ECONOMICS MCQ Solved paper « MCQ Objective Sample Model Tests for INDIA

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ECONOMICS MCQ Solved paper

ECONOMICS MCQ Solved paper
MCQ Quiz : India’s Economy Economics (Solved)
Economics mcq solved
Economics MCQs Collection,Solved MCQs

1. Many states in last years have
introduced user charges in public
hospitals because of that-
(A) The difference between the
treatment cost in private and
public hospitals has decreased
(B) The treatment cost of poor
has increased
(C) Percentage of patients taking treatment in public hospitals
has come down
(D) The treatment cost in public
hospitals has decreased
Which of the above statements is
not correct ?

Answer.D

2. The rate of growth of Indian
economy during last three years
has been 8 per cent. At this rate
the G.N.P. will be double in-
(A) 12 years (B) 9years
(C) 15 years (D) 10 years

Answer.B

3. For equitable development it is
necessary that-
(A) Proportionate benefit to all
classes
(B) Main benefit goes to rich
persons
(C) Main benefit goes to poor
persons
(D) Main benefit goes to middle
classes

Answer.A

4. Bank rate in India is determined
by-
(A) Government
(B) Commercial Banks
(C) Reserve Bank of India
(D) Cooperative Banks

Answer.C

5. The economy will be in equilibrium if-
(A) I = S (B) Y > C
(C) I > C (D) I< C

Answer.A

6. The factors affecting the elasticity
of demand of a commodity are-
(A) Availability of substitutes
(B) Possibility of postponing
consumption
(C) Share of expenditure in the
total budget
(D) Whether the person is educated or uneducated
Which of the above factors is
wrong ?

Answer.D

7. The biggest producer of Soybean
is-

(A) Madhya Pradesh
(B) Rajasthan
(C) U. P.
(D) Maharashtra

Answer.A

8. The biggest producer of gram in
Indians——
(A) Maharashtra
(B) U. P.
(C) M. P.
(D) None of these states

Answer.D

9. The function of money is/ are-
(A) Medium of exchange
(B) Measure of value
(C) Store of value
(D) All of these

Answer.D

10. The main factor behind the
increase in global temperature is
the emission of CO2 is greater
than the earth’s capacity to
absorb it. The share in total
emission of CO2 is the highest
of-
(A) China
(B) India
(C) America
(D) Soviet Russia

Answer.C

11. “The utility from a bundle of
goods will be maximum when
the marginal utility of each commodity is equal to the price
multiplied by the marginal utility
of money/’ This was stated by~—
(A) Marshall
(B) Adam Smidi
(C) Hicks
(D) None of these

Answer.A

12. When relative change in demand
is equal to change in price, the
price elasticity of demand will
be-
(A) Unit .
(B) Less than one
(C) Greater than one
(D) Infinity

Answer.A

13. Suppose money income in the
year 2000 was 5 lakh, which
increased 10 lakh in the year
2008. But during the same
period, there was a price
increase of 20 per cent. Then
increase in real income was-
(A) 8-33 lakh
(B) 363 lakh
(C) 51akh ,
(D) None of these

Answer.A

14. To obtain maximum satisfaction,
the following equation must be
satisfy
f1/ f2 = P1/P2
where fl and f2 indicate marginal
utility and P1 and P2 indicates
their prices.
(A) Above equation is correct
(B) Above equation is wrong
(C) Above equation indicates
minimum, not maximum satisfaction
(D) None of the above

Answer.A

15. Inferior goods means—
(A) When demand remains constant, though price increased
(B) When demand decreases
with increase in price
(C) When demand decreases
with decrease in price
(D) Demand remains the same
with decrease in price

Answer.C

16. There are some misconceptions
about monopoly. Which one of
the following ?
(A) Monopoly firm tries to earn
maximum profit
(B) Monopoly firm always
earns profit
(C) Marginal income of mono-
poly firm is equal to marginal
cost
(D) None of the above

Answer.B

18. Which of the following statements is true ?
(A) Product differentiation is
not necessary in monopolistic
competition
(B) Monopolistic competition
normally requires product
differentiation
(C) There is no reaction from
others if one under monopolistic
competition decreases price
(D) With perfect elastic demand,
price decrease under monopolise
tic competition decreases total
revenue

Answer.B

19. Equilibrium means—
(A) No tendency to change with
time
(B) Changes in all variables
with time
(C) Other combinations of variable represent better situation
(D) Change in one variable,
others remaining constant

Answer.A

20. Gross national product is equal
to-
(A) Gross national product —
Import
(B) GDP + Net Factor Income
from abroad
(C) Gross domestic product +
Imports
(D) Gross national product +
Exports

Answer.B

21. Entrepreneurial activity is per-
formed-
(A) By rich persons
(B) Who works under conditions of certainty
(C) Who works only on the basis
of past experiences
(D) Who works under conditions of uncertainty

Answer.D

22. Which of the following is
included in Macro-economics
(A) Equilibrium of the firm
(B) Price determination of a
commodity
(C) Trade cycle theory
(D) Price determination of LPG
in India

Answer.C

23. Trade off means—
(A) Simultaneous increase in
two variables
(B) Increase in one variable,
keeping the other constant
(C) Decrease in other variable
with increase of one
(D) None of the above

Answer.C

24. Which of the following represents equilibrium ?
Total Total Reali- Plan-
Natio- Con- sed ned
nal sum- Sav- Invest-
Inco- tion ing ment
me
(A) 600 500 100 75
(B) 500 425 75 75
(C) 400 350 50 75
(D) 700 550 150 75

Answer.B

25. In a country in which the demand
for land is greater than the
Supply-
(A) There will be no price for
marginal land
(B) Marginal land will also
have price
(C) Only fertile land will have
price
(D) There will be no price even
for fertile land

