GSEB Class 11 Economics Important Questions Chapter 1 Economics: An introduction

Gujarat Board GSEB Class 11 Commerce Economics Important Questions Chapter 1 Economics: An introduction Important Questions and Answers.

GSEB Class 11 Economics Important Questions Chapter 1 Economics: An introduction

Short Answer Type Questions

Question 1.
What does the word ‘economics’ mean in Sanskrit terms?
Answer:
In ancient India, Economics was termed as ‘Arthshashtra’. It is a Sanskrit word. The word ‘arth’ means ‘purpose’ or ‘goal’ and so ‘arthshashtra’ in Sanskrit means, The science of benefits or purpose in practical life’.

Question 2.
Explain the derivation of the word ‘economics’ in english.
Answer:
The English word ‘Economics’ is derived from the Greek word ‘Oikonomos’. ‘Oikos’ means households and ‘nomos’ means management. Thus, the word ‘economics’ means ‘management of households’.

Question 3.
What do you mean by Purusharth?
Answer:
In Hinduism there is a concept of ‘Purushartha’ (Gujarati: In Indian philosophy, Purushartha means ‘Purpose of a human being’ and it refers to the four goals or aims of a human life.

These goals are:

1. ‘Dharma’ (righteousness, duty),
2. ‘Arth’ (purpose, benefit, wealth),
3. ‘Kama’ (desire) and
4. ‘Moksha’ (liberation).

Question 4.
Out of the goals of purusharth which is a subject matter of economics?
Answer:
‘Arth’ i.e. purpose, benefit and wealth is the goal of purushartha which is concerned with economics.

Question 5.
Who first discussed the purpose of economics in India?
Answer:
About 2500 years ago, Kautilya who is also known as Chanakya in his book ‘Arthshashtra’ discussed the purpose of economic activity.

Question 6.
Express Kautiliya’s views on Economics?
Answer:
According to Kautilya, the main intention of a human being is ‘arth’ (wealth). The piece of land owned by a human is ‘arth’ (wealth) and thus the science explaining the purpose and utility of wealth creation on earth is called economics.

Question 7.
Who first did a deep study of creation of wealth? Where and when did he ‘ express his thoughts? What was the outcome of this book?
Answer:
Adam Smith did a deep thoughtful study on the creation of wealth and in 1776 wrote a book titled ‘An Inquiry into the Nature and Causes of Wealth of Nations’. The book is popularly known as ‘Wealth of Nations’. With this book Adam Smith developed economics as a specialized area of knowledge in the west.

Question 8.
State the definition of economics as given by Adam Smith.
Answer:
‘Economics is the study of the nature and causes of wealth of nations’. As per this definition, Economics studies the exchange of physical wealth produced by labour.

Question 9.
How can you say that Adam Smith introduced economics as a Social Science?
Answer:
Adam Smith on one hand studied human efforts i.e. society and on the other hand the approach and method of study was
scientific. Hence, we can say that

Question 10.
Define economics as per Alfred Marshall.
Answer:
Economics is the study of mankind in the ordinary business of life.

Question 11.
Express Robbins’ view on economics.
Answer:
According to Robbins, economics is a positive science and does not prescribe ‘how things should ideally behave’ rather it studies, ‘how human beings behave in reality’.

Question 12.
Write Paul Samuelson’s definition of economics.
Answer:
Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons in the society. It analyses costs and benefits of improving patterns of resource allocation.

Question 13.
Why economics must deal with problem of proper allocation of resources?
Answer:
Human wants are unlimited and most wants keep on recurring. On the other hand resources that help in satisfying these wants are scarce as well as are used for more than one type of want. Hence

Question 14.
Into how many types can you classify human activities? Name them.
Answer:
With respect to trade and commerce, all the activities can be divided into two forms. They are: (1) Economic activities and (2) Non-economic activities.

Question 15.
Define economic activity.
Answer:
An activity performed with the purpose of obtaining economic benefits in the form of income is called economic activity. Activities involving exchange of goods, services and/ or factors of production as well as involving costs are included in economic activity.

