1. The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs -
Correct : C. J. B. Say
2. Liquidity Preference means -
Correct : B. holding assets in the form of cash
3. Aggregate net value of the output in one year is the -
Correct : C. Net. National Product at market prices
4. The sum total of incomes received for the services of labour, land or capital in a country is called
Correct : C. Gross domestic income
5. Which of the following results by dividing national income by size of population?
Correct : A. Per capita income
6. The first computer made available for commercial use was -
Correct : C. UNIVAC
7. Malthusian theory of population explored the relationship between -
Correct : B. food supply and population growth
8. In public budgets, zero-base budgeting was first introduced in -
Correct : A. USA
9. The sale proceeds of Government Bonds come under the budget head of -
Correct : D. Capital Receipts
10. The incidence of sales tax falls on -
Correct : A. Consumers
11. Government securities are considered liquid because they are -
Correct : C. quickly and easily marketable
12. Deflation is a situation in which -
Correct : C. The value of money is increasing.
13. Stagflation refers to a situation which is characterized by -
Correct : D. inflation and rising unemployment
14. How will a reduction in 'Bank Rate' affect the availability of credit?
Correct : A. Credit will increase
15. Inflation occurs when aggregate supply is -
Correct : B. less than aggregate demand
16. Multinational Corporation is also called -
Correct : D. Trans-national Corporation
17. Freeing the economy from all unnecessary controls and regulations is referred to as -
Correct : C. Liberalisation
18. A high Statutory Liquidity Ratio (SLR)
Correct : A. restricts lending
19. Corporation tax is a tax imposed on -
Correct : A. the net incomes of the companies
20. Which one of the following taxes is collected and utilized by the State Governments?
Correct : C. Land revenue
21. Which amidst the following is not a credit rating agency?
Correct : D. IFCI
22. The basis of determining dearness allowance to employees in India is -
Correct : B. Consumer Price Index
23. An indifference curve measures the same level of -
Correct : B. Satisfaction from two commodities
24. The Ability Principle of Taxation is given by -
Correct : A. Adam Smith
25. 'Galloping Inflation' is also known as -
Correct : C. Hyper Inflation
26. Which of the following is not an investment expenditure in goods and services?
Correct : B. Purchase of a house
27. Which one of following represents the Savings of the Private Corporate Sector?
Correct : C. Undistributed profits
28. Net National Product in National Income Accounting refers to -
Correct : C. Gross National Product—Depreciation
29. A very high rise in National Income at current market prices and a low rise at constant prices reveals -
Correct : C. the improper growth of the economy
30. In calculating National Income which of the following is included?
Correct : D. Income of watchmen
31. The term 'Green GNP' emphasises -
Correct : D. sustainable development
32. The Great Depression occurred during
Correct : B. 1929-34
33. The worldwide Great Depression took place in -
Correct : B. 1929
34. Paraellel economy emerges due to -
Correct : B. Tax Evasion
35. Under-writting refers to -
Correct : D. an act of insuring risk
36. Basic infrastructure facilities in Economics are known as :
Correct : C. Social overheads capital
37. Which one of the following is a direct tax?
Correct : C. Wealth Tax
38. Custom duty is an instrument of -
Correct : B. Foreign Trade Policy
39. Whe a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called -
Correct : D. Flight of Capital
40. 'Golden Handshake Scheme' is associated with -
Correct : D. voluntary retirement
41. The major objective of monetary policy is to -
Correct : C. Promote economic growth with price stability
42. The rate of tax increase as the amount of the Lax base Increases is called-
Correct : B. Progressive tax
43. During periods of inflation, tax rates should -
Correct : A. increase
44. Cheap Money means -
Correct : A. Low Rate of Interest
45. Which among (he following is not the outcome of decrease in prime lending rate?
Correct : C. decline in productivity
46. The major aim of devaluation is to -
Correct : B. encourage exports
47. Buffer stock operations are conducted by -
Correct : C. Food Corporation of India
48. Coal mines were Nationalized in the year :
Correct : C. 1972
49. Open market operations of RBI refer to buying and selling of -
Correct : D. Government bonds
50. A siuation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as -
Correct : A. Absolute Poverty
51. Of the following land uses, which is restricted to Special Economic Zones ?
Correct : B. Free trade Centres
52. As er the TRIPS Agreement-1994, a good originating from a region with specific character/ quality/reputation is covered/to be protected under the IPR as -
Correct : D. GI (Geographical Indicator)
53. At present, India is following -
Correct : B. Floating exchange rate
54. Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states?
