MCQOPTIONS
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MCQOPTIONS
This section includes 2956 Mcqs, each offering curated multiple-choice questions to sharpen your UPSC IAS Exam knowledge and support exam preparation. Choose a topic below to get started.
| 451. |
The quantity demanded of a product increases when |
| A. | the consumers suddenly want more of the goods |
| B. | the consumers level of income falls |
| C. | the price of the product falls |
| D. | more buyers of the goods enter the market |
| Answer» D. more buyers of the goods enter the market | |
| 452. |
Macro economic theory is also known as |
| A. | price theory |
| B. | income theory |
| C. | demand theory |
| D. | none of these |
| Answer» B. income theory | |
| 453. |
What effect is working when the price of a good falls and consumers tend to buy it instead of other goods |
| A. | income effect |
| B. | substitution effect |
| C. | price effect |
| D. | none of these |
| Answer» C. price effect | |
| 454. |
What are “hawala transaction” |
| A. | foreign trade in goods that are banned by the government. |
| B. | transfer of money without actually moving it |
| C. | illegal drug trade at the international level |
| D. | conversion of black money into white money |
| Answer» C. illegal drug trade at the international level | |
| 455. |
Automatic stabilizers drive changes in |
| A. | The total deficit |
| B. | The cyclical deficit |
| C. | The structural deficit |
| D. | Monetary policy |
| Answer» C. The structural deficit | |
| 456. |
If the income elasticity of demand is that one, the good is a |
| A. | necessity |
| B. | luxury |
| C. | substitute |
| D. | complement |
| Answer» C. substitute | |
| 457. |
Which of the following statements are(is) correct? |
| A. | Expansionary monetary policy and expansionary fiscal that leads to budget deficits create low interest rates |
| B. | High interest rates in the first half of the 1980s resulted from falls in the budget deficit under the Reagan administration |
| C. | The best monetary-fiscal policy mix to keep interest rates low would be to raise taxes and raise the money supply |
| D. | The answer depends upon the school of thought used to evaluate the effects of deficit policies |
| Answer» E. | |
| 458. |
In case of Giffen goods, demand curve will slope: |
| A. | Vertical |
| B. | Horizontal |
| C. | Upward |
| D. | Downward |
| Answer» D. Downward | |
| 459. |
Two goods that are used jointly to provide satisfaction are called |
| A. | inferior goods |
| B. | normal goods |
| C. | complementary goods |
| D. | substitute goods |
| Answer» D. substitute goods | |
| 460. |
India’s economy growth is primarily driven by |
| A. | industry |
| B. | agriculture |
| C. | service |
| D. | none of these |
| Answer» D. none of these | |
| 461. |
Indifference curve analysis is based on the principles of |
| A. | consumer surplus |
| B. | diminishing marginal utility |
| C. | diminishing marginal rate of substitution |
| D. | none of these |
| Answer» D. none of these | |
| 462. |
Cargil foods, an MNC has bought over which indigenous Indian company? |
| A. | amul |
| B. | britannia |
| C. | parakh foods |
| D. | dabur |
| Answer» D. dabur | |
| 463. |
13th Finance Commission has been constituted under the chairmanship of: |
| A. | C. Rangarajan |
| B. | Vijay L Kelkar |
| C. | Deepak Parekh |
| D. | Indira Bhargara |
| Answer» C. Deepak Parekh | |
| 464. |
Who gave the first scientific treatment of general equilibrium analysis |
| A. | Leon Walras |
| B. | J.B Say |
| C. | Edward Chamberlain |
| D. | K.E Boulding |
| Answer» B. J.B Say | |
| 465. |
The utility may be defined as: |
| A. | The desire for a commodity |
| B. | The usefulness of a commodity |
| C. | The necessity of a commodity |
| D. | The power of a commodity to satisfy wants |
| Answer» E. | |
| 466. |
The imposition of an import tariff by a nation will increase the nation’s welfare: |
| A. | Never |
| B. | Often |
| C. | Sometimes |
| D. | Always |
| Answer» D. Always | |
| 467. |
A situation where the firm is not in a position to recover its variable costs at theprevailing prices is known as: |
| A. | Point of inflation |
| B. | Equilibrium point |
