ECONOMICS- PAGE 13
1. Production function is directly related to :
(a) Transport (b) Banking (c) Prices (d) Factors of production
Ans: D
2. When average product is maximum then,
(a) marginal product increases (b) total product decreases
(c) average product is equal to marginal product (d) marginal product is negative
Ans: C
3. Law of variable proportions shows :
(a) constant returns (b) decreasing returns (c) increasing returns (d) All above
Ans: D
4. Among the following which one is not a method of measuring elasticity of supply ?
(a) Percentage method (b) Total expenditure method (c) Point method (d) None of the above
Ans: B
5. Kinked demand curve is related to :
(a) Monopoly (b) Collusive oligopoly (c) Non-collusive oligopoly (d) None of the above
Ans: C
6. Among the following which one is not a condition of perfect competition ?
(a) Large number of firms (b) Control of the firm on price
(c) Homogeneous product (d) Perfectly elastic demand
Ans: B
7. In long term perfect competition will be :
(a) MR = MC (b) AR = MR (c) LAC = Price (d) All above
Ans: D
8. Cross elasticity of demand in monopoly is :
(a) greater than one (b) less than one (c) zero (d) infinity
Ans: C
9. Which statement is true in case of monopoly ?
(a) AR > MR (b) AR = MR (c) AR < MR (d) AR = MR = 01
Ans: A
10. A firm reports that marginal product of labour is 5 and marginal rate of technical substitution of labour for capital is 2. The marginal product of capital will be :
(a) 0.4 (b) 1.0 (c) 2.5 (d) 3.0
Ans: C
11. Why Average Fixed Cost (AFC) curve does not touch the output axis ?
(a) Because AFC cannot be negative. (b) Because AFC cannot be zero.
(c) Because AFC cannot be less than one. (d) None of above
Ans: B
12. Under perfect competition if elasticity of demand is greater than one, then Marginal Revenue (MR) will be :
(a) positive (b) negative (c) zero (d) cannot be calculated
Ans: A
13. The pure monopolist obtains equilibrium level of output when :
(a) Price = Marginal cost (b) Marginal revenue = Marginal cost (c) Price is lowest (d) Price is highest
Ans: B
14. What are the conditions of price discrimination ?
(i) Control of supply (ii) Separation of market (iii) Peculiar behaviour of consumers (iv) Legal recognition
(a) (i), (ii) and (iv)
(b) (i), (iii) and (iv)
(c) (ii), (iii) and (iv)
(d) (i), (ii), (iii) and (iv)
Ans: D
15. Monetary cost includes :
(a) Normal profit (b) Implicit cost (c) Explicit cost (d) All above
Ans: D
16. Under ‘Cournot Model of Duopoly’ each duopolist under equilibrium will produce :
(a) half of the total output (b) one-fourth of the total output
(c) one-sixth of the total output (d) one-third of the total output
Ans: D
17. The opportunity cost curve assumes that :
(a) labour is the only factor of production
(b) the price or cost of a commodity can be inferred from its labour content
(c) labour is homogeneous
(d) None of the above
Ans: B
18. The second order condition for consumer equilibrium is :
(a) the consumer has given indifference map
(b) the consumer has a fixed amount of money
(c) a given budget-line must be tangent to an indifference curve
(d) indifferent curve must because to the origin at the point of tangency
Ans: D
19. Which of the following is not required for a country to be producing at a point on its production possibility curve ?
(a) Full employment of labour (b) All producers using the latest technology
(c) Stable prices (d) All producers having production efficiency
Ans: B
20. In the simple circular flow model :
(a) households are suppliers of resources (b) businesses are suppliers of final products
(c) households are demanders of final products (d) All of the above true
Ans: D
21. If a product is a ‘Veblen good’ then :
(a) demand is inversely related to income (b) demand is directly related to price
(c) demand is inversely related to the price of substitutes (d) None of the above
Ans: B
22. Income effect of inferior goods is :
(a) Negative (b) Positive (c) Infinity (d) Zero
Ans: A
23. ‘If other things remain unchanged’ increase in price, leads to :
(a) shift demand outwards (b) shift demand inward (c) contraction of demand (d) extension of demand
Ans: C
24. At the point of satisfaction level, the tendency of marginal utility to be :
(a) Positive (b) Negative (c) Zero (d) None of the above
Ans: C
25. In case of unitary elastic at all points, the demand curve is :
(a) Horizontal (b) Vertical (c) Rectangular hyperbola (d) None of the above
Ans: C
26. Demand curve slope is downward according to the law of :
(a) consumer equilibrium (b) diminishing marginal utility (c) utility minimisation (d) utility maximisation
Ans: B
27. Consumer is in equilibrium when marginal utilities are :
(a) Increasing (b) Highest (c) Equal (d) Minimum
Ans: C
28. Scarcity is a condition that exists when
(a) there is a fixed demand of goods (b) there is a large demand for a product
(c) resources are not able to meet the entire demand for a product (d) All of the above
Ans: C
29. If the price of a good increases, then income effect :
(a) reinforces the substitution effect, if the goods is normal
(b) offsets the substitution effect if the good is inferior
(c) Both (a) and (b)
(d) None of the above
Ans: C
30. In a circular flow model, the real variable are :
(a) only the resources that one used (b) money that flows from the factor market to the house holds
(c) only the goods and services that are produced (d) both the goods and services produced and the resources that are used
Ans: D
31. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of that good will be :
(a) increase (b) decrease (c) remain same (d) become zero
Ans: A
32. Every point on an ‘Indifference curve’ reveals :
(a) less satisfaction (b) more satisfaction (c) equal satisfaction (d) unequal satisfaction
