Economics MCQ Flashcards
Questions
1
Q
Which Ministry is responsible for calculating of GDP?
- > Ministry of Finance
- > Ministry of Defence
- > Ministry of Agriculture
- > Ministry of Statistical and Program Implementation
A
Ministry of Statistical and Program Implementation
2
Q
Which Department/ Organisation is responsible for calculating GDP?
A
CSO - Central Statistical Organisation
3
Q
Which sector contributes maximum to the Indian GDP?
- > Primary
- > Secondary
- > Services
- > All contribute equally
A
Service sector
4
Q
If contribution of agriculture sector is decreasing in a country’s econom, what conclusion can be drawn?
- > Country is in direction of developed country
- > Country is in direction of developing country
- > Country is in direction of less developed
- > Economic growth has stopped
A
Country is in direction of becoming developed country
5
Q
Which is not added in the calculation of National Income?
- > Value of Goods and Services
- > Sold value of old things
- > Services of Housewives
- > Both B and C
A
Both B and C.
Second sale is not counted in GDP because it will cause double counting. Only new values is added in National Income. Only monetary values are added in GDP
6
Q
Identify the right statement
- > National Income is monetary value of all goods and services produced
- > Depreciation is deducted from gross value to get net value
A
Both statements are correct
7
Q
NNP value at consumer point is?
- > NNP - fc
- > NNP - mp
- > GNP - mp
- > GNP - fc
A
NNP - mp
8
Q
When depreciation is deducted from GNP, the net value is?
- > NNP
- > NDP
- > GNP
- > Disposable Income
A
NNP
9
Q
What is the difference between GDP and NNP?
- > Depreciation
- > Depreciation and NFIA
- > NFIA and taxes
- > Taxes and Depreciation
A
Depreciation adn NFIA
10
Q
What is the formula for per capita income?
- > NNP-fc/ Total Population
- > NDP-fc/ Total Population
- > GNP-fc/ Total Population
- > GDP-fc/ Total Population
A
NNP-fc/ Total Population
11
Q
Which of the method is not used to caluculate national income in India?
- > Production/ Value added method
- > Expenditure
- > Income
- > Subtraction
A
Subtraction
12
Q
Which of the following is not a part of tertiary sector?
- > Transportation
- > Banking
- > Education
- > Agriculture
A
Agriculture
13
Q
Which of the following is dealt in micro-economics?
- > National Income
- > Aggrergate Demand
- > Individual Demand
- > Money
A
Individual Demand
14
Q
Convert GDP-fc to NDP-mp
- > NDP-mp = GDP-fc + Depriciation + Net Taxes
- > NDP-mp = GDP-fc - Depriciation + NFIA
- > NDP-mp = GDP-fc - Depriciation + Net Taxes
- > NDP-mp = GDP-fc + Depriciation - NFIA
A
NDP-mp = GDP-fc - Depriciation + Net Taxes
15
Q
Which of the following is to be subtracted from GNP to derive NNP?
- > Indirect Tax
- > Subsidies
- > Depreciation
- > All of the above
A
Depreciation
16
Q
The financial year in India is
- > April 1 to March 31
- > January 1 to Dec 31
- > March 1 to April 30
- > March 16 to March 15
A
April 1 to March 31
17
Q
Identify the right statement
- > While calculating GNP, income generated by foreigners in a country is taken into consideration
- > While calculating GNP, income generated by nationals of a country outside the country is taken into consideration
A
only second statement is correct
18
Q
Sum of GDP and NFIA is called?
- > GNP
- > NNP
- > Real GDP
- > NDP
A
GNP
19
Q
Which among the following is not the causes of shift in demand ?
- > change in income
- > change in price
- > change in fashion
- > change in prices of substitutes
A
Change in price
Shift in demand happens - when there is change in demand other due to reasons other than price
20
Q
If elasticity of demand is very low, it shows that the commodity is?
- > a necessity
- > a luxury
- > has a little importance in total budget
- > 1st and 3rd
A
a necessity
elaticity of demand is high in case of luxury
21
Q
The supply of a good refers to:
- > stock available for sale
- > total stock in the warehouse
- > actual production of the good
- > Quantity of good offered for sale at a particular price per unit of time
A
Quantity of good offered for sale at a particular price per unit time
22
Q
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is?
- > zero
- > infinite
- > equal to one
- > greater than zero but less than infity
A
Infinite
23
Q
When supply of a commodity increases without change in price it is called
- > fall in supply
- > expansion in supply
- > contraction in supply
- > rise in supply
A
Rise in supply
24
Q
During a particular year farmer experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift
- > Rightward
- > Leftwards
- > Downward
- > Rise in supply
A
Leftwards
25
Price of product falls by 10% and its demand rise by 30%. the elasticity of demand is.
- > 10%
- > 30%
- > 3%
- > 13%
3%
26
This is an assumption of law of demand
- > price of the commodity should not change
- > quantity should not change
- > supply should not change
- > income of consumers should not change
income should remain same
27
Normally a demand curve will have the shape
- > horizontal
- > vertical
- > downward sloping
- > upward sloping
downward sloping
28
Law of demad shows relation between
- > income and price of commodity
- > price and quantity of commodity
- > income and quantity demanded
- > quantity demanded and quantity supplied
price and quantity of commodity
29
Planning Commission was established by GoI in ?
- > January 1948
- > February 1951
- > March 1950
- > May 1948
March 1950
30
National Planning Committee was appointed under Presidenship/Chairmanship of Jawaharlal Nehru in?