| C. | Optimum point |
| D. | None of these |
| Answer» E. | |
| 468. |
Which of the following is not a method of demand forecasting |
| A. | trend projection method |
| B. | substitute approach |
| C. | sales experience approach |
| D. | evolutionary approach |
| Answer» B. substitute approach | |
| 469. |
A demand curve which takes the form of horizontal line parallel to quantity axis illustrates elasticity which is: |
| A. | Zero |
| B. | Infinite |
| C. | Greater than one |
| D. | Less than one |
| Answer» E. | |
| 470. |
An exceptional demand curve is one that slopes |
| A. | Upward to the left |
| B. | Downward to the right |
| C. | Horizontally |
| D. | Upward to the right |
| Answer» E. | |
| 471. |
According to real business cycle theory an increase in taxes |
| A. | Would significantly reduce labor supply, increase employment, and decrease output |
| B. | A decline in employment but not in output |
| C. | Would significantly reduce labor supply, decrease employment, and decrease output |
| D. | No change in output and employment |
| Answer» D. No change in output and employment | |
| 472. |
Which of the following is not a development issue in india. |
| A. | unemployment |
| B. | population pressure |
| C. | inflation |
| D. | decreasing trend of foreign capital |
| Answer» E. | |
| 473. |
Which of the following is an example of a trade barrier? |
| A. | foreign investment |
| B. | delay or damage of goods |
| C. | tax on imports |
| D. | none of these |
| Answer» D. none of these | |
| 474. |
Product differentiation is an important feature of |
| A. | perfect competition |
| B. | monopolistic competiton |
| C. | monopoly |
| D. | none of these |
| Answer» C. monopoly | |
| 475. |
The author of “the wealth of nations” is |
| A. | marshal |
| B. | ricardo |
| C. | robins |
| D. | adam smith |
| Answer» E. | |
| 476. |
Consider a demand curve which takes the form of a straight line cutting both axes.Elasticity at the mid-point of the line would be: |
| A. | Zero |
| B. | One infinite |
| C. | infinite |
| D. | Can not be calculated |
| Answer» C. infinite | |
| 477. |
The real business cycle theory and the new classical theory agree that |
| A. | Business cycles are driven by changes in Aggregate demand |
| B. | Expectations are formed rationally |
| C. | Imperfect information plays a big role in business cycles |
| D. | None of the above |
| Answer» C. Imperfect information plays a big role in business cycles | |
| 478. |
Dualism in development economics refers to |
| A. | Dual price policy |
| B. | Co-existence of technical and non-technical sectors |
| C. | Co-existence of modern and traditional sectors |
| D. | Co-existence of institutional and non- institutional agencies |
| Answer» D. Co-existence of institutional and non- institutional agencies | |
| 479. |
A consumer with a given income will maximise their utility when: |
| A. | the marginal utility derived from each commodity is equal. |
| B. | the marginal utility derived from each product consumed is zero. |
| C. | the total utility derived from each commodity consumed is equal. |
| D. | the marginal utilities derived from each commodity consumed are proportional |
| Answer» E. | |
| 480. |
In real business cycle models and new classical models |
| A. | Monetary factors are responsible for fluctuations in output and employment |
| B. | Changes in unemployment are involuntary |
| C. | Markets always clear |
| D. | Prices and wages are perfectly flexible |
| Answer» E. | |
| 481. |
The horizontal demand curve for a commodity shows that its demand is: |
| A. | Perfectly elastic |
| B. | Highly elastic |
| C. | Perfectly inelastic |
| D. | Moderately elastic |
| Answer» B. Highly elastic | |
| 482. |
Joint profits are maximized in the model cartel, which is model of: |
| A. | Duopsony |
| B. | Duopoly |
| C. | Oligopoly |
| D. | Oligopony |
| Answer» D. Oligopony | |
| 483. |
The most outstanding feature of capitalist economic system is … |
| A. | unemployment |
| B. | poverty |
| C. | inequality of income |
| D. | industrial backwardness |
| Answer» D. industrial backwardness | |
| 484. |
The typical indifference curve …….. |
