1. The law of Scarcity:____

A) Does not apply to rich, developed countries
B) Applies only to the less developed countries
C) Implies that consumers wants will be satisfied in a socialistic system
D) Implies that consumers wants will never be completely satisfied



2. According to ___, economists should concentrate upon the study of the manner in which an economy tries to solve its problem of scarcity of means of satisfaction as compared with its needs.

A) Adam Smith
B) A. C. Pigou
C) Lionel Robbins
D) J. N. Keynes



3. Which of the following is an example of external diseconomies?

A) Lower salary of firm
B) Higher salary of firm
C) Tax exemption by Govt.
D) High Tax Govt. Policy



4. As per Robbins definition; Ends refers to the-

A) social wants
B) human wants
C) political wants
D) means available to human



5. Internal economies of scale are noticed at

A) Firm level independent of industry
B) Industry level independent of Firm
C) At both firm & industry level
D) nowhere