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Latest Bihar STET Economics Exam Question (Objective Questions), MCQ in English

Subjects : Specific Subject (Economics), Art of Teaching, General Knowledge, Environmental Science, Mathematical aptitude, Logical Reasoning

Question Bank Bihar STET Economics Exam Paper 2 - English
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Specific Subject (Economics)

Question 1Single Answer
The word โ€œEconomicsโ€ is derived from the Greek word โ€œOikonomia,โ€ which originally means?
  1. A
    Management of industry
  2. B
    Management of household
  3. C
    Study of government
  4. D
    Study of money
Question 2Single Answer
Who defined economics as the โ€œscience of wealthโ€?
  1. A
    Alfred Marshall
  2. B
    Lionel Robbins
  3. C
    Adam Smith
  4. D
    Paul Samuelson
Question 3Single Answer
Adam Smith's famous economic work is titled?
  1. A
    Principles of Economics
  2. B
    General Theory
  3. C
    The Wealth of Nations
  4. D
    Capital
Question 4Single Answer
*The Wealth of Nations* was published in?
  1. A
    1817
  2. B
    1776
  3. C
    1890
  4. D
    1936
Question 5Single Answer
Who gave the welfare definition of economics?
  1. A
    Lionel Robbins
  2. B
    J.M. Keynes
  3. C
    Adam Smith
  4. D
    Alfred Marshall
Question 6Single Answer
According to Marshall, economics is primarily a study of mankind in?
  1. A
    Political life
  2. B
    International relations
  3. C
    Religious life
  4. D
    Ordinary business of life
Question 7Single Answer
Which economist gave the scarcity definition of economics?
  1. A
    A.C. Pigou
  2. B
    Alfred Marshall
  3. C
    J.S. Mill
  4. D
    Lionel Robbins
Question 8Single Answer
Robbins defined economics as the science studying human behaviour as a relationship between ends and?
  1. A
    Unlimited resources
  2. B
    Scarce means having alternative uses
  3. C
    National income
  4. D
    Social welfare only
Question 9Single Answer
Robbins' definition emphasizes which fundamental economic problem?
  1. A
    Monopoly
  2. B
    Inflation
  3. C
    Scarcity
  4. D
    Taxation
Question 10Single Answer
Which economist is closely associated with the growth-oriented definition of economics?
  1. A
    Jevons
  2. B
    Ricardo
  3. C
    Malthus
  4. D
    Samuelson
Question 11Single Answer
The basic economic problem arises because human wants are unlimited while resources are?
  1. A
    Free
  2. B
    Homogeneous
  3. C
    Unlimited
  4. D
    Scarce
Question 12Single Answer
Scarcity requires individuals and societies to make?
  1. A
    Unlimited production
  2. B
    Choices
  3. C
    No sacrifices
  4. D
    Identical decisions
Question 13Single Answer
Microeconomics primarily studies?
  1. A
    Entire national economy only
  2. B
    Individual economic units
  3. C
    International politics
  4. D
    Aggregate employment only
Question 14Single Answer
Macroeconomics primarily deals with?
  1. A
    Individual consumer only
  2. B
    Price of one commodity only
  3. C
    One firm's output
  4. D
    Aggregate economic variables
Question 15Single Answer
Which is a microeconomic variable?
  1. A
    National income
  2. B
    General price level
  3. C
    Aggregate employment
  4. D
    Price of a particular commodity
Question 16Single Answer
Which is a macroeconomic variable?
  1. A
    National income
  2. B
    Output of one firm
  3. C
    Price of tea
  4. D
    Demand for one consumer
Question 17Single Answer
Positive economics deals primarily with?
  1. A
    What ought to be
  2. B
    What is
  3. C
    Ethical judgments only
  4. D
    Moral principles only
Question 18Single Answer
Normative economics is concerned primarily with?
  1. A
    Factual relationships only
  2. B
    Value judgments
  3. C
    Statistical facts only
  4. D
    Historical facts only
Question 19Single Answer
Which statement is normative?
  1. A
    Income inequality should be reduced
  2. B
    India's population exceeds one billion
  3. C
    Higher prices tend to reduce quantity demanded
  4. D
    Inflation changes purchasing power
Question 20Single Answer
Which statement is positive?
  1. A
    Government should eliminate poverty
  2. B
    Rich people ought to pay more taxes
  3. C
    Income distribution should be equal
  4. D
    A rise in price generally reduces quantity demanded, other things equal
Question 21Single Answer
The central problems of an economy arise mainly because of?
  1. A
    Scarcity and choice
  2. B
    Unlimited resources
  3. C
    Absence of wants
  4. D
    Equal distribution
Question 22Single Answer
โ€œWhat to produce?โ€ concerns the decision regarding?
  1. A
    Method of taxation
  2. B
    Composition of output
  3. C
    Population growth
  4. D
    Exchange rate only
Question 23Single Answer
โ€œHow to produce?โ€ concerns the choice of?
  1. A
    Export destination
  2. B
    Consumer preferences
  3. C
    Income distribution only
  4. D
    Production technique
Question 24Single Answer
โ€œFor whom to produce?โ€ is mainly related to?
  1. A
    Quantity of money
  2. B
    Production technology
  3. C
    Distribution of output and income
  4. D
    Physical geography
Question 25Single Answer
A labour-intensive technique uses relatively more?
  1. A
    Land only
