MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 864 Mcqs, each offering curated multiple-choice questions to sharpen your General Knowledge (GK) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Effective demand depends on - |
| A. | capital-output ratio |
| B. | output-capital ratio |
| C. | total expenditure |
| D. | supply price |
| Answer» E. | |
| 2. |
Who is called the 'Father of Economics'? |
| A. | Max Muller |
| B. | Karl Marx |
| C. | Adam Smith |
| D. | Alfred Marshall |
| Answer» D. Alfred Marshall | |
| 3. |
The basic problem studied in Macro - Economics is - |
| A. | production of income |
| B. | usage of income |
| C. | flow of income |
| D. | distribution of income |
| Answer» B. usage of income | |
| 4. |
Prof Miltion Fridman was leader of - |
| A. | Ohio school |
| B. | Chicago school |
| C. | Cambridge school |
| D. | London school |
| Answer» C. Cambridge school | |
| 5. |
The main source of long-term credit for a business unit is - |
| A. | sale of stocks and bonds to the public |
| B. | borrowing from banks |
| C. | loans from the Government |
| D. | deposits from the public and financial institutions |
| Answer» B. borrowing from banks | |
| 6. |
Steel sheets used in the production of furnitures is an example of |
| A. | an intermediate good |
| B. | a final good |
| C. | an investment good |
| D. | a consumption good |
| Answer» B. a final good | |
| 7. |
The bank cheques are processed by using - |
| A. | OCR |
| B. | MICR |
| C. | OMR |
| D. | PMR |
| Answer» C. OMR | |
| 8. |
Open Market Operations refer to |
| A. | Borrowings by Scheduled banks from RBI |
| B. | Lending by Commercial banks to industry |
| C. | Purchase and sale of Government securities by RBI |
| D. | Deposit mobilization |
| Answer» D. Deposit mobilization | |
| 9. |
Under flexible exchange rate system, the exchange rate is determined by - |
| A. | the Central Bank of the country |
| B. | the forces of demand and supply in the foreign exchange market |
| C. | the price of gold |
| D. | the purchasing power of currencies |
| Answer» C. the price of gold | |
| 10. |
Bank rate is the rate of interest - |
| A. | at which public borrows money from Commercial Bank |
| B. | at which public borrows money from RBI |
| C. | at which Commercial Banks borrow money from RBI |
| D. | at which Commercial Banks borrow money from public |
| Answer» D. at which Commercial Banks borrow money from public | |
| 11. |
Which one of the following items is not included in the current account of India's Balance of Payments? |
| A. | Short-term commercial borrowings |
| B. | Non-monetary gold movements |
| C. | Investment income |
| D. | Transfer payments |
| Answer» C. Investment income | |
| 12. |
"Functional Finance" is associated with : |
| A. | Adolph Wogner |
| B. | Adam Smith |
| C. | Adams |
| D. | Abba 'V Lerner |
| Answer» E. | |
| 13. |
Which one of the following would not constitute an economic activity? |
| A. | A teacher teaching students in his class |
| B. | A teacher teaching students under Sarva Shiksha Abhiyan |
| C. | A teacher teaching his own daughter at home |
| D. | A teacher providing consultancy services from his residence |
| Answer» D. A teacher providing consultancy services from his residence | |
| 14. |
Capacity utilization - |
| A. | is usually near 100 percent. |
| B. | represents the percent of the labour force that is employed. |
| C. | is a measure of the proportional of the existing capital stock used for current production. |
| D. | rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production. |
| Answer» D. rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production. | |
| 15. |
Demand for complementary goods is known as - |
| A. | Joint demand |
| B. | Derived demand |
| C. | Direct demand |
| D. | Cross demand |
| Answer» B. Derived demand | |
| 16. |
Bull and bear are related to which commercial activity? |
| A. | Banking |
| B. | Ecommerce |
| C. | International trade |
| D. | Stock market |
| Answer» E. | |
| 17. |
A favorable Balance of Trade of a country implies that - |
| A. | Imports are greater than Exports |
