Quiznetik

Economics (GK) | Set 3

1. Which one of the following is an example of optional money?

Correct : C. Cheque

2. 'Money' is an example of -

Correct : B. Floating capital

3. The existence of a Parallel Economy or Black Money -

Correct : B. makes the monetary policies less effective

4. An economy is in equilibrium when -

Correct : C. intended saving equals intended investment

5. The 'Canons of Taxation' were propounded by -

Correct : B. Adam Smith

6. Beyond a certain point deficit financing will certainly lead to -

Correct : A. inflation

7. VAT is imposed:

Correct : D. On all stages between production and sale

8. The aim of Differentiated Interest Scheme was to provide concessional loans to -

Correct : A. weaker section of the society

9. Investment and savings are kept equal through a change in the level of -

Correct : A. Consumption

10. Which of the following is not required while computing Gross National Product (GNP)?

Correct : C. Per capita income of citizens

11. In a highly developed country the relative contribution of agriculture to GDP is

Correct : B. relatively low

12. The demand for money, according to Keynes, is for -

Correct : C. precautionary motive

13. Economic progress of a country is determined by -

Correct : A. Increase in per capita income of people of country

14. What is "book-building"?

Correct : C. A process of inviting subscriptions to a public offer of securities, essentially through a tendering process

15. A hammer in the hands of a house-wife is a              good.

Correct : D. intermediary

16. Surplus budget is recommended during

Correct : B. Depression

17. Economic profit or normal profit is the same as -

Correct : D. net profit

18. Which of the following is not a feat tare of a capitalist economy?

Correct : C. Service motive

19. When the demand for a good increases with an increase in income, such a good is called -

Correct : A. Superior good

20. In equilibrium, a perfectly competitive firm will equate -

Correct : D. marginal revenue with marginal cost

21. Equilibrium is a condition that can -

Correct : C. change only if some internal factor changes

22. Enterpreneurial ability is a special kind of labour that -

Correct : B. organizes the process of production

23. An exceptional demand curve is one that moves -

Correct : B. downward to the right

24. Production function explains the relationship between -

Correct : A. initial inputs and ultimate output

25. The four factors of production are -

Correct : A. land, labour, capital, organisation,

26. The term utility means -

Correct : B. the satisfaction which a commodity yields

27. The degree of monopoly power is to be measured in terms of the firm's-

Correct : B. supernormal profit

28. Who propounded the Innovation theory of profits?

Correct : A. J.A. Schumpeter

29. The principle of maximum social advantage is the basic principle of -

Correct : C. Fiscal Economics

30. Diamonds are priced higher than water because :

Correct : B. their marginal utility to buyers is higher than that of water.

31. Buyers and Sellers will have perfect knowledge of market conditions under -

Correct : A. Duopoly

32. In short run, if a competitive firm incurs losses, it will -

Correct : A. stop production.

33. If the average revenue is a horizontal straight line, marginal revenue will be -

Correct : C. Identical with average revenue

34. The demand of a factor of production is

Correct : B. derived

35. Bilateral monopoly refers to the market situation of -

Correct : D. one seller and one buyer

36. Production function refers to the functional relationship between input and

Correct : C. output

37. Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its -

Correct : B. long-run average cost curve

38. Exploitation of labour is said to exist when -

Correct : B. Wage < Marginal Revenue Product

39. The size of the market for a product refers to -

Correct : D. the number of potential buyers of the product

40. Economic problem arises mainly due to

Correct : C. scarcity of resources

41. In Economics the 'Utility' and 'Usefulness' have -

Correct : B. different meaning

42. If two commodities are complements, then their crossprice elasticity is-

Correct : D. imaginary number

43. Transfer earning or alternative cost is otherwise known as -

Correct : D. Opportunity cost

44. Economic development depends on :

Correct : D. All of the above

45. Human Development Index was developed by :

Correct : B. Mahbub-ul-Haq

46. While determining income the expenditure on which of the following items is not considered as investment?

Correct : C. Increase in the stock of unsold articles

47. Rate of interest is determined by -

Correct : C. Liquidity preference

48. Speculative demand for cash is determined by -

Correct : A. The rate of interest

49. Gross National Product is the money measure of -

Correct : B. final goods and services produced in the economy

50. The difference between GNP and NNP equals -

Correct : D. depreciation

51. Investment multiplier shows the effect of investment on -

Correct : C. Income

52. Barter transactions means -

Correct : D. Goods are exchanged with goods.

