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.
| 351. |
……..principle is closely related to the marginal costs and marginal revenue of economic theory |
| A. | principle of time perspective |
| B. | equi‐marginal principle |
| C. | incremental principle |
| D. | none of these |
| Answer» D. none of these | |
| 352. |
Basic economic tools of managerial economics does not include |
| A. | principle of time perspective |
| B. | equi‐marginal principle |
| C. | incremental principle |
| D. | none of these |
| Answer» E. | |
| 353. |
“A rupee tomorrow is worth less than a rupee today” relates to |
| A. | opportunity cost principle |
| B. | discounting principle |
| C. | equi‐marginal principle |
| D. | none of these |
| Answer» C. equi‐marginal principle | |
| 354. |
What effect is working when the price of a good falls and consumers tend to buy itinsteadof other goods |
| A. | income effect |
| B. | substitution effect |
| C. | price effect |
| D. | none of these |
| Answer» C. price effect | |
| 355. |
Welfare (neo classical) definition of economics is given by |
| A. | j b say |
| B. | lionel robbins |
| C. | adam smith |
| D. | alfred marshall |
| Answer» E. | |
| 356. |
The famous book on economics “An Enquiry into the Nature and Cause of Wealth ofNation” was written by |
| A. | marshal |
| B. | ricardo |
| C. | robins |
| D. | adam smith |
| Answer» E. | |
| 357. |
_______ is known as father of economics |
| A. | marshal |
| B. | robins |
| C. | adam smith |
| D. | a c pigou |
| Answer» D. a c pigou | |
| 358. |
Indian exports were increased during 2001-2002 and it went upto the level of: |
| A. | 39.8 billion dollars |
| B. | 28.2 billion dollars |
| C. | 44.0 billion dollars |
| D. | 45.6 billion dollars |
| Answer» D. 45.6 billion dollars | |
| 359. |
If the price of DVRs fell and as a result the demand for VHS recorders fell we could conclude that VHS recordersDVRs are |
| A. | normal goods |
| B. | substitutes |
| C. | elastic goods |
| D. | unrelated |
| Answer» C. elastic goods | |
| 360. |
During the recession of 2001, |
| A. | There were a number of proposals for tax increases or spending cuts to stir the economy, but the failed due to worries about their effects on the already largedeficit |
| B. | A series of tax cuts were passed, though the only occurred in late 2001 |
| C. | All the proposed tax and spending cuts were approved in order to motivate the economy and reduce the large deficit |
| D. | The cyclical deficit increased but the structural deficit remained unchanged |
| Answer» C. All the proposed tax and spending cuts were approved in order to motivate the economy and reduce the large deficit | |
| 361. |
When automatic fiscal stabilizers are in place, a shock that causes a fall in the kevel of economic activity automatically |
| A. | Results in a decline in the federal budget deficit that lessens the fall in income |
| B. | Results in a rise in the federal deficit that lessens the fall in income |
| C. | Requires the federal government to balance the budget |
| D. | Will lead to a permanent increase in the budget deficit |
| Answer» C. Requires the federal government to balance the budget | |
| 362. |
Which of the following is a social consequence of unemployment in india |
| A. | burden on the government |
| B. | loss of income and respect |
| C. | wastage of resources |
| D. | none of these |
| Answer» C. wastage of resources | |
| 363. |
MNC |
| A. | always produce primary goods |
| B. | always produce manufactured goods |
| C. | always produce service, |
| D. | may produce primary or manufactured goods |
| Answer» E. | |
| 364. |
Physiocrats give utmost importance to |
| A. | Services |
| B. | Industry |
| C. | Agriculture |
| D. | None of these |
| Answer» D. None of these | |
| 365. |
Which of the following is the measure to control inflation. |
| A. | granting credit on liberal terms |
| B. | raising bank rate |
| C. | demonetization |
| D. | none of these |
| Answer» C. demonetization | |
| 366. |
Which of the following statements is NOT TRUE of indifference curves? |
| A. | they could intersect |
| B. | they are convex to origin |
| C. | they are |
| D. | they exhibit higher levels of utility d. as you move from the origin |
| Answer» C. they are | |
| 367. |
The elasticity of demand for a product will be higher: |
| A. | The more available are substitutes for that product |
| B. | The more its buyers demand loyalty |
| C. | The more the product is considered a necessity by its buyers |
| D. | All of the above |
| Answer» B. The more its buyers demand loyalty | |
| 368. |
Globalisation has created new opportunities of |
| A. | establishing rules of domestic trade |
| B. | restricting trade practices |