Ans: C
33. Who is the author of the book ‘Traite D Economique Politique’ ?
(a) Keynes (b) Pigou (c) Ricardo (d) None of the above
Ans: D
34. Which of the following is not an assumption of Keynesian theory of income and employment ?
(a) Keynesian theory is short term theory (b) Keynesian theory is related to close economy
(c) Keynesian theory is based on imperfect competition (d) Presence of involuntary unemployment in economy
Ans: C
35. ‘Purchasing Power Parity’ theory was propounded by
(a) Gustav Cassel (b) Keynes (c) Hicks (d) Samuelson
Ans: A
36. Which of the following is/are the objective/s of the fiscal policy in developed economy ?
(a) Enhancement in investment level (b) Achievement of full employment (c) Achievement of economic stability (d) All above
Ans: D
37. Which one of the following is not a tool of fiscal policy ?
(a) Taxation (b) Public expenditure (c) Public debt (d) Rate of interest
Ans: D
38. What is / are the cause/s of disequilibrium in balance of payments ?
(a) Cyclical fluctuations (b) Income effect and price effect (c) Trade deficit (d) All the above
Ans: D
39. Which one of the following is correct about Marginal Propensity to Consume (MPC) ?
(a) MPC is always equal to zero (b) MPC is always equal to 2 (c) MPC is greater than zero but less than one (d) MPC is less than zero but greater than one
Ans: C
40. Which of the following is not included in income method of GNP ?
(a) Gross domestic private investment (b) Wages, salary, rent, interest & dividend (c) Taxes (d) Depreciation
Ans: A
41. Which one of the following is not an assumption of Say’s law of market ?
(a) Perfect competition (b) Open economy (c) Long period (d) No - hoarding
Ans: B
42. “The balance of payments of a country is a systematic record of all economic transactions completed between its residents and residents of the world during a given period of time usually a year.” This statement is given by :
(a) Krause (b) James Ingram (c) Benham (d) Haberler
Ans: A
43. “Floating or flexible exchange rates are forced flexibly up or down by supply and demand for goods or capital movements.” This statement is given by
(a) Samuelson (b) Ellsworth (c) G.D.H. Cole (d) None of the above
Ans: A
44. “The rate of exchange between two countries must stand essentially on the quotient of the internal purchasing power of these currencies.” The statement is given by : (a) Keynes (b) Gustav Cassel (c) G.D.H. Cole (d) S.E. Thomas
Ans: B
45. Which one of the following economist developed first the National Income Accounting Method ?
(a) Sir William Petty (b) Prof. Keynes (c) Simon Kuznets (d) Frank John
Ans: A
46. When the national income is expressed in terms of current price, it is called :
(a) Real income (b) Notional income (c) Permanent income (d) None of the above
Ans: B
47. Which one of the following is not included in the estimation of GNP ?
(a) Corporate income tax (b) Transfer of payment (c) Undistributed profit (d) Social security contribution
Ans: B
48. Which of the following is not added in the expenditure method of GNP ?
(a) Private consumption expenditure (b) Gross domestic private investment (c) Indirect tax (d) Government expenditure on goods and services