Question 16.
Define non-economic activity.
Answer:
An activity which is done without the purpose of obtaining economic gains is called non-economic activity. Unlike economic activities, such activities do not involve exchange of benefits on both sides of the transaction.

Question 17.
Give few examples of economic activity.
Answer:
Eating in a restaurant, watching a movie in a theater, Work in one’s own farm, working in a school as a teacher, etc.

Question 18.
Give few examples of non-economic activity.
Answer:
Charitable activity, or activities done out of love, affection, compassion, such as social service, mother teaching her son, etc. are all non-economic activities.

Question 19.
Into which parts is economics classified for the purpose of study and analysis?
Answer:
Into two parts namely,

1. Microeconomics and
2. Macroeconomics.

Question 20.
Define microeconomics.
Answer:
‘Micro’ means extremely small. So, microeconomics is the study and analysis of economics at an individual, group or company level. It studies the rational behaviour of individual units of an economy. In other words, microeconomics studies and analyses at a very small level.

Question 21.
How does microeconomics work?
Answer:
The microeconomic analysis uses the ‘Principle of Marginalism’ to analyze how individual units make decisions in an economy. Microeconomics work on certain scientific principles that show behaviour of individual units.

Question 22.
Define macroeconomics.
Answer:
Macroeconomics is the study of a national economy as a whole. In this sense, macroeconomics studies issues which emerge from the economy of entire nation and its impact on the nation.

Question 23.
How is information represented in descriptive manner?
Answer:
In descriptive manner, information gathered through economic analysis is represented through words and sentences.

Question 24.
How does statistics help to support or confirm a principle laid by economics?
Answer:
One cannot directly believe the established theories and put them in practice. We need to test the validity of such theories in real life at different times and places. To do so we need to gather information related to the established theory from real life activity at such different times and places. Such information can be collected and presented in quantitative terms with the help of statistical tools.

Question 25.
How does statistics guides about changing trends?
Answer:
Statistics gives an idea about direction and magnitude of change in economic parameters. This information helps in understanding the changing trends

Question 26.
How does statistics help to make comparative study easy?
Answer:
If appropriate statistical data are obtained then we can compare several parameters over different time periods, across regions and also across nations. This way we can then easily perform comparative study.

Question 27.
How does statistics help to make precise presentation of facts?
Answer:
A picture is worth thousand words and this applies to economics too. At times facts about economic parameters can be represented more clearly with the help of statistical data and graphs. This is how we can make

Question 28.
What care should be taken while selecting the source of data?
Answer:
We should take care that the source from where data is gathered is reliable and universally acceptable so that we are assured of accurate data.

Question 29.
On which axis do you take data of cause-effect relationship?
Answer:
While studying cause-effect relationship between variables, the cause variable is treated as an independent variable and the effect variable is treated as a dependent variable.

Question 30.
What is a scale? State its importance.
Answer:
Scales are measures taken to represent actual data in a diagram. Taking proper scales on both the axis is very important in order to obtain a systematic graph with clarity and appropriate size.

Question 31.
Name few types of charts that you can construct to represent statistical analysis.
Answer:
Bar diagram, clustered bar diagram, pie- chart, etc. are few of the charts through which we can represent statistical data.

Question 32.
What is a bar diagram?
Answer:
A bar diagram (also known as bar chart or bar graph) is a diagram which represents grouped data in rectangular bars. The lengths of the bars are proportional to the values which they represent.

Question 33.
What is a grouped/clustered bar diagram?
Answer:
Group/clustered bar diagram is a type of bar diagram where in data of dependent variable is grouped in more than one category. For example, data of literacy of males and females.

Question 34.
How does economics help to understand everyday behavior of people?
Answer:
Economics is useful for understanding everyday behaviour of human beings, society and state while managing routine tasks.

