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Multiple choice questions on indian economics, Economics Mcq’s

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Multiple choice questions on indian economics
Economics Mcq’s
Practice Multiple-choice Questions for Economics
economics questions bank
economics mcq questions

1.The concept of ‘costing margin’ in the pricing theory was introduced by?
(A)Andrews
(B) Baumol
(C)Cournot
(D) Williamson

2.The Keynesian theory of employment provides the solution of?
(A) Frictional unemployment
(B) Disguised unemployment
(C) Cyclical unemployment
(D) Seasonal unemployment

3. Four heads of expenditure of the Union Budget 2009-10 are given
below—
1. Plan expenditure
2. Non-plan expenditure
3. Revenue expenditure
4. Capital expenditure
Arrange the expenditure heads in descending order using the codes
given below
(A)2,3,4,1
(B) 3,4,2, 1
(C)3,2,1,4
(D) 2,1,4,3

4. In the year 2007-08 the per capita NNP at current prices was?
(A) More than Rs. 20,000
(B) More than Rs. 30,000
(C) More than Rs. 40,000
(D) More than Rs. 50,000

5. Mathematics was first used economic theory by?
(A)Weiser
(B) Walras
(C)Cournot
(D) Pigou

6. India’s foreign exchange rate system is?
(A) Free float
(B) Managed float
(C) Fixed
(D) Fixed target of band

7. The terms ‘NEER’ and ‘REER’ are related with?
(A) Foreign exchange rate
(B) External economic resources:
(C) National and regional economic equality
(D) Environmental regulation

8. For the calculation of percentile, the data should be arranged in?
(A) Ascending order
(B) Descending order
(C) Random order
(D) Either random or descending order

9. As per BASEL-II norms, a bank’s capital to risk weighted assets ratio (CRAR) should be at least?
(A) 8%
(B) 10%
(C) 12%
(D) 14%

10. The shape of a frequency curve cannot be?
(A) U-shaped
(B) V Shaped
(C) J-shaped
(D) S-shaped

11. According to the Planning Cornmission, for infrastructure development during Eleventh Five Year Plan, the required investment is?
(A) Approximately $ 250 billion
(B) Approximately $ 500 billion
(C) Approximately $ 750 billion
(D) Approximately $ 1000 billion

12. India’s first port-based Special Economic Zone named Inter national Container Transshipment Terminal (ICTI) is being set-up at?
(A)Kandla
(B) Kochi
(C)Goa
(D) Tuticorin

13. Which of the following is pure unitless number?

(A) Mathematical average
(B) Statistical average
(C) Absolute measure of dispersion
(D) Relative measure of dispersion

14.The user cost of capital is?
(A) The real rate of interest plus the rate of depreciation
(B) The nominal rate of interest plus the rate of depreciation
(C) The real rate of interest only
(D) The nominal rate of interest only

15. The number of items reserved for the exclusive manufacture by micro and small enterprises is currently?
(A) Less than 25
(B) Less than 50
(C) Less than 75
(D) Less than 100

16.A new housing price index RESIDEX has been launched by?
(B) Planning Commission
(C) Housing Development Finance Corporation
(D) National Housing Bank
(A) Central Statistical Organization

17.Which one of the following is not a feature of current Indian Planning?
(A) Structural Planning
(B) Indicative Planning
(C) Functional Planning
(D) Decentralised Planning

18.The concept of disinvestment was introduced by?
(A) Friedman
(B) Kaldor
(C)Keynes
(D) Myrdal

19. Which of the following is average of second order?
(A) Arithmetic mean
(B) Geometric mean
(C) Second quartile
(D) Standard deviation

20.. Which average is most affected by the extreme observations?
(A) Arithmetic mean
(B) Geometric mean
(C) Median
(D) Mode

21.If the covariance of two variables is equal to the product of the standard deviations of the variables, then the correlation
coefficient will be?
(A) -1
(B)+1
(C) 0
(D) Between 0 and -1

22 The term ‘Animal Spirit’ was used by Keynes for?
(A) Consumption
(B) Investment
(C) Income
(D) Interest

23. The index of Financial Inclusion has been launched for the first time in 2008 by?
(A) Confederation of Indian Industries (CII)
(B) Federation of Indian Chamber of Commerce and Industry (FICCI)
(C) National Council of Applied Economic Research (NCAER)
(D) Indian Council for Research on International Economic Relations (ICRIER)

24.The elasticity of factor substitution for constant elasticity substitution production function is always?
(A) Zero
(B) One
(C) A positive value
(D) A negative value

25.The Revealed Preference theory assumes?
(A) Weak ordering
(B) Strong ordering
(C) Constant ordering
(D) Multiple ordering

26. Which of the following is not an item of transfer payment?
(A)Pension
(B) Scholarship
(C)Dividend
(D) Subsidy

27 The United Nation’s Millennium Development Goals are to be reached by the year?
(A) 2010
(B) 2015
(C) 2020
(D) 2025

28.The number of women entrepreneurs in small scale industrial region is highest in the state of?
(A) Karnataka
(B) Kerala
(C) Maharashtra
(D) Tamil Nadu

29. Which of the following is not an effect of lump sum tax imposed on monopolist?
(A) Output sold is unchanged
(B) Price is unchanged
(C) Profit reduces
(D) Incidence of tax is wholly on buyer

30. A distributed lag for net investment may be due to?
(A) A decrease in the capital output ratio
(B) An increase in the capital output ratio
(C) Limited, short-run production capabilities in capital goods industry
(D) Limited long-run production capabilities in capital goods industry