Ans: C
49. Imperfect competition obtains when the seller is confronted with a falling demand curve for his product. Who said ?
(a) Ferguson & Krips (b) Chamberlin (c) Marshall (d) A.P. Lerner
Ans: D
50. The Standard Deviation of a set of 50 item is 6.5. If every item is increased by 5 then the standard deviation will be :
(a) 1.5 (b) 6.5 (c) 8.5 (d) 11.5
Ans: B
(a) Transport (b) Banking (c) Prices (d) Factors of production
Ans: D
2. When average product is maximum then,
(a) marginal product increases (b) total product decreases
(c) average product is equal to marginal product (d) marginal product is negative
Ans: C
3. Law of variable proportions shows :
(a) constant returns (b) decreasing returns (c) increasing returns (d) All above
Ans: D
4. Among the following which one is not a method of measuring elasticity of supply ?
(a) Percentage method (b) Total expenditure method (c) Point method (d) None of the above
Ans: B
5. Kinked demand curve is related to :
(a) Monopoly (b) Collusive oligopoly (c) Non-collusive oligopoly (d) None of the above
Ans: C
6. Among the following which one is not a condition of perfect competition ?
(a) Large number of firms (b) Control of the firm on price
(c) Homogeneous product (d) Perfectly elastic demand
Ans: B
7. In long term perfect competition will be :
(a) MR = MC (b) AR = MR (c) LAC = Price (d) All above
Ans: D
8. Cross elasticity of demand in monopoly is :
(a) greater than one (b) less than one (c) zero (d) infinity
Ans: C
9. Which statement is true in case of monopoly ?
(a) AR > MR (b) AR = MR (c) AR < MR (d) AR = MR = 01
Ans: A
10. A firm reports that marginal product of labour is 5 and marginal rate of technical substitution of labour for capital is 2. The marginal product of capital will be :
(a) 0.4 (b) 1.0 (c) 2.5 (d) 3.0
Ans: C
11. Why Average Fixed Cost (AFC) curve does not touch the output axis ?
(a) Because AFC cannot be negative. (b) Because AFC cannot be zero.
(c) Because AFC cannot be less than one. (d) None of above
Ans: B
12. Under perfect competition if elasticity of demand is greater than one, then Marginal Revenue (MR) will be :
(a) positive (b) negative (c) zero (d) cannot be calculated
Ans: A
13. The pure monopolist obtains equilibrium level of output when :
(a) Price = Marginal cost (b) Marginal revenue = Marginal cost (c) Price is lowest (d) Price is highest
Ans: B
14. What are the conditions of price discrimination ?
(i) Control of supply (ii) Separation of market (iii) Peculiar behaviour of consumers (iv) Legal recognition
(a) (i), (ii) and (iv)
(b) (i), (iii) and (iv)
(c) (ii), (iii) and (iv)
(d) (i), (ii), (iii) and (iv)
Ans: D
15. Monetary cost includes :
(a) Normal profit (b) Implicit cost (c) Explicit cost (d) All above
Ans: D
16. Under ‘Cournot Model of Duopoly’ each duopolist under equilibrium will produce :
(a) half of the total output (b) one-fourth of the total output
(c) one-sixth of the total output (d) one-third of the total output
Ans: D
17. The opportunity cost curve assumes that :
(a) labour is the only factor of production
(b) the price or cost of a commodity can be inferred from its labour content
(c) labour is homogeneous
(d) None of the above
Ans: B
18. The second order condition for consumer equilibrium is :
(a) the consumer has given indifference map
(b) the consumer has a fixed amount of money
(c) a given budget-line must be tangent to an indifference curve
(d) indifferent curve must because to the origin at the point of tangency
Ans: D
19. Which of the following is not required for a country to be producing at a point on its production possibility curve ?
(a) Full employment of labour (b) All producers using the latest technology
(c) Stable prices (d) All producers having production efficiency
Ans: B
20. In the simple circular flow model :
(a) households are suppliers of resources (b) businesses are suppliers of final products
(c) households are demanders of final products (d) All of the above true
Ans: D
21. If a product is a ‘Veblen good’ then :
(a) demand is inversely related to income (b) demand is directly related to price
(c) demand is inversely related to the price of substitutes (d) None of the above
Ans: B
22. Income effect of inferior goods is :
(a) Negative (b) Positive (c) Infinity (d) Zero
Ans: A
23. ‘If other things remain unchanged’ increase in price, leads to :
(a) shift demand outwards (b) shift demand inward (c) contraction of demand (d) extension of demand
Ans: C
24. At the point of satisfaction level, the tendency of marginal utility to be :
(a) Positive (b) Negative (c) Zero (d) None of the above
Ans: C
25. In case of unitary elastic at all points, the demand curve is :
(a) Horizontal (b) Vertical (c) Rectangular hyperbola (d) None of the above
Ans: C
26. Demand curve slope is downward according to the law of :
(a) consumer equilibrium (b) diminishing marginal utility (c) utility minimisation (d) utility maximisation
Ans: B
27. Consumer is in equilibrium when marginal utilities are :
(a) Increasing (b) Highest (c) Equal (d) Minimum
Ans: C
28. Scarcity is a condition that exists when
(a) there is a fixed demand of goods (b) there is a large demand for a product
(c) resources are not able to meet the entire demand for a product (d) All of the above
Ans: C
29. If the price of a good increases, then income effect :
(a) reinforces the substitution effect, if the goods is normal
(b) offsets the substitution effect if the good is inferior
(c) Both (a) and (b)
(d) None of the above
Ans: C
30. In a circular flow model, the real variable are :
(a) only the resources that one used (b) money that flows from the factor market to the house holds
(c) only the goods and services that are produced (d) both the goods and services produced and the resources that are used
Ans: D
31. If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of that good will be :
(a) increase (b) decrease (c) remain same (d) become zero
Ans: A
32. Every point on an ‘Indifference curve’ reveals :
(a) less satisfaction (b) more satisfaction (c) equal satisfaction (d) unequal satisfaction
