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Goods, wealth and welfare - class-XI

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Input tax credit is not available on ___________ ?

  1. Goods used for personal use

  2. Trading goods

  3. Capital goods

  4. Fixed capital


Correct Option: A

What is the consequence of non-return of semi-finished goods within the specified period?

  1. Job worker pays GST on return of goods

  2. Principal Manufacturer pays back the input tax credit claimed on such goods

  3. Principal manufacturer pays GST on return of goods

  4. Job worker claims credit of goods received on job work


Correct Option: B

Principal entitled for input tax credit on capital goods if sent for job work __________________________.

  1. If goods sent are returned within one year

  2. If goods sent are returned within three years

  3. If goods sent are returned within six months

  4. If goods sent are returned within nine months


Correct Option: B

Transfer of Possession of Goods is ______________.

  1. Actual Tax Point

  2. Basic Tax Point

  3. Either of the above

  4. None of the Above


Correct Option: B

Suppose, one dealer has sent some goods to another dealer for Sales on Approval Basis. In absence of any confirmation even after 6 months, it will be treated as:

  1. Sales Return

  2. Deemed Supply of Goods

  3. Purchase return

  4. None of the Above


Correct Option: B

The factor which does not cause any increase in demand for Goods and Services is ______________.

  1. Reduction in taxation

  2. Increase in exports

  3. Increase in population

  4. Hoarding/Malpractices of goods


Correct Option: B
Explanation:

Increase in exports does not cause any increase in demands of goods and services.

Which is a not comfort want?

  1. Furniture

  2. Fan

  3. Air-Conditioner

  4. Cycle


Correct Option: D
Explanation:

Any society requires basic commodities like food, clothing and shelter. Air-Conditioner, furniture, and fan among the given options are examples of luxurious goods and cycle is necessity.

Which of the following is an economic good?

  1. Sunshine

  2. Air

  3. Rainfall

  4. A bottle of water


Correct Option: D
Explanation:

Goods are divided as free goods and economic goods. Free goods are those goods which are free of cost and economic goods are available for a particular price. Among the given options, sunshine, rainfall and air are examples of free goods and a bottle of water is an example of economic good.

Choose the incorrect statement.

  1. Wants are recurring

  2. Wants are variable

  3. Wants are limited

  4. Wants are gradable


Correct Option: C
Explanation:

Among the given options, the incorrect option is the statement which says that the ‘wants are limited’. In fact, wants are unlimited but resources to satisfy all human wants are not sufficient. Hence, we can say that the wants are unlimited but resources are limited.

Which of the following comes under luxury want?

  1. Fan

  2. Education

  3. Gold Jewellery

  4. Cycle


Correct Option: C
Explanation:

Basic needs are those needs which are necessary for survival of a human being. Food clothing and shelter fall under this category. Among the given options, fan, education and cycle are essentials or comforts required. Gold jewelry falls under luxury goods. 

A refrigetor operating in a chemist shop is an example of ________.

  1. free goods

  2. final goods

  3. producer's goods

  4. consumer's goods


Correct Option: C
Explanation:

Chemist will keep the medicines and other things which are to be stored below the room temperature and thus the refrigerator in a chemist shop is a producer's good as it helps to satisfy human wants indirectly.

Human wants are _______.

  1. unjustifiable

  2. unlimited

  3. undefined

  4. limited


Correct Option: B
Explanation:

Human wants are unlimited. This means that they are never ending and can never be fully satisfied. Since wants keep on adding, all of them cannot be satisfied due to limited resources. As soon as one want gets satisfied, another one emerges. 

_______ refers to market where services of factors of production are brought and sold.

  1. Goods Market

  2. Factor market

  3. Road side kiosks

  4. Super Bazar


Correct Option: B
Explanation:

In economics, factor market refers to the the market where factors of production ,namely land,labour,capital entrepreneurship -are brought and sold.

Goods which exhibit negative income-demand relationship are called ________.

  1. Giffen goods

  2. inferior goods

  3. normal goods

  4. luxury goods


Correct Option: B
Explanation:

Inferior goods refer to those goods which possess an inverse relation between income of a consumer and demand of that particular good,that is, when there is a rise in income of the consumer,the demand of that particular good falls.For example,coarse grains..

________ refers to a market where goods and services are brought and sold.

  1. Goods market

  2. Factor market

  3. Normal market

  4. Shopping mall


Correct Option: A
Explanation:

In economics goods market refers to a market where the buying and selling of goods can be done.