Question 35.
How can economics help to understand historical events?
Answer:
By studying historical events with an ap¬proach of economics, one can better un¬derstand the reasons behind wars, the entry of East India Company in India for trade and the establishment of ‘British Raj’, India’s revolt against goods made in En¬gland during British Rule, labour move¬ments, etc.

Question 36.
How can economics help in decision making of individuals?
Answer:
People from all walks of life like house holds, lawyers, actors, singers and others try to get maximum gains from the efforts which they make. They try to manage their time and resources in an optimum manner to increase their gains. This means that they try to make such economic decisions that give them best returns.

Question 37.
How does economics help in professional decision making?
Answer:
Economics helps in knowing scientific principles and theories which in turn guides for making professional decisions. For example, revenue and cost as well as demand and supply are economic concepts used in all types of economic activities.

Long Answer Type Questions

Question 1.
Explain the origin of economics as a philosophy and a science.
Answer:

• Human beings are the most intellectual creatures among all the living, organisms of the earth.
• With the help of their intelligence and logic they are able to examine, distinguish and classify their surroundings and environment.
• To ensure a happy and prosperous life man created various social and political institutions and economic systems. In order to understand importance of such systems, sustain them over a long period of time and to resolve the complexities that may arise in such systems, human beings formulated certain principles based upon various philosophies and sciences.
• In the pre-historic and in the earlier historic periods, when differences arose between people due to such systems people solved them without thinking and jumping into fights and battles.
• With the development and progress of civilizations, it became utmost impor¬tant that rather than solving problems with fights and battles resolve the problems logically and by creating and using philosophical principles. This gave rise to ‘Economics’ as a philosophy and science of rational economic behaviour.

Question 2.
Explain the meaning and derivation of the term ‘Arthshashtra’ and ‘Economics’.
Answer:
Arthshashtra:

• In ancient India, Economics was termed as ‘Arthshashtra’. It is a Sanskrit word.
• The word ‘arth’ means ‘purpose’ or ‘goal’ and so ‘arthshashtra’ in Sanskrit means, ‘The science of benefits or purpose in practical life’.
• The definition of arthshashtra says that that the purpose of human behaviour is to seek benefits.

Economics:

• The English word ‘Economics’ is derived from the Greek word ‘Oikonomos’.
• ‘Oikos’ means households and ‘nomos’ means management. Thus, the-word ‘economics’ means ‘management of households’.

Question 3.
State and explain the various definitions given by various Economists.
Answer:
Note: Definition of each economist can be asked individually too.
Various definitions of economics:
1. Adam Smith:
As per Adam Smith, ‘Economics is the study of the nature and causes of wealth of nations’. As per this definition, Economics studies the exchange of physical wealth produced by labour.
Adam Smith introduced economics as a Social Science. The reason for this was on one hand he studied human efforts (i.e. society) and on the other hand his methodology was scientific.

Since the time of Adam Smith, economics was studied as an independent science and not as part of general philosophy. He talked about human welfare in his book.

2. Alfred Marshall:
In his book, ‘Principles of Economics’ published in 1890, Alfred Marshall gives the following definition ‘Economics is the study of mankind in the ordinary business of life’. This definition states that in everyday life people usually aim for material well-being.

• This definition explains economics as the study of routine activities of human beings and aims to explain how they achieve well-being from materialistic things.
• This definition does not have a broad aspect since it only focuses on the material consumption or material wellbeing, yet it is important as it keeps human wellbeing at the centre of human activity.

3. Lionel Robbins:

• Every field of science deals with a ‘problem’ whereas economics deals with a ‘question’. For example the questions that economics deals could be “How to allocate limited resources which have alternative uses for satisfying recurring and unlimited human wants in order to increase the wellbeing in a / society”?
• With respect to this perspective, in 1931, Lionel Robbins in his book, ‘Nature and Significance of Economics’ gave the following definition – “Economics is the science which studies human behaviour as a relationship between limited resources and unlimited wants which have alternative uses”.
• Human wants are unlimited and most wants keep on recurring. On the other hand, resources which help in satisfying human wants are limited and have alternate uses. Hence, the challenge for economics is to deal with the problem of allocating limited resources for satisfying enumerable human wants to the maximum level.
• According to Robbins, economics is a positive science and does not prescribe ‘how things should ideally behave’ rather it studies, ‘how human beings behave in reality’.
• One may think of behavior, approach and method of a person or a situation to be ‘ideal’, but in reality it is a rarity. Hence, by this definition we understand that economics does not deal with ‘norms’ i.e standard ways or patterns and so is not a ‘Normative science’.

