Gresham's law in economics relates to ________.

Distribution of goods and services

Based on the recommendation of the Commission for Agricultural Costs and Prices, the Minimum Support Price (MSP) in India is declared by ______,

Department of Agriculture, Cooperation and Farmers Welfare

Out of the following which is not a reason for decrease in supply

Increase in price of factors of production

Increase in price of a competing good

Decrease in the number of firms in the market

Increase in price of factors of production

A consumer is said to be in equilibrium, if:

His income and expenditure are equal

He is able to locate new sources of income

He is able to fulfil his needs with a given level of income

His income and expenditure are equal

He can fulfil his needs without consumption of certain items

'Fiscal policy' means

Deficiency as an instrument of growth

Balancing the revenue collection and expenditure

Establishing equilibrium between demand and supply of goods and services

Use of taxation, public borrowing and public expenditure by Government for purposes of 'stabilization' or 'development'

Deficiency as an instrument of growth

According to the FDI policy of India, in which of the following areas 100% FDI is not allowed in equity by automatic route in India?

Construction development projects

Maintenance and repair organization

“Gilt-edged” means _______.

market of government securities

In India, the term ‘hot money’ is used to refer to ________.

Currency + Reserves with the RBI

Devaluation is majorly done to ________.

To encourage both export and import

Consider the following statements and select the correct answer from the code below:Assertion (A): Economic development requires a multi-dimensional approach.Reason (R): The present government of India is focussing mainly on micro-economic issues.

Both (A) and (R) are true and (R) is correct explanation of (A).

Both (A) and (R) are true and (R) is not correct explanation of (A).

1769 + Mcqs in Indian Economy Page 27 McqOptions

1301.	______ policy refers to the use of monetary instruments under the control of the central bank to regulate the economic magnitudes.
A.	Fiscal
B.	Revenue
C.	Monetary
D.	Trade
Answer» D. Trade

Discussion

1302.	Gresham's law in economics relates to ________.
A.	Supply and demand
B.	Distribution of goods and services
C.	Consumption and supply
D.	Circulation of currency
Answer» E.

Discussion

1303.	In India, Inflation is measured by the ________.
A.	BSE Index
B.	Consumer Price Index
C.	National Income Deflation
D.	Income Tax Department
Answer» C. National Income Deflation

Discussion

1304.	According to the Planning Commission of India, which of the following are correct for the poverty line?I. Rs 42 per capita per day in urban areaII. Rs 26 per capita per day in rural areaIII. Rs 32 per capita per day in urban areaIV. Rs 32 per capita per day in rural areaChoose the correct option from the following.
A.	I and II
B.	I and III
C.	II and III
D.	III and IV
Answer» D. III and IV

Discussion

1305.	Minimum Support Price for 2018-19 for Paddy of the Common variety is set at _______.
A.	₹2,430 per quintal
B.	₹1,850 per quintal
C.	₹5,150 per quintal
D.	₹1,950 per quintal
Answer» C. ₹5,150 per quintal

Discussion

1306.	Consider the following statements about impact of tax:1. A tax is shifted forward to consumers if the demand is inelastic relative to supply.2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand.Which of the statements given above is/are correct?
A.	1 only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» D. Neither 1 nor 2

Discussion

1307.	How many banks were nationalized in India on 15th April 1980 ?
A.	4
B.	5
C.	6
D.	8
Answer» D. 8

Discussion

1308.	Based on the recommendation of the Commission for Agricultural Costs and Prices, the Minimum Support Price (MSP) in India is declared by ______,
A.	Revenue Department
B.	Department of Agriculture, Cooperation and Farmers Welfare
C.	Expenditure department
D.	Department of Economic Affairs
Answer» C. Expenditure department

Discussion

1309.	According to the government estimates during 12th Five Year Plan, the infrastructure sector will require an investment of
A.	100 billion
B.	250 billion
C.	500 billion
D.	1000 billion
Answer» B. 250 billion

Discussion

1310.	Money value of all the goods and services produced in a country in a year is called as ______.
A.	National income
B.	Net value
C.	Gross profit
D.	Profit
Answer» B. Net value

Discussion

1311.	'Hydro Carbon Vision, 2025' is associated with:
A.	Storage of Petroleum products
B.	Euro-I and Euro-II
C.	Greenhouse effect
D.	None of these
Answer» B. Euro-I and Euro-II

Discussion

1312.	________ states that 'bad money drives good money out circulation'.
A.	Gresham's Law
B.	Campbell's Law
C.	Engle's Law
D.	Baxter's Law
Answer» B. Campbell's Law

