Practice test

Basics of economics - Test Set 6

Review 13 exam-focused questions with detailed explanations, then start the interactive test when you are ready.

13 questions

Questions and explanations

  1. Question 1

    In the secondary sector, what kinds of activities are typically carried out?
    1. Providing support services to industries
    2. Growing crops and raising livestock
    3. Producing finished products from raw materials
    4. Extracting natural resources
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  2. Question 2

    ATM booths come under which sector of the economic activity?
    1. Tertiary Sector
    2. Quaternary Sector
    3. Secondary Sector
    4. Primary Sector
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  3. Question 3

    Who is regarded as the founding father of modern economics?
    1. Adam Smith
    2. Karl Marx
    3. Alfred Marshall
    4. Daniel Kahneman
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  4. Question 4

    Transportation and storage falls under which sector of economic activity?

    1. Secondary sector
    2. Service sector
    3. Primary sector
    4. Tertiary sector
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  5. Question 5

    Which of the following is/are an example of public goods?
    I) Defence
    II) House
    Options:
    1. Only II
    2. Neither I nor II
    3. Both I and II
    4. Only I
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  6. Question 6

    Which of the following statements is/are true about private goods?
    I. Rivalrous in consumption
    II. Non-excludability
    III. Negative marginal cost
    Options:
    1. Both II and III
    2. Only I
    3. Only III
    4. Only II
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  7. Question 7

    In 2011–12, what percentage of Indian workforce was engaged in secondary sector?
    1. 60.4%
    2. 30%
    3. 15.8%
    4. 24.3%
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  8. Question 8

    Industries of strategic and national importance are usually placed in the ______ sector.

    1. Public
    2. Joint
    3. Private
    4. Co-operative
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  9. Question 9

    Recreation services are an example of ______.
    1. Consumer goods
    2. Capital goods
    3. Intermediate goods
    4. Inferior goods
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  10. Question 10

    Which of the following is the quality of the public goods?

    1. Non-rivalrous
    2. Excludable
    3. Rivalrous
    4. Non-divisible
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  11. Question 11

    Which of the following is NOT a drawback of the barter system?
    1. Lack of a common unit of value.
    2. Surplus goods are replaced with other goods.
    3. Difficulty in contractual payments.
    4. Double coincidence of wants.
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  12. Question 12

    Which of the following is NOT an example of public goods?
    1. National defence
    2. Driveway at our home
    3. Law enforcement
    4. Access to clean air
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  13. Question 13

    Which of the following is one of the features of capital goods?
    1. They are durable
    2. They are inexpensive
    3. They are Giffen goods
    4. They are inferior goods
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