The term EXIM stands for __________.

  1. Exports Imports

  2. External Imports

  3. Excessive Inputs

  4. Extensive Investment


Correct Option: A
Explanation:
EX - exports
IM - imports
thus, EXIM stands for exports and imports

Which of these is/are the characteristic of human wants?

  1. Limited

  2. Unlimited

  3. Irrational

  4. Rationality


Correct Option: B
Explanation:

Human wants are unlimited since it is assumed more is always better and humans do not find himself in a situation of negative marginal returns. This is known as monotonic preference.

________ study the changes in the volume of goods.

  1. Value Index Numbers

  2. Quantity Index Numbers

  3. Price Index Number

  4. None of above


Correct Option: B
Explanation:

When any goods change in proportion between two different periods of time, then it is measured with the help of Quantity Index Numbers. In other words, we can say the study of measuring any proportionate change of goods in two different periods of time is called quantity index numbers.

"Means" refer to _______________.

  1. Human Wants

  2. Resources

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: B

Ends refer to _______________.

  1. Human Wants

  2. Resources

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: A

The Means for satisfying Wants are ________________.

  1. Not available at all

  2. Scarce

  3. Unlimited

  4. Not usable


Correct Option: B

An increase in the supply of a good is caused by.

  1. Improvements in its technology

  2. Fall in the prices of other goods

  3. Fall in the prices of factors of production

  4. All of the above


Correct Option: D

The quantity supplied of a good or service is the amount that.

  1. In actually bought a given time period at a given price

  2. Producers wish they could sell at a higher price

  3. Producers plan to sell during a given time period at a given price

  4. People are willing to buy during a given time period at a given price


Correct Option: C

The way in which rational consumers allocate their expenditure on goods and service is best described by ___________.

  1. The law of diminishing marginal utility

  2. The law of demand

  3. The theory of value

  4. The marginal rate of substitution


Correct Option: A

A place or locality where goods are bought and sold is called a ____________.

  1. shopping complex

  2. geographical boundary

  3. market

  4. area


Correct Option: C
Explanation:

A market is defined as a place (however it need not be a physical place, as now-days various transactions are carried out over the internet, even this is referred to as a 'market') where buyers and sellers meet to buy and sell respectively (ie exchange goods) at a predetermined equilibrium price. The market will clear at the price point where what people want to buy and what people are willing to sell is equal. 

There was increase in tax rate from 20% to 24% w.e.f. 1.6.2018. Which of the following rate is applicable when invoice was issued after change in rate of tax in June 2017 but payment received and goods supplied in April 2017 __________________.

  1. 20% as it is lower of the two

  2. 24% as it is higher of the two

  3. 20% as payment was issued in the period during which the supply was effected

  4. 24% as invoice being one of the factors was issued after rate change


Correct Option: C

Will the inputs and/or capital goods supplied from the job-worker's premises be considered for calculating the aggregate turnover of the job-worker?

  1. Yes

  2. No

  3. Partially true

  4. None of the above


Correct Option: B

Stock should include ____________________.

  1. Goods held as security

  2. Goods held as consignee

  3. Goods with customers for approval on sale or return basis

  4. Goods sold but not delivered


Correct Option: B

In case of low-level commodities, income effect is _____.

  1. Zero

  2. Negative

  3. Infinite

  4. Positive


Correct Option: B
Explanation:

An income effect is positive in case of normal goods. There is direct relationship between income and quantity demanded. Income effect is negative in case of inferior goods (including Giffen goods) where we find inverse relationship between income and quantity demanded.

Which commodity can be called as Giffen goods?

  1. Inferior commodity

  2. Superior commodity

  3. Any of the above

  4. None of the above


Correct Option: A
Explanation:

Any Giffen good is an inferior good but all inferior goods cannot be Giffen goods. For Giffen goods, negative income effect is superior to substitution effect.

Which of the following is not the characteristic of human wants?

  1. Human wants are unlimited

  2. Wants are complementary

  3. Wants are competitive

  4. Wants are non-variable


Correct Option: D
Explanation:

Human wants are unlimited and the resources to meet them are limited and have different uses. This gives rise to all the economic problems. 

Human wants are also complementary say for example the want for butter is complementary to the want of bread. Wants are also competitive as they need to be arranged in the order of priority. 
The most urgent wants need to be satisfied first. Wants are ever changing and variable. They change with the change in income, status, education, fashion, etc.
Thus, the correct option is D.

