Quiznetik

Economics (GK) | Set 4

1. Who benefits the most during the inflationary period?

Correct : C. entrepreneurs

2. Pegging up of a currency means, fixing the value of a currency -

Correct : A. at a constant level

3. Deficit financing is an instrument of -

Correct : C. fiscal policy

4. Interest on public, debt is part of -

Correct : B. Transfer payments by the government.

5. The incidence of Tax refers to -

Correct : B. Who bears the burden of Tax?

6. Core Industries are -

Correct : A. Basic industries

7. An economic theory is a/an -

Correct : B. Proposition

8. The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called -

Correct : A. trickle down Hypothesis

9. Who propounded the 'market law?

Correct : B. J.B. Say

10. "he national income consists of a collection of goods and services reduced to common basis by being measured in terms of money,"— Who says this?

Correct : C. Hicks

11. Gross National Product means -

Correct : B. money values of the total national production for any given period

12. The self-employed in a developing country who are engaged in small scale labour intensive work belong to the -

Correct : B. Primary sector

13. The incomes of Indians working abroad are a part of -

Correct : C. net domestic product of India

14. Production of a commodity mostly through the natural process is an activity of -

Correct : A. Primary Sector

15. Average Fixed Cost Curve is -

Correct : D. Downward sloping

16. In which of the following market forms, a firm does not exercise control over price?

Correct : B. Perfect competition

17. Lorenz curve shows -

Correct : C. Income distribution

18. Which of the following is a tertiary activity?

Correct : D. Trading

19. Sellers market denotes a situation where :

Correct : B. demand exceeds supply

20. The fixed cost on such factors of production which are neither hired nor bought by the firm is called -

Correct : A. social cost

21. Under which market condition do firms have excess capacity?

Correct : B. Monopolistic competition

22. Price theory is also known as -

Correct : D. Micro Economics

23. Different firms constituting the industry, produce homogeneous goods under

Correct : D. perfect competition

24. Gross Profit means -

Correct : D. Total receipts over total expenditure

25. Which of the following is not a fixed cost?

Correct : A. Salaries of administrative staff

26. Inwhich market structure is the demand curve of the market represented by the demand curve of the firm?

Correct : A. Monopoly

27. If a firm is operating at loss in the short- period in perfect combination, it should :

Correct : C. continue to operate as long as it covers even the variable costs.

28. At "Break-even point",

Correct : D. the firm is at zero-profit point

29. The internal rate of return -

Correct : C. falls as the annual yield of an investment rises.

30. Which of the following occurs when labour productivity rises?

Correct : D. The labour demand curve shifts to the right

31. Which of the following are consumer semi-durable goods?

Correct : C. Foodgrains and other food products

32. Which of the following statements is correct?

Correct : C. Economic rent is the difference between the market wage and the reservation wage.

33. The basic object of all production is to

Correct : A. satisfy human wants

34. The equilibrium of a firm under perfect competition will be determined when -

Correct : C. Marginal Revenue = Marginal Cost

35. Which of the following is an inverted `U' shaped curve?

Correct : A. Average cost

36. Which one of the following is having elastic demand?

Correct : A. Electricity

37. Same price prevails throughout the market under -

Correct : A. perfect competition

38. Selling cost means:

Correct : C. Cost Incurred in advertisement

39. A want becomes a demand only when it is backed by the -

Correct : A. Ability to purchase

40. "Economics is what it ought to be" - This statement refers to -

Correct : A. Normative economics

41. The 'breali-even point' is where -

Correct : B. average revenue equals average cost

42. One of the essential conditions of Monopolistic competition is -

Correct : C. Product differentiation

43. The General Equilibrium Analysis" was developed by -

Correct : C. Walras

44. Capital market deals with -

Correct : B. Long term fund

45. Debenture holders of a company are its -

Correct : B. Creditors

46. Excise duty on a commodity is payable with reference to its -

Correct : A. production

47. Compared to the rich the poor save -

Correct : C. A smaller part of their income

48. One of the main factors that led to rapid expansion of Indian exports is -

Correct : D. Diversification of exports

49. The Minimum Wages Act was first passed in India in the year:

Correct : B. 1948

50. AGMARK is a guarantee of standard:

Correct : A. quality

51. In the balance of payments account, unrequited receipts and payments are also regarded as -

Correct : B. unilateral transfers

52. "Wall Street" is the name of the :

Correct : A. Stock Exchange of New York

53. Which one of the following is a developmental expenditure?

Correct : A. Irrigation expenditure

54. Green banking means -

Correct : B. financing of environmental friendly projects by banks

55. The best Index of Economic Development is provided by:

Correct : A. Growth in Percapita Real Income from year to year.

