MCQOPTIONS
Saved Bookmarks
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. |
Globalisation means |
| A. | Integration of economy |
| B. | Integration of financial market |
| C. | Integration of the domestic economy with the world economy |
| D. | Integration of the various sectors of economy |
| Answer» D. Integration of the various sectors of economy | |
| 2. |
In the balance of payments account, unrequited receipts and payments are also regarded as |
| A. | bilateral transfers |
| B. | unilateral transfers |
| C. | capital account transfers |
| D. | invisible transfers |
| Answer» C. capital account transfers | |
| 3. |
The term Dumping refers to |
| A. | The sale of a sub-standard commodity |
| B. | Sale in a foreign market of a commodity at a price below marginal cost |
| C. | Sale in a foreign market of a commodity just at marginal cost with too much of profit |
| D. | Smuggling of goods without paying any customs duty |
| Answer» C. Sale in a foreign market of a commodity just at marginal cost with too much of profit | |
| 4. |
Wall Street is the name of the: |
| A. | Stock Exchange of New York |
| B. | Indian Township in Washington |
| C. | Supermarket in Mumbai |
| D. | Stock Exchange of Kolkata |
| Answer» B. Indian Township in Washington | |
| 5. |
As a result of higher rate of inflation in India, the U.S. dollar will |
| A. | Depreciate |
| B. | Constant |
| C. | Negligible |
| D. | Appreciate |
| Answer» E. | |
| 6. |
The aim of Differentiated Interest Scheme was to provide concessional loans to _______. |
| A. | weaker section of the society |
| B. | Public Sector Industries |
| C. | Public Limited Companies |
| D. | big exports |
| Answer» B. Public Sector Industries | |
| 7. |
VAT is imposed: |
| A. | Directly on Consumer |
| B. | On first stage of production |
| C. | On final stage of production |
| D. | On all stages between production and sale |
| Answer» E. | |
| 8. |
Which unit of valuation is known as Paper gold ? |
| A. | Eurodollar |
| B. | Petrodollar |
| C. | SDR |
| D. | GDR |
| Answer» D. GDR | |
| 9. |
A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as |
| A. | defence |
| B. | betting |
| C. | inter-trading |
| D. | mortgage |
| Answer» B. betting | |
| 10. |
A favourable 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 | |
| 11. |
With which form of economy is the term Laissez-faire associated? |
| A. | Capitalist economy |
| B. | Socialist economy |
| C. | Mixed economy |
| D. | Command economy |
| Answer» B. Socialist economy | |
| 12. |
Custom duty is an instrument of |
| A. | Monetary Policy |
| B. | Foreign Trade Policy |
| C. | Industrial Policy |
| D. | Fiscal Policy |
| Answer» C. Industrial Policy | |
| 13. |
Which one of the following is not included in current revenue of the Union Government ? |
| A. | Tax revenue |
| B. | Non-tax revenue |
| C. | Loans |
| D. | Interest payments |
| Answer» D. Interest payments | |
| 14. |
Which one of the following is the most appropriate reason for Inequalities in Income ? |
| A. | Racial factors |
| B. | Lack of opportunities |
| C. | Inheritance from family Environment |
| D. | Differences in Ability |
| Answer» C. Inheritance from family Environment | |
| 15. |
Which one of the following is not a canon of taxation according to Adam Smith ? |
| A. | Canon of certainty |
| B. | Canon of simplicity |
| C. | Canon of convenience |
| D. | Canon of economy |
| Answer» C. Canon of convenience | |
| 16. |
The best Index of Economic Development is provided by: |
| A. | Growth in Percapita Real Income from year to year. |
| B. | Growth in National Income at Current Prices. |
| C. | Growth in savings ratio. |
| D. | Improvement in the Balance of Payments Position. |