Which of the following is not an intangible goods?

  1. Downloadable music

  2. Mobile apps

  3. Digital book

  4. Car


Correct Option: D
Explanation:

An intangible good is a good that does not have a physical nature, as opposed to a physical good (an object). Buying a car is one of the example of tangible good.

Consider the following statements:
Statement 1: Goods are those things which are tangible or intangible.
Statement 2: They satisfy human wants.
Which of the following are true?

  1. Only 1

  2. Only 2

  3. None

  4. Both


Correct Option: B
Explanation:

Goods are tangible things which imply they can be touched and seen. The intangible things satisfying human wants are termed as services. Goods also help in the satisfaction of human wants or needs.

Thus, the answer is B.

Status Symbol Commodity is associated with the name of ___________.

  1. Giffen

  2. Marshall

  3. Malthus

  4. Thorstein veblen


Correct Option: D
Explanation:

Status Symbol Commodity is associated with the name of Thorstein Veblen. These are the luxury goods as the demand of such goods increases with increase in its price. This is a contradiction of the law of demand. Since Veblen identified the concept, hence they are also called Veblen goods.

All of the goods which are scarce and limited in supply are called _______.

  1. luxury goods

  2. expensive goods

  3. capital goods

  4. economic goods


Correct Option: D
Explanation:

Scarce goods which are limited in supply are known as economic goods as economics deals with the optimum utilization of scarce resources to its alternative uses.

Goods or services that are necessary for living are called ________.

  1. needs

  2. desires

  3. wants

  4. demands


Correct Option: A
Explanation:

The goods and services that are necessary for a living are called needs. Needs are the essential things that you need for survival, to live properly. Thus, it is important to satisfy these needs as if we don’t satisfy needs, we will not be able to live long. For example, when we are hungry, a need arises for food.

Goods or services those are not necessary for living are ________.

  1. needs

  2. desires

  3. wants

  4. essentials


Correct Option: C
Explanation:

Goods or services those are not necessary for living are called wants. Goods and services that are necessary for living are called needs. Needs are the things which are necessary for survival however wants are additions to needs. For example: if one is hungry, he needs food. This is need. However if he wants to eat Dosa because he is hungry, this is called want.

Goods in the process of being produced  but not yet completed as finished goods are called ______________.

  1. work-in-progress inventory

  2. goods in floor inventory

  3. raw material consumed inventory

  4. in process inventory


Correct Option: A

EXIM was set up in ___________.

  1. $1976$

  2. $1982$

  3. $1968$

  4. $1989$


Correct Option: B
Explanation:

Export-Import Bank of India (EXIM Bank) is a specialized financial institution, owned by Government of India, set up in 1982, for financing, facilitating and promoting foreign trade of India.

Which of these Industries falls in the category of Basic goods industry?

  1. Mineral

  2. Coal

  3. Petroleum

  4. Machine


Correct Option: A
Explanation:

Basic goods industry produces goods which are used by other industries as raw materials. For example: minerals, as minerals are used as raw material for other industries.

In economics goods includes material things which _______.

  1. can be transferred

  2. can be exchanged for one another

  3. both

  4. none


Correct Option: C
Explanation:

Economic goods refer to those goods which can be transferred from one place to another and can be exchanged for one another. For example, cloth is an economic good which can be transferred from one place to another; it can also be exchanged for another different good. ( Say pen)

 Wants that are related to consumption of goods and services is:

  1. Economic wants

  2. Non economic wants

  3. Economics

  4. All of the above


Correct Option: A
Explanation:

Economic wants refer to the wants that are related to the satisfaction of own need by the way of consumption or profit earning. We fulfill these kind of wants through exchange mechanism, i.e., exchange of goods for profit.

Wants can be satisfied by the consumption of __________ are economic wants.

  1. goods

  2. services

  3. goods and services

  4. none of above


Correct Option: C
Explanation:

Economic wants refer to the wants that result in monetary gain for the people who are demanding it. Therefore, to have some monetary gain there is need for consumption of some materialistic thing carrying some value for which money can be exchanged for.