4. Paul Samuelson:
In his book ‘Foundations of Economic Analysis’ published in 1947, Samuelson defines economics as, “Economics is the study of how people and society end up choosing, with or.without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons in the society. It analyses costs and benefits of improving patterns of resource allocation”.

Samuelson talks about choice, allocation of scarce resources and evaluation of costs and benefits of doing so.

Conclusion:
In general, all definitions commonly point out that economics studies human behaviour, is positive in nature, adopts scientific methods and methodologies’ and thus it is a Social Science.

Question 4.
State the various definitions of economics.
Answer:

• Adam Smith: ‘Economics is the study of the nature and causes of wealth of nations’.
• Alfred Marshall: ‘Economics is the study of mankind in the ordinary business of life’.
• Lionel Robbins: “Economics is the science which studies human behaviour as a relationship between limited resources and unlimited wants which have alternative uses”.
• Paul Samuelson: “Economics is the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons in the society. It analyses costs and benefits of improving patterns of resource allocation”.

Question 5.
State and explain economic and non-economic activities.
Answer:
With respect to trade and commerce, all the activities can be divided into two forms. They are:

1. Economic activities and
2. Non-economic activities.

The branch of Economics studies and deals only with economic activities.
1. Economic activity:

• An activity performed with the purpose of obtaining economic benefits in the form of income is called economic activity. Activities involving exchange of goods, services and/or factors of production as well as involving costs are included in economic activity.
• Objective of obtaining economic gains, satisfaction of some want and involvement of exchange and cost are important aspects of an economic activity.

Examples of economic activities:

Activity	Economic gain
1. Eating in a restaurant	1. Satisfying need by incurring expense
2. Watching a movie in a theater	2. Obtaining entertainment by incurring expense
3. Work in one’s own farm	3. Putting labour and to get output and later money
4. Working in a school as a teacher	4. Providing service and obtaining a salary

Looking at these examples we can also say that economic activity fulfills requirements of people through a transaction that involves costs and benefits on both sides.

• Farmers, lawyers, teachers, actors, government all perform economic activities.
• The following chain of activity is another example, to clarify the meaning of economic activity:
• Suppose a farmer needs a motorcycle.
• In order to earn income to buy the motorcycle, he works in his farm and sells his production to a buyer against money. With this money the farmer buys motorcycle. .
• The seller of motorcycle who earns money by selling the motorcycle spends it to fulfill some other want. This chain goes on and so does economic activities.

2. Non-economic activity:

• An activity which is done without the purpose of obtaining economic gains is called non-economic activity.
  Unlike economic activities, such activities do not involve exchange of benefits on both sides of the transaction.
• Charitable activity, or activities done out of love, affection, compassion, such as social service, mother teaching her son, etc. are all non-economic activities. Although these activities may involve costs but these costs are not incurred to get monetary/economic benefits in exchange.

Question 6.
State and explain microeconomics and macroeconomics.
Answer:

• Economic analysis is done to study individual economic units as well as to study the economy as a whole.
• Hence, for the purpose of analysis, the entire study of economics is classified into:
  1. Microeconomics and
  2. Macroeconomics.