| Answer» C. Growth in savings ratio. | |
| 17. |
Interest paid by the government on the loans raised is called |
| A. | Debt Servicing |
| B. | Deficit Financing |
| C. | Discounted Budgeting |
| D. | Bridge-loan |
| Answer» D. Bridge-loan | |
| 18. |
Core Industries are |
| A. | Basic industries |
| B. | Consumer goods industries |
| C. | Capital goods industries |
| D. | Government industries |
| Answer» B. Consumer goods industries | |
| 19. |
Apart from the availability of raw material location of an industry is also dependent on the availability of: |
| A. | enviornmental protection and vegetation |
| B. | man power and energy source |
| C. | transport and bio energy |
| D. | water and inputs |
| Answer» C. transport and bio energy | |
| 20. |
An employer goes on employing more and more of a factor units until : |
| A. | the Average Revenue Productivity becomes equal to Marginal Revenue Productivity. |
| B. | the Marginal Revenue Productivity becomes zero. |
| C. | the Diminishing Marginal Returns sets into operation. |
| D. | the Marginal Revenue Productivity of a factor becomes equal to its reward. |
| Answer» E. | |
| 21. |
In terms of economics, if it is possible to make someone betteroff without making someone worseoff, then the situation is |
| A. | Inefficient |
| B. | Efficient |
| C. | Optimal |
| D. | Paretosuperior |
| Answer» B. Efficient | |
| 22. |
When will demand become a grant? |
| A. | When a demand is proposed |
| B. | After the discussion on demand is over |
| C. | After the demand is granted |
| D. | When the budget session is closed. |
| Answer» D. When the budget session is closed. | |
| 23. |
Pump priming should be resorted to at a time of ? |
| A. | Inflation |
| B. | Deflation |
| C. | Stagflation |
| D. | Reflation |
| Answer» C. Stagflation | |
| 24. |
Situation Analysis is useful for: |
| A. | Analysis of Capital Market |
| B. | SWOT Analysis |
| C. | Capital Market |
| D. | Analysis of Capital Market and Capital Market |
| Answer» C. Capital Market | |
| 25. |
Average Fixed Cost Curve is |
| A. | Upward sloping |
| B. | U shaped |
| C. | V shaped |
| D. | Downward sloping |
| Answer» E. | |
| 26. |
Galloping Inflation is also known as |
| A. | Walking Inflation |
| B. | Running Inflation |
| C. | Hyper Inflation |
| D. | Creeping Inflation |
| Answer» D. Creeping Inflation | |
| 27. |
Tax on inheritance is called |
| A. | Excise duty |
| B. | Estate duty |
| C. | Gift tax |
| D. | Sales tax |
| Answer» C. Gift tax | |
| 28. |
Short term contractions and expansions in economic activity are called _____ |
| A. | Expansions |
| B. | Recession |
| C. | Deficits |
| D. | The business cycle |
| Answer» E. | |
| 29. |
The term Macro Economics was used by __________ . |
| A. | J.M. Keynes |
| B. | Ragner Frisch |
| C. | Ragner Nurkse |
| D. | Prof. Knight |
| Answer» C. Ragner Nurkse | |
| 30. |
Which of the following curve describes the variation of household expenditure on a particular good with respect to household income ? |
| A. | Demand curve |
| B. | Engel curve |
| C. | Great Gatsby curve |
| D. | Cost curve |
| Answer» C. Great Gatsby curve | |
| 31. |
What will be the effect on inferior commodities when income of the consumer rises? |
| A. | Negative effect |
| B. | Positive effect |
| C. | No effect |
| D. | First increase then decrease |
| Answer» B. Positive effect | |
| 32. |
Equilibrium output is determined by: |
| A. | the equality between total Variable cost and Marginal revenue. |
| B. | the equality betweem Marginal cost and Marginal revenue. |
| C. | the equality between Average cost and Average revenue. |
| D. | the equality between total cost and total revenue. |
| Answer» C. the equality between Average cost and Average revenue. | |
| 33. |