| B. | Exports are greater than Imports |
| C. | Both Imports and Exports are equal |
| D. | Rising Imports and Falling Exports |
| Answer» C. Both Imports and Exports are equal | |
| 18. |
If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - |
| A. | lower cash reserve ratio |
| B. | raise discount rates |
| C. | sell government securities |
| D. | All of the above |
| Answer» B. raise discount rates | |
| 19. |
Distribution of food rains operates under a two her system with the introduction of - |
| A. | Targetted Public Distribution System |
| B. | The Consumers Cooperatives |
| C. | The Cooperative Marketing Societies |
| D. | The Service Cooperatives |
| Answer» B. The Consumers Cooperatives | |
| 20. |
'Quota' is - |
| A. | tax levied on imports |
| B. | imports of capital goods |
| C. | limit on the quantity of imports |
| D. | limit on the quantity of exports |
| Answer» D. limit on the quantity of exports | |
| 21. |
"Bad money will drive out good money from circulation." This is known as : |
| A. | Engle's Law |
| B. | Gresham's Law |
| C. | Say' Law |
| D. | Wagner's Law |
| Answer» C. Say' Law | |
| 22. |
A tax is characterized by horizontal equity if its liability is - |
| A. | proportional to the income of tax payers |
| B. | similar for tax payers in similar circumstances |
| C. | proportional to the expenditure of tax payers |
| D. | the same for every tax payer |
| Answer» B. similar for tax payers in similar circumstances | |
| 23. |
When aggregate supply exceeds aggregate demand - |
| A. | unemployment falls |
| B. | prices rise |
| C. | inventories accumulate |
| D. | unemployment develops |
| Answer» D. unemployment develops | |
| 24. |
The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into - |
| A. | codification of tax laws |
| B. | the entire structure of tax laws including the question of imposition of bank tax |
| C. | the concerns of the foreign investors in India with regard to taxation matters |
| D. | aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system |
| Answer» E. | |
| 25. |
Investment is equal to - |
| A. | gross total of all types of physical capital assets |
| B. | gross total of all capital assets minus wear and tear |
| C. | stock of plants, machines and equipments |
| D. | None of these |
| Answer» C. stock of plants, machines and equipments | |
| 26. |
A tax is said to be regressive when its burden falls - |
| A. | less heavily on the poor than on the rich |
| B. | more heavily on the poor than on the rich |
| C. | equally on the poor as on the rich |
| D. | None of these |
| Answer» C. equally on the poor as on the rich | |
| 27. |
An Increase in national income because of an increase in price is called- |
| A. | an increase in national income in real terms |
| B. | an increase in national income at constant prices |
| C. | an increase in money national income |
| D. | an increase in national income at base year prices |
| Answer» E. | |
| 28. |
A-Transfer Income' is an - |
| A. | Income which is not produced by any production process |
| B. | Income taken away from one person and given over to another |
| C. | Unearned income |
| D. | Earned income |
| Answer» B. Income taken away from one person and given over to another | |
| 29. |
Excise duty is levied on - |
| A. | sale of goods |
| B. | production of goods |
| C. | import of goods |
| D. | export of goods |
| Answer» C. import of goods | |
| 30. |
Reserve Bank of India was nationalized in - |
| A. | 1948 |
| B. | 1947 |
| C. | 1949 |
| D. | 1950 |
| Answer» D. 1950 | |
| 31. |
Average Revenue means - |
| A. | the revenue per unit of commodity sold |
| B. | the revenue from all commodities sold |
| C. | the profit realised from the marginal unit sold |
| D. | the profit realised by sale of all commodities |
| Answer» B. the revenue from all commodities sold | |
| 32. |
The difference between visible exports and visible imports is defined as - |
| A. | Balance of trade |
| B. | Balance of payment |
| C. | Balanced terms of trade |
| D. | Gains from trade |
| Answer» B. Balance of payment | |
| 33. |
Scheduled Banks have to be registered with - |
