How Free Markets Work

Q.

Price of a product is determined in a free market:

1. By supply of the product

2. By both demand and supply

3. By demand for the product

4. By the government

Q.

The force behind spontaneous order, introduced by John Keynes in his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations, is known in economics as the “invisible hand.”

1. True

2. False

Q. acts as the main market signal - to which utility maximising buyers and profit maximising sellers respond.

1. Demand
2. Supply
3. Quantity
4. Price

Q. A market economy creates beneficial outcomes when individual buyers and sellers pursue .

1. self-interest
2. social benefit
3. collective interest
4. the invisible hand

Q. determine(s) the prices of goods in a market economy.

1. Only demand
2. Only supply
3. Demand and supply

Q. The height of a transit station has been computed from the measurement of a slope distance L = 279.1 $\pm$ 0.06 m and of a vertical angle $\alpha =3^o{20}^{\prime }\pm 30"$, the probable error in the calculated elevation of station A (in cm) is _______.

1. $\pm$ 5.4
2. $\pm$6.2
3. $\pm$2.4
4. $\pm$3.6

Q. The height of a transit station has been computed from the measurement of a slope distance L = 279.1 $\pm$ 0.06 m and of a vertical angle $\alpha =3^o{20}^{\prime }\pm 30"$, the probable error in the calculated elevation of station A (in cm) is _______.

1. $\pm$ 5.4
2. $\pm$6.2
3. $\pm$2.4
4. $\pm$3.6

Q. The number of observations if the error in mean and that in a single observation was $\pm$0.01 and $\pm$0.04 respectively.