- > 1930
- > 1932
- > 1932
- > 1938
1938 - formed before Independence of India
31
The outlines of second plan was made by?
- > Charan Singh
- > Fazal Ali
- > P.C. Mahalanobis
- > Kunjru
P.C. Mahalanobis
- a famous economist and is credited with the capital goods industry development of India
2nd 5 year plan Model - Nehru Mahalanobis Model
32
Concept of Economic Planning in India is derived from?
- > USA
- > Australia
- > UK
- > Russia
Russia
33
Which 5 year plan focused on growth with social justice and equality?
- > 9th 5 year plan
- > 8th 5 year plan
- > 7th 5 year plan
- > 6th 5 year plan
9th
34
There is only one 5 year plan which was declared officially failed. Which of the following plan was that?
- > 1st 5 year plan
- > 2nd 5 year plan
- > 3rd 5 year plan
- > 7th 5 year plan
3rd
35
Which of the following 5 year plan laid foundation for industrialization?
- > 1st 5 year plan
- > 3rd 5 year plan
- > 2nd 5 year plan
- > 7th 5 year plan
2nd 5 year plan
36
Which 5 year plan has Model as - Nehru Mahalanobis Model?
- > 1st 5 year plan
- > 3rd 5 year plan
- > 2nd 5 year plan
- > 6th 5 year plan
2nd 5 year plan
37
What is the period of 1st 5 year plan?
- > 1 April, 1952 to 31 March, 1953
- > 1 April, 1951 to 31 March, 1956
- > 1 April, 1954 to 31 March, 1957
- > 1 April, 1953 to 31 March, 1958
1 April, 1951 to 31 March, 1956
38
What is the main objective of the 12th 5 year plan?
- > Faster and Inclusive growth
- > Faster and sustainable growth
- > Inclusive and sustainable growth
- > Faster, sustainable and more inclusive growth
Faster, sustainable and more inclusive growth
39
What is the main objective of the 11th 5 year plan?
- > Faster and Inclusive growth
- > Faster and sustainable growth
- > Inclusive and sustainable growth
- > Faster, sustainable and more inclusive growth
Faster and Inclusive growth
40
In which list is economic planning subject included?
- > State List
- > Concurrent list
- > Union List
- > None of the above
Concurrent list
41
Who is the father of Indian Planning?
M. Vishwasraiya
42
When was Planning Commision formed?
- > On 20th March, 1953
- > On 15th March, 1950
- > On 15th March, 1951
- > On 15th March, 1952
On 15th March, 1950
| This is an extra constitutional body
43
When was NITI Aayog formed? It is also known as? full form?
- > 1st Jan 2015
- > 1st Mar 2015
- > 1st Jan 2014
- > 1st Jan 2016
1st Jan 2015
- > also known as 'Think Tank' of the government
- > NITI - National Institute for Transforming India
44
Who is the vice-chairman of NITI Aayog?
- > Arvind Pangaria
- > Rajeev Kumar
- > Tushar Mehta
- > Amartya Sen
- > Jagdish Bhagwati
Rajeev Kumar
- > 1st Vice-Chairman - Arvind Pangaria
- > Chairman - PM of India
45
Who is the CEO of NITI Aayog? Its Members?
- > Amitab Kant
- > Amartya Sen
- > Jagdish Bhagwati
- > Arvind Pangaria
Amitab Kant
| Members - PM, All CMs, 4 Cabinet Ministers
46
When was National Development Council (NDC) Formed? and for what?
- > Aug 1953
- > Aug 1952
- > Aug 1958
- > Aug 1955
Aug 1952
| -> to check Planning Commission reports, guide it.
47
What was the model and objective of the 1st 5 year plan (1951 - 1956)?
- > Agriculture and Irrigation
| - > Model - Harrod Domar Model
48
What was the objective and model of the 2nd 5 year plan (1956 - 1961)?
- > Capital Goods - Industrilazation
| - > Model - Nehru Mahalanobis Model
49
When wa LIC (Life Insurance Corporation) and UGC (University Grants Commission) established?
- > 1954
- > 1956
- > 1965
- > 1972
1956
50
When was NAFED (National Agriculture Cooperative Federation of India) established and why?
- > 1956
- > 1968
- > 1657
- > 1958
1958
| -> to continue with the agriculture development
51
What was the objective and model of the 3rd 5 year plan (1961 - 1966)?
- > Model - Gadgil Yojana
| - > Objective - Agriculture and Industry reach, self sufficiency
52
Which method is taking the lead the best measure of growth of a country?
- > Net domestic product
- > Gross national product
- > Gross domestic product
- > Net national product
The best measure of the growth of a country is net national product as it first covers all the nationals of a country and is also a net increase after subtracting depreciation . It is also called as purist form of national income of an economic.
53
Canalised list of items in foreign trade of India refers to
1) Items to be imported by the private agencies
2) List of items to be subsidised
3) Items to be imported only by state owned undertaking
4) List of items to be granted duty concession
Canalised list of items in foreign trade of India refers to the items to be imported only by state-owned undertakings
54
When was Food Corporation of India established?
FCI - 1965
55
What was the objective of the 4th 5 year plan (1969 - 1974)?
-> Objective - Growth with stability and achievement of self reliance
56
When was 14 commercial banks were nationalised? Also when was ISRO formed?
- > 1971
- > 1970
- > 1969
- > 1968
both - 1969
57
What was the objective and model of the 5th 5 year plan (1974 - 1978)? Famous Slogan?
