Economics Page-7

61) Which of the following pairs of commodities is an example of substitute goods'?
(A) Pen and Ink
(B) Left shoe and right shoe
(C) Mustard oil and Coconut oil
(D) Gold and Water

62) What would cause a country exchange rate to fall?
(A) An increased demand for its exports
(B) Increased demand for its imports
(C) An increased inflow of capital
(D) None of the above

63) Which of the following must always balance
(A) Balance of visible trade
(B) Balance of invisible trade
(C) Balance on the current account
(D) Balance of payments

64) Which one of the following could best be regarded as an 'entrepreneur'
(A) A bank manager
(B) A football club manager
(C) A sales girl in a dress shop
(D) A grain merchant

65) The Price system ensures
(A) Efficiency in production
(B) Equity in distribution
(C) Allocation of goods to those who can pay for it
(D) Optimum utilization of resources

66) Saving is a function of?
(A) income
(B) improvement in productivity
(C) investment
(D) export

67) Commercial policy means
(A) Policy about market
(B) Policy about money supply
(C) Policy about imports and exports
(D) Policy of controlling the prices of goods

68) Bank Rate means
(A) The official rate of interest charged by the Central Bank of a country
(B) Interest rate charged by money lenders
(C) Interest rate charged by the Scheduled Banks
(D) Rate of profit of the Banking Institutions

69) Division of labour is promoted by
(A) external market
(B) limited market
(C) perfect market
(D) price discrimination

70) Deficit financing is spending
(A) by borrowing from abroad
(B) in excess of revenue
(C) less than what is needed
(D) by getting foreign aid

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