53. The supply-side measure to control inflation is -

Correct : B. Price control through Public Distribution System

54. HDI is an aggregate measure of progress in which of the three dimensions?

Correct : A. Health, Education, Income

55. What is an octroi?

Correct : A. Tax

56. Demand of commodity mainly depends upon -

Correct : B. Purchasing power

57. NIFTY is associated with -

Correct : D. NSE Index

58. The data collection for national income estimation is conducted in India by—

Correct : C. The NSSO (National Sample Survey Organization

59. What is AGMARK?

Correct : B. It stands for agricultural marketing

60. The Imperial Bank of India, after its nationalization came to be known as :

Correct : B. State Bank of India

61. Floating Exchange Rate is also referred to as -

Correct : A. Flexible Exchange Rate

62. Countries that depend mainly on the export of primary products for their income, are prone to -

Correct : C. increasing unemployment

63. Bank deposits that can be withdrawn without notice are called -

Correct : D. demand deposits

64. What does ECS in banking transactions stand for?

Correct : D. Electronic Clearing Service

65. Which one is not a function of money?

Correct : C. Price stabilization

66. Inflation is caused by -

Correct : A. increase in money supply and decrease in production

67. State which of the following is correct? The Consumer Price Index reflects -

Correct : B. the extent of inflation in the prices of consumer goods

68. What are the main components of basic social infrastructure of an economy?

Correct : B. Education, Health and Civil amenities

69. The tax levied on gross sales revenue from business transactions is called -

Correct : A. Turnover Tax

70. Ad Valorem tax is levied -

Correct : C. according to value given by producers

71. Equilibrium price means -

Correct : A. Price determined by demand and supply

72. Opportunity cost of production of a commodity is -

Correct : D. the next best alternative output

73. Surplus earned by a factor other than land in the short period of referred to as-

Correct : C. quasi-rent

74. If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is -

Correct : C. perfectly elastic

75. Which of the following are not fixed costs?

Correct : C. Wages paid to workers

76. Cost of production of the producer is given by:

Correct : D. sum of wages, interest, rent and normal profit.

77. The market price is related to :

Correct : A. very short period

78. The demand for necessities is -

Correct : B. perfectly inelastic

79. If a good has negative income elasticity and positive price elasticity of demand, it is a

Correct : A. giffen good

80. A unit price elastic demand curve will touch -

Correct : B. neither price axis, nor quantity axis

81. If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be -

Correct : D. equal to unity

82. According to Modern Theory of Rent, rent accrues to -

Correct : B. any factor

83. As the number of investments made by a firm increases, its internal rate of return -

Correct : C. increases to compensate the firm for the current consumption foregone.

84. The opportunity cost of a factor of production is -

Correct : D. what it can earn in some other use.

85. The demand for labour is called -

Correct : C. Derived demand

86. Equilibrium price is the price when :

Correct : D. supply is equal to demand

87. Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a

Correct : A. change in the price of the goods

88. Product differentiation is the most important feature of -

Correct : B. monopolistic competition

89. Division of labour is the result of -

Correct : D. specialization

90. Which from the following is not true when the interest rate in the economy goes up?

Correct : D. Return on capital increases

91. Labour Intensive Technique would get chosen in a -

Correct : A. Labour Surplus Economy

92. When marginal utility is zero, the total utility is -

Correct : C. Maximum

93. Operating Surplus arises in the -

Correct : A. Government Sector

94. The definition of 'small-scale industry' in India is based on -

Correct : B. Investment In machines and equipments

95. What type of products, does CACP recommend minimum support price for?

Correct : B. Agricultural products

96. Special Economic Zone (SEZ) concept was first introduced in -

Correct : A. China

97. Externality theory is the basic theory of the following branch of Economics:

Correct : A. Environomics

98. The balance of payments of a country is in equilibrium when the -

Correct : B. demand for the domestic currency is equal to its supply

99. Cheap money means -

Correct : A. Low rates of interest

100. When too much money is chasing too few goods, the situation is -

Correct : B. Inflation