31. The concept of Adjusted Net Saving has been given by?
(A)Hamilton
(B) Friedman
(C)Keynes
(D) Pigou

32. The product of regression coefficients is always?
(A) Positive
(B) Negative
(C) Zero
(D) A complex number

33. The nature of classical unemployment is?
(A) Disguised
(B) Frictional
(C)Open
(D) Structural

34. Which one of the following properties shows the high degree of dispersion?
(A) Homogeneity
(B) Consistency
(C) Uniformity
(D) Variability

35. The New Exploration License Policy (NELP) of the Government of India is related with?
(A) Coal and Lignite
(B)Uranium and Thorium
(C) Diamond and Precious Stones
(D) Oil and Gas

36.Full employment is a situation when?
(A) Cyclical unemployment is zero
(B) Frictional unemployment is zero
(C) Seasonal unemployment is zero
(D) Disguised unemployment is zero

37.Which Indian Company has been included for the first time in U.S. A’s index NASDAQ-100?
(A)Infosys
(B)Tata Motors
(C) ICICI Bank
(D) Videsh Sanchar Nigam Limited

38.The natural rate of unemploy ment is the sum of?
(A) Frictional unemployment and Structural unemployment
(B) Frictional unemployment and Cyclical unemployment
(C) Structural unemployment and Cyclical unemployment
(D) Structural unemployment and Seasonal unemployment

39.The nature of statistical inference is?
(A) Inductive
(B) Deductive
(C) Descriptive
(D) Objective

40. Mean deviation is always?

(A) Equal to the standard deviation than the standard
(B) Less than the standard deviation
(C) More than the standard deviation
(D) Twice of the standard deviation

41. The coefficient of alienation is known as?
(A) Against correlation
(B) Against variance
(C) Against association
(D) Against determination

42. The Divergence Indicator is related with?
(A) Wage rate of workers
(B) Exchange rate of currencies
(C) Profit of firms
(D) Market price of shares

43.Which one of the following taxes has not been abolished in recent Union Budgets?
(A) Banking Cash Transaction
(B) Commodity Transaction Tax
(C) Fringe Benefit Tax
(D) Securities Transaction Tax

44.The Samuelson-Holt formula provides a measure of?
(A) Consumer’s equilibrium
(B) Consumer’s surplus
(C) Elasticity of demand
(D) Marginal utility

45. The most liquid asset among the following is?
(A) Gold
(B) Share
(C)Cash
(D) Land

46. Ricardian Equivalence’ is related with?
(A) Low deficit, less saving
(B) Low deficit, more saving
(C) High deficit, less saving
(D) High deficit, more saving

47. The ‘Swiss Formula’ of World Trade Organisation is related with?
(A) Patent of drugs
(B) Agricultural subsidy
(C) Transboundary services
(D) Non-agricultural tariff

48. The Securities and Exchange Board of India has recently made the rating of Initial Public offerings mandatory. The total number of such grades are?
(A)Three
(B) Four
(C)Five
(D) Six

49. Consider the following statement—
“Once a person has spent his entire income, he would have maximized his total pleasure from it only if the satisfaction gained from the last item of each commodity bought was the same for the each commodity.”
The above statement is related to?
(A) Gossen’s First Law
(B) Gossen’s Second Law
(C) Gossen’s Third Law
(D) Gossen’s Fourth Law

50. Which of the following results in an increase in inventory sales ratio?
(A) A decrease in the cost of holding inventory
(B) An increase in probability delivery delays for materials
(C) A decrease in the probability delivery delays for materials
(D) An increase in the cost of: holding inventory

51. Harris-Todaro model is related with?
(A) Growth and unemployment
(B) Growth and migration
(C) Unemployment and migration
(D) Unemployment and inflation

52. Density test is used for?
(A) Median
(B) Mean
(C) Mode
(D) Quartile

53. In the Keynesian saving function, the parameter is ?
(A) Disposable income
(B) Total saving
(C) Marginal propensity to save
(D) Autonomous saving

54. A simple correlation can defined as the tendency of?
(A) Independent variation
(B) Dependent variation
(C) Simultaneous variation
(D) Instantaneous variation

55.For implementing a comprehensive Khadi Reform Programme, a financial aid of $ I million over a period of three years has recently been tied up with?
(A) International Monetary Fund
(B) International Development Agency
(C) Asian Development Bank
(D) International Finance Corporation

56.For n consecutive natural numbers, the following relationship is correct?
(A) Mode = Mean
(B) Mean = Median
(C) Mode > Median
(D) Mode < Mean

57. The measure of the degree of association between the values of two random variables is called?
(A) Correlation
(B) Association
(C) Regression
(D) Co-variance

58.The current level of maternal morality rate in India is approximately?
(A) 150 per one lac live births
(B) 250 per one làc live births
(C) 350 per one lac live births
(D) 450 per one lac live births

59.In any set of numbers, the geometric mean exists only when all numbers are?
(A) Positive
(B) Negative
(C) Zero
(D) Positive, zero or negative

60. If correlation coefficient is equal to zero, then variables will be?
(A)Associated
(B)Correlated
(C)Independent
( D) Dependent

Answers:
1 B
2 C
3 C
4 B
5 A
6 B
7 A
8 A
9 C
10 D
11 B
12 B
13 D
14 A
15 A
16 D
17 C
18 C
19 D
20 A
21 B
22 D
23 D
24 C
25 B
26 C
27 B
28 D
29 D
30 B
31 A
32 A
33 C
34 D
35 D
36 A
37 A
38 A
39 B
40 B
41 D
42 B
43 D
44 C
45 C
46 D
47 D
48 C
49 B
50 D
51 C
52 C
53 A
54 B
55 C
56 B
57 A
58 B
59 A
60 C

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