Q1. The term monopolistic competition means?
(a) A large number of sellers sell heterogeneous commodity
(b) A few numbers of sellers deal with heterogeneous commodity
(c) A large number of buyers deal in heterogeneous commodity
(d) None of the above
Q2. The technique that protects the traders from extreme falls in price is known as?
(b) Future trading
(d) For sale
Q3. The New National Food Security Mission (NFSM) aims at ensuring adequate supply of _________.
(a) Rice, cereals, wheat
(b) Wheat, cereals, pulses
(c) Rice, cereals, pulses
(d) Rice, wheat, pulses
Q4. Who decides the Minimum Support Price (MSP) for agricultural crops in India?
(a) Commission for Agricultural Costs and Prices (CACP)
(b) Ministry of Commerce
(c) Ministry of Agriculture
Q5. On which year was Agriculture Price Commission and Indian Food Cooperation was constituted?
Q6. A legally determined price above the equilibrium price is__________________
(a) Floor price
(b) Ceiling price
(c) Equilibrium price
(d) Necessary price
Q7. Tax imposed while importing agricultural goods called as ______
Q8. Economics originates from _____the word.
Q9. Economics is__________
(a) social science.
(c) positive science or a normative science.
(d) All of the above
Q10. ____________ is / are the Division of Economics.
(d) All of the above
S1. Ans (a)
• It includes A large number of sellers sell heterogeneous commodity.
• Monopolistic competition characterizes an industry in which many firms offer products or services that are similar but imperfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.
S2. Ans (c)
Sol: Hedging is employed by many traders to protect themselves against losses due to market price fluctuations by executing cash purchases and sales practically simultaneously with future transactions in the opposite side.
S3. Ans (d)
Sol. The National Food Security Mission (NFSM) is a Central Scheme of Government of India launched in 2007 for 5 years to increase production and productivity of wheat, rice and pulses on a sustainable basis so as to ensure food security of the country.
S4. Ans (a)
Sol: MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), an apex advisory body for pricing policy under the Ministry of Agriculture.
S5. Ans (b)
Sol. Commission for Agricultural Costs and Prices (CACP) is a decentralized agency of the Government of India. It was established in 1965 as the Agricultural Prices Commission, and was given its present name in 1985. It is an advisory body, not statutory, attached to the Ministry of Agriculture & Farmers Welfare, Government of India.
S6. Ans (a)
Sol. A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, good, commodity, or service.
S7. Ans (a)
Sol. A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services.
S8. Ans (a)
Sol. The word ‘Economics’ originates from the Greek word ‘Oikonomikos’ which can be divided into two parts: ` (a) ‘Oikos’, which means ‘Home’, and (b) ‘Nomos’, which means ‘Management’.
S9. Ans (d)
Sol. It consists all Economics is a social science, Economics is a science or an art, its economics is a science, whether it is a positive science or a normative science.
S10. Ans (d)
Sol. Division of Economics consist all 1. Consumption 2 Production 3 Exchange and, 4 Distribution.