Quiznetik

Economics (GK) | Set 1

1. Effective demand depends on -

Correct : D. supply price

2. The basic problem studied in Macro - Economics is -

Correct : A. production of income

3. Prof Miltion Fridman was leader of -

Correct : B. Chicago school

4. Who is called the 'Father of Economics'?

Correct : C. Adam Smith

5. The bank cheques are processed by using -

Correct : B. MICR

6. When was the Minimum Wages Act enacted in India?

Correct : B. 1948

7. Identify the one which is not related to the Agricultural Price Policy.

Correct : D. Licensing

8. Steel sheets used in the production of furnitures is an example of

Correct : A. an intermediate good

9. The main source of long-term credit for a business unit is -

Correct : A. sale of stocks and bonds to the public

10. Devaluation of money means :

Correct : A. decrease in the internal value of money

11. Under flexible exchange rate system, the exchange rate is determined by -

Correct : B. the forces of demand and supply in the foreign exchange market

12. Bank rate is the rate of interest -

Correct : C. at which Commercial Banks borrow money from RBI

13. Open Market Operations refer to

Correct : C. Purchase and sale of Government securities by RBI

14. Which of the following is the classification of Industries on the basis of raw-materials?

Correct : D. Agro-based and Mineral based

15. Which one of the following items is not included in the current account of India's Balance of Payments?

Correct : B. Non-monetary gold movements

16. The New Economic Policy was introduced by:

Correct : A. Lenin

17. "Functional Finance" is associated with :

Correct : D. Abba 'V Lerner

18. Multiplier process in economic theory is conventionally taken to mean:

Correct : C. income of an economy grows on account of an initial investment

19. Personal disposable income is :

Correct : C. equal to personal income minus direct taxes paid by household.

20. Which one of the following is not a method of measurement of National Income?

Correct : C. Investment Method

21. Which one of the following would not constitute an economic activity?

Correct : C. A teacher teaching his own daughter at home

22. Transfer payments include :

Correct : D. Employee's contribution to social security

23. Capacity utilization -

Correct : C. is a measure of the proportional of the existing capital stock used for current production.

24. Apart from the availability of raw material location of an industry is also dependent on the availability of:

Correct : B. man power and energy source

25. What happens when there is a demand deficiency in an economy?

Correct : B. Stagnation

26. Which one of the following is not a feature of monopoly?

Correct : B. Heavy selling costs

27. The supply of labour in the market depends on -

Correct : D. All the above

28. Engel's Law states the relationship between -

Correct : D. quantity demanded and income of the consumers

29. The demand curve for a Giffen good is

Correct : A. upward rising

30. If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for

Correct : D. Coke and 7-Up will decrease

31. The demand curve shows that price and quantity demanded are -

Correct : C. inversely proportional and aslo inversely related

32. If the main objective of the government is to raise revenue, it should tax commodities with

Correct : C. low elasticity of demand

33. Monopoly means -

Correct : C. single seller

34. Kinked demand curve is a feature of -

Correct : B. Oligopoly

35. Demand for complementary goods is known as -

Correct : A. Joint demand

36. Quasi rent is a              phenomenon.

Correct : C. short term

37. Which of the following economists is called the Father of Economics?

Correct : D. Adam Smith

38. Perfectly inelastic demand is equal to :

Correct : C. Zero

39. A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to -

Correct : D. Infinity

40. 'Capital gains' refers to goods which -

Correct : B. help in the further production of goods

41. From the national point of view, which of the following indicates micro approach?

Correct : A. Study of sales of mobile phones by BSNL

42. Returns to scale is a -

Correct : D. long-run phenomenon

43. Rent is a factor payment paid to -

Correct : A. land

44. Plant arid machinery are -

Correct : A. Producers' goods

45. Which activity is not included in production?

Correct : D. Services done by a house-wife in her own house

46. Marginal cost is the -

Correct : B. cost of producing an extra unit of output

47. Under hill cost pricing, price is determined -

Correct : A. by adding a margin to the average cost

48. As output increases, average fixed cost

Correct : B. falls

49. Fixed cost is known as -

Correct : D. Overhead cost

50. All of the goods which are scarce and limited in supply are called -

Correct : D. Economic goods

51. The terms "Micro Economics" and "Macro Economics" were coined by -

Correct : C. Ragner Frisch

52. 'Hire and Fire' is the policy of -

Correct : C. Mixed Economy

53. Consumption function expresses the relationship between consumption and -

Correct : B. income

54. The relationship between the rate of interest and level of consumption was first visualized by -

Correct : C. Irving Fisher

55. The Liquidity Preference Theory of Interest was propounded by :

Correct : A. J.M. Keynes

56. Which of the following is not an economic activity?

Correct : C. A teacher teaching his own son.

