ACTIVITY-1 Objective Type Questions: 1. Who is known as father of modern economics? a. Ragnar Frisch b. Adam Smith c. Marshall d. None of these. JC 2. Who was the first person who got Nobel Prize in economics? a. Ragnar Frisch b. Adam Smith c. Marshall d. None of these. 3. Who wrote the book Wealth of Nations a. Ragnar Frisch b. Adam Smith c. Marshall d. Robbins. 4. Wealth of Nations was published in-.. a. 1976 b. 1876 c. 1776 d. 1676. 5. Microeconomics and Macroeconomics was first coined by .... a. Ragnar Frisch b. Adam Smith c. Marshall \\d. Robbins. 6. The study of the behavior of individual decision- making units and working of individual markets in isolation is known as-... a. General equilibrium analysis b. Partial equilibrium analysis. Answer: 2 3 4 5 6 ACTIVITY - 2 I. Objective Type/Multiple Choice Questions: 1. Which is/are the determinants of demand- a. Price b. Income c. Taste and preference d. All of these. 2. Price of the good is fixed in a market by- a. Demand, b. Supply, c. Both, d. None of these. 3. The reasons for the downward slope of demand curve are- a. The law of diminishing marginal utility b. Substitution effect; c. Income effect; d. All of the above. 4. In case of change in demand- a. No new demand curve is drawn; b. New demand curve is drawn; c. Both can be possible; d. None of these possible.5. If an increase in the price of one leads to an increase in the quantity demanded of the other then these goods are- a. Substitute goods; b. Complementary goods; b. c. Normal goods; d. None. 6. Demand curve slopes upward in case of- a. Veblen goods; b. Giffen goods c. Snob appeal; d. all of the above. 7. Which one is not the reason for change in demand - a. Price of the good; b. Price of other goods; c. Income of the consumer, d. Consumers' taste and preferences B. Which one is not correctly matched- a. Giffen goods....- ...a superior or high quality goods. SU JC b. Substitute goods. ....tea and coffee. c. Complementary goods.....car and petrol. d. Veblen goods.....a prestigious goods with status symbol. Ques: 1 2 13 5 6 8 Ans: II. Write T for True and F False against the following questions: 1. In case of Giffen goods and Veblen goods, law of demand does not work. 2. In case of change in quantity demanded, new demand curve is drawn. 3. If an increase in the price of one good leads to a fall in the quantity demanded of other then these goods are complementary goods. 4. In case of normal goods, as income increases, demand for these goods also increases. 5. Law of demand states that higher the price, lower the demand and lower the price higher the demand, other things remaining the same. Ques: 2 13 4 5 Ans: III. Matching Test: Match- I Match- II A. Change in demand will take place a. On the same demand curve B. Change in quantity demanded will b. On new demand curve take place C. Increase in demand C. Rightward shift in demand curve D. Decrease in demand d. Leftward shift in demand curve Match- I A B C D Match- II Match- II Match- I A. Demand curve slopes a. Decrease in price of the good onlyB. In case of Giffen goods, demand b. Decrease in other than the price of curve slopes good C. Expansion of demand curve is due to c. Upward to the right. D. Increase in demand curve is due to d. Downward to the right. Match- I A B C D Match