56. Which one of the following is not a 'canon of taxation' according to Adam Smith?

Correct : B. Canon of simplicity

57. The business in Stock Markets and other securities markets is regulated -

Correct : A. Securities and Exchange Board of India

58. Liberalism stands for -

Correct : D. freedom in social, political and economic aspects

59. Which of the following is a better measurement of Economic Development?

Correct : D. Per capita income

60. Imputed gross rent of owner-occupied buildings is a part of -

Correct : B. final consumption

61. An increase in per capital income is not an indication of an increase in the economic welfare of the people -

Correct : D. When such increase is the result of increased production of intoxicants

62. The functional relationship between income and consumption expenditure is explained by -

Correct : D. Keynes's psychological law of consumption

63. Preparation of butter, ghee by a household for their own use is a part of :

Correct : D. consumption

64. Average propensity to consume is defined as -

Correct : D. Aggregate consumption +Aggregate income

65. Market segmentation is:

Correct : B. Dividing target groups as per their needs

66. What will be the effect on inferior commodities when income of the consumer rises?

Correct : A. Negative effect

67. An indiference curve measures               level of satisfaction derived from different combinations of commodity X and Y.

Correct : A. same

68. motion that seeks to reduce the amount of demand presented by government to Re. 1/is known as -

Correct : A. Disapproval of policy Cut

69. In the law of demand, the statement "Other things remain constant" means -

Correct : D. All of the above

70. A firm is in equilibrium when its

Correct : A. marginal cost equals the marginal revenue

71. The excess of price a person is to pay rather than forego the consumption of the commodity is called -

Correct : C. Producers' surplus

72. When the price of a commodity falls, we can expect -

Correct : D. the demand for it to increase

73. A situation of large number of firms producing similar goods is termed as :

Correct : A. Perfect competition

74. The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called

Correct : A. Consumer's Surplus

75. For an inferior good, demand falls when -

Correct : B. income rise

76. Wage fund theory was propounded by

Correct : B. J.S. Mill

77. Cross demand expresses the functional relationship between -

Correct : A. demand and prices of related commodities

78. Third stage of Law of Variable Proportion is called -

Correct : A. negative returns

79. Other things being equal, a decrease in quantity demanded of a commodity can be caused by –

Correct : A. a rise in the price of the commodity

80. Which of the following is not an economic problem?

Correct : C. Deciding between alternative methods of personal savings

81. The Psychological law of consumption states that –

Correct : A. proportionate increase in consumption is less than proportionate increase in income

82. Subsidies are payment by government to –

Correct : B. Producing units

83. Tha Law of Demand is based on -

Correct : D. Consumer's preference

84. The expenses on advertising is called -

Correct : D. Selling cost

85. The most distinguishing feature of oligopaly is -

Correct : B. interdependence

86. 'Law of demand' implies that when there is excess demand for a commodity, then

Correct : C. price of the commodity rises

87. Given the money wages, if the price level in an economy increases, then the real wages will -

Correct : B. decrease

88. In Economics, production means -

Correct : C. creating utility

89. What is included in the Tetiary sector?

Correct : A. Banking

90. Minimum payment to factor of production is called -

Correct : D. Transfer Payment

91. Consumer's surplus is the highest in the case of:

Correct : D. necessities

92. Which of the following cost curve is never `U' shaped ?

Correct : C. Average fixed cost curve

93. Perfect competition means -

Correct : B. large number of buyers and sellers

94. Bread and butter, car and petrol are examples of goods which have -

Correct : C. derived demand

95. In a Capitalistic Economy, the prices are determined by :

Correct : A. Demand and Supply

96. Tooth paste is a product sold under :

Correct : A. Monopolistic Competition

97. Prime cost is equal to -

Correct : A. Variable cost plus administrative cost

98. An expenditure that has been made and cannot be recovered is called -

Correct : C. Sunk cost

99. Elasticity of demand is the degree of responsiveness of demand of a commodity to a -

Correct : D. change in its price

100. The price of a commodity is the same as

Correct : A. Average revenue