57. Cosequent upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially set up in the year -

Correct : C. 1975

58. Poverty in less developed countries is largely due to -

Correct : B. income inequality

59. Which unit of valuation is known as "Paper gold"?

Correct : C. SDR

60. A closed economy is one which -

Correct : A. Does not trade with other countries

61. Who are the creditors of a Corporation?

Correct : C. Both Bond and Stock holders

62. The ratio of a bank's cash holdings to its total deposit liabilities is called the -

Correct : B. Cash Reserve Ratio

63. The smaller the Cash Reserve Ratio, the scope for lending by banks is :

Correct : A. greater

64. For hannelizing the unaccounted money for productive purposes the Government Introduced the scheme of :

Correct : A. Special Bearer Bonds

65. Saving is that portion of money income that is -

Correct : B. not spent on consumption

66. What is the role of "Ombudsman" in a bank?

Correct : A. To provide quality and speedy redressal of grievances of customers.

67. Which of the following taxes is not collected by the Central Government?

Correct : C. Professional tax

68. The permission given to a bank customer to draw cheques in excess of his current account balance is called -

Correct : D. an overdraft

69. Forced Savings refer to -

Correct : A. Reduction of consumption consequent to a rise in prices

70. Which of the following is an indirect tax?

Correct : B. Excise Duty

71. Say's Law of Market holds that -

Correct : B. supply creates its own demand

72. 'Marginal efficiency of capital' is -

Correct : A. expected rate of return on new investment

73. National Income is the -

Correct : B. Net National Product at factor cost

74. What is meant by 'Capital Gain'?

Correct : B. Appreciation in the money value of assets

75. Backward bending supply curve belongs to which market?

Correct : B. Labour

76. Interms of economics, if it is possible to make someone better off without making someone worse off, then the situation is -

Correct : A. Inefficient

77. The theory of distribution relates to which of the following?

Correct : D. Equality in the distribution of the income and wealth

78. Knowledge, technical skill, education etc. in economics, are regarded as -

Correct : B. human capital

79. Purchasing Power Parity theory is related with -

Correct : D. Exchange rate

80. The demand for which of the following commodity will not rise in spite of a fall in its price?

Correct : C. Salt

81. In the long-run equilibrium, a competitive firm earns -

Correct : C. Normal profit

82. What is selling cost?

Correct : B. Cost incurred on promoting the sale of the product

83. Who said, "Economics is the Science of Wealth"?

Correct : C. Adam Smith

84. The addition to total cost by producing an additional unit of out-put by a firm is called -

Correct : C. Marginal cost

85. In a perfectly competitive market, a firm's -

Correct : A. Average Revenue is always equal to Marginal Revenue

86. An increase in the quantity supplied suggests -

Correct : B. a movement up along the supply curve

87. Price and output are determinates in market structure other than -

Correct : B. perfect competition

88. Bilateral monopoly situation is

Correct : C. when there is only one buyer and one seller of a product

89. A 'Market Economy' is one which -

Correct : B. is free from the Government control

90. The law of demand states that -

Correct : C. if the price of a good increases, the quantity demanded of that good decreases

91. The demand curve facing a perfectly competitive firm is -

Correct : D. perfectly elastic

92. If average cost falls, marginal cost -

Correct : B. falls at the same rate

93. Consumer gets maximum satisfaction at the point where -

Correct : A. Marginal Utility = Price

94. Micro-economics is also called :

Correct : C. Price theory

95. Demand in Economics means :

Correct : D. Demand backed by purchasing power

96. A fall in demand or rise in supply of a commodity—

Correct : B. decreases the price of that commodity

97. The relationship between the value of money and the price level in an economy is -

Correct : B. Inverse

98. Production function relates -

Correct : D. Inputs to output

99. If total utility is maximum at a point, then marginal utility is -

Correct : B. zero

100. Economies of Scale means reduction in

Correct : A. unit cost of production