives the __________.
(a) Slope (b) Straight line (c) Constant (d) Curve
8. Suppose D = 50 - 5P. When D is zero then __________.
(a) P is 10 (b) P is 20 (c) P is 5 (d) P is -10
9. Suppose D = 150 - 50P. Then, the slope is __________.
(a) - 5 (b) 50 (c) 5 (d) - 50
10. Suppose determinant of a matrix then the solution __________.
(a) Exists (b) Does not exist (c) is infinity (d) is zero
11. State of rest is a point termed as __________.
(a) Equilibrium (b) Non-Equilibrium (c) Minimum Point (d) Maximum Point
12. Differentiation of constant term gives __________.
(a) one (b) zero (c) infinity (d) non-infinity
13. Differentiation of xn is __________.
(a) nx(n-1) (b) nx (n+1) (c) zero (d) one
14. Fixed Cost is the __________ term in cost function represented in mathematical form.
(a) Middle (b) Price (c) Quantity (d) Constant
15. The first differentiation of Total Revenue function gives __________.
(a) Average Revenue (b) Profit (c) Marginal Revenue (d) Zero

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16. The elasticity of demand is the ratio of __________.

(a) Marginal demand function and Revenue function
(b) Marginal demand function to Average demand function
(c) Fixed and variable revenues
(d) Marginal Demand function and Total demand function
17. If x+y = 5 and x-y= 3 then, Value of x __________.
(a) 4 (b) 3 (c) 16 (d) 8
18. Integration is the reverse process of __________.
(a) Difference (b) Mixing (c) Amalgamation (d) Differentiation
19. Data processing is done by __________.
(a) PC alone (b) Calculator alone (c) Both PC and Calculator (d) Pen drive
20. The command Ctrl + M is applied for __________.
(a) Saving (b) Copying (c) getting new slide (d) deleting a slide

Thank You

M.Varadarajan, M.Com., M.Phil., M.A., M.Ed.,

PG Assistant in Economics
E-mail: [email protected]
Mobile: 9786868699

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