Ans: C
33. Who is the author of the book ‘Traite D Economique Politique’ ?
(a) Keynes (b) Pigou (c) Ricardo (d) None of the above
Ans: D
34. Which of the following is not an assumption of Keynesian theory of income and employment ?
(a) Keynesian theory is short term theory (b) Keynesian theory is related to close economy
(c) Keynesian theory is based on imperfect competition (d) Presence of involuntary unemployment in economy
Ans: C
35. ‘Purchasing Power Parity’ theory was propounded by
(a) Gustav Cassel (b) Keynes (c) Hicks (d) Samuelson
Ans: A
36. Which of the following is/are the objective/s of the fiscal policy in developed economy ?
(a) Enhancement in investment level (b) Achievement of full employment (c) Achievement of economic stability (d) All above
Ans: D
37. Which one of the following is not a tool of fiscal policy ?
(a) Taxation (b) Public expenditure (c) Public debt (d) Rate of interest
Ans: D
38. What is / are the cause/s of disequilibrium in balance of payments ?
(a) Cyclical fluctuations (b) Income effect and price effect (c) Trade deficit (d) All the above
Ans: D
39. Which one of the following is correct about Marginal Propensity to Consume (MPC) ?
(a) MPC is always equal to zero (b) MPC is always equal to 2 (c) MPC is greater than zero but less than one (d) MPC is less than zero but greater than one
Ans: C
40. Which of the following is not included in income method of GNP ?
(a) Gross domestic private investment (b) Wages, salary, rent, interest & dividend (c) Taxes (d) Depreciation
Ans: A
41. Which one of the following is not an assumption of Say’s law of market ?
(a) Perfect competition (b) Open economy (c) Long period (d) No - hoarding
Ans: B
42. “The balance of payments of a country is a systematic record of all economic transactions completed between its residents and residents of the world during a given period of time usually a year.” This statement is given by :
(a) Krause (b) James Ingram (c) Benham (d) Haberler
Ans: A
43. “Floating or flexible exchange rates are forced flexibly up or down by supply and demand for goods or capital movements.” This statement is given by
(a) Samuelson (b) Ellsworth (c) G.D.H. Cole (d) None of the above
Ans: A
44. “The rate of exchange between two countries must stand essentially on the quotient of the internal purchasing power of these currencies.” The statement is given by : (a) Keynes (b) Gustav Cassel (c) G.D.H. Cole (d) S.E. Thomas
Ans: B
45. Which one of the following economist developed first the National Income Accounting Method ?
(a) Sir William Petty (b) Prof. Keynes (c) Simon Kuznets (d) Frank John
Ans: A
46. When the national income is expressed in terms of current price, it is called :
(a) Real income (b) Notional income (c) Permanent income (d) None of the above
Ans: B
47. Which one of the following is not included in the estimation of GNP ?
(a) Corporate income tax (b) Transfer of payment (c) Undistributed profit (d) Social security contribution
Ans: B
48. Which of the following is not added in the expenditure method of GNP ?
(a) Private consumption expenditure (b) Gross domestic private investment (c) Indirect tax (d) Government expenditure on goods and services
