MCQOPTIONS
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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.
| 51. |
Number of sellers in the monopoly market structure is - |
| A. | few |
| B. | large |
| C. | one |
| D. | two |
| Answer» D. two | |
| 52. |
When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - |
| A. | Highly elastic |
| B. | Inelastic |
| C. | Relatively elastic |
| D. | Perfectly inelastic |
| Answer» C. Relatively elastic | |
| 53. |
Production function is the relationship between - |
| A. | Production and Profit |
| B. | Production and Prices |
| C. | Production and Production factors |
| D. | Production and Income |
| Answer» D. Production and Income | |
| 54. |
Any factor of production can earn economic-rent, when its supply will be - |
| A. | Perfectly elastic |
| B. | Perfectly inelastic |
| C. | Elastic in nature |
| D. | All of the above |
| Answer» C. Elastic in nature | |
| 55. |
The father of Economics is - |
| A. | Marshall |
| B. | Adam Smith |
| C. | J.M. Keynes |
| D. | Karl Marx |
| Answer» C. J.M. Keynes | |
| 56. |
The sale of branded articles is common in a situation of - |
| A. | excess capacity |
| B. | monopolistic competition |
| C. | monopoly |
| D. | pure competition |
| Answer» C. monopoly | |
| 57. |
Who propounded Dynamic Theory of profit? |
| A. | Clark |
| B. | Schumpeter |
| C. | Knight |
| D. | Hawly |
| Answer» B. Schumpeter | |
| 58. |
Interms of economics, if it is possible to make someone better off without making someone worse off, then the situation is - |
| A. | Inefficient |
| B. | Efficient |
| C. | Optimal |
| D. | Paretosuperior |
| Answer» B. Efficient | |
| 59. |
Payment of water charges by the farmers to the government represents - |
| A. | intermediate consumption |
| B. | final consumption |
| C. | fixed investment |
| D. | inventory investment |
| Answer» B. final consumption | |
| 60. |
When average cost production (AC) falls, marginal cost of production must be - |
| A. | rising |
| B. | Falling |
| C. | Greater than the average cost |
| D. | Less than the average cost |
| Answer» E. | |
| 61. |
Knowledge, technical skill, education etc. in economics, are regarded as - |
| A. | social-overhead capital |
| B. | human capital |
| C. | tangible physical capital |
| D. | working capital |
| Answer» C. tangible physical capital | |
| 62. |
Purchasing Power Parity theory is related with - |
| A. | Interest rate |
| B. | Bank rate |
| C. | Wage rate |
| D. | Exchange rate |
| Answer» E. | |
| 63. |
In the long-run equilibrium, a competitive firm earns - |
| A. | Super-normal profit |
| B. | Profits equal to other firms |
| C. | Normal profit |
| D. | No profit |
| Answer» D. No profit | |
| 64. |
The demand for which of the following commodity will not rise in spite of a fall in its price? |
| A. | Television |
| B. | Refrigerator |
| C. | Salt |
| D. | Meat |
| Answer» D. Meat | |
| 65. |
Who said, "Economics is the Science of Wealth"? |
| A. | Robbins |
| B. | J.S. Mill |
| C. | Adam Smith |
| D. | Keynes |
| Answer» D. Keynes | |
| 66. |
What is selling cost? |
| A. | Cost incurred on transportation of commodities to market |
| B. | Cost incurred on promoting the sale of the product |
| C. | Cost incurred on commission and salaries personnel |
| D. | Cost incurred on advertisement |
| Answer» C. Cost incurred on commission and salaries personnel | |
| 67. |
The addition to total cost by producing an additional unit of out-put by a firm is called - |
| A. | Variable cost |
| B. | Average cost |
| C. | Marginal cost |
| D. | Opportunity cost |
| Answer» D. Opportunity cost | |
| 68. |
In a perfectly competitive market, a firm's - |
| A. | Average Revenue is always equal to Marginal Revenue |
| B. | Marginal Revenue is more than Average Revenue |
| C. | Average Revenue is more than Marginal Revenue |
