4. The difference between visible exports and visible imports is defined as -
Correct : A. Balance of trade
5. A commercial bank law creates credit only if it has -
Correct : A. Cash in the vault
6. "Dear Money" means -
Correct : B. high rate of interest
7. Commercial banks create credit -
Correct : D. on the basis of their deposits
8. Bank money refers to -
Correct : D. cheques
9. A financial instrument is called a 'primary security' if ii represents the liability of :
Correct : A. some ultimate borrower
10. founded in the year 1886 by a pharmacist named John Pemberton, this product is the second most widely understood term in the world after "OK". What is its name?
Correct : C. CocaCola
11. Which of the following is done at a Stock Exchange?
Correct : C. Securities are bought and sold
12. Indirect tax means :
Correct : A. there is not direct relationship between the tax payer and the government.
13. A short-term government security paper is called -
Correct : D. Treasury bill
14. The existence of a parallel economy or Black Money -
Correct : B. makes the monetary policies less effective
15. he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are -
Correct : C. Implicit costs
16. Which of the following subjects does not figure in the Concurrent List of our Constitution?
Correct : A. Stock Exchanges and futures markets
17. The method of calculating the national income by the product method is otherwise known as :
Correct : D. Net output method
18. The best measure to assess a country's economic growth is -
Correct : A. per capita income at constant prices
19. Rate of interest is determined by -
Correct : D. Commercial Banks
20. The total value of goods and services produced in a country during a given period is -
Correct : B. National income
21. Income and consumption are :
Correct : B. directly related
22. Which of the following is deducted from GNP to arrive at NNP?
Correct : A. Depreciation
23. Regarding money supply situation in India it can be said that the :
Correct : B. Currency with the public is less than the deposits with the banks.
24. The equilibrium price of a commodity will definitely rise if there is a/an:
Correct : D. increase in demand accompanied by a decrease in supply.
25. Short term contractions and expansions in economic activity are called
Correct : D. The business cycle
26. The concept of joint sector implies cooperation between -
Correct : A. Public sector and private sector industries
27. When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will -
Correct : B. increase
28. The income elasticity of demand being greater than one, the commodity must be -
Correct : B. a luxury
29. The main determinant of real wage is -
Correct : D. purchasing power money
30. A refrigerator operating in a chemist's shop is an example of -
Correct : B. final good
31. The situation in which total revenue is equal to total cost, is known as -
Correct : C. break-even point
32. The relationship between price of a commodity and the demand for it -
Correct : B. is an inverse relationship
33. Consumer's sovereignty means:
Correct : A. consumers are free to spend their income as they like.