| C. | liberalizing international trade |
| D. | none of these |
| Answer» E. | |
| 369. |
Which of the following statements is(are) correct? |
| A. | Even the earliest political business cycle and partisan models assume that expectations were rational |
| B. | The partisan model of fiscal policy cannot be modified to be consistent with rational expectations |
| C. | The myopic, or short-sighted behaviour of voters is inconsistent with rational expectations |
| D. | The earliest political business cycle models assumed that expectations were always rational, whereas the partisan model assumed that expectations were sometimes irrational. |
| Answer» D. The earliest political business cycle models assumed that expectations were always rational, whereas the partisan model assumed that expectations were sometimes irrational. | |
| 370. |
According to the partisan theory, |
| A. | Politicians are viewed as working only for their own welfare. |
| B. | There are two parties with flexible goals |
| C. | Moderates and liberals often switch political goals |
| D. | Macroeconomic policy is not a key focus of most politicians |
| Answer» B. There are two parties with flexible goals | |
| 371. |
The income consumption curve generally? |
| A. | Slopes upwards to the right |
| B. | Slopes downwards to the right |
| C. | Slopes upwards to the left |
| D. | Slopes downwards to the left |
| Answer» D. Slopes downwards to the left | |
| 372. |
The Historical school was based on |
| A. | Deductive method |
| B. | Inductive method |
| C. | Both of above |
| D. | None of these |
| Answer» C. Both of above | |
| 373. |
The higher the marginal income tax rate, the |
| A. | Higher the MPC out of disposable income |
| B. | Lower the MPC out of disposable income |
| C. | Highest the autonomous expenditure multiplier |
| D. | lower the autonomous expenditure multiplier |
| Answer» E. | |
| 374. |
Real business cycle and new Keynesian models disagree upon |
| A. | Whether people form their expectations rationally |
| B. | Whether changes in unemployment are voluntary or involuntary |
| C. | Whether individuals engage in optimizing behavior at all times |
| D. | Whether changes in the money supply affect output in the long-run |
| Answer» C. Whether individuals engage in optimizing behavior at all times | |
| 375. |
Advocates of real business cycle theories argue that all of the following could cause a recession except |
| A. | A fall in consumer expectations |
| B. | Natural disasters |
| C. | Higher taxation |
| D. | Increase in the price of oil |
| Answer» B. Natural disasters | |
| 376. |
The unemployment caused by a decline in demand for production in a particular industry is |
| A. | seasonal unemployment |
| B. | frictional unemployment |
| C. | structural unemployment |
| D. | none of these |
| Answer» D. none of these | |
| 377. |
Which out of the following industries has a large number of well off buyers in urban areas? |
| A. | footwear |
| B. | automobile |
| C. | jewellery |
| D. | clothing and accessories |
| Answer» C. jewellery | |
| 378. |
The economist who said that international trade was based upon the concept of absolute advantage was: |
| A. | David Ricardo |
| B. | Adam Smith |
| C. | J.S.Mill |
| D. | Bertil Ohlin |
| Answer» C. J.S.Mill | |
| 379. |
The five year plan in India are launched after the approval of |
| A. | The President and Prime Minister |
| B. | The Rajya Sabha |
| C. | The National Development Council (NDC) |
| D. | The Lok Sabha |
| Answer» D. The Lok Sabha | |
| 380. |
From the net tax function: T=t0+t1Y,where t00, it follows that, as income rises |
| A. | average taxes falls and the surplus declines |
| B. | average taxes rises and the deficit increases |
| C. | average taxes falls and the deficit declines |
| D. | average taxes and the deficit do not change |
| Answer» D. average taxes and the deficit do not change | |
| 381. |
According to the Keynesians, |
| A. | An easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s |
| B. | An easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s |
| C. | There was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s |
| D. | Budget deficits and trade deficits should not be a source of concern |
| Answer» C. There was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s | |
| 382. |
Factor intensity as it is used in economics, is primarily s: |
| A. | Relative concept |
| B. | Absolute concept |
| C. | Abstract concept |
| D. | Empirical concept |
| Answer» B. Absolute concept | |
| 383. |
According to the concept of rational expectations |
| A. | Budget deficits are irrelevant to output in the short-run |
| B. | Higher deficits should increase output in the short run if they are expected |