| D. | Marginal Revenue and Average Revenue are never equal |
| Answer» B. Marginal Revenue is more than Average Revenue | |
| 69. |
Price and output are determinates in market structure other than - |
| A. | monopoly |
| B. | perfect competition |
| C. | oligopoly |
| D. | monopsony |
| Answer» C. oligopoly | |
| 70. |
A 'Market Economy' is one which - |
| A. | is controlled by the Government |
| B. | is free from the Government control |
| C. | in influenced by international market forces |
| D. | All of these |
| Answer» C. in influenced by international market forces | |
| 71. |
The law of demand states that - |
| A. | if the price of a good increases, the demand for that good decreases. |
| B. | if the price of a good increases, the demand for that good increases. |
| C. | if the price of a good increases, the quantity demanded of that good decreases |
| D. | if the price of a good increases, the quantity demanded of that good increases. |
| Answer» D. if the price of a good increases, the quantity demanded of that good increases. | |
| 72. |
The demand curve facing a perfectly competitive firm is - |
| A. | downward sloping |
| B. | perfectly inelastic |
| C. | a concave curve |
| D. | perfectly elastic |
| Answer» E. | |
| 73. |
Consumer gets maximum satisfaction at the point where - |
| A. | Marginal Utility = Price |
| B. | Marginal Utility > Price |
| C. | Marginal Utility < Price |
| D. | Marginal Cost = Price |
| Answer» B. Marginal Utility > Price | |
| 74. |
If average cost falls, marginal cost - |
| A. | increases at a higher rate |
| B. | falls at the same rate |
| C. | increases at a lower rate |
| D. | falls at a higher rate |
| Answer» C. increases at a lower rate | |
| 75. |
The relationship between the value of money and the price level in an economy is - |
| A. | Direct |
| B. | Inverse |
| C. | Proportional |
| D. | Stable |
| Answer» C. Proportional | |
| 76. |
Production function relates - |
| A. | Cost to output |
| B. | Cost to input |
| C. | Wages to profit |
| D. | Inputs to output |
| Answer» E. | |
| 77. |
If total utility is maximum at a point, then marginal utility is - |
| A. | positive |
| B. | zero |
| C. | negative |
| D. | positive but decreasing |
| Answer» C. negative | |
| 78. |
The terms "Micro Economics" and "Macro Economics" were coined by - |
| A. | Alfred Marshall |
| B. | Ragner Nurkse |
| C. | Ragner Frisch |
| D. | J.M. Keynes |
| Answer» D. J.M. Keynes | |
| 79. |
Consumption function expresses the relationship between consumption and - |
| A. | savings |
| B. | income |
| C. | investment |
| D. | price |
| Answer» C. investment | |
| 80. |
'Hire and Fire' is the policy of - |
| A. | Capitalism |
| B. | Socialism |
| C. | Mixed Economy |
| D. | Traditional Economy |
| Answer» D. Traditional Economy | |
| 81. |
The relationship between the rate of interest and level of consumption was first visualized by - |
| A. | Amartya K. Sen |
| B. | Milton Friedman |
| C. | Irving Fisher |
| D. | James Duesenberry |
| Answer» D. James Duesenberry | |
| 82. |
Cosequent upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially set up in the year - |
| A. | 1973 |
| B. | 1974 |
| C. | 1975 |
| D. | 1976 |
| Answer» D. 1976 | |
| 83. |
Which unit of valuation is known as "Paper gold"? |
| A. | Eurodollar |
| B. | Petrodollar |
| C. | SDR |
| D. | GDR |
| Answer» D. GDR | |
| 84. |
Poverty in less developed countries is largely due to - |
| A. | voluntary idleness |
| B. | income inequality |
| C. | lack of cultural activities |
| D. | lack of intelligence of the people |
| Answer» C. lack of cultural activities | |
| 85. |
A closed economy is one which - |
| A. | Does not trade with other countries |
| B. | Does not possess any means of international transport |
| C. | Does not have a coatastal line |
