Explore topic-wise MCQs in Testing Subject.

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.

Which of the following is not correct about a population pyramid?

A. On the right side of the pyramid women’s age structure is shown.
B. It shows age and sex distribution of a population.
C. An expansive pyramid is narrow at the base but it expands as it moves up towards higher ages.
D. Population pyramids can be used to find the economic dependents supported in a particular population.
Answer» D. Population pyramids can be used to find the economic dependents supported in a particular population.
Discussion
2.

Given Harrod’s Growth Model as under:S(t) = aY(t)I(t) = ß[Y(t) - Y(t - 1)]S(t) = I(t)a, ß u003e 0.In this model sustained growth is indicated by satisfying the condition

A. ß/(ß - a) u003e 0
B. ß/(ß - a) u003c 0
C. ß/(ß - a) u003e 1
D. ß/(ß - a) u003c 1
Answer» D. ß/(ß - a) u003c 1
Discussion
3.

The situation of people in villages and towns of strong emigration receiving high amount of remittances has been described asprivate affluence and public squalorby

A. M. Todaro
B. John K. Galbraith
C. Arthur Lewis
D. Gunar Myrdal
Answer» C. Arthur Lewis
Discussion
4.

Which of the following models can be estimated using OLS following suitable transformation, if necessary? Here e denotes the exponential.(i) yt = a + ß × t + ut(ii) yt = a + ß ext + ut(iii) yt = a + ß x2t + ut(iv) ln (yt) = a + ß ln(xt) + utCodes:

A. (i) only
B. (i) and (iii) only
C. (i), (iii) and (iv) only
D. (i), (ii), (iii) and (iv)
Answer» D. (i), (ii), (iii) and (iv)
Discussion
5.

For a viable input-output system which conditions are postulated?

A. Hawkins-Simon conditions
B. Kuhn-Tucker conditions
C. Bhagwati-Eckaus conditions
D. Von Neumann conditions
Answer» B. Kuhn-Tucker conditions
Discussion
6.

Given that C.E.S. production function isP = ? [dL-? + (1 - d)K-?] -µ/?List - I List - IIa. ? i. Distribution parameterb. d ii. Substitution parameterc. ? iii. Returns to scale parameterd. µ iv. Efficiency parameterCodes:a b c d

A. iiiiiiiv
B. iiiiviii
C. iviiiiii
D. iiiiiiiv
Answer» D. iiiiiiiv
Discussion
7.

Assertion (AS): The prices of Government securities in gift-edged market are not formed freely.Reason (R): The Reserve Bank of India has a monopoly dealer position and the demand for Government securities has a captive nature.Codes:

A. (AS) is true, but (R) is false.
B. Both (AS) and (R) are correct, but (R) is not the correct explanation of (AS).
C. (AS) is not correct, but (R) is correct.
D. Both (AS) and (R) are correct and (R) is the correct explanation of (AS).
Answer» E.
Discussion
8.

The components of the organized sector of the money marketI. Bill marketII. Stock marketIII. Gift-edged marketIV. Bank loan marketCodes:

A. I and III are correct.
B. I, III and IV are correct.
C. I, II and IV are correct.
D. I and IV are correct.
Answer» E.
Discussion
9.

Find out the correct answer from the codes given below:Credit Rating Agencies in IndiaI. CRISILII. ICRAIII. TDICIIV. CARECodes:

A. I and II are correct.
B. I, II and III are correct.
C. I and IV are correct.
D. I, II and IV are correct.
Answer» E.
Discussion
10.

Regression coefficient is independent of change in

A. Origin but not of scale
B. Both origin and scale
C. Scale but not of origin
D. None of these
Answer» B. Both origin and scale
Discussion
11.

The M1 definition of money is

A. Currency outside banks and checking deposits
B. Currency outside banks, checking deposits and travellers checks
C. Currency outstanding and checking deposits
D. Currency outstanding, checking deposits and money market deposit accounts
Answer» C. Currency outstanding and checking deposits
Discussion
12.

In a multiple regression with two independent variables and 12 observations F value calculated is to be tested. What will be degrees of freedom for numerator and denominator in testing procedure?

