Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Foreign embassies in India are a part of India's:

1. Economic territory.
2. Geographical territory.
3. Both (a) and (b).
4. None of the above.

Which out of the following is a non-developmental expenditure?

1. Scientific research.
2. Social Welfare.
3. Administration.
4. None of these.

What will be the elasticity of demand curve that is a horizontal line parallel to x-axis?

1. Zero.
2. Unity.
3. Ed>1.
4. Infinity.

Which one of the following options is an economic activity?

1. Listening to music on the radio.
2. Teaching one's own son at home.
3. Medical facilities rendered by a charitable dispensary.
4. A housewife doing household duties.

In 1936, macroeconomics become a separate branch of economics after a book published by:

1. Adam Smith.
2. J.B. Say.
3. John Maynard Keynes.
4. Alfred Marshall.

Opportunity cost is:

1. The additional benefit of buying an additional unit of a product.
2. The cost incurred in the past before we make a decision about what to do in future.
3. A cost that is borne in terms of discomfort and pain while supplying factors of production.
4. That which we forgo, or give up, while making a choice or a decision.

The central bank can increase availability of credit by :

1. Raising repo rate.
2. Raising reverse repo rate.
3. Buying government securities.
4. Selling government securities.

Which one of the following statements is true to the relationship among the average cost functions?

1. ATC = AFC - AVC.
2. AVC = AFC + ATC.
3. AFC = ATC + AVC.
4. AFC = ATC - AVC.

If the Average Product (AP) of a labour is 30 units of outputs, then find total product of 2 labours.

1. 10 units of output.
2. 15 units of output.
3. 30 units of output.
4. 60 units of output.

Hint: Total Product (TP) is the sum total of output produced by all units of labour.
TP = AP XL where, AP = Average Product
TP = 30 x 2 = 60 units L = Number of Labour

Which article of the Constitution takes about the budget?

1. Article 110
2. Article 111
3. Article 112
4. Article 113