TEST Chapter 1

Definition of Economics
Group A
Q.No.1 # Write short answers of the following questions.
1. Define Economics according to Prof. Adam Smith.
2. Write the names of classical economists.
3. Define Economics according to Prof. Alfred Marshall.
4. Define Economics Problem.
5. Define Positive Science.
6. Write the name of Prof. Robin’s book. In which year it was written?
7. Define Art.
8. What is Theoretical Economics?
9. Define Macro Economics.
10. Define Deductive Method.
11. Write four points of practical importance of Economics.

Q.No.2 # Compare Marshall’s definition of Economics with Robin’s

definition of Economics.

TEST Chapter 1
Definition of Economics
Group B
Q.No.1 # Write short answers of the following questions.
1. Define Economics according to Prof. Robbins.
2. Write the names of Neo-classical economists.
3. Define Science.
4. Define Micro Economics.
5. Write four points of educational importance of Economics.
6. Define Normative Science.
7. Write the name of Prof. Marshall’s book. In which year it was written?
8. Define Economic law.
9. Define Economics according to Prof. Adam Smith.
10. Define Inductive Method.
11. Define Applied Economy.

Q.No.2 # Explain Marshall’s Definition of Economics. Write its merits

and demerits.
 TEST Chapter 2
Consumer’s Demand Theory
Group A
Q.No.1 # Write short answers of the following questions.
1. Define Utility.
2. Differentiate between Utility and Usefulness.
3. Define Marginal Utility.
4. Define Negative Utility.
5. What is the relationship between Total Utility and Marginal Utility?
6. Write any four determinants of utility.
7. Define Law of Diminishing Marginal Utility.
8. Define Zero Utility.
9. Define Consumer Equilibrium.
10. Write the equation of Consumer Equilibrium.
11. Write four limitations of Law of Diminishing Marginal Utility.

Q.No.2 # Explain Law of Equi-Marginal Utility with schedule and

diagram. Also write its assumptions and limitations.

TEST Chapter 2
Consumer’s Demand Theory
Group B
Q.No.1 # Write short answers of the following questions.
1. Define Consumer Equilibrium.
2. Differentiate between Economics and Un-economic wants.
3. Define Positive Utility.
4. Define Total Utility.
5. What is the relationship between Total Utility and Marginal Utility?
6. Differentiate between Utility and Usefulness.
7. Define Law of Equi-Marginal Utility.
8. What do you mean by Point of Satiety?
9. Define Initial Utility.
10. Write the equation of Consumer Equilibrium.
11. Write four assumptions of Law of Equi-Marginal Utility.

Q.No.2 # Explain Law of Diminishing Marginal Utility with schedule and

diagram. Also write its assumptions and limitations.
 TEST Chapter 3
Demand and Supply
Group A
Q.No.1 # Write short answers of the following questions.
1. What is meant by Demand?
2. Differentiate between Rise of Demand and Fall of Demand.
3. Write four assumptions of Law of demand.
4. Define Income Elasticity. Also write its formula.
5. Define Composite Demand.
6. Define Law of Supply.
7. Define Elasticity of Supply.
8. What is Joint Supply?
9. What is Market Period Supply?
10. Define Market Equilibrium.
11. Define Perishable goods.

Q.No.2 # Define Elasticity of Demand. Explain different methods to

measure Elasticity of Demand.

TEST Chapter 3
Demand and Supply
Group B
Q.No.1 # Write short answers of the following questions.
1. Define Law of Demand.
2. Differentiate between More Elastic Demand and Less Elastic Demand.
3. Define Arc Elasticity. Also write its formula.
4. Define Joint Demand.
5. Write four limitations of Law of Demand.
6. Differentiate between Supply and Stock.
7. Define Giffen goods.
8. What is Rise and Fall of Supply
9. Define Elasticity of Supply more than unity.
10. Define Equilibrium Price.
11. Define Durable goods.

Q.No.2 # Define and explain Law of Supply with schedule and diagram.
Also write its assumptions and limitations.
 TEST Chapter 4 & 5
Factors of Productions & Laws of Return
Group A
Q.No.1 # Write short answers of the following questions.
1. Define Land.
2. What is productivity of Labor?
3. Define Capital.
4. Define Organization.
5. Define Total Production.
6. Define Law of Diminishing Return.
7. Define Law of Constant Return.
8. Write four assumptions of Law of Diminishing Return.
9. Define Law of Increasing Cost.
10. Define Marginal Production.
11. Define Average Production.

