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