1. ______ an application of the accounting principles to the business of farming:
A. Farm planning
B. Farm budgeting
C. Farm accounting
D. Marketing
Answer: C

2. Beef’ and ‘hides’ are examples of:
A. Independent enterprise
B. Joint enterprise
C. Supplementary enterprise
D. Competitive enterprise
Answer: B

3. Which of the following is not correctly matched?
A. App rises continuously till APP and MPP is both equal.
B. MPP rises continuously – Till MPP is more than APP
C. TPP rises continuously – Till MPP is not equal to Zero
D. APP & MPP both fall but TPP rises. When MPP is less than APP but more than zero
Answer: C

4. “Rent is the price paid for the use of land” who said it?
A. Ricardo
B. Carber
C. Keynes
D. None of above
Answer: A

5. “Under free and prefect competition there could not be any involuntary unemployment amongst wage earners in the
labour market”. This theory was established by:
A. Prof. J.
B. Say
B. Prof. Pigou
C. Prof. Keynes
D. None of above
Answer: B

6. Which one of the following pairs is not correctly matched?
A. Elasticity of production = Stage III of classical production function greater than unity

B. Negative marginal product = Stge III of classical production function
C. Negative elasticity of production = Stage III of classical production function
D. Average product decreases but is greater than marginal product = Stage II of classical production function
Answer: B

7. World Trade Organization (W.T.O.) was established in:
A. 1992
B. 1998
C. 1995
D. 1997
Answer: C

8. A consumer spends his income according to the law of:
A. Diminishing marginal utility
B. Increasing cost
C. Equi-marginal utility
D. Least cost
Answer: C

9. A crop loan over Rs. 1,00,000 will require:
A. Equitable mortagage
B. Registered mortgage of land
C. Personal security
D. None of these
Answer: B

10. A farmer having less than one hectare of irrigated the land, is known as:
A. Small farmers
B. Marginal farmers
C. Big farmers
D. None of the above
Answer: B

11. A farmer, which has land holding between 1 to 2 hectare known as:
A. Marginal farmer
B. Small farmer
C. Optimal farmer
D. None of the above
Answer: B

12. A farmer which has land holding between zero to one hectare is known as:
A. Small farmers

B. Big farmer
C. Marginal farmer
D. Argicultural labour
Answer: C

13. A group of technical units are known as:
A. Farm firm
B. Plant
C. Economic unit
D. All above
Answer: B

14. A holding which allow to a man a chance of producing sufficient to support himself and his family in reasonable comfort after paying his necessary expenses is called:
A. Basic holding
B. Optimum holding
C. Operational holding
D. Economic holding
Answer: D

15. A holding which keeps in mind of the ceiling to the size, the marginal capacity and financial resources of an average cultivator, refers to the size not more than three times of the size of economic holding is called:
A. Optimum holding
B. Marginal holding
C. Profitable holding
D. None of the above
Answer: A

16. A market in which the purchase and sale is a commodity takes place at time ‘t’ but the exchange of the commodity takes after t + 1 time, the market is known as:
A. Spot
B. Cash market
C. Forward market
D. General market
Answer: C

17. A market structure with large number of firms selling homogeneous product is known as:
A. Monopoly market
B. Monopolistic competition
C. Perfect competition
D. None of these
Answer: B

18. A normative farm plan is one which the farmer:
A. Has already put into operation on his farm
B. Should adopt during the current 5 year plan period
C. Had actually adopted in the earlier 5 year plan periods
D. Should not adopt
Answer: D

19. A single convenient unit in production for which technical co-efficient are calculated is known as:
A. Units of accounting
B. Technical units
C. Marginal units
D. None of the above
Answer: B

20. A statement, which shows the financial condition and stability of the business at a particular point of time, is known as:
A. Net worth statement
B. Business statement
C. Physical efficiency measures
D. None of the above
Answer: A

A table is a :
A. Material good
B. Non-material good
C. Free good
D. None of the above
Answer: A

22. The other name of overhed cost is:
A. Fixed cost
B. Variable cost
C. Total cost
D. Marginal cost
Answer: A

23. A.P.P. Will be equal to (Y = output, X = input):
A. X/Y
B. X/Y x 100
C. Y/X
D. None of above
Answer: C

24. Above 15% farmers had land holding in between:
A. 2-4 ha
B. 0-1 ha
C. 1-2 ha
D. None of the above
Answer: A

25. Symbol used for purity of agricultural goods is:
C. @
D. All of the above

Answer: B

26. Absence integration between resources and activities in the process of production is called:
A. Linearity
B. Non-linearity
C. Quasi-non-linearity
D. Quasi-linearity
Answer: B

