MCQOPTIONS
Saved Bookmarks
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.
| 501. |
Which cost are recorded in books of accounts |
| A. | opportunity cost |
| B. | implicit cost |
| C. | social cost |
| D. | explicit cost |
| Answer» E. | |
| 502. |
Deductive method |
| A. | Moves from general to particular |
| B. | Moves from particular to general |
| C. | Is based on hypothesis |
| D. | Both a and b |
| Answer» B. Moves from particular to general | |
| 503. |
A fall in the price of a commodity leads to |
| A. | A shift in demand |
| B. | A fall in demand |
| C. | A rise in the consumer’s real income |
| D. | A fall in the consumer’s real income |
| Answer» D. A fall in the consumer’s real income | |
| 504. |
Which of the following cannot be used to justify efficiency wages |
| A. | Sticky price(menu cost) models |
| B. | Turnover costs |
| C. | Worker shirking |
| D. | Worker morale |
| Answer» B. Turnover costs | |
| 505. |
Suppose that the MPC out of disposable income was 0.8 and the tax function for a given economy was T= -30+0.25Y. an increase in the intercept of the tax function of 10 units(from -30 to -20 would cause equilibrium income in the simple Keynesian model to fall by |
| A. | -20 units |
| B. | 10 units |
| C. | 20 units |
| D. | 40 units |
| Answer» D. 40 units | |
| 506. |
Advocates of the public-choice view argue that elected officials |
| A. | Will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies |
| B. | Will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies |
| C. | Will always respond to both inflation and unemployment with expansionary policies |
| D. | None of the above |
| Answer» E. | |
| 507. |
The concept of consumer surplus was developed by |
| A. | marshal |
| B. | hh ghosen |
| C. | bhentham |
| D. | none of these |
| Answer» B. hh ghosen | |
| 508. |
According to the real business cycle theory business cycles |
| A. | Can be eliminated with appropriate monetary and fiscal policy |
| B. | Are natural and efficient reactions to changes in productivity |
| C. | Do not occur |
| D. | Occur infrequently |
| Answer» C. Do not occur | |
| 509. |
New Keynesian would agree with all of the following except |
| A. | Stabilization policy can reduce the severity of business cycles |
| B. | Wages and prices are sticky |
| C. | Markets are perfectly competitive |
| D. | Market equilibrium is often suboptimal |
| Answer» D. Market equilibrium is often suboptimal | |
| 510. |
In any efficiency wage model it must be true that |
| A. | The marginal benefit of increased efficiency is equal to the marginal cost of higher wages |
| B. | Nominal wages are inflexible |
| C. | Disequilibrium in the labor market exists |
| D. | All of the above |
| Answer» E. | |
| 511. |
The study of international trade and national income is part of |
| A. | global economics |
| B. | macro economics |
| C. | positive economics |
| D. | micro economics |
| Answer» C. positive economics | |
| 512. |
The equity of Reserve Bank of India in National Housing Bank is: |
| A. | 49% |
| B. | 51% |
| C. | 71% |
| D. | 100% |
| Answer» E. | |
| 513. |
Which of the following are the most frequently utilized tools of fiscal policy in the United States? |
| A. | Indirect business taxes |
| B. | Corporate income taxes |
| C. | Inheritance taxes |
| D. | Personal income taxes |
| Answer» E. | |
| 514. |
Demand curve slopes downwards because of |
| A. | the law of diminishing marginal utility |
| B. | the income effect |
| C. | substitution effect |
| D. | all of the above |
| Answer» E. | |
| 515. |
The book ‘Asian Drama’ was written by |
| A. | A.C Pigou |
| B. | D. Ricardo |
| C. | Gunnar Myrdal |
| D. | Lionel Robbins |
| Answer» D. Lionel Robbins | |
| 516. |
The most outstanding feature of the capitalist economic system is |
| A. | unemployment |
| B. | poverty |
| C. | nequality of income |
| D. | industrial backwardness |
| Answer» D. industrial backwardness | |
| 517. |
According to the Keynesian model, the optimal fiscal policy is to |