Microeconomics:

• ‘Micro’ means extremely small. So, microeconomics is the study and analysis of economics at an individual, group or company level. It studies the rational behaviour of individual units of an economy. In other words, microeconomics studies and analyses at a very small level.
• Microeconomic analysis uses thre ‘Principle of Marginalism’ to analyze how individual units make decisions in an economy. Microeconomics work on certain scientific principles that show behaviour of individual units.
• For example, ‘Consumer’ is the individual unit of ‘Demand analysis’ while studying the demand at micro level, ‘Firm’ is the unit of ‘Supply analysis’ and ‘Labour’ that of ‘Labour market’.
• Other examples are price determination of a product in a market, equilibrium output level for a firm, marginal productivity and wage determination of labour as a factor of production, etc.

Macroeconomics:

• Macroeconomics is the study of a national economy as a whole.
• In this sense, macroeconomics studies issues which emerge from the economy of entire nation and its impact on the nation.
• For example, determination of national income, unemployment, poverty, growth rate and demographic profile of population are topics studied under macroeconomics.
• Macroeconomic analysis has helped to develop principles for managing • resources in such a way that leads to increase in national income, reduce unemployment, poverty, inflation and so on.
• It is important to note that the behaviour of individual economic units impact the macroeconomic parameters which in turn impact the decisions of individual economic units. Thus, both microeconomics and macroeconomics are complementary to each other.

Question 7.
Both microeconomics and macroeconomics are complementary to each other. Give reason.
Answer:

• ‘Micro’ means extremely smail. So, microeconomics is the study and analysis of economics at an individual, group or company level. It studies the rational behaviour of individual units of an economy.
• On the other hand, macroeconomics is the study of a national economy as a whole.
• In this sense, macroeconomics studies issues which emerge from the economy of entire nation and its impact on the nation.
• Analysis about the national economy is not always possible without analyzing individuals or groups as units. On studying such units one can use the information as an input for analysis at macro level.
• While studying the two it happens that the behaviour of individual economic units impacts the macroeconomic parameters and the macroeconomic parameters impact the decisions of individual economic units.
• Thus, both microeconomics and macroeconomics are complementary to each other.

Question 8.
Explain ways to represent the information obtained through economic study.
Answer:
The information gathered through economic study or analysis can be represented in three ways They are:

1. Descriptive manner
2. Through data tables
3. Through graphs or diagrams

Example:
Let us take an example of representing the information that we gathered ‘ through an economic study.

1. Descriptive manner: In description form we can describe the relation between price of a commodity and its demand as, “When price of a commodity falls, its demand expands and vice-versa”.
2. Through data tables: The description described above can be shown with the help of a data table. The data table given below shows a consumer’s willingness to demand a commodity at different prices of the commodity.

Price of the commodity (₹)	Demand for the commodity by individual (in units)
20	20
15	40
10	60
5	80

Conclusion of table:
The table also represents the same fact as described in the first method i.e. as price of a commodity falls, its demand increases.

3. Through graphs or diagrams:

Representation of data in diagram

Conclusion of the diagram:

• The price of a commodity is represented through X-axis and its demand ti M ough Y-axis,
• The curve formed by points a, b, c and d represents the data given in the table discussed. For example, point ‘a’ represents demand of 20 units in 2nd method at price? 20.
• This curve slopes downward from left to right. It means that when variable on Y-axis (i.e. price of the commodity) falls, the variable on X-axis (i.e. de¬mand for the commodity) rises.
• Economics studies relationship between various economic parameters and hence a cause-effect relationship can be expressed by way of such graphs/diagrams.

Question 9.
List out the importance of statistical information in the study of economics.
Answer:
Importance of statistical information in the study of economics:

• Statistical information supports or confirms a principle
• Statistical information gives an idea about the changing trends of economic parameters
• It makes comparative study easy
• It makes precise presentation of facts

Question 10.
What necessary aspects one needs to take care of while collecting statistical information and presenting it in diagrams or graphs?
Answer:
Following aspects must be considered while constructing statistical diagrams or graphs for representing information:
1. Sources of Information/Data:

• Data to analysis is like food to body, better the quality of data, finer the analysis and decision making.
• One should take care that the sources of data are reliable and universally acceptable so that its accuracy can be ensured.