A. 1 and 12
B. 2 and 11
C. 2 and 10
D. 1 and 10
Answer» D. 1 and 10
Discussion
13.

The biggest component of reserve money in India is

A. Treasury bills
B. Currency in circulation
C. Bankers deposits with RBI
D. Other deposits with RBI
Answer» C. Bankers deposits with RBI
Discussion
14.

What has been the monthly per capita expenditure (Uniform Reference Period) for urban population of India (at 2004-05 prices) as per the 68th Round of NSSO (2011-12)?

A. Rs. 707.24
B. Rs.1,359.75
C. Rs. 1,785.81
D. Rs. 2,401.68n)
Answer» C. Rs. 1,785.81
Discussion
15.

Who among the following is not associated with the collective bargaining by the labour with the management?

A. R.G. Lipsey
B. Neil W. Chamberlain
C. Carl M. Stevens
D. Bevars D. Mabry
Answer» B. Neil W. Chamberlain
Discussion
16.

Make out a correct combination from the following sets I u0026 II in the context of the industrial economics:Set - I Set - IIi. SCP Approach a. James Buchananii. Transaction Cost Theory b. Neoclassical Theoryiii. Public Choice Theory c. Herfindahl-Hirschmann Indexiv. Industrial Concentration d. WilliamsonCodes:i ii iii iv

A. bdac
B. cdbc
C. acdb
D. dbac
Answer» B. cdbc
Discussion
17.

For a firm in long-run equilibrium producing anallocatively efficient level of output where marginal cost is equal to demand, which of the following does not apply?

A. Price is sufficient to cover the opportunity cost.
B. Profit of the firm becomes zero.
C. Price is sufficient to covercosts.
D. This situation also satisfies the consumers.
Answer» C. Price is sufficient to covercosts.
Discussion
18.

Backward-bending supply curve of labour suggests that

A. When wage rate increases, supply of labour declines.
B. When wage rate declines, supply of labour increases.
C. There is no relationship between wage rate and labour supply.
D. When wage rate increases, initially labour supply increases and after some point with the increase in wage rate, labour supply decreases.
Answer» E.
Discussion
19.

What is the formula for tax devolution used by the Thirteenth Finance Commission of India?Formula Population (%) (1971) Area (%) Fiscal capacity distance (%) Fiscal Discipline

A. 25.017.510.047.5
B. 10.025.047.517.5
C. 25.010.047.517.5
D. 17.510.025.047.5
Answer» D. 17.510.025.047.5
Discussion
20.

What will be the value of Herfindahl-Hirschmann Index of market concentration for the following industry?Share of firms Firm-1 Firm-2 Firm-3 Firm-4 Firm-5 Firm-6Industry 30 25 15 15 10 5

A. 55
B. 35
C. 2100
D. None of the above
Answer» D. None of the above
Discussion
21.

Which of the following programmes is not included in rural infrastructure development in India?

A. Integrated Low Cost Sanitation Scheme (ILCS)
B. Bharat Nirman
C. Indira Awas Yojana (IAY)
D. Total Sanitation Campaign (TSC)
Answer» B. Bharat Nirman
Discussion
22.

As per the revised estimate, the plan expenditure of the budget estimate for 2012-13 in India has been lowered by

A. 9.0 percent
B. 15.0 percent
C. 18.0 percent
D. 23.0 percent
Answer» E.
Discussion
23.

Match different deficit indicators given in List - I with the value in List - II for the Union Budget 2013-14:List - I List - IIi. Revenue deficit a. 1.5ii. Effective revenue deficit b. 1.8iii. Fiscal deficit c. 3.3iv. Primary deficit d. 4.8Codes:i ii iii iv

A. acbd
B. bcda
C. cbdc
D. adcb
Answer» D. adcb
Discussion
24.

Arrange the following in chronological order:I. Task Force on Direct and Indirect Taxes (Kelkar Committee)II. Replacement of State Sales Taxby Value Added TaxIII. Introduction of MODVATIV. Fiscal Responsibility and Budget Management ActCodes:

A. III, II, IV, I
B. III, I, IV, II
C. III, IV, I, II
D. II, III, IV, I
Answer» C. III, IV, I, II
Discussion
25.

Find out the items which are not in the scope of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM):

A. Internal earmarking within local body budgets for basic services to the urban poor.
B. Provide legal and financial support to metro/mono-rail projects in urban areas.
C. Earmarking of at least 20-25percent of developed land in all housing projects for the economically weaker sections and low income groups category.
D. Implementation of a seven point charter for provisioning of seven basic entitlements/services.
Answer» C. Earmarking of at least 20-25percent of developed land in all housing projects for the economically weaker sections and low income groups category.
Discussion
26.

