1. If a change in all inputs leads to a proportionate change in output, it is case of -
Correct : A. Constant returns to scale
2. Which of the following is a consequence of inflationary price rise?
Correct : C. All of these
3. Price mechanism is a feature of -
Correct : A. Capitalist economy
4. The main feature of a capitalist economy is -
Correct : D. Private ownership
5. Personal Income' equals -
Correct : C. Personal disposable income plus miscellaneous receipts of the Goverment
6. According to the classical system, saving is a function of -
Correct : A. Income
7. Which of the following concepts are most closely associated with J.M. Keynes?
Correct : D. Marginal efficiency of captial
8. When the total product rises at an increasing rate, the -
Correct : B. marginal product is rising
9. If an industry is characterized by economies of scale then -
Correct : B. long run unit costs of production decreases as the quantity the firm produces increases
10. Movement along the same demand curve is know as -
Correct : B. Increase and Decrease of Demand
11. What are gilt-edged securities?
Correct : B. Securities issued by the Government
12. Which curve shows the inverse relationship between unemployment and inflation rates?
Correct : D. Phillips curve
13. Collective consumption means -
Correct : D. consumption by the citizens of the country
14. The market equilibrium for a commodity is determined by :
Correct : B. The balancing of the forces of demand and supply for the commodity
15. Which of the following would not constitute an economic activity in Economics?
Correct : C. A teacher teaching his own daughter at home
16. Which one of the following is not included while estimating national income through income method?
Correct : C. Pension
17. Who defined investment as "the construction of a new capital asset like machinery or factory building"?
Correct : B. J.M. Keynes
18. An individual's actual standard of living can be assessed by -
Correct : C. Per Capita Income
19. The standard of living in a country is represented by its:
Correct : B. per capita income
20. Capital output ratio of a commodity measures -
Correct : B. the amount of capital invested per unit of output
21. Taxes on professions can be levied by :
Correct : A. State government only
22. A part of National Debt known as External Debt is the amount -
Correct : C. borrowed by its government from abroad
23. Which of the following is not considered as National Debt?
Correct : C. Insurance Policies
24. Disinvestments is -
Correct : B. offloading of government shares to private companies
25. Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes -
Correct : A. a fall in prices of output and resources
26. The theory of "Maximum Social Advantage" in Public Finance Was given by
Correct : D. Dalten
27. Taxes are as certain as the death, because -
Correct : A. They constitute the major source of government revenue.
28. In the context of the stock market, IPO stands for -
Correct : C. Initial Public Offer
29. Disinvestment in Public Sector is called
Correct : D. Privatisation
30. Which one of the following is NOT an example of indirect tax?
Correct : D. Expenditure tax
31. Interest on public debt is a part of :
Correct : B. transfer payments by the Govt.
32. A speculator who sells stocks, in order to buy back when price falls, for gain is a -
Correct : B. Bear
33. Inflation can be checked by -
Correct : D. decreasing money supply
34. "Legal Tender Money" refers to :
Correct : D. Currency notes
35. Gresham's Law means -
Correct : B. Bad money replaces good money in circulation
36. Free Trade refers to -
Correct : A. free movement of goods from one country to another
37. Insider trading is related to -
Correct : B. Share market
38. Situation Analysis is useful for:
Correct : B. SWOT Analysis
39. Which terns is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country?
Correct : D. GNP
40. Which one of the following is not a method for computing GNP?
Correct : A. Income Approach
41. An economy which does not have any relation with the rest of the world is known as
Correct : B. Closed economy
42. While estimating national income which of the following is not taken into account?
Correct : C. Services of a housewife
43. Consumptions function refers to -
Correct : D. relationship between income and consumption
44. Capital : Output Ratio of a measures -
Correct : B. the amount of capital invested per unit of output
45. "Supply creates its own demand" - Who said this?
Correct : A. J. B. Say
46. 'Take-off stage' in an economy means -
Correct : A. Steady growth begins.