- > Objective - Poverty Eradication
- > Model - D D Dhar Model
- > Slogan - Garibi Hatao
58
When was the first indian nuclear test conducted in Pokhran?
- > 1973
- > 1974
- > 1975
- > 1976
1974
59
When was Rolling Plan formed? By whom was it bought?
- > Rolling Plan (1978- 1980)
| - > By Janta Government
60
What was the objective and model of the 6th 5 year plan (1980 - 1985)?
- > Objective - Tecnological self reliance, reducing povery and generating employment
- > Input / Output Model
61
What was the objective and model of the 7th 5 year plan (1985 - 1990)?
-> Objective - Economic Growth, Modernisation, Self Reliance and Social Justice
62
What was the objective and model of the 8th 5 year plan (1992 - 1997)?
- > New Economic Policy
- > LPG
- > P V Narshimha Rao goverment
63
What was the objective and model of the 9th 5 year plan (1997 - 2002)?
- > Model - Input - Output Model
| - > Objective - Growth with social justice and equality
64
What was the objective and model of the 10th 5 year plan (2002 - 2007)?
- > Model - Statement of planning commission
| - > Objective - Development with social justice and equality
65
When was RTI Act and NREGA launched?
- > 2002
- > 2003
- > 2004
- > 2005
RTI - 2005
| NREGA
66
What was the objective and model of the 11th 5 year plan (2007 - 2012)?
- > Model - Statement of Planning Commission
| - > Objective - Towards faster and more inclusive growth
67
What was the objective and model of the 12th 5 year plan (2012 - 2017)?
-> Objective - towards faster, sustainable and more inclusive growth
68
Interest Income is a part of ?
- > Non-Tax Revenue
- > Revenue Receipt
- > Both (a) and (b)
- > Neither (a) and (b)
Non- Tax Revenue
69
Revenue deficit is equal to?
- > Total Expenditure- Revenue Receipt
- > Revenue Expenditure - Revenue Receipt
- > Fiscal Deficit - Interest Payments
- > Fiscal Deficit - Revenue Expenditure
Revenue Expenditure - Revenue receipt
70
Which of the following is not a revenue receipt?
- > Recovery of loans
- > Foreign Grants
- > Profit of Public Enterprises
- > Wealth Tax
Recovery of loans
71
Borrowings is a capital receipt because?
- > it creates a liability
- > it creates an asset
- > it reduces a liability
- > All of the above
it creates a liability
72
In a goverenment budget, revenue deficit is 50,000 crores qand borrowings are 75,000 crores. The fiscal deficit will be?
- > 25,000 crores
- > 1,25,000 crores
- > 75,000 crores
- > 50,000 crores
75,000
73
Identify the direct tax from the following examples
- > Entertainment Tax
- > Income Tax
- > Excise Duty
- > Custom Duty
Income Tax
74
Disinvestment by goverment means:
- > selling of its fixed capital assets
- > selling of shares of public enterprises held by it
- > selling of its buildings
- > all of the above
selling of shares of public enterprises held by it
75
Which of the following statement is not true for fiscal deficit?
- > Represents the borrowing of government
- > Is the differnece between total expenditure and total receipt of government
- > is the difference between total expenditure and total receipt other than borrowing
- > increases the future liability of government
Is the differnece between total expenditure and total receipt of government
76
Which of the following is not revenue expenditure?
- > salary paid to army officers
- > loan given to union territories
- > interest paid on national debt
- > pension paid to retired employees
loan given to union territories
77
Where is the headquarter and tagline of below bank.
| Bank of Allahabad
Kolkata
| -> A tradition of trust
78
Where is the headquarter and tagline of below bank.
| Andhra Bank
Hyderabad
| -> Where India Banks
79
Where is the headquarter and tagline of below bank.
| Bank of India
Mumbai
| -> Relationship beyond banking
80
Where is the headquarter and tagline of below bank.
| Bank of Maharashtra
Pune
| -> One family one bank
81
Where is the headquarter and tagline of below bank.
| Axis Bank
Mumbai
| -> Badhti ka naam zindagi
82
Where is the headquarter and tagline of below bank.
| HDFC Bank
Mumbai
| -> We understand your world
83
Where is the headquarter and tagline of below bank.
| Corporation Bank
Mangalore
| -> A premier public sector bank
84
Where is the headquarter and tagline of below bank.
| IDBI Bank
Mumbai
| -> Banking for All
85
Where is the headquarter and tagline of below bank.
| Indian Bank
Chennai
| -> Your tech friendly bank
86
Where is the headquarter and tagline of below bank.
| Indian Overseas Bank
Chennai
| -> Good people to grow with
87
Where is the headquarter and tagline of below bank.
| United Bank of India
Kolkata
| -> The bank that begins with 'U'
88
Where is the headquarter and tagline of below bank.
| Bank of Baroda
Vadodara
| -> India's International Bank
89
Where is the headquarter and tagline of below bank.
| Central Bank of India
Mumbai
| -> Central to you since 1911
90
Where is the headquarter and tagline of below bank.
| ICICI Bank
Mumbai
- > Hum haina, Khyaal aapka
- > India's largest private bank
91
Where is the headquarter and tagline of below bank.
| Canara Bank
Bengaluru
| -> Together we can
92
Where is the headquarter and tagline of below bank.
| Dena Bank
Mumbai
| -> Trusted Family Bank
93
Where is the headquarter and tagline of below bank.
