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. |
When a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called |
| A. | Transfer of Capital |
| B. | Escape of Capital |
| C. | Outflow of Capital |
| D. | Flight of Capital |
| Answer» E. | |
| 2. |
The Interest Rate Policy is a component of |
| A. | Fiscal Policy |
| B. | Monetary Policy |
| C. | Trade Policy |
| D. | Direct Control |
| Answer» C. Trade Policy | |
| 3. |
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 | |
| 4. |
In a highly developed country the relative contribution of agriculture to GDP is |
| A. | relatively high |
| B. | relatively low |
| C. | the same as that of other sectors |
| D. | zero |
| Answer» C. the same as that of other sectors | |
| 5. |
National income accounting isthe study of the income and expenditure of the entire |
| A. | family |
| B. | state |
| C. | economy |
| D. | organisation |
| Answer» D. organisation | |
| 6. |
The functional relationship between income and consumption expenditure is explained by |
| A. | Consumer Surplus |
| B. | Law of Demand |
| C. | Law of Supply |
| D. | Keynes s psychological law of consumption |
| Answer» E. | |
| 7. |
Consumptions function refers to |
| A. | relationship between income and employment |
| B. | relationship between savings and investment |
| C. | relationship between input and output |
| D. | relationship between income and consumption |
| Answer» E. | |
| 8. |
Economic problem arises mainly due to |
| A. | overpopulation |
| B. | unemployment |
| C. | scarcity of resources |
| D. | lack of industries |
| Answer» D. lack of industries | |
| 9. |
Division of labour is the result of |
| A. | Complicated work |
| B. | excessive pressure |
| C. | excess supply of labour |
| D. | specialisation |
| Answer» E. | |
| 10. |
An increase in per capital income is not an indication of an increase in the economic welfare of the people |
| A. | When such increase is the result of an increased production of comforts |
| B. | When such increase is the result of an increase in agricultural production |
| C. | When it is the result of an increase in the production of industrial goods |
| D. | When such increase is the result of increased production of intoxicants |
| Answer» E. | |
| 11. |
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. | |
| 12. |
Different firms constituting the industry, produce homogeneous goods under |
| A. | monopoly |
| B. | monopolistic competition |
| C. | oligopoly |
| D. | perfect competition |
| Answer» E. | |
| 13. |
The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called |
| A. | Consumer s Surplus |
| B. | Producer s Surplus |
| C. | Landlord s Surplus |
| D. | Worker s Surplus |
| Answer» B. Producer s Surplus | |
| 14. |
What are the main components of basic social infrastructure of an economy ? |
| A. | Education, Industry and Agriculture |
| B. | Education, Health and Civil amenities |
| C. | Transport, Health and Banks |
| D. | Industry, Trade and Transport |
| Answer» C. Transport, Health and Banks | |
| 15. |
The term market in Economics means |
| A. | A central place |
| B. | Presence of competition |
| C. | Place where goods are stored |
| D. | Shops and super bazars |
| Answer» B. Presence of competition | |
| 16. |
Selling cost means: |
| A. | Cost of selling a product |
| B. | Cost incurred in transportation |
| C. | Cost Incurred in advertisement |
| D. | Cost Incurred on factors of production |
| Answer» D. Cost Incurred on factors of production | |
| 17. |
A situation of large number of firms producing similar goods is termed as : |
| A. | Perfect competition |
| B. | Monopolistic competition |
| C. | Pure competition |
| D. | Oligopoly |
| Answer» B. Monopolistic competition | |
| 18. |
Which of the following are not fixed costs? |
| A. | Rent on land |
| B. | Municipal taxes |
| C. | Wages paid to workers |
| D. | Insurance charges |
| Answer» D. Insurance charges | |
| 19. |
If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is |
| A. | perfectly inelastic |
| B. | elastic |
| C. | perlectly elastic |
| D. | inelastic |
| Answer» D. inelastic | |
| 20. |
Same price prevails throughout the market under |
| A. | perfect competition |
| B. | monopoly |
| C. | monopolistic competition |
| D. | oligopoly |
| Answer» B. monopoly | |
| 21. |
The self-employed in a developing country who are engaged in small scale labour intensive work belong to the |
| A. | Informal sector |
| B. | Primary sector |
| C. | Secondary sector |
| D. | Tertiary sector |
| Answer» C. Secondary sector | |
| 22. |
Division of labour is limited by |
| A. | the number of workers |
| B. | hours of work |
| C. | extent of the market |
| D. | working space |
| Answer» D. working space | |
| 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 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 | |
| 25. |
Basic infrastructure facilities in Economics are known as : |
| A. | Human capital |
| B. | Physical capital |
| C. | Social overheads capital |
| D. | Working capital |
| Answer» D. Working capital | |
| 26. |
Interest on public debt is part of |
| A. | Transfer payments by the enterprises |
| B. | Transfer payments by the government |
| C. | National income |
| D. | Interest payments by households |
| Answer» C. National income | |