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.
| 551. |
Which of the following is not an economic activity and hence not included whileestimating national income in india? |
| A. | medical services rendered by a dispensary |
| B. | a housewife doing household work |
| C. | a lawyer doing his practiced |
| D. | a maid working full time with a family |
| Answer» C. a lawyer doing his practiced | |
| 552. |
Expenditure method focuses on measurement of National income at: |
| A. | phases of production of goods and services |
| B. | phase of income distribution |
| C. | phase of income disposition |
| D. | all of these |
| Answer» D. all of these | |
| 553. |
Which of the following is included in domestic income? |
| A. | factor income from abroad |
| B. | windfall gains |
| C. | pension on retirement |
| D. | capial gains |
| Answer» D. capial gains | |
| 554. |
Which one is included in National Income? |
| A. | winning from lottery |
| B. | milk purchase by a dairy shop |
| C. | national debt interest |
| D. | none of these. |
| Answer» E. | |
| 555. |
If a farmer sells Wheat to miller for RS.500 and miller sells flour to baker for Rs.700and baker sells bread to consumer for Rs.1000, then total value added by Miller and baker is: |
| A. | 500 |
| B. | 300 |
| C. | 1700 |
| D. | 1200 |
| Answer» B. 300 | |
| 556. |
GDP MP = Rs.1000 and subsidies = Rs.50, then GDP FC will be : |
| A. | 1050 |
| B. | 950 |
| C. | 1000 |
| D. | 900 |
| Answer» B. 950 | |
| 557. |
'Distributed Profits' is also known as: |
| A. | corporate tax |
| B. | dividend |
| C. | retained earnings |
| D. | none of these |
| Answer» C. retained earnings | |
| 558. |
"Income method" is also known as: |
| A. | distributive share method |
| B. | income disposal method |
| C. | industrial origin method |
| D. | none of these |
| Answer» B. income disposal method | |
| 559. |
is the net amount available to households for consuption and saving |
| A. | national income |
| B. | personal income |
| C. | personal disposable income |
| D. | government income |
| Answer» D. government income | |
| 560. |
Which of the following ia a part of National Income? |
| A. | old age pension |
| B. | unemployment allowance |
| C. | profit |
| D. | scholarship |
| Answer» D. scholarship | |
| 561. |
NDP at FC is less than National Income when: |
| A. | net factor income from abroad is positive |
| B. | net factor income from abroad is negative |
| C. | net factor income from abroad is zero |
| D. | net exports are positive |
| Answer» B. net factor income from abroad is negative | |
| 562. |
GNP exceeds NNP by: |
| A. | amount of total taxes |
| B. | government expenditure |
| C. | transfer payments |
| D. | difference between gross investment and net investment |
| Answer» E. | |
| 563. |
National income is equal to: |
| A. | domestic product plus factor income earned from abroad |
| B. | domestic product plus net factor income earned from abroad |
| C. | domestic product mins factor income earned from abroad |
| D. | domestic product plus export minus imports |
| Answer» C. domestic product mins factor income earned from abroad | |
| 564. |
In which type of economy, domestic income is equal to national income? |
| A. | open economy |
| B. | closed economy |
| C. | both a and b |
| D. | neither a nor b |
| Answer» C. both a and b | |
| 565. |
Domestic factor income is another name for: |
| A. | ndp fc |
| B. | nnp mp |
| C. | gdp fc |
| D. | nnp fc |
| Answer» B. nnp mp | |
| 566. |
if facor income received from abroad is equal to factor income paid abroad, then which ofthe following is not a valid statement? |
| A. | national income = domestic income |
| B. | ndp fc + depreciation = gnp fc |
| C. | ndp fc + depreciation = gnp mp |
| D. | all are valid |
| Answer» E. | |
| 567. |
If economic subsidies are added to and Indirect taxes are substracted from the nationalincome at market prices, then it will be equal to : |
| A. | domestic income |
| B. | national income |
| C. | gnp at market price |
| D. | gdp at factor cost |
| Answer» C. gnp at market price | |
| 568. |
Cororate tax is not a part of : |
| A. | personal income |
| B. | naional income |
| C. | domestic income |
| D. | private income |
| Answer» B. naional income | |
| 569. |
Which of the following is an example of an intermediate good? |
| A. | car sold by a dealer of second hand cars |
| B. | steel and cement used to construct a flyover |
| C. | fertilizers purchased by a farmer |
| D. | all of these |
| Answer» E. | |
| 570. |
Out of the following, which aggregate represents 'National Income'? |
| A. | nnp mp |
| B. | gnp fc |
| C. | nnp fc |
| D. | gnp mp |
| Answer» D. gnp mp | |
| 571. |
Which of the following is an example of Transfer Income? |
| A. | bonus |
| B. | unemployment allowance |
| C. | compensation from the employer |
| D. | all of these |
| Answer» E. | |
| 572. |
If negative income effect is less than positive substitution effect : the product will be |
| A. | a normal good |
| B. | an inferior good |
| C. | a giffen good |
| D. | a complementary good |
| Answer» C. a giffen good | |
| 573. |
Which of the following statement is TRUE with regard to total utility |
| A. | total utility is the utility derived from last unit |
| B. | total utility increases at a diminishing range |
| C. | as consumption increases total utility goes on diminishing |
| D. | at saturation point total utility is negative |
| Answer» C. as consumption increases total utility goes on diminishing | |
| 574. |
If both the products X & Y are normal goods |
| A. | slopes down towards right |
| B. | slopes up towards right |
| C. | slopes up towards left |