27. According to Hung Chao Tai land reforms aim at attaining just relationship among ______ population:
A. Urban
B. Industrial
C. Traders
D. Agricultural
Answer: D

28. Iso-revenue line is a:
A. Straight line
B. Curve line
C. Horizontal line
D. Vertical Line
Answer: A

29. Who said; that “all those phenomenon which can be brought directly or indirectly into relation with measuring rod
of money fall under the subject matter of economics?
A. Marshal
B. Pigou
C. Chapman
D. Keynes
Answer: A

30. Who has defined Agriculture economics as the branch of economics dealing with the production and distribution of
agricultural commodities and the institutions associated with agriculture?
A. Philip Taylor
B. L.C.Gay
C. E.O.Heady
D. Marshall
Answer: B

31. Who defined consumption as the use of economic goods and personal services in the satisfaction of human wants?
A. Ely
B. Keynes

C. Pigou
D. Marshall
Answer: D

32. Which statement is used for a classical economists theory of income and employment?
A. They thought that supply creates its own demand
B. Economy produce, output and income corresponding to the level of full employment
C. Their theory was based on assumptions and full employment
D. Theory was not based on assumption and full employment
Answer: D

33. Air is:
A. Economic goods
B. Free goods
C. Transferable goods
D. All above
Answer: B

34. As income increase the expenditure on light fuel and rent generally:
A. Increases
B. Decreases
C. Remains the same
D. None of the above
Answer: C

35. As the price of a commodity goes up, the demand for it:
A. Contracts
B. Increases
C. Expands
D. Decreases
Answer: A

36. The spurt to Zero Marginal Productivity type of exercise was given by _____ in 1954:
A. W. Arthur Lewis
B. W. David Hopper
C. W. Nelson Michael
D. W. Benzene Shoemaker
Answer: A

37. At equilibrium, the slope of the Indifference curve is:
A. Equal to the slope of the budget line
B. Greater than the slope of the budget line

C. Smaller than the slope of the budget line
Answer: A

38. Which one of the following relationship will provide least cost combination of input use?
A. rX1/rx2 = Px2/Px1
B. rX1/rx2 > Px2/Px1
C. rX1/rx2 < Px2/Px1
D. rX1/rx2 = Px1/Px2
Answer: D

39. Average fixed cost is equal to:
A. Total fixed cost / 100
B. Total fixed cost/total variable cost
C. Total fixed cost/output
D. Total fixed cost/Input
Answer: C

40. Average product is equal to marginal product when:
A. Average Product is maximum
B. Average Product is minimum
C. Marginal Product is zero
D. None of the above
Answer: A

41. Basic fundamental law of agriculture is:
A. Law of diminishing return
B. Law of equimarginal return
C. Law of substitution
D. Law of demand and supply
Answer: A

42. Who was the first economist to have evolved the technique of indifference curve analysis?
A. David Ricardo
B. Bohm Bawerk
C. F.Y. Edgeworth
D. A.C. Pigou
Answer: C

43. Break-even point is determined by:
A. MC = MR
C. MC = AC = AR

D. TR = TC
Answer: D

44. Building machinery and implements are examples of:
A. Variable resources
B. Fixed resources
C. Flow resources
D. None of the above
Answer: B

45. Buyer’s market devote the place where:
A. Supply receeds the demand
B. Supply exceeds the demand
C. Money value remains unchanged
D. None of these
Answer: B

46. By preparing chairs the wood creates:
A. Form utility
B. Time utility
C. Place utility
D. Knowledge utility
Answer: A

47. Capital market deals with:
A. Cotton
B. Wheat
C. Raw material
D. Bonds and shares
Answer: D

48. Which one of the following principles is employed in production when resources are scarce?
A. Added cost is equal to added returns
B. Equal-marginal principle
C. Competitive advantage
D. None of these
Answer: B

49. Which one of the following pairs is correctly matched?
A. Common cost = Cost associated with variable resource
B. Average cost = A study of returns and costs
C. Marginal cost = Additional cost to produce an additional unit of output

D. Prime cost = Cost related to fixed resources
Answer: C

50. Which one of the following is operational decision?
A. Enterprise mix
B. Selection of least cost
C. Level of resource ue
D. All above
Answer: C

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