| Oriental Bank of Commerce
Gurugram
| -> Where every individual is committed
94
Where is the headquarter and tagline of below bank.
| Syndicate Bank
Manipal
| -> Your failthful and friendly financial partner
95
Where is the headquarter and tagline of below bank.
| UCO Bank
Kolkata
| -> Honors your trust
96
Where is the headquarter and tagline of below bank.
| Vijaya Bank
Bangaluru
| -> A friend you can bank on
97
Where is the headquarter and tagline of below bank.
| Punjab and Sind Bank
New Delhi
| -> Where service is a way of life
98
Where is the headquarter and tagline of below bank.
| Yes Bank
Mumbai
| -> Experince our expertise
99
Where is the headquarter and tagline of below bank.
| Punjab National Bank
New Delhi
| -> The bank you can bank upon
100
Where is the headquarter and tagline of below bank.
| Kotak Mahindra Bank
Mumbai
| -> Lets make money simple
101
Where is the headquarter and tagline of below bank.
| Indusland Bank
Mumbai
| -> We can dil se, we make you feel richer
102
Where is the headquarter and tagline of below bank.
| SBI along with its associates
Mumbai
| -> With you all the way, Pure Banking Nothing Else, The Nation banks on us
103
What is repo rate?
1) is the rate at which the RBI lends to state government
2) Is the rate at which the International aid agencies lend to RBI
3) Is the rate at which the RBI lends to banks
4) Is the rate at which the banks lend to RBI
3) Is the rate at which the RBI lends to banks
104
Which of the following is not the function of RBI?
1) bankers bank
2) Controller of credit
3) Custodian of foreign exchange reserves
4) Allotting money directly to farmers for agricultural development
Allotting money directly to the farmers for agricultural development
105
What is Cash reserve ratio(CRR)?
1) Fraction of the deposit that commercial banks lend to customers
2) Fraction of the deposits that RBI must keep with commercial banks
3) fraction of the deposits that commercial banks must keep with RBI
4) None of the above
The fraction of the deposits that commercial banks must keep with RBI
106
What is the currency deposit ratio(CDR)?
1) Ratio of money held by the public in currency to that of money held in bank deposit
2) Ratio of money held by public in bank deposits to that of money held by public in currency
3) Ratio of money held on demand drafts to that of money held in Treasury bonds
4) None of the above
Ratio of the money held by the public in currency to that of money held in bank deposit
107
Who issues one rupee notes in India?
1) RBI
2) Ministry of Finance
3) Ministry of Corporate Affairs
4) NABARD
Ministry of Finance
108
Which of the following term is not used in the formation of monetary policy?
1) Cash Reserve Ratio
2) Repo Rate
3) Bank Rate
4) Blue Chip
Blue Chip - It refers to the very reliable company in stock market
109
The RBI can decrease the money supply in the market by
1) Selling government securities
2) Buying government securities
3) Borrowing money from commercial bank
5) None of the above
Selling government securities
Borrowing money from commercial bank will decrease credit but it will have no impact on money supply
110
In the terminology of economics and money demand the term M1 and M2 are known as
1) Short Money
2) Long Money
3) Broad Money
4) Narrow Money
Narrow Money
111
Who is the author of the ancient book on economics, Arthashastra?
1) Kautilya
2) Chanakya
3) Sushruta
5) Bhattacharya
Chanakya or Kautilya
112
Which among the following is considered to be the most liquid asset?
1) Gold
2) Money
3) Laud
4) Treasury Bond
Money
113
What is the name of the first Regional Rural Bank? When was it formed?
1) EXIM Bank
2) NHB
3) Pratham bank sponsored by Syndicate bank
4) Bhartiya Mahila Bank
Pratham Bank in 1982
114
When was RBI established, Nationalised and where is it’s headquarter?
Established- 1 April, 1935
Nationalised- 1 Jan, 1949
HQ- Mumbai
115
What is the maximum tenure of RBI governor and Deputy governor?
Maximum tenure of RBI Governor is five years or 65 years whichever earlier
Maximum tenure of RBI Deputy Governor is five years or 62 years whichever earlier
116
Who was the first governor of RBI?
Who was the first RBI governor of independent India?
Who is the current(25th) RBI Governor?
1st Governor- Osborne Smith
1st Indian Governor- C D Deshmukh
Current Governor - Shaktikanta Das
117
Inflation is the state in which
1) The value of money decreases
2) The value of money increases
3) The value of money increases and then decreases
4) The value of money decreases first and increases later
The value of money decreases
118
When there is high inflation in the economy, how will it affect the supply of money in the economy?
1) No effect on the money supply
2) Supply of money decreases
3) Supply of money increases
4) None of the above
Supply of money increases
119
What is the stagflation?
1) Situation in which the economic experiences recession
2) Situation in which the economy have inflation and recession all together
3) An economy where unemployment is high
4) both 2 and 3
Both second and third
120
Which off the following measure is adopted to reduce inflation?
1) Reduction in bank rate
2) Reduction in repo rate
3) Increases in government expenditure
4) Cuts in government spending
Cuts in government spending
121
What is the base year for measuring inflation at wholesale price index (WPI ) in India?
1) 2004-05
2) 2001-02
3) 2011-12
4) 2014-15
2011-12
122
Which off the following can be under taken to control inflation?
1) Control on public expenditure
2) Control on hoarding and black marketing
3) Effective control on credit
4) All of the above
All of the above
123
The amount of bank to maintain in form of cash, gold and other securities before giving credit is
1) SLR
2) CRR
3) OMO - Open market operations
4) Bank Rate
SLE
124
Which of the following is an effect of inflation?