| D. | slopes down towards left |
| Answer» C. slopes up towards left | |
| 575. |
According to Marshall consumer surplusis: |
| A. | total utility – marginal utility |
| B. | total utility + marginal utility |
| C. | total utility derived – price |
| D. | price – marginal utility |
| Answer» D. price – marginal utility | |
| 576. |
When individuals income falls (everything remain the same) his demand for aninferior good |
| A. | rises |
| B. | falls |
| C. | remains the same |
| D. | we cannot say without additional information |
| Answer» B. falls | |
| 577. |
Inferior goods are the goods with |
| A. | falling income effect |
| B. | rising income effect |
| C. | negative income effect |
| D. | positive marshallian effects |
| Answer» D. positive marshallian effects | |
| 578. |
According to Marshall, The law of diminishing marginal utility |
| A. | applies on money in the manner in which it applies on commodity |
| B. | do not applies on money except bank money |
| C. | does not applies on bank money but applies on cash |
| D. | applies on all commodities except money |
| Answer» E. | |
| 579. |
“Utility or satisfaction is a subjective concept; therefore it could only be ranked”.The statement supports |
| A. | cardinal utility theorist |
| B. | ordinal utility theorist |
| C. | behavioral theorist of the firm |
| D. | none of the above |
| Answer» C. behavioral theorist of the firm | |
| 580. |
When price of a product falls, more of it is purchased because of |
| A. | the substitution effect |
| B. | the income effect |
| C. | neither substitution effect nor income effect |
| D. | both the substitution and income effects |
| Answer» E. | |
| 581. |
An Essay on the Nature and Significance of Economic Science was written by |
| A. | adamsmith |
| B. | alfred marshall |
| C. | lord robbins |
| D. | samuelson |
| Answer» D. samuelson | |
| 582. |
The deductive method is also called |
| A. | abstract |
| B. | analytical |
| C. | priori method |
| D. | all the above |
| Answer» E. | |
| 583. |
A production possibility curve is concave to the point of origin because of |
| A. | increasing marginal rate of transformation (mrt) |
| B. | increasing marginal opportunity cost (moc) |
| C. | both of the above |
| D. | decreasing marginal rate of transformation |
| Answer» D. decreasing marginal rate of transformation | |
| 584. |
The U shape of the LAC reflects |
| A. | law of variable proportions |
| B. | laws of returns to scale |
| C. | reserve capacity |
| D. | none of these |
| Answer» B. laws of returns to scale | |
| 585. |
If the long run cost curve shifts down wards it is an indication of |
| A. | technological progress |
| B. | lower factor prices |
| C. | both of these |
| D. | reserve capacity |
| Answer» D. reserve capacity | |
| 586. |
The shape of TVC and TC are |
| A. | rectangular hyperbola |
| B. | inverse ‘s’ shape |
| C. | horizontal straight line |
| D. | l shaped |
| Answer» B. inverse ‘s’ shape | |
| 587. |
The MC curve cuts the AC curve at |
| A. | the maximum point |
| B. | the initial point |
| C. | the minimum point |
| D. | any point |
| Answer» C. the minimum point | |
| 588. |
The minimum point of ATC is at.............. position of the minimum point of AVC |
| A. | right |
| B. | left |
| C. | same |
| D. | all of above can be |
| Answer» C. same | |
| 589. |
The cost expressed not in terms of money but in terms of efforts of workers undergonefor making the commodity |
| A. | opportunity cost |
| B. | real cost |
| C. | sacrifice cost |
| D. | implicit cost |
| Answer» D. implicit cost | |
| 590. |
When AC minimum in short run |
| A. | ac < mc |
| B. | ac > mc |
| C. | ac = mc |
| D. | any of above is possible |
| Answer» C. ac = mc | |
| 591. |
The total fixed cost is a |
| A. | horizontal straight line |
| B. | vertical |
| C. | hyperbola |
| D. | u shaped |
| Answer» B. vertical | |
| 592. |
The U shape of MC curve reflects |
| A. | economies of scale |
| B. | law of increasing returns |
| C. | reserve capacity |
| D. | law of variable proportion |
| Answer» E. | |
| 593. |
The U shape of the average total cost curve reflects |
| A. | ldmu |
| B. | the law of variable proportions |
| C. | consumer’s surplus |
| D. | reserve capacity |
| Answer» B. the law of variable proportions | |
| 594. |
In long run, which factor of production is fixed? |
| A. | labour |
| B. | capital |
| C. | building |
| D. | none of the above |
| Answer» C. building | |
| 595. |
Envelope curve is |
| A. | long run marginal cost curve |
| B. | long run average cost curve |
| C. | total cost curve |
| D. | none of the above |
| Answer» E. | |
| 596. |
Economic cost include both |
| A. | explicit cost and implicit cost |
| B. | fixed cost and variable cost |
| C. | explicit cost and prime cost |
| D. | money cost and sunk cost |
| Answer» B. fixed cost and variable cost | |
| 597. |
Which of the following has a U shape? |
| A. | average fixed cost curve |
| B. | total cost curve |
| C. | average variable cost curve |
| D. | total variable cost curve |
| Answer» D. total variable cost curve | |
| 598. |
Implicit cost of a factor of production is determined by its |
| A. | sunk cost |
| B. | variable cost |
| C. | fixed cost |
| D. | opportunity cost |
| Answer» B. variable cost | |
| 599. |
AFC curve will always be |
| A. | rectangular hyperbola |
| B. | u shaped |
| C. | horizontal |
| D. | downward sloping |
| Answer» E. | |
| 600. |
Under increasing returns to scale, which of the following is the nature of the long runaverage cost curve? |
| A. | downward sloping |
| B. | upward rising |
| C. | parallel to output axis |
| D. | identical to short run average cost curve |
| Answer» E. | |