Which of the following can be treated as a characteristic of economic wants?
1. Even if satisfied, the wants have a tendency to re-emerge.
2. With the passage of time, the wants tend to increase in number and in variety.
Select the correct answer from the options given below -

  1. 1 only

  2. 2 only

  3. Both 1 & 2

  4. Neither 1 nor 2


Correct Option: C
Explanation:

Human wants are unlimited, so there is always a tendency that human wants get re-emerge even after the satisfaction is achieved on the consumption of the commodity as the wants keep on increasing after a passage of time and consumer also start demanding more variety of that commodity in order to achieve higher utility. 

The "means" available for satisfaction of wants are ______________.

  1. Sufficient

  2. Limited

  3. Either (A) or (B)

  4. Unlimited


Correct Option: B
Explanation:

Economics aims at the satisfaction of unlimited want by the way of efficient and effective methods to put the limited resources extracted from earth into an ideal way so that even if the means available for satisfaction of wants is limited we can still satisfy them to the maximum level.

Human wants may be classified into ______________________.

  1. Economic wants & non-economic wants

  2. Economic wants & unsatisfied wants

  3. Satisfied wants & non-economic wants

  4. Plain wants & economic wants


Correct Option: A
Explanation:

Human wants refers to the demands of humans in order to satisfy themselves.

Some wants results in monetary gain for the people who are demanding it known to be as economic wants whereas some wants are for the welfare of other people which is called non-economic wants.

Wants are ______________.

  1. Limited

  2. Unlimited

  3. Sufficient

  4. Adequate


Correct Option: B
Explanation:

Maslow need hierarchy states that human wants are unlimited. As one want is met, it gives rise to other wants that are there in the hierarchy. Therefore, human wants are never ending because the world is very dynamic and humans try to adjust themselves into it. 

In deciding "What to produce", the economy should focus on the production of:

  1. Capital Goods only

  2. Consumer Goods only

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: C
Explanation:

An economy will require an optimal proportion of consumer and capital goods in order to be sustainable in the long run. If too much focus is put into producing consumer goods, the future consumption and growth will be limited as capital goods are required in the production of consumer goods. If too much focus is put into producing capital goods, the current consumption will be limited.

An economy which uses all its resources on production of _____________ , cannot provide for future growth prospects.

  1. capital goods only

  2. consumer goods only

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: B
Explanation:

An economy will require an optimal proportion of consumer and capital goods in order to be sustainable in the long run. If too much focus is put into producing consumer goods, the future consumption and growth will be limited as capital goods are required in the production of consumer goods. If too much focus is put into producing capital goods, the current consumption will be limited.

The issue of "for whom to produce" deals with __________..

  1. how to distribute and share the national product

  2. shares of different people in the total output of goods & services

  3. both (a) and (b)

  4. neither (a) nor (b)


Correct Option: C
Explanation:

The problem of “whom to produce” relates to the distribution of available resources in the economy.

It also includes the contribution of the people in the total output and income of the economy.  

The problem of "What to produce" covers the issue relating to:

  1. What goods are to be produced

  2. What qualities of goods are to be produced

  3. Both (a) and (b)

  4. Neither (a) nor (b)


Correct Option: C
Explanation:

Due to the basic economic problem of scarcity, it is essential to choose which of the unlimited human wants and needs will be fulfilled by using the limited resources. This choice is usually made collectively by each economy, the laws of demand govern what people want and then the laws of supply aim to match it at an equilibrium seeking to make a profit. Thus the "what to produce?" takes into account what goods will be produced and how much of the good will be produced. 

Veblen good is ____________.

  1. good of status

  2. consumed by very high income group

  3. like diamond

  4. any of the above


Correct Option: A
Explanation:

Veblen goods are those good which holds some status in the society. It is believed that if price of such goods rises then the quantity demanded also increases.  

If Willingness to Save is higher, the level of ________ will be higher.

  1. Voluntary Savings

  2. Compulsory Savings

  3. Forced Savings

  4. None of the above


Correct Option: A
Explanation:

Voluntary savings are funds that individuals or organizations may willingly deposit or Withdraw. For your clients, the condition of an intended savings product means that: They can save money in a safe place to meet emergency and consumption. Required savings are those that individuals and institution are forced to make as per government rules. 

Thus, the correct option is A.

An inferior commodity is one which is consumed in smaller quantities when the income of consumer ________.

  1. becomes nil

  2. remains the same

  3. falls

  4. rises


Correct Option: D
Explanation:

The price of inferior goods are very cheap and usually associated with low levels of income. So when the consumer's income rises they try to consume normal good and when there income decreases they consume inferior goods. 

