Correct : B. the equality between Marginal cost and Marginal revenue.
2. An employer goes on employing more and more of a factor units until :
Correct : D. the Marginal Revenue Productivity of a factor becomes equal to its reward.
3. The main emphasis of Keynesian economics is on -
Correct : A. Expenditure
4. The book which is at the centrepiece of the study of Macro - Economics was written by -
Correct : B. Prof. J.M. Keynes
5. Which of the following items is a major item of Indian export?
Correct : D. Car engines
6. Indian agriculture is typically characterised as -
Correct : C. land scarce, labour surplus economy
7. The most accessible medium in India is
Correct : D. Newspapers
8. Capital Market Regulator is:
Correct : C. SEBI
9. The term 'Dumping' refers to -
Correct : B. Sale in a foreign market of a commodity at a price below marginal cost
10. "Globalisation of Indian Economy" denotes :
Correct : B. having minimum intervention in economic relations with other countries
11. Full convertibility of a rupeee means -
Correct : D. determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
12. The term stagflation refers to a situation where -
Correct : D. rate of growth is slower than the rate of price increase
13. What does the letter `e' denotes in the term `e - banking'?
Correct : C. Electronic Banking
14. The Cash Reserve Ratio is a tool of :
Correct : A. Monetary policy
15. The 'Interest Rate Policy' is a component of -
Correct : B. Monetary Policy
16. A mixed economy works primarily through the -
Correct : D. market mechanism guided by Government participation and planning
17. Which one of the following is the most appropriate reason for Inequalities in Income?
Correct : B. Lack of opportunities
18. Which one of the following is not included in current revenue of the Union Government?
Correct : C. Loans
19. Which is the parameter for the economic development?
Correct : A. Per capita monetary income
20. The supply-side economics lays greater emphasis on -
Correct : A. Producer
21. Which of the following is not included in the National Income?
Correct : C. Winning a lottery
22. Personal disposable income is -
Correct : D. equal to personal income minus direct taxes
23. Depreciation is equal to —
Correct : A. Gross national product —Net national product
24. National Income Estimates in India are prepared by:
Correct : D. Central Statistical Organization
25. Over short period, when income rises, average propensity to consume usually -
Correct : B. falls
26. According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the -
Correct : A. Marginal efficiency of capital
27. When average product of an input is at its maximum then :........
note:(AP= Average product) (MP= Marginal product.)
Correct : D. AP = MP
28. If total product is at its maximum then:.......
note:(AP= Average product) (MP= Marginal product.)
Correct : C. MP = 0
29. The innovation theory of profit was proposed by -
Correct : C. Schumpeter
30. Aneconomy in which there are no flows of labour, goods or money to and from other nations is a/an -
Correct : C. closed economy
31. Seawater, fresh air, etc., are regarded in Economics as -
Correct : C. free goods
32. Which of the following does not determine supply of labour?
Correct : C. Marginal productivity of labour
33. The 'break-even' point is where
Correct : C. total revenue equals total cost
34. The value of a commodity expressed in terms of money is known as -
Correct : A. Price
35. Total fixed cost curve is -
Correct : B. Horizontal
36. Economic rent does not arise when the supply of a factor unit is -
Correct : B. Perfectly elastic
37. The supply of labour in the economy depends on -
Correct : A. Population
38. Which one of the following pairs of goods is an example for Joint Supply?
Correct : D. Wool and Mutton
39. Goods which are meant either for consumption or for investment are called -
Correct : A. Final goods
40. Which is the most essential function of an entrepreneur?
Correct : D. Risk bearing
41. Which of the following most closely approximates our definition of oligopoly?
Correct : A. The cigarette industry
42. One of the essential conditions of perfect competition is :
Correct : D. Only one price for identical goods at any one time.
43. Pump priming should be resorted to at a time of?
Correct : B. Deflation
44. When will demand become a grant?
Correct : C. After the demand is granted
45. The value of investment multiplier relates to -
Correct : B. change in autonomous investment due to change in income.
46. Savings rate is relatively low in developed economies because of -
Correct : B. Welfare programmes
47. A rising Per Capita Income will indicate a better welfare if it is accompanied by -
Correct : C. changed Income distribution in favour of poor.