Correct : D. Taxes on Advertisement
55. With which form of economy is the term 'Laissez-faire' associated?
Correct : A. Capitalist economy
56. National Social Assistance Programme is aimed at providing -
Correct : B. old age pension to very poor
57. Which of the following is a part of tertiary sector?
Correct : A. Power and transportation
58. If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm -
Correct : C. 36
59. If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity?
Correct : A. 20000
60. Equilibrium price in the market is determined by the -
Correct : D. equality between marginal cost and marginal revenue.
61. Internal economies -
Correct : A. arise when there is expansion in an industry.
62. One of the features of a free market economy is -
Correct : D. consumer's sovereignty
63. Which of the following costs is related to marginal cost?
Correct : A. Variable Cost
64. Which one of the following is not a dimension of human development, index?
Correct : C. Social status
65. Transfer payments mean -
Correct : D. All the above
66. In accounting terms, what constitutes the 'closing stock'?
Correct : D. Opening Stock + Net Investment - Capital Losses
67. National income accounting is the study of the income and expenditure of the entire -
Correct : C. economy
68. In a business, raw materials, components, work in progress and finished goods are jointly regarded as -
Correct : B. inventory
69. The gradation and standardization of agricultural products are conducted through
Correct : B. Directorate of Marketing and Inspection
70. According to the Employment Outlook 2007 reports of the Organisation for Economic Cooeration and Development (OECD), the number of new jobs created in India every year from 2000 to 2005 is -
Correct : C. 11 million
71. "Marginal Cost" equals -
Correct : D. the change in total cost divided by the change in quantity
72. A low interest policy is also known as –
Correct : A. cheap money policy
73. Economics classifies the manmade instrument of production as:
Correct : B. Capital
74. A demand curve will not shift:
Correct : D. When only price of the commodity changes
75. Which law states that with constant taste and preferences, the proportion of income spend on food stuff diminishes as income increases?
Correct : D. Engel's Law
76. Extreme forms of markets are -
Correct : C. Perfect competition; Monopoly
77. National Income include :
Correct : D. Construction of a new house
78. Value of out put and value added can be distinguished if we know:
Correct : A. the value of intermediate consumption
79. Who prepared the first estimate of National Income for the country?
Correct : C. Dadabhai Naoroji
80. 'Supply creates its own demand'. This statement is related to -
Correct : A. Prof. J.B. Say
81. Sectoral distribution of GDP index measures .
Correct : B. Economic development of a country
82. Which among the following statements is not true when there is an increase in interest rate in an economy?
Correct : D. increase in capital return
83. The difference between the GNP and the NNP is equal to the -
Correct : D. capital depreciation
84. By whom was the autonomous investment separated from induced investment?
Correct : A. Schumpeter
85. When price of a substitute of commodity falls, the demand for -
Correct : A. falls
86. A mixed economy refers to an economic system where -
Correct : C. Both the government and the private sectors operate sectors operate simultaneously
87. A Black Market is a situation where in
Correct : B. Goods are sold secretly
88. Buoyancy of a tax is defined as -
Correct : C. increase in tax revenue/increase in tax base
89. What is referred to as "Depository Services"?
Correct : C. An agency for safe-keeping of securities
90. Regulated markets aim at the development of the marketing structure to -
Correct : B. narrow down the price spread between the producer and the consumer
91. Evaluating all the options to find out most suitable solution to business problems is interdisplinary activities. It is called -
Correct : C. Operational research
92. Variation in Cash Reserve Ratio and Open Market Operations are instruments of
Correct : D. Monetary policy
93. The purpose of devaluation is to :
Correct : B. encourage exports
94. Foreign currency which has a tendency of quick migration is called -
Correct : D. Hot currency
95. Bank Rate refers to the interest rate at which -
Correct : B. Central bank gives loans to Commercial banks
96. A Trade Policy consists of -
Correct : A. Export-Import Policy
97. Globalisation means -
Correct : C. Integration of the domestic economy with the world economy
98. The 'sunrise industries' imply -
Correct : A. petrochemicals and electronics industry
99. Regional Rural Banks arc sponsored by
Correct : A. Nationalized Commercial Bank
100. Which organization collects data for the unorganized sector?