1. The best Example of capital intensive industry in India is- (A) Textile industry (B) Steel industry (C) Tourism industry (D) Spare goods industry Ans. (B) 2. The Removal of prohibitions and hindrance by government is called- (A) Globalisation (B) Privatisation (C) Liberalisation (D) Bilateral understanding Ans. (C) 3. Arthashastra by “Kautilya” is related with-

35. Match the characteristics with their market structure- (i) Difficult entry (often due to economies of scale) (ii) Can sell as much as it can at market price (A) (i) Monopolistic Competition, (ii) Pure Monopoly (B) (i) Pure Monopoly, (ii) Oligopoly (C) (i) Oligopoly, (ii) Pure Competition (D) (i) Pure Competition, (ii) Oligopoly Ans. (C)

1. Which of the following most closely approximates our definition of oligopoly? (A) The cigarette industry (B) The barber shops (C) The gasoline stations (D) Wheat Farmers Ans.(A) 2. One of the essential cond it ions o f perfect competition is- (A) Product differentiation (B) Multiplicity of prices for identical products at any one time

1. Average Revenue means- (A) the revenue per unit of commodity sold (B) the revenue from all commodites sold (C) the profit realised all commdoities unit sold (D) the profit realised by sale of all commodities Ans. (A) 2. Gross profit means- (A) Total investment over total saving (B) Changes in methods of production (C)

31. A ceramic pottery unit hires 8 craftsmen by paying each of them Rs 900 per day. The 9th craftsman demands Rs 950 per day. If this craftsman is hired then all other craftsmen must be paid Rs 950. The marginal resource (labour) cost of the 9th craftsman is _________. (A) Rs 1530 (B) Rs

1. If an industry is characterized by economies of scale then- (A) Barriers to entry are not very large (B) Long run unit costs of production decreases as the quantity the firm produces increases (C) Capital requirement are small due to the efficiency of the large scale operation (D) The costs of entry into the

43. Depreciation is loss in value of- (A) Final goods (B) Machinery (C) Capital stock (D) Stock of inventory Ans. (B) 44. If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity?

1. Economic rent refers to- (A) Payment made for the use of land (B) Profit (C) Producer’s surplus (D) Consumer’s surplus Ans. (A) 2. The Marginal Utility Curve slopes downward from left to right indicating- (A) A direct relatiosnhip between marginal utility and the stock of commodity (B) A constant relationship between marginal utility and

1. Payment of water charges by the farmers tothe government represents (A) Intermediate consumption (B) Final consumption (C) Fixed investment (D) Inventory investment Ans. (A) 2. The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (A) Consumer’s Surplus (B) Producer’s Surplus

109. Seawater, fresh air etc are regarded in economics as– (A) Giffen goods (B) Inferior goods (C) Free goods D) Normal goods Ans. (C) 110. If the price of tea falls, demand for coffee will– (A) Increase (B) Decrease (C) Remain same D) None of these Ans. (B) 111. If the main objective of the