34. The situation in which total Revenues equals total cost, is known as :
Correct : C. Break even point
35. A market in which there are a few number of large firms is called as
Correct : C. Oligopoly
36. Number of sellers in the monopoly market structure is -
Correct : C. one
37. When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be -
Correct : B. Inelastic
38. Production function is the relationship between -
Correct : C. Production and Production factors
39. Any factor of production can earn economic-rent, when its supply will be -
Correct : B. Perfectly inelastic
40. The father of Economics is -
Correct : B. Adam Smith
41. The sale of branded articles is common in a situation of -
Correct : B. monopolistic competition
42. Who propounded Dynamic Theory of profit?
Correct : A. Clark
43. Demand curve of a firm under perfect competition is :
Correct : A. horizontal to ox-axis
44. The marginal revenue of a monopolist is:
Correct : C. less than price
45. Payment of water charges by the farmers to the government represents -
Correct : A. intermediate consumption
46. The problem of Economics arises from
Correct : C. More wants and less goods
47. When average cost production (AC) falls, marginal cost of production must be -
Correct : D. Less than the average cost
48. Production function expresses -
Correct : A. technological relationship between physical inputs and output
49. When there is one buyer and many sellers then that situation is called -
Correct : B. Single buyer right
50. The measure of a worker's real wage is
Correct : D. The purchasing power of his earnings
51. Bull and bear are related to which commercial activity?
Correct : D. Stock market
52. The share broker who sells shares in the apprehension of falling prices of shares is called
Correct : C. Bear
53. "Bad money will drive out good money from circulation." This is known as :
Correct : B. Gresham's Law
54. If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should -
Correct : A. lower cash reserve ratio
55. On the administered price of which of the following articles no subsidy is given?
Correct : B. ATF
56. Which among the following has the least possibility of globalization?
Correct : B. location of capital works
57. What was the objective of Command Area Development Programme?
Correct : B. To ensure better utilization of irrigation potential
58. Distribution of food rains operates under a two her system with the introduction of -
Correct : A. Targetted Public Distribution System
59. A favorable Balance of Trade of a country implies that -
Correct : B. Exports are greater than Imports
60. 'Quota' is -
Correct : C. limit on the quantity of imports
61. A tax is characterized by horizontal equity if its liability is -
Correct : A. proportional to the income of tax payers
62. What does a Leasing Company provide?
Correct : A. Machinery and capital equipment on hire
63. The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into -
Correct : D. aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system
64. What is dual pricing?
Correct : C. Price fixed by Government and Price in open market
65. A tax is said to be regressive when its burden falls -
Correct : B. more heavily on the poor than on the rich
66. Mixed Economy means :
Correct : B. Co-existence of public and private sectors
67. When aggregate supply exceeds aggregate demand -
Correct : C. inventories accumulate
68. Investment is equal to -
Correct : B. gross total of all capital assets minus wear and tear
69. Which one of the following items is included in the national income account?
Correct : D. Services of night-watchmen
70. An Increase in national income because of an increase in price is called-
Correct : D. an increase in national income at base year prices
71. A-Transfer Income' is an -
Correct : A. Income which is not produced by any production process
72. National Income is also called as :
Correct : A. GNP at Factor Cost
73. One of the following is 'Labour' in Economics.
Correct : A. A Musician performing for a benefit fund
74. Excise duty is levied on -
Correct : B. production of goods
75. Average Revenue means -
Correct : A. the revenue per unit of commodity sold
76. Economic rent refers to -
Correct : D. Payment made for the use of land
77. "Interest is a reward for parting with liquidity" is according to -
Correct : A. Keynes
78. Extension or contraction of quantity demanded of a commodity is a result of a change in the -
Correct : A. unit price of the commodity
79. Why is rent earned by land even in the long run?
Correct : D. Its supply is inelastic in the long run
80. Who is called the Father of Economics?
Correct : D. Adam Smith
81. A horizontal demand curve is -
Correct : C. perfectly elastic
82. The theory of monopolistic competition has been formulated in the United States of America by -
Correct : B. Edward Chamberlin
83. The remuneration of the entrepreneur in production is -
Correct : C. Net profit
84. Elasticity (e) expressed by the formula 1 > e > 0 is -
Correct : D. Relatively inelastic
85. In the case of an inferior good, the income elasticity of demand is :
Correct : B. Negative
86. Production Function relates to:
Correct : C. inputs to outputs
87. The term "market" in Economics means -
Correct : A. A central place
88. Division of labour is limited by -
Correct : C. extent of the market
89. Cross elasticity of demand between petrol and car is -
Correct : D. negative
90. The Law of Demand expresses -
Correct : A. effect of change in price of a commodity on its demand
91. The Marginal Utility Curve slopes downward from left to right indicating -
Correct : D. An inverse relationship between marginal utility and the stock of commodity
92. The term 'Macro Economics' was used by .
Correct : B. Ragner Frisch
93. Tax on inheritance is called -
Correct : B. Estate duty
94. Which nationalized bank of India has a shining star as its emblem?
Correct : C. Bank of India
95. ISI mark is not given to which of the following products?
Correct : C. Biscuits
96. The duties levied on alcoholic liquors, narcotic drugs and opium come under—
Correct : C. State Excise Duty
97. Theoretically trade between two countries lakes place on account of -
Correct : C. comparative differences in costs
98. Short term loans to correct Balance of Payments problems is given by
Correct : A. I.M.F.
99. The outcome of 'devaluation of currency' is -
Correct : A. increased export and improvement in balance of payment