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.
| 401. |
Automatic fiscal stabilizers |
| A. | Keep the federal budget balanced |
| B. | Keep the federal high employment budget balanced |
| C. | Help to reduce the severity of recessions and inflationary boom periods |
| D. | Increases structural deficits over the business cycle |
| Answer» D. Increases structural deficits over the business cycle | |
| 402. |
In which production function, the degree of homogeneity is always one |
| A. | cobb doubglas production fuction |
| B. | homogeneous production function |
| C. | linear homogeneous production function |
| D. | none of these |
| Answer» D. none of these | |
| 403. |
A utility function shows the relation between ….. |
| A. | the amount of goods consumed and a consumer utility. |
| B. | income and a consumer utility. |
| C. | prices and consumers utility. |
| D. | maximum utility and the price and income facing a consumer. |
| Answer» B. income and a consumer utility. | |
| 404. |
The first Nobel prize winner for Economics was |
| A. | Hicks |
| B. | Myrdal |
| C. | Samuelson |
| D. | Turbergen |
| Answer» E. | |
| 405. |
Which of the following is a social consequences of unemployment in india |
| A. | burden on the government |
| B. | loss of income and respect |
| C. | wastages of resources |
| D. | none of these |
| Answer» C. wastages of resources | |
| 406. |
A consumers demand curve can be obtained from: |
| A. | ICC |
| B. | Engel curve |
| C. | Lorence curve |
| D. | PCC |
| Answer» E. | |
| 407. |
Globalization by connecting countries leads to |
| A. | lesser competition among producers |
| B. | greater competition among producers |
| C. | no competition between producers |
| D. | none of these |
| Answer» C. no competition between producers | |
| 408. |
Direct foreign investment is part of |
| A. | current account |
| B. | fixed account |
| C. | long term account |
| D. | financial account |
| Answer» E. | |
| 409. |
Assume that the actual deficit is $150 billion with the economy well below potential output and that the level of economic activity rose to its potential level while tax revenues increased by $50 billion and transfer payments fell by $20 billion. Then, what is the structural deficit? |
| A. | $180 billion |
| B. | $120 billion |
| C. | $220 billion |
| D. | $80 billion |
| Answer» E. | |
| 410. |
Which of the following models view changes in real supply-side factors as determinantsof short-run fluctuations in output and employment? |
| A. | New classical models |
| B. | Political business cycle models |
| C. | Keynesian models |
| D. | Real business cycle models |
| Answer» E. | |
| 411. |
Monopsony is a form of market organization in which there is a: |
| A. | Single buyer of an input |
| B. | Single seller of an output |
| C. | Single buyer of an output |
| D. | Single seller of an input |
| Answer» B. Single seller of an output | |
| 412. |
Which of the following is a short run law |
| A. | law of diminishing returns |
| B. | law of constant returns to scale |
| C. | law increasing returns to scale |
| D. | none of these |
| Answer» B. law of constant returns to scale | |
| 413. |
Direct control refers to: |
| A. | Trade and exchange controls |
| B. | Interference with the operation of the market forces |
| C. | Price and wage controls |
| D. | All of these |
| Answer» E. | |
| 414. |
A fall in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to: |
| A. | Increases |
| B. | Decrease |
| C. | Remains unchanged |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 415. |
Suppose that the MPC out of disposable income was 0.8 and the marginal tax rate was 0.25 for a given economy. In this case, the value of the tax multiplier in the simple Keynesian model would be |
| A. | 1 |
| B. | -2. |
| C. | 2.5 |
| D. | 2 |
| Answer» C. 2.5 | |
| 416. |
Removing barriers or restrictions set by the government is called |
| A. | liberalization |
| B. | investment |
| C. | favourable trade |
| D. | free trade |
| Answer» B. investment | |
| 417. |
The cyclical deficit is that portion of the deficit |