| C. | Lower deficits can be used to stabilize output during expansions |
| D. | None of these |
| Answer» B. Higher deficits should increase output in the short run if they are expected | |
| 384. |
With respect to efficiency wage models the efficiency of workers depends |
| A. | Positively on the money wage they are paid |
| B. | Positively on the real wage paid |
| C. | Inversely on the age of the workers |
| D. | Positively on the unemployment rate |
| Answer» C. Inversely on the age of the workers | |
| 385. |
Real business cycle proponents argue that |
| A. | Recessions are caused by movements of output away from the natural rate of output |
| B. | Prices and wages are sticky |
| C. | Macroeconomics should be based on the same assumptions as microeconomics |
| D. | Monetary policy is important in determining recessions |
| Answer» D. Monetary policy is important in determining recessions | |
| 386. |
If the quantity of a commodity demanded remains unchanged as its price changes, thecoefficient of price elasticity of demand is |
| A. | Greater than 1 |
| B. | Equal to 1 |
| C. | Less than 1 |
| D. | Zero |
| Answer» E. | |
| 387. |
The income elasticity of demand is negative for a |
| A. | positive good |
| B. | normal good |
| C. | elastic good |
| D. | inferior good |
| Answer» E. | |
| 388. |
Under the new trade policy, import licensing was abolished except in case of |
| A. | textile industry |
| B. | consumer goods industry |
| C. | it industry |
| D. | hazardous and environmentally sensitive industry |
| Answer» E. | |
| 389. |
In real business cycle models, business cycles are caused by ------------------,while in new Keynesian model business cycles are caused by------------------- |
| A. | Aggregate demand ; Aggregate demand |
| B. | Aggregate demand ; Aggregate supply |
| C. | Aggregate supply; Aggregate demand |
| D. | Fiscal policy ; monetary policy |
| Answer» D. Fiscal policy ; monetary policy | |
| 390. |
In the real business cycle model, business cycles are |
| A. | Efficient and do not represent lost output |
| B. | Driven by technology shocks |
| C. | Occur when markets clear |
| D. | All of the above |
| Answer» E. | |
| 391. |
If the tax function is T= t0+t1y where t1 equals 1/3,and if the marginal propensity to consume out of disposable income is 3/4 , then the change in GDP oer unit change into t0 (∆Y/∆ t0) will be |
| A. | -1 |
| B. | +1 |
| C. | -1.5 |
| D. | -2 |
| Answer» D. -2 | |
| 392. |
Which of the following is not a variable input |
| A. | raw material |
| B. | power |
| C. | equipment |
| D. | none of these |
| Answer» D. none of these | |
| 393. |
Harrod-Domar model was formed the basis of which plan |
| A. | First plan |
| B. | Third plan |
| C. | Second plan |
| D. | None of the above |
| Answer» B. Third plan | |
| 394. |
Which of the following is not a survey method of demand forecasting |
| A. | consumers interview method |
| B. | expert opinion method |
| C. | barometric method |
| D. | collective opinion method |
| Answer» D. collective opinion method | |
| 395. |
The utility of a commodity is: |
| A. | Its expected social value |
| B. | The extent of its practical use |
| C. | Its relative scarcity |
| D. | The degree of its fashion |
| Answer» D. The degree of its fashion | |
| 396. |
Which of the following statements are correct? In (the) |
| A. | Keynesian model, unemployment is voluntary. |
| B. | Real business cycle model, all unemployment is voluntary |
| C. | New classical models, there is voluntary unemployment |
| D. | Both b&c |
| Answer» E. | |
| 397. |
Who has suggested the utilization of “disguised unemployment” as a source ofsavings potential in underdeveloped countries? |
| A. | W.A Lewis |
| B. | Ragnar Nurkse |
| C. | Gunnar Myrdal |
| D. | K.K Kurihara |
| Answer» C. Gunnar Myrdal | |
| 398. |
In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy |
| A. | Increases exports and decreases imports |
| B. | Decreases exports and increases imports |
| C. | Encourages foreign capital inflows to the U.S. |
| D. | Both b and c |
| Answer» E. | |
| 399. |
Advocates of the public-choice view argue that voting behaviour is influenced by the |
| A. | Rate of inflation prior to an election. |
| B. | Level of economic activity. |
| C. | “Favourite son syndrome. |
| D. | Campaign issues |
| Answer» C. “Favourite son syndrome. | |
| 400. |
The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget |
| A. | Should require actual deficits be equal to zero on average |
| B. | Should go into a surplus at appropriate points in the business cycle. |
| C. | Cannot have a structural deficit component |
| D. | Both a & b |
| Answer» C. Cannot have a structural deficit component | |