| A. | Increase cyclical but not structural deficits during a recession |
| B. | Reduce cyclical and structural deficits during a recession |
| C. | Increase structural deficits during a recession |
| D. | Maintain a balanced budget in case of national emergency |
| Answer» B. Reduce cyclical and structural deficits during a recession | |
| 518. |
The traffic which maximizes a country’s economic welfare is called |
| A. | Discriminatory traffic |
| B. | Protective traffic |
| C. | Optimum traffic |
| D. | Non-Discriminatory traffic |
| Answer» E. | |
| 519. |
Which one is not a property of isoquant |
| A. | downward sloping |
| B. | convex |
| C. | negative slope |
| D. | positive slope |
| Answer» E. | |
| 520. |
Indian economy growth is primarily driven by |
| A. | industry |
| B. | agriculture |
| C. | service |
| D. | none of these |
| Answer» D. none of these | |
| 521. |
Adam Smith advocated |
| A. | Laissez Faire |
| B. | Division of Labour |
| C. | Both of these |
| D. | None of these |
| Answer» D. None of these | |
| 522. |
In the real business cycle theory during a period when output is falling |
| A. | Workers are voluntary giving up their jobs |
| B. | The quantity supplied of labor is falling |
| C. | All of the above |
| D. | None of the above |
| Answer» E. | |
| 523. |
The real business cycle theory is most closely related to |
| A. | Keynesian theory |
| B. | Monetarist theory |
| C. | The classical theory |
| D. | The new Keynesian theory |
| Answer» D. The new Keynesian theory | |
| 524. |
When the demand curve is a rectangular hyperbola, it represents: |
| A. | Perfectly elastic demand |
| B. | Unitary elastic demand |
| C. | Perfectly inelastic demand |
| D. | Relatively elastic demand |
| Answer» C. Perfectly inelastic demand | |
| 525. |
Trade Policy measures for correction of balance of payments disequilibrium include of exportpromotion: |
| A. | export promotion |
| B. | import control |
| C. | both a & b |
| D. | import substitution |
| Answer» D. import substitution | |
| 526. |
Which among following is NOT an implication of devaluation? |
| A. | devaluation makes the country's exports relatively less expensive for foreigners. |
| B. | devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. |
| C. | devaluation help to increase the country's exports |
| D. | may therefore help to reduce the current account surplus. |
| Answer» B. devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. | |
| 527. |
Which among following is an implication of revaluation? |
| A. | revaluation makes the country's exports relatively more expensive for foreigners. |
| B. | revaluation makes foreign products relatively more expensive for domestic consumers, thus encouraging imports. |
| C. | revaluation help to reduce the country's exports to reduce the current account surplus. |
| D. | all the above |
| Answer» E. | |
| 528. |
A _______________is an upward adjustment in the official exchange rate, which increases thevalue of the currency. |
| A. | devaluation |
| B. | depreciation |
| C. | revaluation |
| D. | appreciation |
| Answer» D. appreciation | |
| 529. |
__________ is the deliberate downward adjustment in the official exchange rate, reduces thecurrency's value. |
| A. | devaluation |
| B. | depreciation |
| C. | revaluation |
| D. | appreciation. |
| Answer» B. depreciation | |
| 530. |
Under a fixed exchange rate system, ____________________are official changes in the valueof a country's currency relative to other currencies. |
| A. | devaluation |
| B. | depreciation and appreciation |
| C. | revaluation |
| D. | both a and c |
| Answer» B. depreciation and appreciation | |
| 531. |
Which is the tax shifting |
| A. | to bear the tax burden himself |
| B. | to shift the tax burden on others |
| C. | to bear some part of the tax himself and shift the rest on others |
| D. | none of these |
| Answer» C. to bear some part of the tax himself and shift the rest on others | |
| 532. |