| D. | (4) Is not a member of the U.N.O. |
| Answer» B. Does not possess any means of international transport | |
| 86. |
The ratio of a bank's cash holdings to its total deposit liabilities is called the - |
| A. | Variable Reserve Ratio |
| B. | Cash Reserve Ratio |
| C. | Statutory Liquidity Ratio |
| D. | Minimum Reserve Ratio |
| Answer» C. Statutory Liquidity Ratio | |
| 87. |
Who are the creditors of a Corporation? |
| A. | Bond holders |
| B. | Stock holders |
| C. | Both Bond and Stock holders |
| D. | Holders of preferred stock |
| Answer» D. Holders of preferred stock | |
| 88. |
For hannelizing the unaccounted money for productive purposes the Government Introduced the scheme of : |
| A. | Special Bearer Bonds |
| B. | Resurgent. India Bonds |
| C. | Provident Funds |
| D. | Market Loans |
| Answer» B. Resurgent. India Bonds | |
| 89. |
Saving is that portion of money income that is - |
| A. | spent for development of Industries |
| B. | not spent on consumption |
| C. | spent on health and education |
| D. | spent for consumer durables |
| Answer» C. spent on health and education | |
| 90. |
The permission given to a bank customer to draw cheques in excess of his current account balance is called - |
| A. | a personal loan |
| B. | an ordinary loan |
| C. | discounting a bill of exchange |
| D. | an overdraft |
| Answer» E. | |
| 91. |
Forced Savings refer to - |
| A. | Reduction of consumption consequent to a rise in prices |
| B. | Taxes on individual income and wealth |
| C. | Compulsory deposits imposed on income tax payers |
| D. | Provident fund contribution of private sector employees |
| Answer» B. Taxes on individual income and wealth | |
| 92. |
Say's Law of Market holds that - |
| A. | supply is not equal to demand |
| B. | supply creates its own demand |
| C. | demand creates its own supply |
| D. | supply is greater than demand |
| Answer» C. demand creates its own supply | |
| 93. |
'Marginal efficiency of capital' is - |
| A. | expected rate of return on new investment |
| B. | expected rate of return of existing investment |
| C. | difference between rate of profit and rate of interest |
| D. | value of output per unit of capital invested |
| Answer» B. expected rate of return of existing investment | |
| 94. |
Credit is the use or possession of goods without immediate payment. Which of the following is a type of credit? |
| A. | Consumer credit |
| B. | Bank credit |
| C. | Trade credit |
| D. | All of the above |
| Answer» E. | |
| 95. |
National Income is the - |
| A. | Net National Product at market price |
| B. | Net National Product at factor cost |
| C. | Net Domestic Product at market price |
| D. | Net domestic Product at factor cost |
| Answer» C. Net Domestic Product at market price | |
| 96. |
What is meant by 'Capital Gain'? |
| A. | Part of profits added to the capital |
| B. | Appreciation in the money value of assets |
| C. | Additions to the capital invested in a business |
| D. | None of these |
| Answer» C. Additions to the capital invested in a business | |
| 97. |
The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called - |
| A. | Cash reserves |
| B. | Deposit reserves |
| C. | Excess reserves |
| D. | Momentary reserves |
| Answer» D. Momentary reserves | |
| 98. |
The first computer made available for commercial use was - |
| A. | MANIAC |
| B. | ENIAC |
| C. | UNIVAC |
| D. | EDSAC |
| Answer» D. EDSAC | |
| 99. |
Which one of the following is not a function of a commercial bank? |
| A. | Acting as banker to the state |
| B. | Managing government borrowings |
| C. | Controlling the money supply |
| D. | All of the above |
| Answer» E. | |
| 100. |
'Money' is an example of - |
| A. | Sunk capital |
| B. | Floating capital |
| C. | Concrete capital |
| D. | Social capital |
| Answer» C. Concrete capital | |