1) Erosion in purchasing power
2) Affects relative price of goods
3) Increases in inequalities of income
4) All of the above
All of the above
125
When was CRISIL established and by whom? Where is its headquarters?
1) 1991
2) 1987
3) 1977
4) 1997
Credit rating and information services of India Ltd
1987
by ICICI Bank
HQ - Mumbai
126
When was ICRA established? Where is its headquarters?
1) 1990
2) 1991
3) 1992
4) 1993
ICRA : Investment Information and Credit Rating Agency
1991
| HQ - New Delhi
127
```
When was CARE established? Where is its headquarters?
1) 1990
2) 1991
3) 1992
4) 1993
Crest Analysis and Research Limited
```
1993
| HQ - Mumbai
128
Which is the oldest stock exchange of Asia?
1) BSE
2) NSE
3) OTCEI
4) SEBI
BSE
129
Which organisation is the watchdog of stock market in India? Which organisation act as a watchdog of money market of India?
1) RBI
2) IRDA
3) SEBI
4) None of the above
SEBI, established under the SEBI Act 1992
Money market – RBI
IRDA - Watchdog of insurance market
130
Which off the terms is not associated with stock market?
1) Bull
2) Bear
3) Sensex
4) Cow
Cow
131
Which is the biggest rating agency of India?
1) CRISIL
2) CARE
3) ICRA
4) None of the above
CRISIL
132
Which all agencies are included under big three which provide credit ratings to companies and governments?
1) Standard and Poor
2) Fitch
3) Moody’s
4) All of the above
All of the above
133
What is the duration of treasury bills?
1) 181 days
2) 182 days
3) 93 days
4) 365 days
182 days
| Duration of treasury bills are - 91, 182 and 364 days only
134
If a person is ready to work at prevailing wage rate in the market, but he is unable to find the work, then what type of unemployment would it be called?
1) Voluntary unemployment
2) Involuntary unemployment
3) Seasonal unemployment
4) None of the above
In voluntary unemployment
135
Which book was written by Dadabhai Naoroji on Indian poverty and economic under British rule?
1) Indian economy under British Raj
2) British rule and economic drain of India
3) Economic drain and poverty of India
4) Poverty and Un-British rule in India
Poverty and Un-British rule in India
136
Who are counted in the labour force of a country?
1) The population of 18 to 60 years of age
2) The population of 15 to 65 years of age
3) The population of 18 to 65 years of age
4) Population of 21 to 62 years of age
Population of 15 to 65 years of age
137
If new computers are being installed in a company and some employees are fired from the job due to lack of computer knowledge then what kind of unemployment will it be called?
1) Disguised unemployment
2) Structural unemployment
3) Hidden unemployment
4) Frictional unemployment
Structural unemployment
138
Unemployment which occurs when workers move from one job to another job is known as?
1) Cyclical unemployment
2) Seasonal unemployment
3) Technological unemployment
4) Frictional unemployment
Frictional unemployment
139
Which off the following is the nodal ministry to identify BPL families in urban area?
1) Ministry of economic affairs
2) Ministry of social welfare
3) Ministry of housing and poverty alleviation
4) Ministry of Urban development
Ministry of housing and poverty alleviation
140
Firms cooperate with each other in deter mining price or output or both. It is a feature of which type of market?
1) Pure oligopoly
2) Noncollusive oligopoly
3) Imperfect oligopoly
4) Collusive oligopoly
Collusive oligopoly
141
Product differentiation is the distinguishing feature of which form of market?
1) Monopoly
2) Oligopoly
3) Perfect competition
4) Monopolistic competition
Monopolistic competition
142
Under perfect competition, the firm and is normal profit in the long run because of?
1) Large number of buyers and sellers
2) Absence of selling cost
3) Free entry and exit
4) Homogeneous commodity
Free entry and exit
143
Which of these is a characteristic feature of monopoly?
1) Single seller
2) Price maker
3) Barrier on entry and exit of firms
4) All of these
All of these
144
Which of these is not a market structure in economics?
1) Perfect competition
2) Monopoly
3) Monopolistic competition
4) Intense competition
Intense competition
145
When a producer charges different customers for the same product at same time, Then the firm is exercising?
1) Price competition
2) Non price competition
3) Price discrimination
4) None of these
Price discrimination
146
‘Interdependence between firms’ is the feature of this type of market form?
1) Oligopoly
2) Monopolistic competition
3) Monopoly
4) Perfect competition
Oligopoly
147
Demand curve under oligopoly is?
1) Less elastic
2) Perfectly elastic
3) Highly elastic
4) Indeterminate
Indeterminate
148
Identify the market from which has indeterminate demand curve?
1) Monopoly
2) Monopolistic competition
3) Oligopoly
4) Perfect competition
Oligopoly
149
Under which market form, firm is the price taker?
1) Perfect competition
2) Monopoly
3) Oligopoly
4) Monopolistic competition
Perfect competition
150
Which of the following items raises the supply of foreign exchange?
1) Import of goods from China
2) Indian students going to USA for MBA
3) Donation of $50 million received from Microsoft
4) Purchase of land in England
Donation of $50 million received from Microsoft
151
Depreciation of domestic currency leads to rise in?
1) Exports
2) Imports
3) Both first and second
4) Neither first nor second
Exports
152
Flexible exchange rate system is also known as?
