I. Choose the correct alternative.

Question 1.
What is known as the study of individual units?
(A) Macroeconomics
(B) Microeconomics
(C) Income and Employment Theory
(D) Development economics

Answer

Answer: (B) Microeconomics

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Question 2.
What is the main cause of all economic problems?
(A) Abundance
(B) Convenience
(C) Scarcity
(D) None of these

Answer

Answer: (C) Scarcity

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Question 3.
Study of aggregates is known as _________
(A) Macroeconomics
(B) Microeconomics
(C) Price theory
(D) Factor price determination

Answer

Answer: (A) Macroeconomics

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Question 4.
What is the name of the book written by J.M. Keynes?
(A) Wealth of Nation
(B) Political economy
(C) The General Theory of Employment, Interest and Money
(D) None of these

Answer

Answer: (C) The General Theory of Employment, Interest and Money

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Question 5.
When was the famous book of Prof. Keynes published?
(A) 1930
(B) 1931
(C) 1936
(D) 1940

Answer

Answer: (C) 1936

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Question 6.
When did the great depression occur?
(A) 1929-30
(B) 1934-35
(C) 1938-39
(D) 1941-42

Answer

Answer: (A) 1929-30

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Question 7.
Who is known as the father of modern macroeconomics?
(A) Adam Smith
(B) J.M.Keynes
(C) Samuelson
(D) Hicks

Answer

Answer: (B) J. M. Keynes

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Question 8.
Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
(A) Microeconomics
(B) Price theory
(C) Factor price determination
(D) Macroeconomics

Answer

Answer: (D) Macroeconomics

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II. Fill in the blanks with the correct answer.

Question 1.
The mother of all economic problems is _________

Answer

Answer: scarcity

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Question 2.
Macroeconomics is defined as that branch of economics, which studies economic activities of an economy as a _______

Answer

Answer: whole

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Question 3.
_______ was the founding father of modern economics.

Answer

Answer: Adam Smith

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Question 4.
Keynes book on Income and Employment came into light in the year _________

Answer

Answer: 1936

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Question 5.
Aggregate Demand is the sum total of consumption and _________

Answer

Answer: investment

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Question 6.
The period of the great depression was from __________

Answer

Answer: 1929-33

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III. State whether the following statements are true or false.

Question 1.
Capital, land, labour, and entrepreneur are the factors of production.

Answer

Answer: True

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Question 2.
The expenses which raise productive capacity are known as investment expenditure.

Answer

Answer: True

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Question 3.
The domestic country may sell goods to the rest of the world. It is called imports.

Answer

Answer: False

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Question 4.
The domestic country may buy goods from the rest of the world. It is called exports.

Answer

Answer: False

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Question 5.
The capitalist economy works for social welfare.

Answer

Answer: False

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Question 6.
Microeconomics deals with the aggregate economic variable of an economy.

Answer

Answer: False

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Question 7.
‘Save more’ is always a virtue.

Answer

Answer: False

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IV. Match the following.

Question 1.

Column-I	Column-II
1. Worldwide Depression	(A) 1936
2. Publication year of Keynes’s book	(B) 1929-30
3. Problem of unemployment	(C) Microeconomics study
4. Study of the sugar industry	(D) J.M.Keynes
5. Father of Macroeconomics	(E) Ragnar Frisch
6. Who divided economics into two parts?	(F) Macroeconomics study

Answer

Answer:

Column-I	Column-II
1. Worldwide Depression	(B) 1929-30
2. Publication year of Keynes’s book	(A) 1936
3. Problem of unemployment	(F) Macroeconomics study
4. Study of the sugar industry	(C) Microeconomics study
5. Father of Macroeconomics	(D) J.M.Keynes
6. Who divided economics into two parts?	(E) Ragnar Frisch

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