Match the different Five Year Plans of India given in List - I with the annual growth rate of National Income (at 2004-05 prices) given in List - II:List - I List - IIi. Eighth Plan a. 5.5 percentii. Ninth Plan b. 6.7 percentiii. Tenth Plan c. 7.5 percentiv. Eleventh Plan d. 7.8 percentCodes:i ii iii iv

A. bacd
B. acdb
C. bdab
D. dbca
Answer» B. acdb
Discussion
27.

Which of the following tax is introduced in India in 1953 and abolished in 1985?

A. Estate Duty
B. Expenditure Tax
C. Gift Tax
D. Agricultural Income-tax
Answer» B. Expenditure Tax
Discussion
28.

Which of the following are Government of India debt obligations?I. State Provident FundsII. Small SavingsIII. Reserve MoneyIV. Reserve Funds and DepositsCodes:

A. I and II are correct.
B. I, II and IV are correct.
C. II and IV are correct.
D. I, II and III are correct.
Answer» C. II and IV are correct.
Discussion
29.

Match the items given in List - I with those in List - II:List - I List - III. Third Finance Commission 1. J.M. ShelatII. Sixth Finance Commission 2. A.K. ChandaIII. Seventh Finance Commission 3. K.C. PantIV. Tenth Finance Commission 4. K. Brahmananda ReddyCodes:I II III IV

A. 4132
B. 3412
C. 2341
D. 2413
Answer» E.
Discussion
30.

Hedging refers to

A. The acceptance of a foreign exchange risk
B. The covering of a foreign exchange risk
C. Foreign exchange speculation
D. Foreign exchange arbitrage
Answer» C. Foreign exchange speculation
Discussion
31.

Which of the following is not related with optimum currency area?

A. Optimal geographical area for several currencies whose exchange rates are relatively pegged.
B. Single currency do not fluctuate vis-à-vis other currencies.
C. Single currency or the pegged currencies fluctuate jointly visà-vis other currencies.
D. Optimal geographical area for a single currency.
Answer» C. Single currency or the pegged currencies fluctuate jointly visà-vis other currencies.
Discussion
32.

Which one of the following tax is within the jurisdiction of the State Governments as enumerated in List - II of the Constitution of India?

A. Taxes other than stamp duties on transactions in stock exchange and future markets.
B. Taxes on Railway freights and fares.
C. Taxes on mineral rights subject to any limitations imposed by the Parliament.
D. Rate of stamp duty in respect of certain financial documents.
Answer» D. Rate of stamp duty in respect of certain financial documents.
Discussion
33.

The experience with managed exchange rates since 1973

A. Strongly supports a fixed exchange rate system.
B. Strongly supports a freely flexible exchange rate system.
C. Mildly supports a flexible exchange rate system.
D. Supports some restriction on exchange rate fluctuations.
Answer» E.
Discussion
34.

An example of a Euro currency is

A. A Dollar deposit outside the U.S.
B. A Pound Sterling deposit outside the U.K.
C. A Mark deposit outside Germany
D. All of the above
Answer» E.
Discussion
35.

List - I List - IIa. Free trade area 1. No restrictions on trade and factor movementb. Customs union 2. Trade is free and no Customs Dutiesc. Common market 3. No Customs Duties but duties on nonmembersd. Economic union 4. Advanced stage of integrationCodes:a b c d

A. 2134
B. 3241
C. 2314
D. 1342
Answer» D. 1342
Discussion
36.

Which of the following issues did the Uruguay Round not address?

A. Migration
B. Intellectual Property Rights
C. Services
D. Tariff
Answer» B. Intellectual Property Rights
Discussion
37.

Assertion (AS): Agricultural income is taxed by the Union Government.Reason (R): Agriculture is a State subject.Codes:

A. Both (AS) and (R) are true and (R) is the correct explanation of (AS).
B. Both (AS) and (R) are true and (R) is not the correct explanation of (AS).
C. (AS) is true, but (R) is false.
D. (AS) is false, but (R) is true.
Answer» E.
Discussion
38.