Example:

• ‘Economic Survey of India’ and data provided by Central Statistical Organization are considered quite reliable source to obtain information re¬garding growth and development parameters in India.
• ‘World Development Report’ is a reliable and universally acceptable source to obtain data for comparing parameters such as growth and development of various countries of the world.

2. Clarity regarding dependent and independent variable:
In general, data pertaining to the independent variable must be represented on the X-axis and that pertaining to the dependent variable must be represented on the Y-axis.

Example:
(a) While studying cause-effect relationship between variables, the cause variable is treated as an independent variable and the effect variable is treated as a dependent variable as its values are dependent on the values of the independent variable.
(b) If we are examining the relationship between rainfall and agricultural production in a region, then rainfall is the independent variable and is represented on X-axis whereas agricultural production is the dependent variable and therefore represented on the Y-axis.
(c) Time is an independent variable. So, if we are examining production over different time periods then time period is represented on X-axis and produc¬tion on Y-axis.

Note that in economics while studying the law of demand, price which is an independent variable is represented on the Y-axis and demand which is a dependent variable is represented on X-axis.

3. Selecting appropriate scales:

• Scales are measures taken to represent actual data in a diagram.
• Taking proper scales on both the axis are very important in order to obtain a systematic graph with clarity and appropriate size,
• If actual data is too large, say in ’00 i.e. hundreds or in ‘00000 i.e. lakhs then such data cannot be directly represented in charts. Hence, such data is represented after converting it into measures on an appropriate scale.

Example:
You must have seen in diagrams and maps showing distance of 1 cm = 10,000 units or 1 cm = 5 years and so on. Such scales are taken on both the axis.

Question 11.
Economics helps in professional decision making. Give reason.
Answer:

• Economics helps in knowing and understanding scientific principles and theories.
• For example, revenue and cost as well as demand and supply are economic concepts used in all types of economic activities.
• Certain economic theories help businesses in making day to day decisions related to price determination, wage determination, etc.
• Economics also provides knowledge regarding the impact of certain decisions. For example, it provides insights into questions like, what happens if price gets reduced in market owing to very high competition?
• Thus, the knowledge gained through information obtained from economics helps in taking professional decisions in the industry.

Multiple Choice Questions

Question 1.
In India, Economics refer to
(A) Kamshastra
(B) Yagnashashtra
(C) Arthshashtra
(D) Dhanshashtra
Answer:
(C) Arthshashtra

Question 2.
Arthshashtra in Sanskrit means
(A) Science of benefit or purpose in practical life
(B) Philosophy of way of life
(C) The art and science of earning
(D) The theory and application of science of money
Answer:
(A) Science of benefit or purpose in practical life

Question 3.
Which of the following is not an Indian Purushartha?
(A) Moksha
(B) Dharma
(C) Kama
(D) None of these
Answer:
(D) None of these

Question 4.
Kautilya was also known as
(A) Vibhishan
(B) Chanakya
(C) Charak
(D) Pashupati
Answer:
(B) Chanakya

Question 5.
Which Greek philosopher talked about economics in the book economica?
(A) Galileo
(B) Leonardo-da-Vinci
(C) Aristotle
(D) Socrates
Answer:
(C) Aristotle

Question 6.
Who wrote ‘Wealth of Nations’?
(A) Alfred Marshal
(B) Paul Samuelson
(C) Robbins
(D) Adam Smith
Answer:
(D) Adam Smith

Question 7.
Adam Smith introduced economics as a/an
(A) Social Science
(B) Science
(C) Art
(D) Business
Answer:
(A) Social Science

Question 8.
Since the time of ________ economics was studied as an independent science.
(A) Adam Smith
(B) Paul Samuelson
(C) Alfred
(D) Robbins
Answer:
(A) Adam Smith

Question 9.
Alfred Marshal wrote the book
(A) Foundation of Economic Analysis
(B) Principle of Economics
(C) Nature and significance of Economics
(D) An inquiry into the nature and causes of wealth of nations
Answer:
(B) Principle of Economics