Discussion

1313.	Out of the following which is not a reason for decrease in supply
A.	Increase in price of a competing good
B.	Decrease in the number of firms in the market
C.	Improvement in technology
D.	Increase in price of factors of production
Answer» D. Increase in price of factors of production

Discussion

1314.	A consumer is said to be in equilibrium, if:
A.	He is able to locate new sources of income
B.	He is able to fulfil his needs with a given level of income
C.	His income and expenditure are equal
D.	He can fulfil his needs without consumption of certain items
Answer» C. His income and expenditure are equal

Discussion

1315.	IFTAS (Indian Financial Technology and Allied Services) is a wholly owned subsidiary of which of the following banks?
A.	SBI
B.	RBI
C.	IMF
D.	ICICI
Answer» C. IMF

Discussion

1316.	‘Double coincidence of wants’ is a feature of which system?
A.	Forex system
B.	Barter system
C.	Equity system
D.	Liquidity system
Answer» C. Equity system

Discussion

1317.	BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and _______.
A.	Singapore
B.	Sri Lanka
C.	Saudi Arabia
D.	South Africa
Answer» E.

Discussion

1318.	Leakages, which have a negative impact on the process of income generation in the economy are
A.	Savings
B.	Imports
C.	Taxes by the government
D.	All of the above
Answer» E.

Discussion

1319.	Kisan Mitra is an employee of:
A.	Union government
B.	State government
C.	NABARD
D.	Ministry of Agriculture
Answer» C. NABARD

Discussion

1320.	'Fiscal policy' means
A.	Balancing the revenue collection and expenditure
B.	Establishing equilibrium between demand and supply of goods and services
C.	Use of taxation, public borrowing and public expenditure by Government for purposes of 'stabilization' or 'development'
D.	Deficiency as an instrument of growth
Answer» D. Deficiency as an instrument of growth

Discussion

1321.	A situation of monopoly in the market refers to?
A.	One seller one buyer
B.	Many sellers, one buyer
C.	Many sellers, many buyers
D.	One seller, many buyers
Answer» E.

Discussion

1322.	7 workers work in a printing press. Each gets paid Rs 450 per day. The 8th worker demands Rs 500 per day. If this worker is hired then all other workers must be paid Rs 500. The marginal resource (labour) cost of the 8th worker is _______.
A.	Rs. 50
B.	Rs. 850
C.	Rs. 400
D.	Rs. 100
Answer» C. Rs. 400

Discussion

1323.	GDP Deflator is the ratio of ______.
A.	Marginal to Nominal GDP
B.	Constant to real GDP
C.	Marginal to Constant GDP
D.	Nominal to real GDP
Answer» E.

Discussion

1324.	Green Revolution was confined to
A.	Rice in West Bengal
B.	Cotton in Maharashtra
C.	Wheat in Punjab and Haryana
D.	Oilseeds in Andhra Pradesh
Answer» D. Oilseeds in Andhra Pradesh

Discussion

1325.	According to the FDI policy of India, in which of the following areas 100% FDI is not allowed in equity by automatic route in India?
A.	Construction development projects
B.	Industrial Park
C.	Maintenance and repair organization
D.	Private Security Agencies
Answer» E.

Discussion

1326.	Consider the following Statements : I. Varsha Bima, the rainfall insurance scheme, is managed by the Agriculture Insurance Company of India Limited (AICIL).II. The scheme was introduced during the 2007 south-west monsoon period.Which of the statements given above is/are correct?
A.	I only
B.	II only
C.	Both I and II
D.	Neither I nor II
Answer» B. II only

Discussion

1327.	Match the following: - 1. Oligopoly a) Large no. of sellers and buyers 2. Monopoly b) A small-large sellers and a large no. of buyers 3. Perfect competition c) One seller but large no. of buyers
A.	1-b, 2-c, 3-a
B.	1-c, 2-a, 3-b
C.	1-a, 2-b, 3-c
D.	1-b, 2-a, 3-c
Answer» B. 1-c, 2-a, 3-b

Discussion

1328.	Demand for which of the following commodities will be almost perfectly inelastic?
A.	Gold
B.	Cars
C.	Dining out
D.	Basic foodgrains
Answer» E.

Discussion

1329.	'Functional Finance' is associated with ________.
A.	Adams
B.	Adam Smith
C.	Adolph Wogner
D.	Abba P Lerner
Answer» E.