Assertion (AS): In the agricultural lending mechanism of India, moneylenders despite their usurious rates of interest are still predominant.Reason (R): Most often the commercial banks could not meet the target of 18% of their total lending for the agricultural sector in the country.Codes:

A. Both (AS) and (R) are true and (R) is the correct explanation of (AS).
B. Both (AS) and (R) are true, but (R) is not the correct explanation of (AS).
C. (AS) is true and (R) is false.
D. (AS) is false and (R) is true.
Answer» B. Both (AS) and (R) are true, but (R) is not the correct explanation of (AS).
Discussion
39.

Which State in India has the lowest Infant Mortality Rate?

A. Maharashtra
B. Goa
C. Gujarat
D. Kerala
Answer» E.
Discussion
40.

List - I List - IIi. 1st Five Year Plan a. Agricultureii. 2nd Five Year Plan b. Heavy industriesiii. 5th Five Year Plan c. Anti-poverty Programmesd. Luxury itemsCodes:

A. i - a, ii - b, iii - c
B. i - d, ii - b, iii - c
C. i - d, ii - c, iii - a
D. i - c, ii - a, iii - b
Answer» B. i - d, ii - b, iii - c
Discussion
41.

Which one of the following does not come under land reforms in India?(a) Abolition of Intermediaries and Tenancy Legislation(b) Ceiling on Land Holding and Co-operating Farming(c) Tenancy Legislation and Technology Upgradation(d) Abolition of Intermediaries and Green RevolutionCodes:

A. (a) and (c)
B. (a) and (d)
C. (a) and (b)
D. (a), (b), (c) and (d)
Answer» D. (a), (b), (c) and (d)
Discussion
42.

Match items given in List - I with those in List - II:List - I List - IIa. Green Revolution 1. Oilseedsb. Yellow Revolution 2. Milkc. White Revolution 3. Fishd. Blue Revolution 4. WheatCodes:a b c d

A. 4123
B. 4213
C. 2134
D. 2431
Answer» B. 4213
Discussion
43.

Assertion (AS): In India, ‘Green Revolution’ was also criticized as Wheat Revolution.Reason (R): The productivity of wheat in India during the1970’s was one of the highest in the world.Codes:

A. Both (AS) and (R) are true and(R) is the correct explanation of (AS).
B. Both (AS) and (R) are true, but(R) is not the correct explanation of (AS).
C. (AS) is true, but (R) is false.
D. (AS) is false, but (R) is true.
Answer» B. Both (AS) and (R) are true, but(R) is not the correct explanation of (AS).
Discussion
44.

The fundamental cause for the collapse of the Bretton Woods System was

A. The liquidity problem
B. The adjustment problem
C. The confidence problem
D. All of the above
Answer» E.
Discussion
45.

In India, Five Year Plan is formulated by

A. C.S.O.
B. Planning Commission
C. Finance Commission
D. Planning Ministry
Answer» E.
Discussion
46.

The rational expectations hypothesis does not imply:

A. People do not make systematic errors.
B. On average the economy will be close to Long-run Average Supply (LAS) Curve.
C. Policy makers have better information about the economy than other economic actors.
D. Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.
Answer» D. Macroeconomic policy changes must came as a surprise in order to have an impact on the real economy.
Discussion
47.

Indian planning mechanism was criticised by

A. A.K. Sen
B. Jagdish Bhagwati
C. L.K. Jha
D. Bimal Jalan
Answer» C. L.K. Jha
Discussion
48.

Which of the following is not an interpretation of the golden rule of accumulation?

A. ‘Invest your profits, consume your wages.’
B. The share of profit in output is equal to the ratio of investment to output.
C. Saving ratio should be equal to the elasticity of output with respect to capital.
D. None of the above.
Answer» E.
Discussion
49.

According to A.K. Sen, famines occurred in India because of

A. Lack of proper distribution mechanism
B. Lack of demand
C. Lack of transportation
D. Shortage of foodgrains
Answer» B. Lack of demand
Discussion
50.

In which year, the Wildlife Board in India was established?

A. 1952
B. 1968
C. 1986
D. 1992
Answer» B. 1968
Discussion