The supply of a good refers to the _________.

  1. Actual production of the good

  2. Total existing stock of the good

  3. Stock available for sale

  4. Amount of the good offered for sale at a particular price per unit of time


Correct Option: D
Explanation:

The supply of a good refers to the amount of the good offered for sale at a particular price per unit(period) of time.

The goods which cannot be consumed more than once is known as________________.

  1. Durable good

  2. Non-durable good

  3. Producer good

  4. None of the above


Correct Option: B
Explanation:

Non durable goods cannot be consumed more than once like bread, milk etc.

If, as people's income increases, the quantity demanded for a good decreases, the good is called___________.

  1. A substitute

  2. A normal good

  3. An inferior good

  4. A complement


Correct Option: C
Explanation:

In case of inferior goods, as income increases demand decreases $(Ey < 0)$.

As per the concept of increasing marginal opportunity cost, under the PPF theory, it can be interpreted that to produce more units of good X, ____________ of good Y have to be sacrificed.

  1. increasing units

  2. constant units

  3. decreasing units

  4. zero units


Correct Option: A
Explanation:

The slope of the curve i.e. marginal opportunity cost which states that for production of every successive unit of butter we need to sacrifice more and more of guns because resource are use specific. 

Excise duties are levied on _______________.

  1. Incomes of the individual

  2. production of goods

  3. export and import of goods

  4. Incomes of the corporate


Correct Option: B
Explanation:

Excise duties are type of taxes which are charged against the production og goods when they are sold in the market. 

If India exports goods worth Rs.$20$ crores and imports goods worth Rs.$30$ crores, it will ________________.

  1. have a surplus of Rs$10$ crores in balance of trade

  2. have a deficit of Rs$10$ crores in balance of trade

  3. have a deficit of Rs$50$ crores in balance of trade

  4. can't say


Correct Option: B
Explanation:

BOT =  export - Import i.e. $20 - 30 = 10$ crore deficit.

When Price = Rs. 20, quantity is demanded 9 units, and when Price = Rs. 19, quantity demanded is 10 units. What is the Marginal Revenue resulting from an increase in output from 9 units to 10 units?

  1. Rs. 20

  2. Rs. 19

  3. Rs. 10

  4. Rs. 1


Correct Option: C
How are the two goods (apples and oranges) related when, as a result of rise in the price of apples, demand for oranges increases?
  1. Substitute Goods

  2. Complementary Goods

  3. Normal Goods

  4. Inferior Goods


Correct Option: A
Explanation:

A substitute good is a good that can be used in place of another. It is a good with a positive cross elasticity of demand.

This means a good's demand is increased when the price of another good is increased; both in the same direction.

For example, if apples and oranges are substitutes for a consumer, then if the price of apples increases, the consumer will buy less of apples and more of oranges. Thus, when price of apples increases, the demand for oranges will rise. 

Which of the following pairs represents substitute goods?
  1. Car and petrol

  2. Juice and cold drink

  3. Bread and butter

  4. All of the above


Correct Option: B
Explanation:

Juice and cold drinks can be taken in place of each other. Therefore,they are substitute goods as substitute goods are those goods where demand of one good rises when the price of another good gets increased.

Which one of the following is incorrect?

  1. There are limited wants.

  2. Means are scarce.

  3. Resources have alternative uses.

  4. Economics is a science.


Correct Option: A
Explanation:

Human wants are unlimited and resources are limited which leads to problem of choice. Thus the statement, 'there are limited wants' - is incorrect.

Inferior goods are those whose income effect is __________.
  1. negative

  2. positive

  3. zero

  4. none of the above


Correct Option: A
Explanation:

An inferior good is a good whose demand decreases when consumer income rises. 

A normal good's demand increases when the income rises, thus its income effect is positive.

Hence, the income effect for inferior good is negative.

For example as a consumer's income increases, his/her demand of the cheap cars will decrease, while demand for costly cars will increase. Here the cheap car is an inferior good for that consumer.

"All that have got value are called wealth" is the statement of _____.

  1. Adam Smith

  2. J.M. Keynes

  3. Marshall

  4. None of the above


Correct Option: B
Explanation:

John Maynard Keynes, was a British economist. His ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the most influential economists of the 20th century and the founder of modern macroeconomics.