Answer.B

26. A firm will suffer l0ss—
(A) If the price is less than
average fixed cost + average •
variable cost
(B) If the price is less than
variable cost
(C) lf the price is less than
average fixed cost
(D) lf the price is more than
average fixed cost + average
variable cost

Answer.A

27. lf the amount of 100 crore is
invested in an economy and if
marginal propensity to consume
is 0•8, then increase in national
income will be—
(A) 80 crore
(B) 300 crore
(C) 500 crore
(D) None of these

Answer.C

28. The great depression of thirties
gave birth to the theory of—
(A) Say’s law of market
(B) Full employment equilibrium
(C) That real wages determine
the supply of labour
(D) Keynesian theory of Employment

Answer.D

29. If the total cost of production of
400 units is Rs. 8,000 and of 399
units is Rs. 7,990, then the
production is under—
(A) Law of increasing Returns
to the Scale
(B) Law of Decreasing Returns
to Scale
(C) Law of Constant Returns to
Scale
(D) None of the above

Answer.A

30. Inflation in India is measured
by?
(A) Change in wholesale price
index
(B) Increase in currency in
circulation
(C) Change in retail price index
(D) Credit created by the banks

Answer.A

31. Income from taxes is divided-
(A) State’s income from taxes
is shared by Centre
(B) Income of some taxes of the
Centre is shared by States
(C) States and the Centre have
independent sources of income
and no sharing
(D) None of the above

Answer.B

32. Central Bank in India is-
(A) Central Bank of India
(B) State Bank of India
(C) Bank of India
(D) Reserve Bank of India

Answer.D

33. Which of the following does not
come under Macro-economics
(A) Employment theory
(B) Price determination of LPG
in India
(C) Theory of depression
(D) Functions of Central Bank
in India

Answer.B

34. Macro-economics suffers from-
(A) All theories are influenced
by generalization
(B) The analysis employs the
technique of partial analysis
(C) Deals with large quantities
(D) Relates to determination of
total employment and total
income

Answer.A

35. The movement from non-Pareto
to Pareto equilibrium is desirable
because-
(A) It increases the production
of first commodity without
adversely affecting the production of second
(B) It increases the production
of second commodity more than
it decreases the production of
first
(C) It increases the production
of first commodity more than if
decreases the production of
second one
(D) None of the above

Answer.A

36. Inflation means-
(A) When the prices of necessities increase
(B) When the general price
increases for a long period
(C) When there is a seasonal
fluctuation in prices
(D) When the prices of luxuries
increase

Answer.B

37. Speculative Demand for money
and Interest rate are related—
(A) Inverse relationship
(B) Direct relationship
(C) No relationship in these
(D) None of these

Answer.A

38, When the demand for money
increases for investment-
(A) Will decrease the multiplier
effect
(B) Adversely affect the consumption
(C) Interest rate will remain
unchanged
(D) The increase in interest rate
will depend upon the slope of
investment curve

Answer.D

39. Disinflation means—
(A) When increase in prices in
the long run
(B) When the prices increase
due to export
(C) When the increase in prices
is more than average
(D) When increased prices
decrease

Answer.D

40. Transaction demand curve for
money—
(A) It is parallel to X—axis
(B) It moves upward with
income
(C) It moves downward
(D) None of these

Answer.B

41. If any firm uses only two factors
of production, namely labour (L)
and capital (K), which of the
following equations represent
minimum cost of production

(A) MPPL/ PL = MPPK / PK
(B) MPPL x PL = MPPK x PK
(C) MRPL = MRPK
(D) MPPL : MPPK

Answer.A

42, Devaluation of money means—
(A) Decrease in purchasing
power of money
(B) Increase in purchasing
power of money
(C) Decrease in external value
of money
(D) None of the above

Answer.C

43. Money supply could be
increased when-
(A) Central Bank purchases
government securities
(B) Central Bank sells government securities
(C) Cash-reserve ratio of banks
is increased
(D) Commercial Banks increase
the amount deposited with Central Bank

Answer.A

44. Minimum wage should be deter-
mined-
(A) Less than prevailing wage
rates
(B) Higher than equilibrium
rate in die market
(C) Minimum Physical and
Social needs may be fulfilled
(D) None of the above

Answer.C

45 Pigou’s concept of equilibrium
firm is a-
(A) Completely new concept,
having nothing to do with
Marshallian representative firm
(B) Revised version of
Marshallian representative firm
(C) Marshall’s representative
firm is a revised version of
Pigou’s equilibrium firm
(D) None of the above

Answer.B

46. Under monopolistic competition,
excess capacity means-
(A) Excess capacity under the
condition of making loss
(B) Difference between profit
maximizing production and
minimum cost production
(C) Optimum and maximum
profit giving production difference between the two
(D) None of the above

Answer.B

47. Law of Variable Proportions
means-
(A) Simultaneous change in the
proportion of inputs
(B) Keeping one input constant
while changing others
(C) Reducing other inputs and
increasing only one input
(D) None of the above

Answer. B

48. Under monopolistic competition
in long run—
(A) Firm will always earn mono-
poly profit
(B) Firm might earn normal
profit only
‘ (C) Firm will always earn nor»
mal profit
(D) None of the above

Answer.B

49. Bankers’ Bank in India is-
(A) International Monetary
Fund
(B) World Bank
(C) Industrial Development
Bank of India
(D) Reserve Bank of India

Answer.D

50. The ratio of exchange between
two goods in the indifference
curve analysis is shown by——
(A) Price line
(B) Price-consumption curve
(C) Income consumption curve
(D) From indifference curve

Answer.A

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