MCQOPTIONS
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MCQOPTIONS
This section includes 373 Mcqs, each offering curated multiple-choice questions to sharpen your 12th knowledge and support exam preparation. Choose a topic below to get started.
| 251. |
The offer curves introduced by Alfred Marshall, helps us to understand how the ___ is established in international trade. |
| A. | erms of trade |
| B. | quilibrium price ratio |
| C. | xchange rate |
| D. | atisfaction level |
| Answer» B. quilibrium price ratio | |
| 252. |
In which of the following market structure is the degree of control over the price of its product by a firm very large? |
| A. | mperfect competition |
| B. | erfect competition |
| C. | onopoly |
| D. | n A and B both |
| Answer» D. n A and B both | |
| 253. |
Credit creation power of the commercial banks gets limited by which of the following? |
| A. | anking habits of the people |
| B. | ash Reserve Ratio |
| C. | redit policy of the central bank |
| D. | ll of the above |
| Answer» E. | |
| 254. |
Which among the following is a function of the Reserve Bank of India? |
| A. | ank issues the letters of credit to their customers certifying their credibility |
| B. | ollecting and compilation of statistical information relating to banking & other financial sector |
| C. | anks underwrite the securities issued by public or private organizations |
| D. | ccepting deposits from the public |
| Answer» C. anks underwrite the securities issued by public or private organizations | |
| 255. |
In order to control credit, Reserve Bank of India should |
| A. | ncrease CRR and decrease Bank rate |
| B. | ecrease CRR and reduce Bank rate |
| C. | ncrease CRR and increase Bank rate |
| D. | educe CRR and increase Bank rate |
| Answer» D. educe CRR and increase Bank rate | |
| 256. |
____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks |
| A. | epo rate |
| B. | ank rate |
| C. | rime lending rate |
| D. | everse repo rate |
| Answer» C. rime lending rate | |
| 257. |
Assume that consumer's income and the number of sellers in the market for good X both falls. Based on this information, we can conclude with certaintty that the equilibrium |
| A. | rice will decrease |
| B. | rice will increase |
| C. | uantity will decrease |
| D. | uantity will increase |
| Answer» D. uantity will increase | |
| 258. |
The cost of one thing in terms of the alternative given up is called |
| A. | eal cost |
| B. | roduction cost |
| C. | hysical cost |
| D. | pportunity cost |
| Answer» E. | |
| 259. |
The supply of a good refers to |
| A. | tock available for sale |
| B. | otal stock in the warehouse |
| C. | ctual production of the good |
| D. | uantity of the good offered for sale at a particular price per unit of time |
| Answer» E. | |
| 260. |
Income elasticity of demand is defined as the responsiveness of |
| A. | uantity demanded to a change in income |
| B. | uantity demanded to a change in price |
| C. | rice to a change in income |
| D. | ncome to a change in quantity demanded |
| Answer» B. uantity demanded to a change in price | |
| 261. |
Zubair has a special taste for college canteen's hotdogs. The owner of the canteen doubles the prices of hotdogs. Zubair did not respond to the increase in prices and kept on demanding the same quantity of hotdogs. His demand for hotdogs is |
| A. | erfectly elastic |
| B. | erfectly inelastic |
| C. | lastic |
| D. | ess elastic |
| Answer» C. lastic | |
| 262. |
A rise in supply and demand in equal proportion will result in |
| A. | ncrease in equilibrium price and equilibrium quantity |
| B. | ecrease in equilibrium price and increase in equilibrium quantity |
| C. | o change in equilibrium price and increase in equilibrium quantity |
| D. | ncrease in equilibrium price and no change in equilibrium quantity |
| Answer» D. ncrease in equilibrium price and no change in equilibrium quantity | |
| 263. |
Ten rupees is the equilibrium price for good X. If government fixes the price at Rs.5, there is |
| A. | shortage |
| B. | surplus |
| C. | xcess supply |
| D. | oss |
| Answer» B. surplus | |
| 264. |
Which one of the following pairs of commodities is an example of substitutes? |
| A. | ea and sugar |
| B. | ea and coffee |
| C. | en and ink |
| D. | hirt and trousers |
| Answer» C. en and ink | |
| 265. |
If demand is inelastic, a change in the price |
| A. | ill change the quantity in same direction |
| B. | ill change total revenue in same direction |
| C. | ill change total revenue in the opposite direction |
| D. | ill not change total revenue |
| Answer» C. ill change total revenue in the opposite direction | |