  2. B
    Capital
  3. C
    Labour
  4. D
    Foreign exchange
Question 26Single Answer
A capital-intensive production technique uses relatively more?
  1. A
    Labour
  2. B
    Entrepreneurship only
  3. C
    Capital
  4. D
    Natural resources only
Question 27Single Answer
Opportunity cost arises because resources have?
  1. A
    No alternative uses
  2. B
    Alternative uses
  3. C
    Unlimited supply
  4. D
    Zero productivity
Question 28Single Answer
Opportunity cost of a choice is best described as?
  1. A
    Value of the next best alternative forgone
  2. B
    Accounting expenditure only
  3. C
    Total money income
  4. D
    Historical cost
Question 29Single Answer
If a student spends an evening studying instead of working for โ‚น500, the forgone โ‚น500 is part of the student's?
  1. A
    Fixed cost
  2. B
    Consumer surplus
  3. C
    Opportunity cost
  4. D
    Economic rent
Question 30Single Answer
Opportunity cost is also called?
  1. A
    Sunk revenue
  2. B
    Fixed cost
  3. C
    Historical cost
  4. D
    Alternative cost
Question 31Single Answer
The concept of opportunity cost is especially associated with the problem of?
  1. A
    Zero wants
  2. B
    Abundance
  3. C
    Unlimited production
  4. D
    Choice
Question 32Single Answer
If a resource has only one possible use, its opportunity cost in that use may be?
  1. A
    Zero
  2. B
    Infinite
  3. C
    Always negative
  4. D
    Equal to total revenue
Question 33Single Answer
A Production Possibility Curve shows alternative combinations of how many broad categories of goods at a time in its simplest form?
  1. A
    One
  2. B
    Two
  3. C
    Four
  4. D
    Unlimited dimensions
Question 34Single Answer
PPC is also known as the?
  1. A
    Revenue curve
  2. B
    Demand frontier
  3. C
    Production Possibility Frontier
  4. D
    Consumption line
Question 35Single Answer
A point on a PPC indicates?
  1. A
    Efficient utilization of given resources
  2. B
    Unemployment of all resources
  3. C
    Impossible production
  4. D
    Zero opportunity cost necessarily
Question 36Single Answer
A point inside the PPC represents?
  1. A
    Underutilization of resources
  2. B
    Efficient resource use
  3. C
    Unattainable output
  4. D
    Maximum possible production
Question 37Single Answer
A point outside the current PPC is generally?
  1. A
    Unattainable with existing resources and technology
  2. B
    Attainable with existing resources and technology
  3. C
    Necessarily inefficient
  4. D
    A point of unemployment
Question 38Single Answer
Movement from a point inside the PPC to a point on the PPC represents?
  1. A
    Lower efficiency
  2. B
    Economic decline necessarily
  3. C
    Better utilization of existing resources
  4. D
    Destruction of resources
Question 39Single Answer
An outward shift of the PPC generally indicates?
  1. A
    Economic contraction
  2. B
    Economic growth
  3. C
    Increased unemployment only
  4. D
    Declining productive capacity
Question 40Single Answer
An inward shift of the PPC can result from?
  1. A
    Destruction of productive resources
  2. B
    Technological progress
  3. C
    Increase in resources
  4. D
    Improvement in productivity
Question 41Single Answer
Technological improvement generally causes the PPC to?
  1. A
    Shift inward
  2. B
    Shift outward
  3. C
    Disappear
  4. D
    Become vertical necessarily
Question 42Single Answer
A natural disaster that destroys productive capacity may cause the PPC to?
  1. A
    Shift outward
  2. B
    remain unaffected in all cases
  3. C
    Shift inward
  4. D
    become a demand curve
Question 43Single Answer
A typical PPC is concave to the origin because of?
  1. A
    Increasing opportunity cost
  2. B
    Constant opportunity cost
  3. C
    Decreasing scarcity
  4. D
    Unlimited resources
Question 44Single Answer
A straight-line PPC indicates?
  1. A
    Decreasing resources
  2. B
    Increasing opportunity cost
  3. C
    Zero production
  4. D
    Constant opportunity cost
Question 45Single Answer
The slope of the PPC represents?
  1. A
    Fixed cost
  2. B
    Total utility
  3. C
    Consumer surplus
  4. D
    Opportunity cost
Question 46Single Answer
Marginal Rate of Transformation measures?
  1. A
    Consumer income
  2. B
    Amount of one good sacrificed to obtain an additional unit of another
  3. C
    Market demand
  4. D
    Marginal utility of money
Question 47Single Answer
Increasing MRT is associated with a PPC that is?
  1. A
    A horizontal line
  2. B
    Concave to the origin
  3. C
    Convex because of constant cost
  4. D
    Vertical at every point
Question 48Single Answer
The PPC assumes that available resources are?
  1. A
    Infinite
  2. B
    Given for the period under consideration
  3. C
    Completely absent
  4. D
    Always increasing
Question 49Single Answer
A standard PPC also assumes technology is?
  1. A
    Changing every second
  2. B
    Given
  3. C
    Nonexistent
  4. D
    Irrelevant
Question 50Single Answer
Full employment of resources is represented by points located?
  1. A
    Only outside the PPC
  2. B
    Only inside the PPC
  3. C
    On the PPC
  4. D
    At the origin exclusively
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