PES SS 1 Economics 3rd Test
  • 1. ............ defined Economics as the practical science of production and distribution of wealth.
A) A.C. Pigou
B) Adam Smith
C) John Stuart Mill
D) Alfred Marshal
  • 2. Economics is regarded as a social science because it studies
A) Human development
B) Human relation
C) Human behaviour
D) Human interaction
  • 3. Economics Is also regarded as a social science because it adopts the .......
A) Supply method
B) Distribution method
C) Scientific method
D) Production method
  • 4. Scale of preference is the list of wants arranged in the order of their ......
A) Choice
B) Importance
C) Satisfaction
D) Want
  • 5. The importance of scale of preference include the following except
A) Identification of highest priority
B) Optimum allocation of resources
C) Satisfaction of wants
D) Ranking of needs
  • 6. Human wants are many and we cannot satisfy all of them because of our ......
A) Unutilized resources
B) Unlimited resources
C) Limited resources
D) Unallocated resources
  • 7. Opportunity cost is defined as an expression of cost in terms of......
A) Satisfaction of human wants
B) Foregone alternatives
C) More pressing needs
D) Expression of cost
  • 8. Opportunity cost can also be called
A) Supply cost
B) Alternative cost
C) Buying cost
D) True cost
  • 9. There are........ branches of Economics
A) 9
B) 8
C) 7
D) 4
  • 10. ...........is the most commonly used tool for economic analysis
A) Histogram
B) Charts
C) Graphs
D) Table
  • 11. ....... Is defined as a diagram showing a functional relationship between two variables
A) Graphs
B) Histogram
C) Table
D) Chart
  • 12. The _____ of a graph shows what it is all about.
A) Slope
B) Title
C) Y-axis
D) X-axis
  • 13. ...... Is a graphical representation of frequency distribution
A) Table
B) Histogram
C) Graph
D) Chart
  • 14. ..........refers to the arrangement of data or information in tabular form to reflect their frequency
A) Frequency distribution
B) Measure of central tendency
C) Arithmetic mean
D) Frequency score
  • 15. ..... .... is the problem people encounter in the society while attempting to satisfy their numerous wants
A) Basic demand problems
B) Basic society problems
C) Basic economic problems
D) Basic life problems
  • 16. The following are the problems faced by the producers in the society except
A) When to produce
B) What to produce
C) How to produce
D) For whom to produce
  • 17. Consumer's income is one of the factors that determine
A) What to produce
B) For whom to produce
C) How to produce
D) When to produce
  • 18. Technique of production is one of the factors that determine
A) What to produce
B) For whom to produce
C) When to produce
D) How to produce
  • 19. Satisfaction of wants is one of the factors that determine
A) What to produce
B) When to produce
C) For whom to produce
D) How to produce
  • 20. As soon as what to produce is established, another basic economic problem that will arise is
A) When to produce
B) What to produce
C) For whom to produce
D) How to produce
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