Ans: C
49. Imperfect competition obtains when the seller is confronted with a falling demand curve for his product. Who said ?
(a) Ferguson & Krips (b) Chamberlin (c) Marshall (d) A.P. Lerner
Ans: D
50. The Standard Deviation of a set of 50 item is 6.5. If every item is increased by 5 then the standard deviation will be :
(a) 1.5 (b) 6.5 (c) 8.5 (d) 11.5
Ans: B
51. Which one of the following scheme provide upto 2 lakh accidental death insurance to the people for the age group of 18 – 70 years ? (a) Atal Pension Yojana (b) Pradhanmantri Jeevan Jyoti Bima Yojana
(c) Pradhanamantri Suraksha Beema Yojana (d) Atal Beema Yojna
Ans: C
52. ‘Okun’ rule is related to :
(a) Unemployment (b) Growth in National Production (c) (a) and (b) both (d) None of the above
Ans: C
53. What is National Income in real term ?
(a) When the national income is expressed in terms of current price
(b) When the national income is expressed in terms of constant price
(c) The change in the production of goods and services
(d) The change in the price level
Ans: B
54. When proportionate change in demand of a commodity is greater than the proportionate change in price, such condition is called :
(a) Demand elasticity is zero (b) Demand elasticity is unit
(c) Perfectly inelastic demand (d) Highly elastic demand
Ans: D
55. An increase in the price of a complement good of product ‘A’ would
(a) Shift demand for product ‘A’ outwards (b) Shift demand for product ‘A’ inwards
(c) Shift supply for product ‘A’ outwards (d) Shift supply for product ‘A’ inwards
Ans: B
56. The difference between Gross National Product (GNP) and Net National Product (NNP) is :
(a) Consumers expenditure on durable goods (b) Direct tax revenue (c) Indirect tax revenue (d) Capital depreciation
Ans: D
57. Which of the following is known as type of money ?
(a) Commodity money (b) Legal tender money (c) Paper money (d) All of the above
Ans: D
58. Generally, how many measures are used to measure the supply of money in India ?
(a) Two (b) Three (c) Four (d) Five
Ans: C
59. Generally, meaning of money is :
(a) currency (b) currency and demand deposit (c) currency and all deposits of the banks (d) all liquid assets
Ans: B
60. High powered money consists of :
(a) Money created by commercial banks (b) Fixed deposits – demand deposits
(c) Currency in circulation and banker’s deposits with central bank (d) Currency with public and demand deposits with banks
Ans: D
61. Which of the following method is more flexible to control credit ?
(a) Bank rate policy (b) Open market operations (c) Statutory liquidity ratio (d) Selective credit control
Ans: B
62. “Money is the Pivot, around which economic science cluster.” Who said this ?
(a) Adam Smith (b) Pigou (c) Marshall (d) J.M. Keynes
Ans: C
63. What is the distinction between money and currency ?
(a) All currency is not money. (b) All money is not currency. (c) All currency is money, but all money is not currency. (d) None of the above
Ans: C
64. Which of the following is a ‘Fiscal measure’ to check the inflation ?
(a) Consumer credit control (b) Higher reserve requirement (c) Higher margin requirement (d) Public borrowings
Ans: D
65. What are the benefits of overvaluation of domestic currency at the time of inflation ? (a) Discourage exports (b) Encourage imports (c) Cheapening the price of foreign goods in domestic market (d) All the above
Ans: D
66. Which one of the following function is not performed by the central bank of India ?
(a) The central bank enjoy monopoly of Note-issue. (b) The central bank acts as the banker’s bank.
(c) The central bank acts as the controller of the credit. (d) The central bank accepts deposits from public.
Ans: D
67. Leaf – Caunan thesis is associated :
(a) The theory of money supply (b) The theory of credit creation (c) The theory of trade cycle (d) The theory of employment
Ans: B
68. Which one of the following types of inflation is beneficial for backward and under developed countries ?
(a) Creeping (b) Walking (c) Running (d) Galloping
Ans: A
69. Under which of the following stages of business cycle, the full employment is achieved ?
(a) Recovery (b) Boom (c) Prosperity (d) Recession
Ans: C
70. Who said “Business cycle is a purely monetary phenomenon” ?
(a) Pigou (b) Nicholas Kaldor (c) J.R. Hicks (d) R.G. Hautrey
Ans: D
71. Nature of unemployment in India is :
(a) Structural unemployment (b) Disguised unemployment (c) Frictional unemployment (d) All of the above
Ans: D
72. According to UNDP – HDR 2018 India stands in the world -
(a) 130 Rank (b) 131 Rank (c) 132 Rank (d) 133 Rank
Ans: A
73. Under the Mudra Yojana the limit of Kishore loan is :
(a) Upto 50 thousand (b) 50 thousand to 5 lakhs (c) 5 lakhs to 10 lakhs (d) None of the above
Ans: B
74. Central Government has fixed investment limit for the medium industry under manufacturing sector :
(a) Upto 50 lakh rupees (b) 50 lakh to 10 crore rupees (c) 10 crores to 30 crore rupees (d) None of the above