| 266. |
All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it? |
| A. | he preferences of the individual |
| B. | is monetary income |
| C. | he price of the commodity under consideration |
| D. | he prices of other goods |
| Answer» D. he prices of other goods | |
| 267. |
When cross elasticity of demand is a large positive number, one can conclude that |
| A. | he good is normal |
| B. | he good is inferior |
| C. | he good is a substitute |
| D. | he good is complement |
| Answer» D. he good is complement | |
| 268. |
Price of a product is determined in a free market by |
| A. | emand for the product |
| B. | upply of the product |
| C. | oth demand and supply |
| D. | he government |
| Answer» D. he government | |
| 269. |
If demand is unitary elastic, a 25% increase in price will result in |
| A. | 5% change in total revenue |
| B. | o change in quantity demanded |
| C. | % decrease in quantity demanded |
| D. | 5% decrease in quantity demanded |
| Answer» E. | |
| 270. |
When equilibrium price rises but equilibrium quantity remains unchanged, the cause is |
| A. | upply and demand both increase equally |
| B. | upply and demand both decrease equally |
| C. | upply decreases and demand increases |
| D. | upply increases and demand decreases |
| Answer» D. upply increases and demand decreases | |
| 271. |
The cost on one thing in terms of the alternative given up is known as |
| A. | roduction cost |
| B. | hysical cost |
| C. | eal cost |
| D. | pportunity cost |
| Answer» E. | |
| 272. |
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is |
| A. | ero |
| B. | nfinite |
| C. | qual to 1 |
| D. | reater than zero but less than infinity |
| Answer» C. qual to 1 | |
| 273. |
If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to |
| A. | ncrease |
| B. | ecrease |
| C. | emain the same |
| D. | ecome zero |
| Answer» B. ecrease | |
| 274. |
Which among the following statement is INCORRECT? |
| A. | n a linear demand curve, all the five forms of elasticity can be depicted |
| B. | f two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection. |
| C. | f two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves. |
| D. | he price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded. |
| Answer» D. he price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded. | |
| 275. |
Who propounded the opportunity cost theory of international trade? |
| A. | icardo |
| B. | arshall |
| C. | eckscher & Ohlin |
| D. | aberler |
| Answer» E. | |
| 276. |
Demand for a commodity refers to a |
| A. | esire for the commodity |
| B. | eed for the commodity |
| C. | uantity demanded of that commodity |
| D. | uantity of the commodity demanded at a certain price during any particular period of time |
| Answer» E. | |
| 277. |
The following are causes of shift in demand EXCEPT |
| A. | hange in income |
| B. | hange in price |
| C. | hange in fashion |
| D. | hange in prices of substitutes |
| Answer» C. hange in fashion | |
| 278. |
When price is below equilibrium level, there will be |
| A. | urplus commodity in the market |
| B. | hortage of commodity in the market |
| C. | upply curve will shift |
| D. | emand curve will shift |
| Answer» C. upply curve will shift | |
| 279. |
Which among the following are the factors that determine the national income of a country? |
| A. | Quantity and Quality of factors of production |
| B. | The state of technical knowledge |
| C. | Economic and political stability |
| D. | All of the above |
| Answer» E. | |
| 280. |
Which among the following has not been a measure adopted by the government to unearth black money in India? |
| A. | Voluntary Disclosure schemes |
| B. | Demonetization of currency |
| C. | Special Bearer Bond Scheme |
| D. | Creating civic consciousness |
| Answer» E. | |
| 281. |
On which law of consumption the concept of consumer’s surplus is based? |
| A. | Engel’s law |
| B. | Law of demand |
| C. | First law of Gossen |
| D. | Second law of Gossen |
| Answer» D. Second law of Gossen | |
| 282. |
By Parallel economy is meant an economy: |
| A. | Which runs side by side of the existing economy? |
| B. | Which has the same characteristics as the main economy? |
| C. | Which has variety of parallel businesses? |
| D. | Which has plentiful of black money? |
| Answer» E. | |
| 283. |
Which of the following is a characteristic of capital as a factor of production? |
| A. | It never depreciates |
| B. | It is fixed in supply |
| C. | It is an active factor of production |
| D. | It is a passive factor of production |
| Answer» E. | |
| 284. |
Which market structure symbolizes the existence of ‘few sellers’? |