The equity principle of taxation was propounded by: |
| A. | adam smith |
| B. | dalton |
| C. | j.b. say |
| D. | marshall |
| Answer» B. dalton | |
| 533. |
Incidence of tax means: |
| A. | direct money burden |
| B. | indirect money burden |
| C. | actual tax burden |
| D. | none of these |
| Answer» C. actual tax burden | |
| 534. |
Who is the father of Public Finance: |
| A. | dalton |
| B. | pigou |
| C. | smith |
| D. | musgrave |
| Answer» B. pigou | |
| 535. |
Public Goods are: |
| A. | excludable |
| B. | non – excludable |
| C. | marketable |
| D. | all of these |
| Answer» C. marketable | |
| 536. |
Non-exclusion principle is related to: |
| A. | private goods |
| B. | public goods |
| C. | merit goods |
| D. | mixed goods 20. |
| Answer» C. merit goods | |
| 537. |
Education is an example of: |
| A. | public good |
| B. | merit good |
| C. | social good |
| D. | club good |
| Answer» C. social good | |
| 538. |
Depreciation means: |
| A. | destruction of a plant in a fire accident |
| B. | loss of fixed assets over time due to wear and tear |
| C. | loss of fixed assets in an earthquake |
| D. | closure of the plant due to lockout |
| Answer» C. loss of fixed assets in an earthquake | |
| 539. |
Final goods refer to those goods which are used either for ............. or for .......... |
| A. | consumption, investment |
| B. | consumption, resale |
| C. | resale, investment |
| D. | resale,further production. |
| Answer» B. consumption, resale | |
| 540. |
Net Factor Income from Abroad is: |
| A. | export minus imorts |
| B. | visible exports minus visible imports |
| C. | factor income received from abroad minus factor income paid abroad |
| D. | factor income received from abroad |
| Answer» E. | |
| 541. |
If factor cost is greater than Market price, then it means that: |
| A. | indirect taxes > subsidies |
| B. | indirect taxes = subsidies |
| C. | indirect taxes < subsidies |
| D. | indirect taxes = and > subsidies |
| Answer» D. indirect taxes = and > subsidies | |
| 542. |
Which of the following constitute the reason for difference between Market prices andfactor cost? |
| A. | indirect taxes |
| B. | subsidies |
| C. | both a and b |
| D. | neither a nor b |
| Answer» D. neither a nor b | |
| 543. |
Real flow refers to the flow of factor services from ------ to ----- |
| A. | firms to households |
| B. | households to firms |
| C. | firms to government |
| D. | households to government |
| Answer» B. households to firms | |
| 544. |
Which of the following is the consumption sector? |
| A. | household |
| B. | firm |
| C. | government |
| D. | foreign |
| Answer» B. firm | |
| 545. |
Real flow is also known as: |
| A. | nominal flow |
| B. | money flow |
| C. | physical flow |
| D. | both a and b |
| Answer» D. both a and b | |
| 546. |
Two sector economy consists of: |
| A. | households, firms |
| B. | households, government |
| C. | firms, foreign sector |
| D. | firms, government. |
| Answer» B. households, government | |
| 547. |
Broker's commission on sale and purchase of second hand goods is included in nationalincome because: |
| A. | it is a part of compensation of employees |
| B. | it is a part of gross domestic capital formation |
| C. | it is an income earned for rendering productive services |
| D. | none of these |
| Answer» D. none of these | |
| 548. |
The first National Income calculation on a scientific basis in India is in the year |
| A. | 1947-48 |
| B. | 1951-52 |
| C. | 1931-32 |
| D. | 1990-91 |
| Answer» D. 1990-91 | |
| 549. |
Net Factor Income from Abroad is taken into account when National Income is calculated by: |
| A. | value added method |
| B. | income method |
| C. | expenditure method |
| D. | any of the three methods |
| Answer» E. | |
| 550. |
National product at current prices is higher than national product at constant prices duringa period of : |
| A. | rising prices |
| B. | falling prices |
| C. | constant prices |
| D. | both a and b |
| Answer» B. falling prices | |