1.	What is the value of all tangible resources such as raw materials and labour that are used in the production process called ?
	Real Coast
	Variable Cost
	Opportunity Cost
	Fixed Cost
	Answer: Real Coast Explanation: Real Cost : It is the overall actual expense involved in creating a good or service for sale to consumers.The real cost of production for a business typically includes the value of all tangible resources such as raw materials and labor that are used in the production process.
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2.	An economic condition when there is one buyer and many sellers is called _____ ?
	Oligopoly
	Monopoly
	Perfect Competition
	Monopsony
	Answer: Monopsony Explanation: A monopsony is the condition of the market when there is a single buyer and multiple sellers. The difference between a monopoly and monopsony is primarily in the difference between the controlling entities. A single buyer dominates a monopsonized market while an individual seller controls a monopolized market.
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3.	Which amongst the following is NOT one of the four main factors of production ?
	Land
	Labour
	Expenditure
	Entrepreneurship
	Answer: Expenditure Explanation: Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. So, Expenditure is not the factor of the production.
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4.	What is the name given to the graph that shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level in economic terms ?
	Demand Curve
	Isocost Line
	Supply Curve
	Budget Line
	Answer: Budget Line Explanation: The Budget Line, also called as Budget Constraint shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.
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5.	The _____ shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level ?
	Utility line
	Supply line
	Demand line
	Budget line
	Answer: Budget line Explanation: The Budget Line, also called as Budget Constraint shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.
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6.	In Economics, buying an asset in one market and simultaneously selling an identical asset in another market at a higher price is termed as _____ ?
	Depreciation
	Mortgage
	Arbitrage
	Devaluation
	Answer: Arbitrage Explanation: Arbitrage is the practice of taking advantage of a price difference between two or more markets. In this type of trade one is profited by selling similar assets in different markets and in different forms.
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7.	In the context of capital markets , the abbreviation ‘FPO’ stands for ?
	Free Public Offer
	First Portfolio Operation
	Follow- on Public Offer
	First Public offer
	Answer: Follow- on Public Offer Explanation: The process by which the company, which is already listed on the stock exchange can issue new shares to the investors or existing shareholders is known as FPO (Follow on Public Offer).
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8.	What does the Lorenz curve indicate ?
	Relationship between the price of a certain commodity and its demand.
	Income distribution
	Rate of employment
	Taxable income elasticity
	Answer: Income distribution Explanation: The Lorenz curve is a graphical representation of the distribution of income or of wealth. The graph represents the population percentile on X-axis and Y-axis represent the cumulative frequency
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9.	The 'transformation curve' is also known as the ?
	production possibility curve
	indifference curve
	supply curve
	demand curve
	Answer: production possibility curve Explanation: The transformation curve is defined as the maximum amount of commodity X obtainable for any given amount of commodity Y, and vice versa. It is also known as production-possibility curve.
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10.	_____ refers to money that has already been spent and which cannot be recovered ?
	Replacement cost
	Opportunity cost
	Imputed cost
	Sunk cost
	Answer: Sunk cost Explanation: Replacement cost is the cost of replacing an asset, plant, machinery, equipment etc. Opportunity cost refers to the cost of the next best alternative foregone in order to pursue the chosen action. Imputed cost are hypothetical costs which are considered just for the purpose of decision making and do not involve any actual cash outflow. Sunk cost is the cost which is not altered by a change in current business activity. It can be understood as an irrevocable cost of the past business activity which has to be incurred now and is irrelevant to the current business scenario.
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