1) Pegged exchange rate system
2) Dirty floating
3) Floating exchange rate
4) Both second and third
Floating exchange rate
153
Export and imports of gold is also known as?
1) Invisible trade
2) Visible trade
3) One-sided transactions
4) Unrequired transfers
Visible Trade
154
____ is the difference between value of goods sold to the rest of the world and value of goods imported from the rest of the world?
1) Balance of payment
2) Balance of trade
3) Balance of current account
4) Balance of capital account
Balance of trade
155
Gift send remittances to abroad are recorded on the?
1) Credit side of current account
2) Debit side of capital account
3) Debit side of current account
4) Credit side of capital account
Debit side of current account
156
Inflow of foreign exchange is recorded on which side?
1) Credit
2) Debit
3) Either first or second
4) Neither first nor second
Credit
157
‘Unilateral transfers’ are also known as?
1) Bilateral transfers
2) One way transfers
3) Both first and second
4) Neither first or second
One way transfers
158
The average variable cost curve is ___ shapes?
1) U
2) V
3) X
4) W
U
159
Ad Valorem means?
1) Levying taxes which are disproportionate to the estimate value of goods or transactions
2) Levying taxes which are proportionate to the estimated value of goods or transactions
3) Levying taxes which are in accordance with the cost accrued in making an item
4) Levying taxes in accordance with the depreciative value of the item through half of its lifetime
Levying taxes which are proportionate to the estimated value of goods or transactions
160
Movement along the supply curve is known as_____?
1) Contraction of supply
2) Expansion of supply
3) Increase in supply
4) Expansion and contraction of supply
Movement along the supply curve takes place when all the factors affecting supply remained constant and only the price changes. Therefore, when price increases supply contracts and when price decreases supply expands
161
The _____ curve represents the demand of all consumers in the market taken together at different levels of the price of the good.
1) Monotonic
2) Indifferent
3) Market Demand
4) Diminishing
The market demand curve is the summation of all the individual demand curve in a given market. It shows the quantity demanded of the code by all individuals that wearing price.
162
Neo-Malthusian Theory is associated with which of the following?
1) Employment
2) Poverty
3) Resource Scarcity
4) Income
This is the advocacy of population control programme, to ensure resources for current and future population. This theory believes population and that limited population in check and reduce economic growth, therefore, growth should be controlled.
163
World helps countries with loans for the purpose of:-
- > Reconstruction and Development
- > Stimulating private investment
- > Tracking foreign exchange crisis
- > meeting deficit in government budget
Reconstruction and Development
164
Where is the headquarter of IBRD - International Bank for Reconstruction and Development?
- > Geneva
- > Washington DC
- > Geneva
- > Paris
Washington DC
165
The Ease of Doing Business Report is prepared by which of the following organisation every year?
- > World Bank
- > Asian Development Bank
- > International Monetary Fund
- > World Trade Organisation
- > None of these
World Bank
166
The headquarters of World Trade Organisation is at?
- > New York
- > Geneva
- > Rome
- > Doha
Geneva
167
The World Trade Organisation was formed in?
- > 1991
- > 1995
- > 1997
- > 1999
1995
168
Special Drawing Rights (SDR) facility is available at?
- > International Monetary Funds
- > International Bank for Reconstruction and Development (IBRD) / World Bank
- > International Development Association
- > Organisation of Economic Co-operation and Development (OECD)
International Monetary Fund
169
In some parts of our country, apart from Rabi and Kharif, zaid crops is grown from March to June. Which among the following comes under Zaid crops?
- > Barley
- > Soya Bean
- > Muskmelon
- > Lady Finger
Musk Melon
170
Commercialization of agriculture implies
- > cultivation of timbers
- > plantation
- > production of crops for sale
- > production of crops like wheat and rice
production of crops for sale
171
The nature of unemployment in agriculture in India is?
- > only seasonal
- > only disguised
- > all of the above
- > none of the above
all of the above
172
AGMARK sign for agriculture product is a guarantee of standard?
- > Quantity
- > Quality
- > Weight
- > SIze
Quality
173
Kisan Credit Card Scheme was introduced in?
- > 1991
- > 1996
- > 1998
- > 2008
1998
174
Blue and White revolution is related to?
- > Fish and Fertilizers
- > Milk
- > Fish and Milk
- > Fish and Agriculture
Fish and Milk
175
Verghese Kurein is related to?
- > Blue revolution
- > white Revolution
- > Yellow Revolution
- > Green Revolution
White Revolution - Milk
176
In which matter green revolution has achieved maximum success?
- >Sugarcane
- > Pulses
- > Wheat
- > Rice
Wheat followed by Rice
177
Product per unit of labour employed is termed as?
- > Average Product
- > Marginal Product
- > Total Product
- > None of these
Average Product
178
Which of the following is not a phase in the law of variable proportions?
- > Increasing returns to a factor
- > constant returns to a factor
- > diminishing returns to a factor
- > negative returns to a factor
constant returns to a factor
179
The law which Deals deals with input-output relationships, when the output is n=increased the quantity of one input?
- > Variable Proportion
- > Supply
- > Demand
- > Equi-Marginal utility
Variable Proportion
180
When Average Production (AP) is maximum, Marginal Product(MP) is equal to?
- > AP - Average Product
- > TP - Total Product
- > Zero
- > One
AP- Average Product
MP - Marginal Product
TP -Total Product
AP
181
What is the maximum point of Total Production?