Q.No.2 # Define Law of Increasing Return in detail.

TEST Chapter 4 & 5

Factors of Productions & Laws of Return
Group B
Q.No.1 # Write short answers of the following questions.
1. What are Factors of Productions?
2. Define Labor.
3. What is Productivity of Land?
4. What is Productivity of Capital?
5. Define Firm.
6. Define Average Production.
7. Define Law of Increasing Return.
8. Define Marginal Production.
9. Define Law of Constant Return.
10. Define Law of Diminishing Cost.
11. Define Organization.

Q.No.2 # Define Law of Diminishing Return in detail.

 TEST Chapter 6, 7 & 8
Firm’s Cost of Production and Revenues + Price and Output
Determination & Resource Pricing
Group A
Q.No.1 # Write short answers of the following questions.
1. Define Variable Cost.
2. Define Total Cost.
3. Define Average Cost.
4. Define Average Fixed Cost.
5. Define Marginal Revenue.
6. Define Opportunity Cost.
7. Define Long Run.
8. Define Monopoly.
9. What is Super Normal Profit?
10. Define Industry.
11. Write four assumptions of Marginal Productivity Theory.

Q.No.2 # Define Perfect Competition. Explain different possibilities of

firm’s equilibrium in Perfect Competition in short run.

TEST Chapter 6, 7 & 8

Firm’s Cost of Production and Revenues + Price and Output
Determination & Resource Pricing
Group B
Q.No.1 # Write short answers of the following questions.
1. Define Fixed Cost.
2. Define Marginal Cost.
3. Define Average Variable Cost.
4. Define Total Revenue.
5. Define Average Revenue.
6. Define Short Run.
7. What is Perfect Competition?
8. What is Normal Profit?
9. Define Firm Equilibrium.
10. Define Marginal Productivity Theory.
11. Write down the equation of Marginal Productivity Theory.

Q.No.2 # Define Monopoly. Explain different possibilities of firm’s

equilibrium under Monopoly in short run.
 TEST Chapter 9
National Income
Group A
Q.No.1 # Write short answers of the following questions.
1. Define National Income in the words of Prof. Marshall.
2. Define National Income in the words of Prof. Fisher.
3. Define Gross National Product.
4. Define Net National Product.
5. Define Gross Domestic Product.
6. Define Personal Income.
7. Define Disposable Personal Income.
8. Differentiate Money Income and Real Income.
9. What do you mean by Circular Flow of National Income?
10. Define Depreciation.
11. Define Subsidies.

Q.No.2 # Define National Income. Explain different methods to measure

National Income.

TEST Chapter 9
National Income
Group B
Q.No.1 # Write short answers of the following questions.
1. Define National Income in the words of Prof. Pigeo.
2. Define National Income in the words of Prof. Fisher.
3. Define Depreciation.
4. Define Transfer Payment.
5. Define Subsidies.
6. Differentiate Money Income and Real Income.
7. What do you mean by Circular Flow of National Income?
8. Write Different methods of measuring National Income.
9. Write four factors which affect National Income.
10. Write Precautions of the Product Method of measuring National Income.
11. Differentiate between Personal Income and Disposable Personal Income.

Q.No.2 # Define National Income. Explain different concepts of National

Income.
 TEST Chapter 10
Money
Group A
Q.No.1 # Write short answers of the following questions.
1. Define Barter System.
2. Write the difficulties of Barter System.
3. Define Metallic Money.
4. Define Standard Money.
5. Define Convertible Paper Money.
6. Define Legal Tender Money.
7. Define Unlimited Legal Tender Money.
8. Define Near Money.
9. Write Fisher Equation of Exchange.
10. Define Deflation.
11. What is Open Market Operation?

Q.No.2 # Define Money. Explain its Functions.

TEST Chapter 10
Money
Group B
Q.No.1 # Write short answers of the following questions.
1. Define Money.
2. Write four functions of Money.
3. Define Paper Money.
4. Define Token Money.
5. Define Inconvertible Paper Money.
6. Define Credit Money.
7. Define Limited Legal Tender Money.
8. Define Quantity Theory of Money.
9. Define Inflation.
10. What is Bank Rate?
11. Write four measures to control Inflation.