48. National Income is generated from:
Correct : B. any laborious activity
49. Net National Product of a country is -
Correct : D. GNP minus depreciation allowances
50. Which one of the following is not a method of estimating National Income?
Correct : C. Matrix method
51. Who said 'Supply creates its own demand'?
Correct : B. J.B.Saw
52. Investment is equal to :
Correct : B. gross total of all capital assets minus wear and tear
53. 'Gold' is mainly related to -
Correct : C. International market
54. Value-added means value of -
Correct : D. goods and services less cost of intermediate goods and services
55. In India, disguised unemployment is generally observed in -
Correct : A. the Agricultural sector
56. Excise duty on a commodity is payable with reference to its -
Correct : A. production
57. "Smart Money" term is used for -
Correct : A. Credit Card
58. Which of the following brings out the 'Consumer Price Index Number' for Industrial workers?
Correct : B. The Labour Bureau
59. 'Green Banking' means :
Correct : D. Banks financing pro environmental projects
60. A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
Correct : A. Soft currency
61. A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
Correct : B. Bull
62. Bank rate is that rate on which -
Correct : C. Central Bank of Country lends money to the commercial banks
63. Devaluation usually causes the internal prices to :
Correct : C. remain unchanged
64. Which among the following is not a non-customs duty obstacle in the world trade?
Correct : C. Determination of import duty uniformly
65. seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
Correct : A. defence
66. Which one of the following does not deal with export promotion?
Correct : C. Cooperative Marketing Societies
67. Which of the following sets belongs to Central tax?
Correct : B. Excise duty, Custom duly and Income tax
68. ho defined 'Rent' as that portion or produce of the earth which is paid to the landlord for the use of original and indestructible power of the soil?
Correct : A. Ricardo
69. Economies of a firm are :
Correct : D. Saving in it's production costs
70. Nature of unemployment in agriculture in India is -
Correct : C. Both (1) and (2)
71. The monetary policy is India is formulated by -
Correct : C. Reserve Bank of India
72. The system of "Memorandum of Understanding” (MoU) was introduced in -
Correct : C. 1987 - 88
73. The upper limit of investment in plant and machinery for small-scale industries has been fixed currently at -
Correct : D. Rs. 1 crore
74. What is USP in marketing field?
Correct : D. Exclusive marketing features
75. When too much money is chasing too few goods, the situation is -
Correct : B. inflation
76. When there is an official change in the exchange rate of domestic currency, then it is called
Correct : B. Depreciation
77. Inflation redistributes income and wealth in favour of :
Correct : D. Rich
78. Money market is a market for -
Correct : A. Short term fund
79. MUDRA Bank has been launched to help -
Correct : A. Small business
80. Industrial exit policy means -
Correct : D. allowing business units to close down
81. Capital formation in an economy depends on -
Correct : C. Total savings
82. If the tax rate increases with the higher level of income, it shall be called -
Correct : B. Progressive tax
83. New capital issue is placed in -
Correct : C. Primary market
84. If a country devalues its currency, its -
(1)
Correct : A. Exports become cheaper and imports become costlier
85. 'Residex' is associated with -
Correct : D. Land prices
86. Which one of the following is not a function of the central bank in an economy?
Correct : C. Controlling government spending
87. In a period of inflation and price rises the supply of money remains -
Correct : B. increases
88. Which of the following groups suffer the most from inflation?
Correct : B. Creditors
89. What is "narrow money"?
Correct : A. The sum of currency in circulation and the demand deposits in banks
90. Legal Tender Money is -
Correct : B. accepted by people and Government as per the law
91. Bank rate is the rate of interest:
Correct : C. At which Commercial Banks borrow money from R.B.I.
92. Which of the following can be used for checking inflation temporarily?
Correct : B. Decrease in money supply
93. he annual record for all the monetary transactions of a country with other countries of the world is known as -
Correct : C. Balance of payments
94. A country's balance of trade is unfavorable when —
Correct : B. imports exceed exports
95. Which one of the following categories of workers is termed as cultivators?
Correct : C. Those who cultivate the land of others
96. The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called -
Correct : C. Excess reserves
97. J. B. Say's Law of Market was not accepted by -
Correct : B. Marshall
98. The time element in price analysis was introduced by :