MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The existence of a Parallel Economy or Black Money - |
| A. | makes the economy more competitive |
| B. | makes the monetary policies less effective |
| C. | ensures a better distribution of income and wealth |
| D. | ensures increasing productive investment |
| Answer» C. ensures a better distribution of income and wealth | |
| 2. |
An economy is in equilibrium when - |
| A. | planned consumption exceeds planned saving |
| B. | planned consumption exceeds planned investment |
| C. | intended saving equals intended investment |
| D. | intended investment exceeds intended savings |
| Answer» D. intended investment exceeds intended savings | |
| 3. |
The 'Canons of Taxation' were propounded by - |
| A. | Edwin Canon |
| B. | Adam Smith |
| C. | J.M. Keynes |
| D. | Dalton |
| Answer» C. J.M. Keynes | |
| 4. |
Beyond a certain point deficit financing will certainly lead to - |
| A. | inflation |
| B. | deflation |
| C. | recession |
| D. | economic stagnation |
| Answer» B. deflation | |
| 5. |
What is an octroi? |
| A. | Tax |
| B. | Tax collection centre |
| C. | Tax processing centre |
| D. | Tax information centre |
| Answer» B. Tax collection centre | |
| 6. |
Investment and savings are kept equal through a change in the level of - |
| A. | Consumption |
| B. | Investment |
| C. | Government expenditure |
| D. | Income |
| Answer» B. Investment | |
| 7. |
The demand for necessities is - |
| A. | elastic |
| B. | perfectly inelastic |
| C. | inelastic |
| D. | perfectly elastic |
| Answer» C. inelastic | |
| 8. |
The demand for money, according to Keynes, is for - |
| A. | speculative motive |
| B. | transaction motive |
| C. | precautionary motive |
| D. | All the above motives |
| Answer» D. All the above motives | |
| 9. |
Economic progress of a country is determined by - |
| A. | Increase in per capita income of people of country |
| B. | Increase in the price of produced capital goods during the year |
| C. | Increased numbers of Trade Unions |
| D. | Fall in the general price level of a country |
| Answer» B. Increase in the price of produced capital goods during the year | |
| 10. |
What is "book-building"? |
| A. | Preparing the income and expenditure ledgers of a company (book-keeping) |
| B. | Manipulating the profit and loss statements of a company |
| C. | A process of inviting subscriptions to a public offer of securities, essentially through a tendering process |
| D. | Publishers' activity |
| Answer» D. Publishers' activity | |
| 11. |
Surplus budget is recommended during |
| A. | Boom |
| B. | Depression |
| C. | Famines |
| D. | War |
| Answer» C. Famines | |
| 12. |
A hammer in the hands of a house-wife is a good. |
| A. | consumer |
| B. | capital |
| C. | free |
| D. | intermediary |
| Answer» E. | |
| 13. |
When the demand for a good increases with an increase in income, such a good is called - |
| A. | Superior good |
| B. | Giffin good |
| C. | Inferior good |
| D. | Normal good |
| Answer» B. Giffin good | |
| 14. |
Which of the following is not a feat tare of a capitalist economy? |
| A. | Right to private property |
| B. | Existence of competition |
| C. | Service motive |
| D. | Freedom of choice to consumers |
| Answer» D. Freedom of choice to consumers | |
| 15. |
Economic profit or normal profit is the same as - |
| A. | optimum profit |
| B. | accounting profile |
| C. | maximum profit |
| D. | net profit |
| Answer» E. | |
| 16. |
Equilibrium is a condition that can - |
| A. | never change |
| B. | change only if some outside factor changes |
| C. | change only if some internal factor changes |
| D. | change only if government policies change |
| Answer» D. change only if government policies change | |
| 17. |
In equilibrium, a perfectly competitive firm will equate - |
| A. | marginal social cost with marginal social benefit |
| B. | market supply with market demand |
| C. | marginal profit with marginal cost |
| D. | marginal revenue with marginal cost |
| Answer» E. | |