Discussion

1330.	Banking comes under which sector of economic growth?
A.	Primary sector
B.	Secondary sector
C.	Tertiary sector
D.	Quaternary sector
Answer» D. Quaternary sector

Discussion

1331.	In May 2017, the base year of All-Indian WPI (Wholesale Price Index) has been revised from 2004-05 to_________.
A.	2010-11
B.	2015-16
C.	2011-12
D.	2016-17
Answer» D. 2016-17

Discussion

1332.	As per the estimates of Planning Commission, which State had the highest number of poor people living below the poverty line in 2011-12?
A.	Madhya Pradesh
B.	Bihar
C.	Uttar Pradesh
D.	Maharashtra
Answer» D. Maharashtra

Discussion

1333.	Kinked demand curve is a characteristic of
A.	Duopoly
B.	Perfect competition
C.	Monopoly
D.	Oligopoly
Answer» E.

Discussion

1334.	“Gilt-edged” means _______.
A.	bullion market
B.	market of government securities
C.	market of guns
D.	market of pure metals
Answer» C. market of guns

Discussion

1335.	In which situation, do wages and prices chase each other at very quick speeds?
A.	Disinflation
B.	Reflation
C.	Stagflation
D.	Hyper-inflation
Answer» E.

Discussion

1336.	Consider the following statements regarding Repo rate :1. It is the rate at which RBI lends money to Commercial Banks generally against Government Securities2. It is the rate at which RBI borrows money from Commercial Banks generally against Government Securities 3. It is the rate at which Commercial Banks keep Deposits with RBI Which of the above statements is/are correct?
A.	1 only
B.	2 only
C.	3 only
D.	1, 2 and 3
Answer» B. 2 only

Discussion

1337.	In economics, raw materials and money in the hand which are used up in production are called ________.
A.	Working capital
B.	Fixed capital
C.	Human capital
D.	Factors of production
Answer» B. Fixed capital

Discussion

1338.	In India, the term ‘hot money’ is used to refer to ________.
A.	Currency + Reserves with the RBI
B.	Net GDR
C.	Net Foreign Direct Investment
D.	Foreign Portfolio Investment
Answer» E.

Discussion

1339.	Horticulture Department of Haryana had planned to enhance the area under horticulture cultivation from 7 to _____ percent by 2016.
A.	25
B.	15
C.	18
D.	10
Answer» B. 15

Discussion

1340.	According to Tendulkar Methodology during 2004-05 to 2011-12 which of the following state of India has registered highest decline in the poverty ratio?
A.	Rajasthan
B.	Bihar
C.	Orrisa
D.	Jharkhand
Answer» D. Jharkhand

Discussion

1341.	Moradabad is renowned for _____ work and has carved a niche for itself in the handicraft industry throughout the world.
A.	copper
B.	brass
C.	diamond
D.	steel
Answer» C. diamond

Discussion

1342.	Devaluation is majorly done to ________.
A.	Encourage export
B.	encourage import
C.	discourage import
D.	To encourage both export and import
Answer» B. encourage import

Discussion

1343.	Consider the following statements and select the correct answer from the code below:Assertion (A): Economic development requires a multi-dimensional approach.Reason (R): The present government of India is focussing mainly on micro-economic issues.
A.	Both (A) and (R) are true and (R) is correct explanation of (A).
B.	Both (A) and (R) are true and (R) is not correct explanation of (A).
C.	(A) is true, but (R) is false.
D.	(A) is false, but (R) is true.
Answer» D. (A) is false, but (R) is true.

Discussion

1344.	A system in which local farmers were allowed to cultivate temporarily within a plantation is known as:
A.	shifting cultivation
B.	intensive cultivation
C.	extensive cultivation
D.	taungya cultivation
Answer» E.

Discussion

1345.	Match List-1 with List-2 and select the correct answer by using the code given below the list.List-I (Government Scheme/programme)List-II (Objective of Scheme)A. Hridaya Plan1. Developing all the basic amenities in more than 500 cities that have more than one lakh population.B. UDAY2. To take care of world heritage sites and to make these sites economically viable.C. Amrut Plan3. Financial turnaround of Power Distribution Companies of Public Sector
A.	A - 2, B - 1, C - 3
B.	A - 2, B - 3, C - 1
C.	A - 1, B - 2, C - 3
D.	A - 3, B - 2, C - 1
Answer» C. A - 1, B - 2, C - 3

Discussion

1346.	Limit of investment for outstanding corporate bond for Foreign Portfolio Investment in Union Budget 2020-21 has been extended upto
A.	9%
B.	10%
C.	12%
D.	15%
Answer» E.