| A. | Oligopoly |
| B. | Monopoly |
| C. | Monopolistic competition |
| D. | Perfect competition |
| Answer» B. Monopoly | |
| 285. |
In a perfectly competitive market a firm in the long run will be in equilibrium when: |
| A. | AC =MC |
| B. | AR = MR |
| C. | MR = MC |
| D. | P=AR=MR=AC=MC |
| Answer» E. | |
| 286. |
Which of the following is known as long run average cost curve? |
| A. | Learning curve |
| B. | Envelope curve |
| C. | Equal product curve |
| D. | Phillips curve |
| Answer» C. Equal product curve | |
| 287. |
Isoguants are right angled only when: |
| A. | Factors are perfect substitutes |
| B. | Factors are neutral |
| C. | Factors are perfect complements |
| D. | Factors are scarce |
| Answer» D. Factors are scarce | |
| 288. |
When national income is calculated with reference to a base year, it is called: |
| A. | Nominal national income |
| B. | Net national income |
| C. | Real national income |
| D. | Gross national income |
| Answer» D. Gross national income | |
| 289. |
Under free exchange markets the rate of foreign exchange is determined by: |
| A. | Balance of Payments theory |
| B. | Mint par theory |
| C. | Purchasing power parity theory |
| D. | None of the above |
| Answer» B. Mint par theory | |
| 290. |
The Heckscher-Ohlin approach to international trade provides important insights, in |
| A. | Gains from trade |
| B. | Effect of trade on production and consumption |
| C. | Effect of trade on the incomes of production factors |
| D. | All of the above |
| Answer» E. | |
| 291. |
For measuring the changes in the price level of the country, which among the following index number is used |
| A. | Cost of living index number |
| B. | Production index number |
| C. | Security Price index number |
| D. | Whole sale price index number |
| Answer» E. | |
| 292. |
Broad Money (M3) constitutes currency with public plus demand deposits with banks plus time deposits with bank plus _______ |
| A. | Other deposits with the RBI |
| B. | Post office deposits |
| C. | Government deposits with RBI |
| D. | Bankers deposits with RBI |
| Answer» B. Post office deposits | |
| 293. |
Which of the following measure of the high-power money supply (H) has been used by RBI of India |
| A. | Currency held by the public + Other deposits with the RBI |
| B. | Cash reserves of the commercial banks + Other deposits with the RBI |
| C. | Currency held by the public + cash reserves of the commercial banks + other deposits with the RBI |
| D. | Currency held by the public + cash reserves of the commercial banks + Time deposits of the commercial banks + other deposits with the RBI |
| Answer» D. Currency held by the public + cash reserves of the commercial banks + Time deposits of the commercial banks + other deposits with the RBI | |
| 294. |
“Money is a matter of functions four, a medium, a measure, a standard and _______”. What is the fourth function of money indicated in this popular phrase? |
| A. | A stock |
| B. | A flow |
| C. | A store |
| D. | A payment |
| Answer» D. A payment | |
| 295. |
Which among the following is NOT an assumption of Pareto optimality? |
| A. | Every consumer wishes to maximize his level of satisfaction |
| B. | All the factors of production are used in the production of every commodity. |
| C. | Conditions of perfect competition exist making all the factors of production perfectly mobile |
| D. | The concept of utility is cardinal and cardinal utility function of every consumer is given. |
| Answer» E. | |
| 296. |
Keynes believed that the equality between savings and investment is brought about by: |
| A. | Rate of interest |
| B. | Changes in income |
| C. | Availability of capital |
| D. | Marginal efficiency of investment |
| Answer» C. Availability of capital | |
| 297. |
_____ factors determine the position and slope of consumption curve. |
| A. | Objective |
| B. | Subjective |
| C. | Both A and B |
| D. | None of the above |
| Answer» C. Both A and B | |
| 298. |
ln a free enterprise economy, which among the following are the determinants of Investment? |
| A. | Rate of interest |
| B. | Marginal efficiency of capital |
| C. | Both A and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 299. |
Who among the following has given the modem theory of distribution? |
| A. | Nicholas Kaldor |
| B. | Wicksteed |
| C. | David Ricardo |
| D. | Mrs. Joan Robinson |
| Answer» B. Wicksteed | |
| 300. |
Who has sought to measure Consumer’s Surplus with the help of indifference curve technique? |
| A. | Alfred Marshall |
| B. | Edgeworth |
| C. | J.R. Hick |
| D. | Pareto |
| Answer» D. Pareto | |