Ans: C
75. Which sector has largest share in export of India during 2017-18 ?
(a) Gems and Jewellery (b) Chemical products (c) Petroleum products (d) Engineering goods
Ans: D
76. At present how many industries have been reserved for public sector ?
(a) 02 (b) 03 (c) 04 (d) 05
Ans: A
77. According to Census 2011 in which State of India has the literacy rate was lowest ?
(a) Andhra Pradesh (b) Rajasthan (c) Uttar Pradesh (d) Bihar
Ans: D
78. The number of ‘Maharatna Companies’ as on April, 2018 in India were :
(a) 16 (Sixteen) (b) 11 (Eleven) (c) 9 (Nine) (d) 8 (Eight)
Ans: D
79. What was the MSP (Minimum Support Price) for wheat fixed by Central Government for the year 2017-18 in Rupees?
(a) 1730 = 00 per quintal (b) 1735 = 00 per quintal (c) 1740 = 00 per quintal (d) 1745 = 00 per quintal
Ans: B
80. From which country India gets maximum FDI in 2016-17 ?
(a) Mauritius (b) Singapore (c) Japan (d) Netherlands
Ans: A
81. Where the marginal productivity of a labour becomes zero, is called :
(a) Cyclical unemployment (b) Disguised unemployment (c) Seasonal unemployment (d) None of the above
Ans: B
82. National Bank for Agriculture and Rural Development was established in :
(a) 1952 (b) 1962 (c) 1982 (d) 1991
Ans: C
83. Which of the following is not a source of institutional credit for Indian Agriculture ?
(a) NBFC (Non-Banking Finance Co.) (b) Regional Grameen Bank (c) Co-operative Bank (d) Commercial Bank
Ans: A
84. Which of the following is NOT an activity of NABARD ?
(a) Credit (b) Development (c) Debit (d) Regulatory
Ans: C
85. Which one of the following is NOT a type of wealth ?
(a) External wealth (b) Negative wealth (c) Social wealth (d) Individual wealth
Ans: A
86. In which stage of classical production function, the marginal product is always greater than the average product?
A. I stage
B. III stage
C. II stage
D. Both II and III stage
Ans: A
87. Which is not the attribute of wealth ?
A. Utility
B. Scarcity
C. Transferability
D. Instability
Ans: D
88. If the price of goods whose demand is inelastic, increases then the expenditure incurred by the consumers will :
A. Increase
B. Decrease
C. Remain constant
D. First increase then decrease
Ans: A
89. Sorting out of goods according to size, quality, and other characteristics is called:
A. Variable grading
B. mandatory grading
C. Centralized grading
D. Permissive grading
Ans: B
90. Which ratio determines the solvency of business in the long run?
1) debt - equity ratio 2) working capital ratio 3) net capital ratio 4) current ratio
Ans: C
91. Two products are said to be competitive if their marginal rate of substitution is
1) zero 2) positive 3) negative 4) infinitive
Ans: C
92. When the banks fail to recover the loans advanced to the weaker sections, then which institution reimburses the loan to them?
1) DICGC 2) NARARD 3) RBI 4) GOI
Ans: A
93. What is meant by expansion in demand ?
1) Shift in demand curve 2) Shift in supply curve 3) Movement along the demand curve 4) Increase in income Ans: 3
94. Who has given a new approach to the theory of demand in terms of Bandwagon Effect, Snob Effect and Veblen Effect ?
1) P . H. Douglas 2) R. Triffin 3) J. T. Wenders 4) Harvey Leibentein
Ans: 4
95. The Snob Effect is related to which commodities ?
1) Prestigeous 2) Exclusive 3) Necessities 4) Both Prestigeous and Exclusive
Ans: 4
96. The situation, in which change in consumption of two commodities due to change in their relative prices, the total utility remain the same, is called :
1) Price Effect 2) Income Effect 3) Substitution Effect 4) Veblen Effect
Ans: 3
97. In Slutsky's substitution effect, where does consumer move ?
1) To higher indifference curve 2) To lower indifference curve 3) To same indifference curve 4) No movement
Ans: 1
98. The cross elasticity of demand for complementary goods would be :
1) Infinity 2) Positive 3) Zero 4) Negative
Ans: 4
99.The situation, in which people are unwilling to make bets, inspite of their higher winning prospects when they bet more money, is called :
1) Theory of Second Best 2) Pareto optimality
3) St. Petersburg Paradox 4) None of these
Ans: 3
100.Which one of the following is not associated with behavioural theory ?