Discussion

1347.	Match Column-A with Column-B and select the correct answer using the codes given below.Column-AColumn-Ba. Open general license1. Employmentb. TRYSEM2. External tradec. Wholesale price index3. Credit controld. Cash-reserve ratio4. Inflation
A.	a-2, b-1, c-4, d-3
B.	a-2, b-4, c-3, d-1
C.	a-4, b-3, c-2, d-1
D.	a-3, b-2, c-1, d-4
Answer» B. a-2, b-4, c-3, d-1

Discussion

1348.	During the last few years ______ used the open market sale of rice and wheat to check market price of these essential food-grains.
A.	FCI
B.	NABARD
C.	APMC
D.	NAFED
Answer» B. NABARD

Discussion

1349.	A commodity market has a _________ structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.
A.	Perfect Competition
B.	Monopoly
C.	Oligopoly
D.	Monopolistic Competition
Answer» C. Oligopoly

Discussion

1350.	Green revolution was introduced in which Five Year Plan of India?
A.	Seventh
B.	Fifth
C.	Second
D.	Third
Answer» E.

Discussion

Explore topic-wise MCQs in Testing Subject.

______ policy refers to the use of monetary instruments under the control of the central bank to regulate the economic magnitudes.

Gresham's law in economics relates to ________.

In India, Inflation is measured by the ________.

Minimum Support Price for 2018-19 for Paddy of the Common variety is set at _______.

Consider the following statements about impact of tax:1. A tax is shifted forward to consumers if the demand is inelastic relative to supply.2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand.Which of the statements given above is/are correct?

How many banks were nationalized in India on 15th April 1980 ?

Based on the recommendation of the Commission for Agricultural Costs and Prices, the Minimum Support Price (MSP) in India is declared by ______,

According to the government estimates during 12th Five Year Plan, the infrastructure sector will require an investment of

Money value of all the goods and services produced in a country in a year is called as ______.

'Hydro Carbon Vision, 2025' is associated with:

________ states that 'bad money drives good money out circulation'.

Out of the following which is not a reason for decrease in supply

A consumer is said to be in equilibrium, if:

IFTAS (Indian Financial Technology and Allied Services) is a wholly owned subsidiary of which of the following banks?

‘Double coincidence of wants’ is a feature of which system?

BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and _______.

Leakages, which have a negative impact on the process of income generation in the economy are

Kisan Mitra is an employee of:

'Fiscal policy' means

A situation of monopoly in the market refers to?

7 workers work in a printing press. Each gets paid Rs 450 per day. The 8th worker demands Rs 500 per day. If this worker is hired then all other workers must be paid Rs 500. The marginal resource (labour) cost of the 8th worker is _______.

GDP Deflator is the ratio of ______.

Green Revolution was confined to

According to the FDI policy of India, in which of the following areas 100% FDI is not allowed in equity by automatic route in India?

Consider the following Statements : I. Varsha Bima, the rainfall insurance scheme, is managed by the Agriculture Insurance Company of India Limited (AICIL).II. The scheme was introduced during the 2007 south-west monsoon period.Which of the statements given above is/are correct?

Match the following: - 1. Oligopoly a) Large no. of sellers and buyers 2. Monopoly b) A small-large sellers and a large no. of buyers 3. Perfect competition c) One seller but large no. of buyers

Demand for which of the following commodities will be almost perfectly inelastic?

'Functional Finance' is associated with ________.

Banking comes under which sector of economic growth?

In May 2017, the base year of All-Indian WPI (Wholesale Price Index) has been revised from 2004-05 to_________.

As per the estimates of Planning Commission, which State had the highest number of poor people living below the poverty line in 2011-12?

Kinked demand curve is a characteristic of

“Gilt-edged” means _______.

In which situation, do wages and prices chase each other at very quick speeds?

In economics, raw materials and money in the hand which are used up in production are called ________.

In India, the term ‘hot money’ is used to refer to ________.

Horticulture Department of Haryana had planned to enhance the area under horticulture cultivation from 7 to _____ percent by 2016.

According to Tendulkar Methodology during 2004-05 to 2011-12 which of the following state of India has registered highest decline in the poverty ratio?

Moradabad is renowned for _____ work and has carved a niche for itself in the handicraft industry throughout the world.

Devaluation is majorly done to ________.

Consider the following statements and select the correct answer from the code below:Assertion (A): Economic development requires a multi-dimensional approach.Reason (R): The present government of India is focussing mainly on micro-economic issues.

A system in which local farmers were allowed to cultivate temporarily within a plantation is known as:

Limit of investment for outstanding corporate bond for Foreign Portfolio Investment in Union Budget 2020-21 has been extended upto

Match Column-A with Column-B and select the correct answer using the codes given below.Column-AColumn-Ba. Open general license1. Employmentb. TRYSEM2. External tradec. Wholesale price index3. Credit controld. Cash-reserve ratio4. Inflation

During the last few years ______ used the open market sale of rice and wheat to check market price of these essential food-grains.

A commodity market has a _________ structure, if there is one seller of the commodity, the commodity has no substitute, and entry into the industry by another firm is prevented.

Green revolution was introduced in which Five Year Plan of India?