| A. | That results form the economy being below the natural rate of output |
| B. | That would exist even if the economy were at its natural rate of output |
| C. | Is a function of the level of automatic stabilizers |
| D. | Both a & c |
| Answer» E. | |
| 418. |
Employment of people who take jobs below their capacity is known as |
| A. | underemployment |
| B. | disguised unemployment |
| C. | cyclical unemployment |
| D. | none of these |
| Answer» B. disguised unemployment | |
| 419. |
In which exchange rate system, exchange rate is fixed by the monetary authority |
| A. | flexible exchange rate system |
| B. | fixed exchange rate system |
| C. | managed floating exchange rate system |
| D. | none of these |
| Answer» C. managed floating exchange rate system | |
| 420. |
Firms in a oligopoly |
| A. | are independent of each other’s action |
| B. | can each influence the market price |
| C. | charge a price equal to marginal revenue |
| D. | all of these |
| Answer» C. charge a price equal to marginal revenue | |
| 421. |
The structural deficit is the deficit that |
| A. | Is composed by of non discretionary spending by the federal government |
| B. | Results from the economy being below is natural rate of output |
| C. | Exists when output is at its natural rate of output |
| D. | Results from temporary tax cuts |
| Answer» D. Results from temporary tax cuts | |
| 422. |
Cross elasticity of demand between tea and sugar is: |
| A. | Positive |
| B. | Zero |
| C. | Infinity |
| D. | Negative |
| Answer» E. | |
| 423. |
The author of the wealth of nation is |
| A. | marshal |
| B. | robins |
| C. | adam smith |
| D. | none of these |
| Answer» D. none of these | |
| 424. |
Assuming a simultaneous deduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will |
| A. | be higher than before |
| B. | be lower than before |
| C. | remain constant |
| D. | none of the above |
| Answer» D. none of the above | |
| 425. |
Duopoly is |
| A. | another name for monopoly |
| B. | special type of monopolistic competition |
| C. | two firm oligopoly |
| D. | none of these |
| Answer» D. none of these | |
| 426. |
The structural deficit is |
| A. | Directly attributable to the long-run behaviour of the economy |
| B. | Not directly attributable to the cyclical behaviour of the economy |
| C. | The result of permanent decisions policymakers have made about tax rates, the level of government spending, and benefit levels for transfer programs. |
| D. | Both b and c |
| Answer» E. | |
| 427. |
Feudalistic economy is dominated by |
| A. | Entrepreneur |
| B. | Worker |
| C. | Landlord |
| D. | None of these |
| Answer» D. None of these | |
| 428. |
A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a------------- |
| A. | Maximizing agent |
| B. | Representative agent |
| C. | Republican agent |
| D. | Informative agent |
| Answer» C. Republican agent | |
| 429. |
Which of the following is a measure to control inflation. |
| A. | granting of credit on liberal terms |
| B. | raising bank rate |
| C. | demonetization |
| D. | none of these |
| Answer» C. demonetization | |
| 430. |
When an individual’s income falls(while everything else remains the same), his demandfor an inferior good: |
| A. | Increases |
| B. | Decrease |
| C. | Remains unchanged |
| D. | We cannot say without additional information |
| Answer» C. Remains unchanged | |
| 431. |
In the simple Keynesian model, if the tax function is given by T=0.15Y and the consumption function is C= 50 + 0.7 YD then a 10-unit ncrease in government spending would increase equilibrium income by |
| A. | 10 units |
| B. | 11.2 units |
| C. | 22.4 units |
| D. | 30 units |
| Answer» C. 22.4 units | |
| 432. |
The aggregate production function for real business cycle models is shown as |
| A. | Yt=F(Kt,Nt) |
| B. | Yt= Zt F(Kt - Nt) |
| C. | Yt= Zt F(Kt,Nt) |
| D. | Yt=Zt / (Kt,Nt) |
| Answer» D. Yt=Zt / (Kt,Nt) | |
| 433. |
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 | |
| 434. |
When average product is falling, it is |
| A. | Less than the marginal product |
| B. | Not measurable in this case |
| C. | Greater than the marginal product |