_____ is defined as "anything which is useful, directly or indirectly, for satisfying human wants".

  1. Wealth

  2. Income

  3. None of the above

  4. Both A and B


Correct Option: A
Explanation:

Wealth is defined as "anything which is useful, directly or indirectly, for satisfying human wants". Characteristics of wealth include:

  • Externality is the quality of wealth which makes it valuable and able to be transferred.
  • Appropriability: Wealth should be appropriate. It should be capable of being possessed or owned by the people.
  • Transferability: Wealth should be transferred from one man to another. 

Wealth can be classified as _____.

  1. Private Wealth

  2. Public Wealth

  3. National Wealth

  4. International Wealth

  5. All of these


Correct Option: E
Explanation:

Wealth can be classified as personal wealth, social wealth or collective wealth, national wealth, and international wealth.

Personal Wealth (Individual Wealth): The wealth of a person consists of both material and non-material goods. Thus the wealth of the person includes such material things as land, houses, furniture, machinery and so on.

Social Wealth (Collective Wealth): Social wealth consists of all these goods that can be enjoyed by all members of a society. Social wealth includes public roads, public parks, public schools, government hospitals, public libraries, museums and so on.

National Wealth: National wealth includes individual wealth as well as the collective wealth of its members. That is, it includes besides individual wealth all kinds of public property, such as roads and canals, buildings and parks and water works.

Cosmopolitan Wealth: Cosmopolitan wealth is the wealth of the world. It belongs to no one nation in particular. A common example of cosmopolitan wealth is the ocean.

Wealth is  _______________ welfare.

  1. Synonymous of

  2. Only a means to

  3. Antonymous of

  4. None of the above


Correct Option: B
Explanation:

According to Marshall's definition, wealth is only a means to welfare. Marshall pointed out that for economics, wealth is not an end in itself but it is only a means to an end; the end being the promotion of human welfare. Thus, according to Marshall, wealth is only a secondary thing, it is man and his ordinary business of life which is the primary object of economic study. In fact, Marshall tried to make the study of economics an engine of social betterment.

__________ defined economics as a "study of Economic welfare which is that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money".

  1. A C Pigou

  2. JN Keynes

  3. A. Lincoln

  4. Samuelson


Correct Option: A
Explanation:

AC Pigou defined economics as a "study of Economic welfare which is that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money". He gave more importance to the study of man than to wealth. Thus it focused more on human welfare and social science. 

Stock of both man made goods as well as natural, resources like capital is called____.

  1. national wealth

  2. national stock

  3. national capital

  4. national resources


Correct Option: A
Explanation:

Stock of man made goods (like machines) as well as natural resources(like land) ,resources like capital -is called national wealth All are referred as national assets.

In economics, wealth is a ____________ concept.

  1. flow

  2. stock

  3. both

  4. none


Correct Option: B
Explanation:

In economics, stock is measured at one point of time and represent the amount of good exists at that point of time onlt and hence, wealth is a stock concept.

Which of these indicate increase in welfare of the people? 

  1. Increase in production of war time equipments.

  2. Increase in production of foodgrains

  3. Spurt in smuggling activities

  4. Increase in production of heroine, smack etc.


Correct Option: B
Explanation:

The increase in production of food grains indicates the increase in the welfare of the people. This is because it will directly benefit the people as they have a satisfactory level of food grains. The other options do not help the people of the economy as either these activities are illegal or they do not directly help in the production of food for the people to eat.

This is an example for direct taxation ________________.

  1. Customs-Imports

  2. Wealth-Profits

  3. Excise-Manufacturing

  4. Turn-over -sale


Correct Option: B
Explanation:

A government levy on the income, property, or wealth of people or companies. A direct tax is borne entirely by the entity that pays it, and cannot be passed on to another entity. The rest all are indirect taxes.

_____ is just one kind of _____.

  1. Wealth, Money

  2. Money, Wealth

  3. Wealth, Income

  4. None of the above


Correct Option: B
Explanation:

Wealth is defined as "anything which is useful, directly or indirectly, for satisfying human wants". Money is one kind of wealth. Wealth can be any asset, gold, vehicle etc.

Money has only _____ while it has no _____.

  1. Value-in-exchange, Value-in-use

  2. Value-in-use, Value-in-exchange

  3. Use, utility

  4. None of the above


Correct Option: A
Explanation:

Money has value in exchange but not value in use. Value in exchange is nothing but the goods and services which we may obtain in the market in exchange of a particular thing. Value in use is nothing but the satisfaction which one obtains from the use of a commodity for example water.