Q.No.2 # Define Barter System. Explain difficulties of Barter System.

 TEST Chapter 11
Business Cycle / Trade Cycle
Group A
Q.No.1 # Write short answers of the following questions.
1. Define Trade Cycle according to Prof. Hanson.
2. Define Trade Cycle according to Prof. Keyens.
3. Define Trade Cycle according to Prof. Haberler.
4. Write down the names of phases of Trade Cycle.
5. Write four Characteristics of Trade Cycle.
6. Define Monetary Policy.
7. Define Fiscal Policy.
8. Define Multiplier.
9. Define Accelerator.
10. Write measures to control Trade Cycle.
11. What do you mean by difference in degree of Trade Cycle?

Q.No.2 # Define Trade Cycle. Explain phases of Trade Cycle with

diagram.

TEST Chapter 11
Business Cycle / Trade Cycle
Group B
Q.No.1 # Write short answers of the following questions.
1. Define Trade Cycle according to Prof. Haberler.
2. Define Trade Cycle according to Prof. Keyens.
3. Define Accelerator.
4. Define Multiplier.
5. Define Fiscal Policy.
6. Define Monetary Policy.
7. Write any four characteristics of phase of Boom.
8. Write four characteristics of phase of Recession.
9. Write four characteristics of phase of Depression.
10. Write four characteristics of phase of Recovery.
11. Make a Diagram of phases of Trade Cycle.

Q.No.2 # Define Trade Cycle. Explain different Characteristics of Trade

Cycle.
 TEST Chapter 12
International Trade
Group A
Q.No.1 # Write short answers of the following questions.
1. What is meant by Domestic Trade?
2. What is meant by Balance of Trade?
3. What is meant by Balance of Payment?
4. What is International Monetary Fund (IMF)?
5. Write four pints of difference between Domestic Trade and International Trade.
6. Who did present the Comparative Cost Theory of International Trade
7. What is meant by Surplus Balance of Trade?
8. What is meant by Deficit Balance of Payment?
9. Write four causes of deficit Balance of Payment of a country.
10. Write four measures to improve Balance of Payment of a country.
11. Write items of Balance of Payment.

Q.No.2 # Define International Trade. Explain advantages and

disadvantages of International Trade.

TEST Chapter 12
International Trade
Group B
Q.No.1 # Write short answers of the following questions.
1. What is meant by International Trade?
2. Define Domestic Trade.
3. Write four advantages of International Trade.
4. Write four disadvantages of International Trade.
5. Define Balance of Trade.
6. Define Balance of Payment.
7. Who did present the Absolute Advantages Theory of International Trade?
8. What is meant by Deficit Balance of Trade?
9. What is meant by Surplus Balance of Payment?
10. Write four causes of deficit Balance of Payment of a country.
11. Write four measures to improve Balance of Payment of a country.

Q.No.2 # Explain the difference between Domestic Trade and

International Trade.
 TEST Chapter 13
Public Finance
Group A
Q.No.1 # Write short answers of the following questions.
1. What is meant by Public Finance?
2. What is meant by Fee?
3. What is meant by Zakat?
4. What is meant by Deficit Budget?
5. Write four heads of Public Expenditure.
6. Write four points of difference between Zakat and Tax.
7. What do you mean by Direct Tax?
8. Define Indirect Tax.
9. Define Proportional Tax.
10. What is meant by Progressive Tax?
11. What is meant by Regressive Tax?

Q.No.2 # Define Tax. Explain Cannon of Good Taxation System.

TEST Chapter 13
Public Finance
Group B
Q.No.1 # Write short answers of the following questions.
1. What is meant by Tax?
2. What do you mean by Direct Tax?
3. Define Indirect Tax.
4. Define Proportional Tax.
5. What is meant by Progressive Tax?
6. What is meant by Regressive Tax?
7. Define Value Added Tax.
8. Write four main sources of Public Revenue.
9. Write four Cannon of Taxation by Adam Smith.
10. What is meant by Private Finance?
11. What is meant by Surplus Budget?

Q.No.2 # What do you mean by Zakat? Explain the difference between

Zakat and Tax.