| 18. |
Enterpreneurial ability is a special kind of labour that - |
| A. | is hired out to firms at high wages |
| B. | organizes the process of production |
| C. | produces new capital goods to earn interest |
| D. | manages to avoid losses by continual innovation |
| Answer» C. produces new capital goods to earn interest | |
| 19. |
The four factors of production are - |
| A. | land, labour, capital, organisation, |
| B. | land, electricity, water, labour |
| C. | labour, capital, land, rainfall, |
| D. | labour, climate, land, tools, |
| Answer» B. land, electricity, water, labour | |
| 20. |
An exceptional demand curve is one that moves - |
| A. | upward to the right |
| B. | downward to the right |
| C. | horizontally |
| D. | vertically |
| Answer» C. horizontally | |
| 21. |
Production function explains the relationship between - |
| A. | initial inputs and ultimate output |
| B. | inputs and ultimate consumption |
| C. | output and consumption |
| D. | output and exports |
| Answer» B. inputs and ultimate consumption | |
| 22. |
Elasticity (e) expressed by the formula 1 > e > 0 is - |
| A. | Perfectly elastic |
| B. | Relatively elastic |
| C. | Perfectly inelastic |
| D. | Relatively inelastic |
| Answer» E. | |
| 23. |
The term utility means - |
| A. | usefulness of a commodity |
| B. | the satisfaction which a commodity yields |
| C. | the service which a commodity is capable of rendering |
| D. | None of these |
| Answer» C. the service which a commodity is capable of rendering | |
| 24. |
The degree of monopoly power is to be measured in terms of the firm's- |
| A. | normal profit |
| B. | supernormal profit |
| C. | both normal and supernormal profit |
| D. | selling price |
| Answer» C. both normal and supernormal profit | |
| 25. |
The principle of maximum social advantage is the basic principle of - |
| A. | Micro Economics |
| B. | Macro Economics |
| C. | Fiscal Economics |
| D. | Environmental Economics |
| Answer» D. Environmental Economics | |
| 26. |
In short run, if a competitive firm incurs losses, it will - |
| A. | stop production. |
| B. | continue to produce as long as it can cover its variable costs. |
| C. | raise price of its product. |
| D. | go far advertising campaign. |
| Answer» B. continue to produce as long as it can cover its variable costs. | |
| 27. |
Buyers and Sellers will have perfect knowledge of market conditions under - |
| A. | Duopoly |
| B. | Perfect competition |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» B. Perfect competition | |
| 28. |
If the average revenue is a horizontal straight line, marginal revenue will be - |
| A. | U shaped |
| B. | Kinked |
| C. | Identical with average revenue |
| D. | L shaped |
| Answer» D. L shaped | |
| 29. |
Bilateral monopoly refers to the market situation of - |
| A. | two sellers, two buyers |
| B. | one seller and two buyers |
| C. | two sellers and one buyer |
| D. | one seller and one buyer |
| Answer» E. | |
| 30. |
Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - |
| A. | long-run marginal cost curve |
| B. | long-run average cost curve |
| C. | long-run average variable cost curve |
| D. | long-run average revenue curve |
| Answer» C. long-run average variable cost curve | |
| 31. |
Production function refers to the functional relationship between input and |
| A. | product |
| B. | produce |
| C. | output |
| D. | service |
| Answer» D. service | |
| 32. |
The size of the market for a product refers to - |
| A. | the number of people in the given area |
| B. | the geographical area served by the proudcers |
| C. | the volume of potential sales of the product |
| D. | the number of potential buyers of the product |
| Answer» E. | |
| 33. |
Exploitation of labour is said to exist when - |
| A. | Wage = Marginal Revenue Product |
| B. | Wage < Marginal Revenue Product |
| C. | Wage > Marginal Revenue Product |
| D. | Marginal Revenue Product =0 |
| Answer» C. Wage > Marginal Revenue Product | |
| 34. |
Transfer earning or alternative cost is otherwise known as - |