Wealth cannot be classified as __________.

  1. Private Wealth

  2. Assertive Wealth

  3. Negative Wealth

  4. None of the above


Correct Option: D
Explanation:

Wealth: it is defined as the stock of resources which can be used at present or in the future.

All the given options are the classifications of wealth:

  • Private wealth: This includes all material and non material goods of an individual which can convert into money. 
  • Public wealth: This includes all material and non material goods owned by a community together
  • Negative Wealth: it is owned by an individual for a particular time period and then returned.
  • National Wealth: it is the wealth owned by nation.

_____ represents the stock of resources which help in producing goods or commodities, whereas _____ represents the flow of goods and services.

  1. Wealth, Income

  2. Income, Wealth

  3. Product, Wealth

  4. All of the above


Correct Option: A
Explanation:

  • Wealth: It is defined as the stock of resources which can be used at present or in the future.
  • Income: It is the money obtained by flow of goods and services on regular basis.

Wealth-tax was abolished with effect from ___________.

  1. $1$st April, $1900$

  2. $1$st April, $1993$

  3. $1$st Jan, $1991$

  4. $15$th February, $1998$


Correct Option: B
Explanation:

Wealth-tax, that is, tax levied on personal capital was abolished from $1$ st April, $1993$.

In economics wealth is the stock of all those material and immaterial objects which _______.

  1. are transferable

  2. have utility

  3. are scarce

  4. all the three


Correct Option: D
Explanation:
1) Wealth are transferable. For example, money is a part of wealth and can be transferred fro one place to another.
2) Material and immaterial objects possess some kind of power of satisfying wants of the human beings. Therefore, wealth has utility.
3) Wealth are the scarce resources but human wants are unlimited.

Adam Smith considered Economics as:

  1. Science of Wealth

  2. Science of Material Well-being

  3. Science of Choice-making

  4. Science of Growth and Development


Correct Option: A
Explanation:

According to Adam Smith who was a Scottish economist, economics is the science of wealth which means that economics aims at generating wealth both individually and for the nation as a whole. 

Which of these Economics did not consider Economics as Science of Wealth?

  1. Adam Smith

  2. J B Say

  3. Alfred Marshall

  4. All the above


Correct Option: C
Explanation:

Alfred Marshall placed a greater emphasis on welfare rather than wealth, in his Principle of Economics" book published in 1890. Marshall defines economics as “a study of men as they live and move and think in the ordinary business of life.”

Which is the following is not correct? Economics is viewed as.

  1. Science of Wealth

  2. Science of Warfare

  3. Science of Wellbeing

  4. Science of Choice-making


Correct Option: B
Explanation:

Economic does not contain any study material related to the theories and beliefs of war either from the past or in the future.

Who published "The Nature and causes of wealth of Nations"?

  1. Adam Smith

  2. A.C. Pigou

  3. J.B. Say

  4. Alfred Marshal


Correct Option: A
Explanation:

Adam Smith was a Scottish economist who published the book " The Nature and causes of wealth of Nations" where he explicitly focused on economics as a study of creation of wealth and henceforth its distribution. 

J B Say considered Economics as:

  1. Science of Wealth

  2. Science of Material Well-being

  3. Science of Choice-making

  4. Science of Growth and Development


Correct Option: A
Explanation:

J B Say was a French economist who described economics as the science of wealth as he believed that economics is the study of creation of wealth.  

Goods that a country gets from other countries are called______.

  1. Exports

  2. Imports

  3. Foreign Trade

  4. None of these


Correct Option: A
Explanation:

Exports and imports are the main elements of foreign trade. 

Export - When goods are sent from one country to another then it is called export.
Import - When goods are purchased from other countries then it is called import.
When the Export value is more than import value then foreign trade will be favourable to a country.

If with the rise in price of good $Y$, demand for good $X$ rise, the two goods are: (Choose the coorect alternative)

  1. Substitutes

  2. Complements

  3. Not related

  4. Jointly demanded


Correct Option: A
Explanation:
If with the rise in price of good $Y$, demand for good $X$ rises, the two goods are said to be substitutes. This is because substitute goods are the ones which are consumed in place of each other. For instance, tea and coffee. Thus, if the price of one good rises, the demand for other substitute good will rise. 
Hence, the correct answer is option (a). 
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