- > When AP becomes zero
- > When MP becomes zero
- > When MP cuts AP
- > None of these
AP- Average Product
MP - Marginal Product
TP -Total Product
When MP becomes zero
182
Both AP and MP curves are generally
- > U-shaped
- > inversely U-shaped
- > rising
- > falling
AP- Average Product
MP - Marginal Product
TP -Total Product
inversely U-shaped
183
Variable factors refer to those factors of production?
- > which can only be changed in long run
- > which can be changed in the short run
- > which can never be changed
- > none of these
which can be changed in the short run
184
Average product cannot be negative because?
- > total product can never be zero
- > total product can never be negative
- > none of them are true
- > both of them are true
total product can never be negative
185
Minimum point of MC curve comes before the minimum point of?
- > AC Curve
- > AVC Curve
- > Both of them
- > None of them
MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost
Both of them
186
AFC curve:
- > touches the x axis
- > touches the y axis
- > touches both x and y axis
- > does not touch either of the axis
MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost
does not touch either of the axis
187
The shape of the total FC curve is?
- > U Shapes
- > Downward sloping
- > Inversely S-shaped
- > Horizontal straight line parallel to x axis
```
MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost
FC - Fixed Cost
```
Horizontal straight line parallel to x axis
188
Normal profit earned by a firm are included in?
- > Implicit Cost
- > Explicit Cost
- > Fixed Cost
- > Variable Cost
Implicit Cost
189
Which curve is not affected by Fixed Cost?
- > MC Curve
- > TC curve
- > AC curve
- > AFC curve
```
MC - Marginal Cost
AC - Average Cost
AVC - Average Variable Cost
AFC - Average Fixed Cost
FC - Fixed Cost
```
MC Curve
190
Marginal Cost refers to addition to the total cost when one more unit of output is
- > Wasted
- > Produced
- > Employed
- > Sold
Produced
191
What happens to Total Revenue(TR) when Marginal Revenue is positive?
- > TR increases
- > TR decreases
- > TR is maximum
- > TR remains same
TR increases
192
Average Revenue (AR) curve is downward sloping when?
- > Price falls with rise in output
- > Price initially rises at an increasing rate, then at a diminishing rate
- > Price remains same at all levels of output
- > None of these
Price falls with rise in output
193
When price falls with rise in output, Total Revenue (TR) is ____ when Marginal Revenue (MR) is zero.
- > Maximum
- > Minimum
- > Zero
- > None of these
Maximum
194
If average revenue curve is a horizontal straight line, then marginal revenue curve will be?
- > Downward sloping
- > Upward sloping
- > Horizontal straight line
- > Inversely S shaped
Horizontal straight line
195
A balloon seller has decided that he will sell all his balloons at a fixed price of Rs 10 each. In such case, Total Revenue (TR) curve will be?
- > Horizontal straight line parallel to the x axis
- > Vertical straight line parallel to the y axis
- > Positively sloped straight line passing from the origin
- > Downward sloping straight line
Positively sloped straight line passing from the origin
196
If Total Revenue = TR and Q = Quantity sold, then TR/Q revers to
- > Zero Revenue
- > Average Revenue
- > Marginal Revenue
- > None of these
Average Revenue
197
When total revenue is constant, what will be the effect on average revenue?
- > AR (Average Revenue) will fall
- > AR will increase
- > AR will also be constant
- > No effect on AR
AR will also remain constant
198
What is the reason for the currency inflation?
1) Production decline
2) Growth in currency supply and declining production
3) Increase in currency supply
4) Increase in production
Currency inflation is defined as the decrease in the purchasing power with respect to per unit of the currency. It may take place because of the gap in demand and supply in the currency of any country.
Ans - Increasing currency supply
199
Invisible export means export of_______
1) Services
2) Prohibited goods
3) Restricted goods
4) Goods as per logistics
Invisible export means export of services. It is that exports export which does not have a tangible physical appearance. Examples services, transfers of remittance Grant, income investment.
200
Microeconomics is also called_____
1) Profit theory
2) Loss Theory
3) Price theory
4) Expenditure theory
The theory of price is a microeconomic principle that uses the concept of supply and demand to determine the appropriate price point for a good or service. This simple theory of deter mining crisis is one of the core principles underlying economic theory.
201
If Marginal Cost = MC and Marginal Revenue = MR, then for achieving equilibrium output,
1) MC curve should cut MR curve from above
2) MC curve should cut MR curve from below
3) MC curve should not cut MR curve at all
4) MC curve should be tangent to MR curve
MC curve should cut MR curve from below and MC =MR
202
In case of perfect competition, a firm is in equilibrium when
1) MC = MR
2) MC cuts MR from below
3) MC is rising when it cuts MR
4) All of these
All of these
203
_____ refers to a situation when a firm has no intention to expand or contract the output?
1) Producer's equilibrium
2) Market equilibrium
3) Consumer's equilibrium
4) None of these
Producer's equilibrium
204
Excess of receipts from sale of goods over expenditure incurred on producing them is termed as:
1) Average Revenue
2) Revenue
3) Profits
4) Marginal Revenue
Profits
205
If MR is more than MC at a particular level of output, then the producer will:
1) Reduce Production
2) Increase Production
3) Keep the production at current level
4) None of these
Increase production
206
Producer is not at equilibrium when MC>MR because
1) Profit can be increased by producing more
2) Benefits is less than cost
3) Both 1 and 2
4) None of these
Benefit is less than cost
207
Producer's equilibrium refers to stage of the output level when?