If total product is at its maximum then: |
| A. | AP = 0 |
| B. | AP < 0 |
| C. | MP = 0 |
| D. | AP = MP = 0 |
| Answer» D. AP = MP = 0 | |
| 34. |
When average product of an input is at its maximum then : |
| A. | AP = 0 |
| B. | AP = MP |
| C. | AP > MP |
| D. | AP < MP |
| Answer» C. AP > MP | |
| 35. |
The Ability Principle of Taxation is given by |
| A. | Adam Smith |
| B. | Edgeworth |
| C. | Joan Robinson |
| D. | J.S.Mill |
| Answer» B. Edgeworth | |
| 36. |
Which curve shows the inverse relationship between unemployment and inflation rates ? |
| A. | Supply curve |
| B. | Indifference curve |
| C. | IS curve |
| D. | Phillips curve |
| Answer» E. | |
| 37. |
What are gilt edged securities? |
| A. | Securities issued by the multinational companies. |
| B. | Securities issued by the Government |
| C. | Securities issued by the private sector |
| D. | Securities issued by the joint venture companies |
| Answer» C. Securities issued by the private sector | |
| 38. |
Under-writting refers to |
| A. | under estimation |
| B. | under selling |
| C. | winding up the business |
| D. | an act of insuring risk |
| Answer» E. | |
| 39. |
A motion that seeks to reduce the amount of demand presented by government to Re. 1/is known as |
| A. | Disapproval of policy Cut |
| B. | Token cut |
| C. | Economy cut |
| D. | Vote on account |
| Answer» B. Token cut | |
| 40. |
What is included in the Tetiary sector ? |
| A. | Banking |
| B. | Manufacturing |
| C. | Forestry |
| D. | Mining |
| Answer» B. Manufacturing | |
| 41. |
An indifference curve measures ______________ level of satisfaction derived from different combinations of commodity X and Y. |
| A. | same |
| B. | higher |
| C. | lower |
| D. | minimum |
| Answer» B. higher | |
| 42. |
The General Equilibrium Analysis was developed by |
| A. | Marshall |
| B. | Ricardo |
| C. | Walras |
| D. | Adam Smith |
| Answer» D. Adam Smith | |
| 43. |
Economic development depends on : |
| A. | Natural resources |
| B. | Capital formation |
| C. | Size of the market |
| D. | All of the above |
| Answer» E. | |
| 44. |
The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called |
| A. | trickle down Hypothesis |
| B. | trickle up hypothesis |
| C. | U shaped hypothesis |
| D. | poverty estimation hypothesis |
| Answer» B. trickle up hypothesis | |
| 45. |
An indifference curve measures the same level of |
| A. | Output from two factors |
| B. | Satisfaction from two commodities |
| C. | Satisfaction from Income and Capital |
| D. | Satisfaction from expenditure and savings |
| Answer» C. Satisfaction from Income and Capital | |
| 46. |
The price of a commodity is the same as |
| A. | Average revenue |
| B. | Total cost |
| C. | Average cost |
| D. | Total revenue |
| Answer» B. Total cost | |
| 47. |
The basis of determining dearness allowance to employees in India is _______ |
| A. | National Income |
| B. | Consumer Price Index |
| C. | Standard of Living |
| D. | Inflation Rate |
| Answer» C. Standard of Living | |
| 48. |
Elasticity of demand is the degree of responsiveness of demand of a commodity to a |
| A. | change in consumers wealth |
| B. | change in the price of substitutes |
| C. | change in consumers tastes |
| D. | change in its price |
| Answer» E. | |
| 49. |
An economy in which there are no flows of labour, goods or money to and from other nations is a/an |
| A. | slow economy |
| B. | mixed economy |
| C. | closed economy |
| D. | open economy |
| Answer» D. open economy | |
| 50. |
The supply of labour in the market depends on |
| A. | the proportion of the population in the labour force |
| B. | the number of person hours put in by each person |
| C. | the size of population |
| D. | All the above |
| Answer» E. | |