| A. | Variable cost |
| B. | Implicit cost |
| C. | Explicit cost. |
| D. | Opportunity cost |
| Answer» E. | |
| 35. |
If two commodities are complements, then their crossprice elasticity is- |
| A. | zero |
| B. | positive |
| C. | negative |
| D. | imaginary number |
| Answer» E. | |
| 36. |
In Economics the 'Utility' and 'Usefulness' have - |
| A. | same meaning |
| B. | different meaning |
| C. | opposite meaning |
| D. | None of the above |
| Answer» C. opposite meaning | |
| 37. |
While determining income the expenditure on which of the following items is not considered as investment? |
| A. | Construction of factory |
| B. | Computer |
| C. | Increase in the stock of unsold articles |
| D. | Stock and share in joint stock company |
| Answer» D. Stock and share in joint stock company | |
| 38. |
Rate of interest is determined by - |
| A. | The rate of return on the capital invested |
| B. | Central Government |
| C. | Liquidity preference |
| D. | Commercial Banks |
| Answer» D. Commercial Banks | |
| 39. |
Speculative demand for cash is determined by - |
| A. | The rate of interest |
| B. | the level of income |
| C. | the general price level |
| D. | the market conditions |
| Answer» B. the level of income | |
| 40. |
The process of converting short term to long term debt by the sale of long term securities and using the funds raised to pay off short-term debt is called: |
| A. | Funding |
| B. | Debt retirement |
| C. | Borrowing |
| D. | All of the above |
| Answer» B. Debt retirement | |
| 41. |
Gross National Product is the money measure of - |
| A. | all tangible goods produced in a country |
| B. | final goods and services produced in the economy |
| C. | services generated annually in the economy |
| D. | all tangible goods available in the economy |
| Answer» C. services generated annually in the economy | |
| 42. |
The difference between GNP and NNP equals - |
| A. | corporate profits |
| B. | personal taxes |
| C. | transfer payments |
| D. | depreciation |
| Answer» E. | |
| 43. |
The term used to describe a sharp slowdown in the rate of economic growth or a modest decline in economic activity is called: |
| A. | Depression |
| B. | Slump |
| C. | Recession |
| D. | None of the above |
| Answer» D. None of the above | |
| 44. |
What is AGMARK? |
| A. | It is a marketing seal issued on the graded agricultural commodity |
| B. | It stands for agricultural marketing |
| C. | It represents agricultural management and regulation |
| D. | None of these |
| Answer» C. It represents agricultural management and regulation | |
| 45. |
The dominant body of economic thinking, economic method and economic style in the period from 18th to 19th century is termed as |
| A. | Modern Economics |
| B. | Mathematical Economics |
| C. | Classical Economics |
| D. | None of the above |
| Answer» D. None of the above | |
| 46. |
Two sellers only of a good or service in a market. This situation is: |
| A. | Monopoly |
| B. | Duopoly |
| C. | Oligopoly |
| D. | None of the above |
| Answer» C. Oligopoly | |
| 47. |
An industry in which technical factors preclude the efficient existence of more than one producer. This situation is called: |
| A. | Natural Monopoly |
| B. | Monopoly |
| C. | Engineered Monopoly |
| D. | Duopoly |
| Answer» B. Monopoly | |
| 48. |
An arrangement between a seller and buyer under which a period of credit is allowed before payment is called: |
| A. | Account |
| B. | Advertising |
| C. | Asset |
| D. | Annuity |
| Answer» B. Advertising | |
| 49. |
A market in which supply and demand are not subject to regulation other than normal competition policy is termed: |
| A. | Forward Market |
| B. | Free Market |
| C. | Foreign-exchange Market |
| D. | None of the above |
| Answer» C. Foreign-exchange Market | |
| 50. |
Inwhich market structure is the demand curve of the market represented by the demand curve of the firm? |
| A. | Monopoly |
| B. | Oligopoly |
| C. | Duopoly |
| D. | Perfect Competition |
| Answer» B. Oligopoly | |