| D. | Equal to the marginal product |
| Answer» D. Equal to the marginal product | |
| 435. |
New Keynesian theories of efficiency wages imply |
| A. | Voluntary unemployment |
| B. | Real wage rigidity |
| C. | Changes in unemployment represent changes in the natural rate of unemployment |
| D. | None of the above |
| Answer» C. Changes in unemployment represent changes in the natural rate of unemployment | |
| 436. |
If the percentage increase in quantity of a commodity demanded is its price, the coefficient of price elasticity of demand is: |
| A. | Greater than 1 |
| B. | Equal to 1 |
| C. | Less than 1 |
| D. | Zero |
| Answer» D. Zero | |
| 437. |
Which one is not an exception to the Law of Demand? |
| A. | Normal good |
| B. | Articles of Distinction |
| C. | Ignorance |
| D. | Inferior good |
| Answer» B. Articles of Distinction | |
| 438. |
Marginal utility curve of a given consumer is also his: |
| A. | Indifference curve |
| B. | Total utility curve |
| C. | Demand curve |
| D. | Supply curve |
| Answer» D. Supply curve | |
| 439. |
Determination of price through interaction of demand and supply was introduced by: |
| A. | Keynes |
| B. | Marshall |
| C. | Pigou |
| D. | Walras |
| Answer» E. | |
| 440. |
An example of negative productivity shocks that could cause recessions is |
| A. | A hurricane which destroys capital |
| B. | A decrease in the price of oil |
| C. | Reductions in defense spending |
| D. | All of the above |
| Answer» B. A decrease in the price of oil | |
| 441. |
Law of equi-marginal utility was suggested by |
| A. | marshal |
| B. | robins |
| C. | hh ghosen |
| D. | none of these |
| Answer» C. hh ghosen | |
| 442. |
In the new Keynesian models, |
| A. | Imperfect competition comes is the result of optimizing behavior by individuals |
| B. | Perfect competition is assumed with respect to the product market |
| C. | A natural monopoly is presumed for the product market |
| D. | Both a and c |
| Answer» B. Perfect competition is assumed with respect to the product market | |
| 443. |
For motors entered the Indian automobile business in collaboration with which Indian manufacturer? |
| A. | mahindra and mahindra |
| B. | tata motors |
| C. | maruthi suzuki |
| D. | hindustan motors |
| Answer» B. tata motors | |
| 444. |
Which of the following is a problem connected with general equilibrium analysis? |
| A. | Uniqueness problem |
| B. | Existence problem |
| C. | stability problem |
| D. | all of the above |
| Answer» E. | |
| 445. |
Demand for a commodity is elastic when it has: |
| A. | Only one use |
| B. | Uses which can not be postponed |
| C. | Many uses |
| D. | Uses very essential for the consumer |
| Answer» D. Uses very essential for the consumer | |
| 446. |
Which of the following shocks have been emphasized most often with respect to real business cycle story? |
| A. | Shocks to technology |
| B. | Variations in environmental conditions |
| C. | Changes in the real(relative) prices of imported raw materials |
| D. | Changes in tax rates |
| Answer» B. Variations in environmental conditions | |
| 447. |
One major initiative to attract foreign companies to invest in india is |
| A. | raise the standard of education |
| B. | to promote unemployment in the public sector |
| C. | to build up special economic zones |
| D. | both a & b |
| Answer» D. both a & b | |
| 448. |
The rate at which a consumer is able to substitute one good for another is determined by the ……. |
| A. | consumers income |
| B. | indifference map |
| C. | ratio of the prices of the goods |
| D. | marginal rate of substitution. |
| Answer» D. marginal rate of substitution. | |
| 449. |
Which of the following is a better measure of economic development? |
| A. | National income |
| B. | Rural consumption |
| C. | Size of exports |
| D. | Employment |
| Answer» B. Rural consumption | |
| 450. |
If the tax function is given by T= -20+0.1 Y the average tax rate would |
| A. | Be 0.1 |
| B. | Fall as income falls |
| C. | Vary negatively with income |
| D. | Be -20 _0.1 |
| Answer» C. Vary negatively with income | |