Question 10.
In which year did Lionel give the definition of Economics?
(A) 1776
(B) 1931
(C) 1947
(D) 1936
Answer:
(B) 1931

Question 11.
According to Robbins,
(A) Economics is a positive science
(B) Economics is the study of how people and society end up choosing with or without the use of money
(C) Economics is the study of mankind in ordinary business of life
(D) Economics is a specialized area of knowledge in the west
Answer:
(A) Economics is a positive science

Question 12.
Robbins: Nature and significance of Economics; Paul :
(A) Principle of economics
(B) Wealth of nations
(C) Foundation of economic analysis
(D) Oeconomica
Answer:
(C) Foundation of economic analysis

Question 13.
Paul’s book was published in
(A) 1931
(B) 1836
(C) 1776
(D) 1947
Answer:
(D) 1947

Question 14.
Economics studies
(A) Economic and Social activities
(B) Only Economic activities
(C) Economic, Political and Social activities
(D) Economic and Political activities
Answer:
(B) Only Economic activities

Question 15.
Microeconomics uses the principle of
(A) Marginalism
(B) Conceptualization
(C) Economic trends
(D) Capitalism
Answer:
(A) Marginalism

Question 16.
In which of the following way one cannot represent information obtained through economic analysis?
(A) Descriptive method
(B) Through data tables
(C) By graphs and diagrams
(D) None of these
Answer:
(D) None of these

Question 17.
Economic analysis gives idea about change in ________ of economic parameters.
(A) Direction
(B) Dimension
(C) Magnitude
(D) Both (A) and (C)
Answer:
(D) Both (A) and (C)

Question 18.
In order to have a good analysis, the source of data must be
(A) Reliable
(B) Freely available
(C) Universally acceptable
(D) Both (A) and (C)
Answer:
(D) Both (A) and (C)

Question 19.
At India level, one can obtain reliable data from
(A) Economic Survey of India
(B) Central Statistical Organization
(C) Central Institute of Statistical Data
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 20.
Which of the following is a reliable source for obtaining comparative data of different countries?
(A) World Record Centre
(B) World Data Centre
(C) World Development Report
(D) All of these
Answer:
(C) World Development Report

Question 21.
In a cause effect relationship, the cause variable is treated as an
(A) Dependent variable
(B) Independent variable
(C) Any of (A) or (B)
(D) Partially dependent variable
Answer:
(B) Independent variable

Question 22.
In cause-effect relationship, is represented on X-axis.
(A) Dependent variable
(B) Effect
(C) Cause
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 23.
Which of the following in spite being independent variable is represented on Y-axis?
(A) Customer
(B) Price
(C) Demand
(D) Time
Answer:
(D) Both (A) and (B)

Question 24.
In a bar diagram, the length of the bars is
(A) Proportional to the values they represent
(B) Equal to the breadth of their percentage
(C) Inversely dependent upon the summation of the values
(D) Exponential to the values
Answer:
(A) Proportional to the values they represent

Question 25.
Clustered bar diagram is used when
(A) The data is very large
(B) When data is grouped in more than one category
(C) When data is highly scattered
(D) When there is proportional data
Answer:
(B) When data is grouped in more than one category

Question 26.
For which of the following charts do you convert data into degrees?
(A) Bar chart
(B) Pie chart
(C) Clustered bar chart
(D) Both (A) and (C)
Answer:
(B) Pie chart

Question 27.
Economics has become extremely dependent due to
(A) Increasing use
(B) Imbalanced resources
(C) Scarcity
(D) Both (A) and (C)
Answer:
(D) Both (A) and (C)

Question 28.
Which of the following helps In taking proper decisions related to saving and investment?
(A) REPO rate
(B) Reverse REPO rate
(C) Forward REPO rate
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 29.
In today’s world every human being is a ________
(A) Consumer
(B) Labour
(C) Producer
(D) Any of these
Answer:
(D) Any of these