1) Firms aim to achieve satisfactory level of profit 2) Search activity does not involve any cost
3) Each firm has an aspiration level 4) If aspiration level is unattainable, firm starts search activity
Ans: 2
(c) Pradhanamantri Suraksha Beema Yojana (d) Atal Beema Yojna
Ans: C
52. ‘Okun’ rule is related to :
(a) Unemployment (b) Growth in National Production (c) (a) and (b) both (d) None of the above
Ans: C
53. What is National Income in real term ?
(a) When the national income is expressed in terms of current price
(b) When the national income is expressed in terms of constant price
(c) The change in the production of goods and services
(d) The change in the price level
Ans: B
54. When proportionate change in demand of a commodity is greater than the proportionate change in price, such condition is called :
(a) Demand elasticity is zero (b) Demand elasticity is unit
(c) Perfectly inelastic demand (d) Highly elastic demand
Ans: D
55. An increase in the price of a complement good of product ‘A’ would
(a) Shift demand for product ‘A’ outwards (b) Shift demand for product ‘A’ inwards
(c) Shift supply for product ‘A’ outwards (d) Shift supply for product ‘A’ inwards
Ans: B
56. The difference between Gross National Product (GNP) and Net National Product (NNP) is :
(a) Consumers expenditure on durable goods (b) Direct tax revenue (c) Indirect tax revenue (d) Capital depreciation
Ans: D
57. Which of the following is known as type of money ?
(a) Commodity money (b) Legal tender money (c) Paper money (d) All of the above
Ans: D
58. Generally, how many measures are used to measure the supply of money in India ?
(a) Two (b) Three (c) Four (d) Five
Ans: C
59. Generally, meaning of money is :
(a) currency (b) currency and demand deposit (c) currency and all deposits of the banks (d) all liquid assets
Ans: B
60. High powered money consists of :
(a) Money created by commercial banks (b) Fixed deposits – demand deposits
(c) Currency in circulation and banker’s deposits with central bank (d) Currency with public and demand deposits with banks
Ans: D
61. Which of the following method is more flexible to control credit ?
(a) Bank rate policy (b) Open market operations (c) Statutory liquidity ratio (d) Selective credit control
Ans: B
62. “Money is the Pivot, around which economic science cluster.” Who said this ?
(a) Adam Smith (b) Pigou (c) Marshall (d) J.M. Keynes
Ans: C
63. What is the distinction between money and currency ?
(a) All currency is not money. (b) All money is not currency. (c) All currency is money, but all money is not currency. (d) None of the above
Ans: C
64. Which of the following is a ‘Fiscal measure’ to check the inflation ?
(a) Consumer credit control (b) Higher reserve requirement (c) Higher margin requirement (d) Public borrowings
Ans: D
65. What are the benefits of overvaluation of domestic currency at the time of inflation ? (a) Discourage exports (b) Encourage imports (c) Cheapening the price of foreign goods in domestic market (d) All the above
Ans: D
66. Which one of the following function is not performed by the central bank of India ?
(a) The central bank enjoy monopoly of Note-issue. (b) The central bank acts as the banker’s bank.
(c) The central bank acts as the controller of the credit. (d) The central bank accepts deposits from public.
Ans: D
67. Leaf – Caunan thesis is associated :
(a) The theory of money supply (b) The theory of credit creation (c) The theory of trade cycle (d) The theory of employment
Ans: B
68. Which one of the following types of inflation is beneficial for backward and under developed countries ?
(a) Creeping (b) Walking (c) Running (d) Galloping
Ans: A
69. Under which of the following stages of business cycle, the full employment is achieved ?
(a) Recovery (b) Boom (c) Prosperity (d) Recession
Ans: C
70. Who said “Business cycle is a purely monetary phenomenon” ?
(a) Pigou (b) Nicholas Kaldor (c) J.R. Hicks (d) R.G. Hautrey
Ans: D
71. Nature of unemployment in India is :
(a) Structural unemployment (b) Disguised unemployment (c) Frictional unemployment (d) All of the above
Ans: D
72. According to UNDP – HDR 2018 India stands in the world -
(a) 130 Rank (b) 131 Rank (c) 132 Rank (d) 133 Rank
Ans: A
73. Under the Mudra Yojana the limit of Kishore loan is :
(a) Upto 50 thousand (b) 50 thousand to 5 lakhs (c) 5 lakhs to 10 lakhs (d) None of the above
Ans: B
74. Central Government has fixed investment limit for the medium industry under manufacturing sector :
(a) Upto 50 lakh rupees (b) 50 lakh to 10 crore rupees (c) 10 crores to 30 crore rupees (d) None of the above