| A. | shows that as a consumer has more of a good he/she is less willing to exchange it for one unit of another good. |
| B. | shows all combinations of goods that give a consumer in same level of utility |
| C. | shifts out if income increases |
| D. | both b and c |
| Answer» C. shifts out if income increases | |
| 485. |
Which of the following is a measure to reduce inequality of income |
| A. | promotion of industries |
| B. | social securities |
| C. | granting of credit to poor on concessional rates |
| D. | none of these |
| Answer» C. granting of credit to poor on concessional rates | |
| 486. |
Protectionism in the international trade stands for: |
| A. | Semi-restricted Trade |
| B. | Free trade policy |
| C. | Restricted Trade policy |
| D. | All of the above |
| Answer» D. All of the above | |
| 487. |
Which of the following is not a development issue in india |
| A. | unemployment |
| B. | population pressure |
| C. | inflation |
| D. | decreasing trend of foreign capital |
| Answer» E. | |
| 488. |
The study of entire economic system is called |
| A. | macro economics |
| B. | micro economics |
| C. | economics |
| D. | none of these |
| Answer» B. micro economics | |
| 489. |
Unitary elasticity of demand is: |
| A. | Zero |
| B. | Equal to one |
| C. | Greater than 1 |
| D. | Less than 1 |
| Answer» C. Greater than 1 | |
| 490. |
The portfolio investment by foreign institutional investor is |
| A. | fdi |
| B. | fii |
| C. | bop |
| D. | sdr |
| Answer» B. fii | |
| 491. |
Which cost is more useful for decision making |
| A. | opportunity cost |
| B. | sunk cost |
| C. | historical cost |
| D. | none of these |
| Answer» B. sunk cost | |
| 492. |
If the income and substitution effect of a price increase works in the same direction the good whose price haschanged is a |
| A. | giffen goods |
| B. | inferior goods |
| C. | normal goods |
| D. | superior |
| Answer» D. superior | |
| 493. |
The rational entrepreneur will expand his output and select input combinationswhich lies on his: |
| A. | Isoquant line |
| B. | Ridge line |
| C. | Isoquant line |
| D. | Expansion path |
| Answer» E. | |
| 494. |
The relationship between demand for a commodity and price, ceteris paribus, is: |
| A. | Negative |
| B. | Positive |
| C. | Non-negative |
| D. | Non-positive |
| Answer» B. Positive | |
| 495. |
Many economists who accept the real business cycle explanations of economic fluctuations |
| A. | Believe that the Sharpe rise in the relative price of imported oil was the central cause of the deep recession in the United States in the mid-1970s |
| B. | Believe that the restrictive Federal reserve Monetary policy was the central cause of the deep recession in the United States in the mid-1970s |
| C. | Believe that the Sharpe rise in the relative price of imported oil was not the main cause of the deep recession in the United States in the mid-1970s |
| D. | Both a and c |
| Answer» B. Believe that the restrictive Federal reserve Monetary policy was the central cause of the deep recession in the United States in the mid-1970s | |
| 496. |
The proportionality between the velocity of price movement and the inflationarygap is: |
| A. | Indirect and irregular |
| B. | Direct and linear |
| C. | Irregular and direct |
| D. | Indirect and non-linear |
| Answer» C. Irregular and direct | |
| 497. |
Trade between countries |
| A. | determines prices of products in different countries |
| B. | decreases competition between countries |
| C. | makes a country dependent on the other |
| D. | none of these |
| Answer» B. decreases competition between countries | |
| 498. |
If external debt of country rises faster than its interest obligations, it is a case of: |
| A. | Dept trap |
| B. | Liquidity trap |
| C. | Poverty trap |
| D. | Export led growth |
| Answer» B. Liquidity trap | |
| 499. |
The interrelation between innovations and investment opportunity was first pointed out by: |
| A. | Schumpeter |
| B. | Samuelson |
| C. | T. R. Hicks |
| D. | Torgenson |
| Answer» E. | |
| 500. |
WTO aims at |
| A. | establishing rules for domestic trade |
| B. | restricting trade practices |
| C. | liberalizing international trade |
| D. | none of these |
| Answer» D. none of these | |