Economics Practice Quiz 131

Q1.What does the source text say about the role of government in the Indian economy?

A. It has increased considerably B. It has been reduced considerably C. It remains unchanged D. It is not discussed

Q2.Which of the following is a reason for studying different mechanisms in economics?

A. To determine which is more desirable for the economy B. To eliminate all alternatives C. To focus only on government intervention D. To ignore resource allocation

Q3.According to the source, what is the plan of the book?

A. To introduce basic ideas in macroeconomics B. To introduce basic ideas in microeconomics C. To discuss government policies D. To analyze international trade

Q4.What does a production possibility frontier represent?

A. The maximum possible output of a single good B. The combinations of two goods that can be produced with given resources C. The total cost of production D. The market demand for goods

Q5.Which of the following is a key concept listed in the source text?

A. Opportunity cost B. Inflation C. Unemployment D. Fiscal policy

Q6.What is the subject matter of economics?

A. Study of government policies B. Study of scarcity and choice C. Study of money and banking D. Study of international trade

Q7.What did Bernier think was the consequence of crown ownership of land in the Mughal Empire?

A. Increased agricultural productivity B. Long-term investment in land C. Aversion to long-term investment D. Rise of a class of improving landlords

Q8.Which economist's ideas influenced British officials in formulating revenue settlements in Maharashtra in the 1820s?

A. Adam Smith B. David Ricardo C. John Stuart Mill D. Thomas Malthus

Q9.After 1845, what trend did agricultural prices follow?

A. They declined steadily B. They remained stable C. They recovered steadily D. They fluctuated wildly

Q10.Why did Britain turn to India for cotton during the American Civil War?

A. India had suitable soil, climate, and cheap labour for cotton cultivation B. India had the largest cotton mills in the world C. India offered cotton at lower prices than America D. India was a British colony with no trade restrictions

Q11.Why did export merchants and sahukars in Maharashtra decide to close down their operations and restrict advances to peasants?

A. Because the government increased revenue demand B. Because they saw demand for Indian cotton fall and prices slide C. Because peasants refused to repay debts D. Because of a new law restricting moneylending

Q12.What happened to the unpaid balance when a new bond was signed by the ryot?

A. It was written off B. It was reduced by half C. It was entered as the principal for new interest charges D. It was converted into a gift

Q13.In the example given in the source, what was the monthly interest rate charged by the sowkar?

A. Rs 2 per cent B. Rs 3-2 annas per cent C. Rs 4 per cent D. Rs 5 per cent

Q14.After how many years did the interest on Rs 1000 amount to Rs 2028-10 annas-3 paise in the example?

A. 10 years B. 12 years C. 15 years D. 20 years

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Economics Practice Quiz 131