Ans: C
75. Which sector has largest share in export of India during 2017-18 ?
(a) Gems and Jewellery (b) Chemical products (c) Petroleum products (d) Engineering goods
Ans: D
76. At present how many industries have been reserved for public sector ?
(a) 02 (b) 03 (c) 04 (d) 05
Ans: A
77. According to Census 2011 in which State of India has the literacy rate was lowest ?
(a) Andhra Pradesh (b) Rajasthan (c) Uttar Pradesh (d) Bihar
Ans: D
78. The number of ‘Maharatna Companies’ as on April, 2018 in India were :
(a) 16 (Sixteen) (b) 11 (Eleven) (c) 9 (Nine) (d) 8 (Eight)
Ans: D
79. What was the MSP (Minimum Support Price) for wheat fixed by Central Government for the year 2017-18 in Rupees?
(a) 1730 = 00 per quintal (b) 1735 = 00 per quintal (c) 1740 = 00 per quintal (d) 1745 = 00 per quintal
Ans: B
80. From which country India gets maximum FDI in 2016-17 ?
(a) Mauritius (b) Singapore (c) Japan (d) Netherlands
Ans: A
81. Where the marginal productivity of a labour becomes zero, is called :
(a) Cyclical unemployment (b) Disguised unemployment (c) Seasonal unemployment (d) None of the above
Ans: B
82. National Bank for Agriculture and Rural Development was established in :
(a) 1952 (b) 1962 (c) 1982 (d) 1991
Ans: C
83. Which of the following is not a source of institutional credit for Indian Agriculture ?
(a) NBFC (Non-Banking Finance Co.) (b) Regional Grameen Bank (c) Co-operative Bank (d) Commercial Bank
Ans: A
84. Which of the following is NOT an activity of NABARD ?
(a) Credit (b) Development (c) Debit (d) Regulatory
Ans: C
85. Which one of the following is NOT a type of wealth ?
(a) External wealth (b) Negative wealth (c) Social wealth (d) Individual wealth
Ans: A
86. In which stage of classical production function, the marginal product is always greater than the average product?
A. I stage
B. III stage
C. II stage
D. Both II and III stage
Ans: A
87. Which is not the attribute of wealth ?
A. Utility
B. Scarcity
C. Transferability
D. Instability
Ans: D
88. If the price of goods whose demand is inelastic, increases then the expenditure incurred by the consumers will :
A. Increase
B. Decrease
C. Remain constant
D. First increase then decrease
Ans: A
89. Sorting out of goods according to size, quality, and other characteristics is called:
A. Variable grading
B. mandatory grading
C. Centralized grading
D. Permissive grading
Ans: B
90. Which ratio determines the solvency of business in the long run?
1) debt - equity ratio 2) working capital ratio 3) net capital ratio 4) current ratio
Ans: C
91. Two products are said to be competitive if their marginal rate of substitution is
1) zero 2) positive 3) negative 4) infinitive
Ans: C
92. When the banks fail to recover the loans advanced to the weaker sections, then which institution reimburses the loan to them?
1) DICGC 2) NARARD 3) RBI 4) GOI
Ans: A
93. What is meant by expansion in demand ?
1) Shift in demand curve 2) Shift in supply curve 3) Movement along the demand curve 4) Increase in income Ans: 3
94. Who has given a new approach to the theory of demand in terms of Bandwagon Effect, Snob Effect and Veblen Effect ?
1) P . H. Douglas 2) R. Triffin 3) J. T. Wenders 4) Harvey Leibentein
Ans: 4
95. The Snob Effect is related to which commodities ?
1) Prestigeous 2) Exclusive 3) Necessities 4) Both Prestigeous and Exclusive
Ans: 4
96. The situation, in which change in consumption of two commodities due to change in their relative prices, the total utility remain the same, is called :
1) Price Effect 2) Income Effect 3) Substitution Effect 4) Veblen Effect
Ans: 3
97. In Slutsky's substitution effect, where does consumer move ?
1) To higher indifference curve 2) To lower indifference curve 3) To same indifference curve 4) No movement
Ans: 1
98. The cross elasticity of demand for complementary goods would be :
1) Infinity 2) Positive 3) Zero 4) Negative
Ans: 4
99.The situation, in which people are unwilling to make bets, inspite of their higher winning prospects when they bet more money, is called :
1) Theory of Second Best 2) Pareto optimality
3) St. Petersburg Paradox 4) None of these
Ans: 3
100.Which one of the following is not associated with behavioural theory ?
1) Firms aim to achieve satisfactory level of profit 2) Search activity does not involve any cost
3) Each firm has an aspiration level 4) If aspiration level is unattainable, firm starts search activity
Ans: 2