1) Firm earns maximum profits
2) Firm bears minimum losses
3) Firm has no inclination top expand or contract the output
4) All of these
All of these
208
Which of these is a condition for consumer equilibrium by indiffernece curve analysis?
1) MUx = Px
2) MUx/Px = MUy/Py
3) MRSx = Px/Py
4) PUx = MUy
MRSx = Px/Py
209
Total Utility is ____ at the point of satiety.
1) Minimum
2) Maximum
3) Zero
4) None of these
Maximum
210
An indifference curve always:
1) Slopes downward from left to right
2) Slopes upwards from left to right
3) Is parallel to the y-axis
4) Is parallel to the y-axis
Slopes downward from left to right
211
If the consumption of an additional unit of a commodity causes no change in Total Utility, then net Marginal Utility is?
1) Zero
2) Positive
3) Negative
4) Constant
Zero
212
According to the law of diminishing marginal utility, satisfaction obtained from consumption successive unit:
1) Increases
2) Decreases
3) Remains same
4) Either increases or decreases
decreases
213
Indifference curves are:
1) concave to the origin
2) convex to the origin
3) upward sloping straight line passing from the origin
4) none of these
convex to origin
214
In case of a single commodity, consumer equilibrium is achieved when?
1) MUx > Px
2) MUx < Px
3) MUx does not equal to Px
4) MUx = Px
MUx = Px
215
_____ measures the slope of Indifference curve?
1) Budget Line
2) Marginal Rate of substitution
3) Marginal Rate of Transformation
4) None of these
Marginal Rate of Substitution
216
What is meant by 'Capital Gain'?
1) Part of profits added to the capital
2) Rise in the value of a capital asset
3) Additions to the capital asset
4) None of these
Rise in the value of a capital asset
217
A market in which new securities are issued on an exchange for companies, government and other groups is known as?
1) Secondary Market
2) Grey Market
3) Primary Market
4) Black Market
Primary Market - this market issue new securities on an exchange for companies, governments and other groups to obtain financing through debt-based or equity-based securities
218
Who gave the ‘general equilibrium theory’?
1) J M Keynes
2) Leon Walras
3) David Ricardo
4) Adam Smith
General equilibrium theory was first propounded by Leon Warlas in 1874. It attempts to explain that interaction of demand and supply will result in an overall general equilibrium.
219
Which off the following is not true about a demand draft?
1) It is a negotiable instrument
2) It is a banker’s check
3) It may be dishonoured for lack of funds
4) It is issued by a bank
I demand draft cannot be dishonoured by the bank for lack of funds, this is because it guarantees the amount of money for which it is placed and that money is taken before the draft is made.
220
Which among the following is not an account under balance of payments?
1) Current Account
2) Capital Account
3) Official Reserves Account
4) Unilateral Payments Account
The balance of payment, also called as balance of international payments, is the record that consists of all the economic transactions of a country between its residents and the world for over a year.
The official reserves account does not come under it since it is a subdivision of the capital account.
221
Which of the following data charged by banks to their most credit worthy customers?
1) Prime lending rate
2) Statutory liquidity rate
3) Bank Rate
4) Repo Rate
The prime lending rate is the rate at which banks lend to their most credit worth the customers, including large corporations. It is often used as a benchmark for other loans like credit card and small business loans.
222
Medium-term loans are provided for a period of______
1) 1 year to 2 years
2) 15 months to 3 years
3) 15 months to 4 years
4) 1 year to 3 years
Medium-term loans or non-is where the payments are made over a period of between one and three years. The short-term loan is basically for less than a year and long-term loans can be repaid within a time limit of 20 to 30 years.
223
Which among the following is not an instrument of fiscal policy?
1) Taxation
2) Public Expenditure
3) Public Debt
4) Credit Rationing
Some of the major instruments of fiscal policy as follows: Budget, taxation, public expenditure, public works, public yet. Fiscal policy is the use of government spending, taxation and transfer payments to influence aggregate demand.
224
The contingency fund of India is placed at whose disposal?
1) The Prime Minister
2) Judge of Supreme Court
3) The President
4) The Finance Minister
The contingency fund of India established under article 267 (1) of the Constitution is the money maintained for a specific purpose which is placed at the disposal of the President to enable him/her to make advances to meet urgent unforeseen expenditure, pending authorisation by the Parliament.
225
What does indifference curve represent?
1) Levels of income and capital
2) Satisfaction derived from two goods
3) Income from two businesses
4) Relationship between expenditure and saving
The indifference curve represents the sets of good but different qualities to which the consumer is indifferent. The sets represent satisfaction that consumer direct from the two boards.
226
In a centrally planned economy, the ______ plans all the important activities in the economic.
1) Industrialists
2) Citizens
3) Government
4) Judiciary
A centrally planned economy is an economic system in which government makes economic decisions rather than the interaction between consumers and businesses. The government of a centrally planned economy decide where and when production and investment will be directed.
227
_____ says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output ( i.e. marginal product of that input) will start falling.
1) Law of diminishing marginal product
2) Law of variable proportion
3) The short run
4) The long run
Law of diminishing marginal product states that while increasing one input and keeping other inputs at the same level may initially increase output, further increase in that input will have a limited effect, and eventually no effect or a negative effect, on output.
228
A ____ deficit is financed by net capital flows from the rest of the world, does Bhai capital account surplus.
1) Current Account
2) Savings Account
3) Capital Account
4) Asset Account
And economics, a country’s current account is one of the two components of its balance of payments, the other being the capital account. The current account deficit is when a country imports more goods, services, and capital then it exports.