| A. | SEBI |
| B. | RBI |
| C. | Finance Ministry |
| D. | SBI |
| Answer» C. Finance Ministry | |
| 34. |
Bank money refers to - |
| A. | currency notes |
| B. | coins |
| C. | gold bullions |
| D. | cheques |
| Answer» E. | |
| 35. |
A commercial bank law creates credit only if it has - |
| A. | Cash in the vault |
| B. | Excess reserves |
| C. | Permission of Reserve Bank of India |
| D. | (4) Cooperation of other banks |
| Answer» B. Excess reserves | |
| 36. |
"Dear Money" means - |
| A. | low rate of interest |
| B. | high rate of interest |
| C. | depression |
| D. | inflation |
| Answer» C. depression | |
| 37. |
A financial instrument is called a 'primary security' if ii represents the liability of : |
| A. | some ultimate borrower |
| B. | the Government of India |
| C. | a primary cooperative bank |
| D. | a commercial bank |
| Answer» B. the Government of India | |
| 38. |
founded in the year 1886 by a pharmacist named John Pemberton, this product is the second most widely understood term in the world after "OK". What is its name? |
| A. | Aspirin |
| B. | ENO |
| C. | CocaCola |
| D. | Pepsi |
| Answer» D. Pepsi | |
| 39. |
A short-term government security paper is called - |
| A. | Share |
| B. | Debenture |
| C. | Mutual fund |
| D. | Treasury bill |
| Answer» E. | |
| 40. |
he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are - |
| A. | Explicit costs |
| B. | Original costs |
| C. | Implicit costs |
| D. | Replacement costs |
| Answer» D. Replacement costs | |
| 41. |
The best measure to assess a country's economic growth is - |
| A. | per capita income at constant prices |
| B. | per capita income at current prices , |
| C. | gross domestic product at current prices |
| D. | gross national product at current prices |
| Answer» B. per capita income at current prices , | |
| 42. |
The equilibrium price of a commodity will definitely rise if there is a/an: |
| A. | increase in supply combined with a decrease in demand. |
| B. | increase in both demand and supply. |
| C. | decrease in both demand and supply. |
| D. | increase in demand accompanied by a decrease in supply. |
| Answer» E. | |
| 43. |
The concept of joint sector implies cooperation between - |
| A. | Public sector and private sector industries |
| B. | State Government and Central Government |
| C. | Domestic and. Foreign Companies |
| D. | None of these |
| Answer» B. State Government and Central Government | |
| 44. |
The income elasticity of demand being greater than one, the commodity must be - |
| A. | a necessity |
| B. | a luxury |
| C. | an inferior good |
| D. | None of these |
| Answer» C. an inferior good | |
| 45. |
When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will - |
| A. | decrease |
| B. | increase |
| C. | remain the same |
| D. | contract |
| Answer» C. remain the same | |
| 46. |
The main determinant of real wage is - |
| A. | extra earning |
| B. | nature of work |
| C. | promotion prospect |
| D. | purchasing power money |
| Answer» E. | |
| 47. |
A refrigerator operating in a chemist's shop is an example of - |
| A. | free good |
| B. | final good |
| C. | producers good |
| D. | consumer's good |
| Answer» C. producers good | |
| 48. |
The relationship between price of a commodity and the demand for it - |
| A. | is a positive relationship |
| B. | is an inverse relationship |
| C. | They are independent of each other |
| D. | They do not have any relationship |
| Answer» C. They are independent of each other | |
| 49. |
Consumer's sovereignty means: |
| A. | consumers are free to spend their income as they like. |
| B. | consumers have the power to manage the economy. |
| C. | consumer's expenditures influence the allocation of resources. |
| D. | consumer goods are free from government control, |
| Answer» B. consumers have the power to manage the economy. | |
| 50. |
The situation in which total revenue is equal to total cost, is known as - |
| A. | monopolistic competition |
| B. | equilibrium level of output |
| C. | break-even point |
| D. | perfect competition |
| Answer» D. perfect competition | |