47. Gross National Product - Depreciation Allowance =?
Correct : D. Net National Product
48. Interest paid by the government on the loans raised is called -
Correct : A. Debt Servicing
49. In an economy, the sectors are classified into public and private on the basis of -
Correct : C. ownership of enterprises
50. Which of the following taxes is such which does not cause rise in price?
Correct : B. Income tax
51. Who among the following has suggested tax on expenditure?
Correct : B. Kaldor
52. Which of the following is not helpful in controlling money supply?
Correct : A. Free market policy
53. Which term is not related to banking?
Correct : B. N .E.E .R.
54. The process of curing inflation by reducing money supply is called -
Correct : C. Disinflation
55. Longterm funds in the capital, market can be raised either by borrowing from certain institutions or through -
Correct : C. issue of securities
56. "Closed Economy" means :
Correct : D. a country having no imports and exports
57. Dumping is a form of price discrimination at -
Correct : C. international level
58. Money supply is governed by the -
Correct : C. Reserve Bank of India
59. The food stocks that are built up during the years of bumper harvest are called :
Correct : B. Buffer stock
60. 'NABARD' is associated with the development of -
Correct : A. agricultural sector and rural areas
61. Government takes 'ways and means advances' from -
Correct : A. RBI
62. Kisan Credit Card scheme was introduced in -
Correct : C. 1998
63. According to Malthusian theory of population -
Correct : A. Population increases in geometric ratio, food supply increases in arithmetic ratio
64. Whch of the following curve describes the variation of household expenditure on a particular good with respect to household income?
Correct : B. Engel curve
65. Malthusian theory is associated with which of the following?
Correct : D. Population
66. Which of the following relations always holds true?
Correct : B. Income = Consumption + Saving
67. The Keynesian consumption function shows a relation between -
Correct : C. aggregate consumption and aggregate income
68. Full employment is a situation where -
Correct : B. there is involuntary unemployment
69. What is needed for creating demand?
Correct : A. Production
70. Which of the statements is correct about India's national income?
Correct : D. Percentage share of services is higher than agriculture and industry put together
71. Who among the following is not a classical economist?
Correct : D. John Maynard Keynes
72. The difference in the value of visible exports and visible imports is called :
Correct : C. Balance of Trade
73. Which of the following best indicates economic growth of a Nation?
Correct : B. Per capita income
74. Indirect taxes by nature are -
Correct : B. regressive
75. Taxation is a tool of -
Correct : B. Fiscal policy
76. Which of the following is not viewed as national debt?
Correct : A. Life Insurance Policies
77. What is Value Added Tax (VAT)?
Correct : C. A single tax that replaces State taxes like, surcharge, turnover tax, etc.
78. What is referred to as 'Depository Services'?
Correct : C. An agency for safe-keeping of securities
79. The terms 'Bull' and 'Bear' are associated with -
Correct : C. Stock Market
80. A currency whose exchange rate is influenced by the government is a/an -
Correct : B. Managed Currency
81. Which one of the following statements is correct?
Correct : B. Bad money drives good money out of circulation
82. Devaluation of currency leads to -
Correct : D. All of the above
83. As a result of higher rate of inflation in India, the U.S. dollar will -
Correct : D. Appreciate
84. Which type of foreign investment is considered as unsafe?
Correct : B. Portfolio Investment
85. 'Mixed economy' refers to -
Correct : D. the co-existence of public as well as private sector
86. Golden Handshake Scheme is associated with -
Correct : D. Voluntary retirement
87. Stagflation is a situation of -
Correct : C. stagnation and inflation
88. Devaluation makes import -
Correct : D. Dearer
89. Gresham's law is related to -
Correct : C. Circulation of money
90. 'PROTECTION' means -
Correct : D. All of the above
91. Which one of the following does not deal with export promotion?
Correct : C. Cooperative Marketing Societies
92. Commercialization of agriculture implies -
Correct : C. production of crops for sale
93. Agricultural income tax is a source of revenue to -
Correct : B. State Government
94. Agricultural Technology is hard to spread because :
Correct : D. all of the above
95. Structural unemployment arises due to :
Correct : D. inadequate productive capacity
96. The demand of a commodity is a direct demand but the demand of a factor of production is called a -
Correct : C. Derived demand
97. Depreciation is loss in value of .
Correct : B. Machinery
98. When income increase, consumption also increases :
Correct : A. in a lower proportion
99. The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit.
Correct : D. -5
100. A camera in the hands of a professional photographer is a good.