MCQOPTIONS
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MCQOPTIONS
This section includes 373 Mcqs, each offering curated multiple-choice questions to sharpen your 12th knowledge and support exam preparation. Choose a topic below to get started.
| 301. |
Whose name is associated with the “Uncertainty-bearing theory of profit”? |
| A. | J. Schumpeter |
| B. | F.H. Knight |
| C. | J.B. Clark |
| D. | F.W. Watker |
| Answer» C. J.B. Clark | |
| 302. |
Who has contributed the modem theory of interest rate determination? |
| A. | Paul A. Samuelson |
| B. | Gunnar Myrdal |
| C. | Knut Wicksell |
| D. | J.R. Hicks |
| Answer» E. | |
| 303. |
Which Five year plan in India had ‘poverty alleviation’ as one of its objectives? |
| A. | First five year plan |
| B. | Third five year plan |
| C. | Fifth five year plan |
| D. | Seventh five year plan |
| Answer» D. Seventh five year plan | |
| 304. |
An expression coined by economists to describe im economy that is growing at such a slow pace that more jobs are being lost than are being added: |
| A. | Stagflation |
| B. | Recession |
| C. | Growth Recession |
| D. | Ritchet Inflation |
| Answer» D. Ritchet Inflation | |
| 305. |
_________ got the highest priority during the first plan period in India. |
| A. | Self reliance |
| B. | Growth with social justice |
| C. | Development of Agriculture including irrigation |
| D. | Removal of unemployment |
| Answer» D. Removal of unemployment | |
| 306. |
‘Planning from below’ is known as: |
| A. | Centralized planning |
| B. | Functional planning |
| C. | Decentralized planning |
| D. | Structural planning |
| Answer» C. Decentralized planning | |
| 307. |
When the population growth rate of an economy becomes greater than the achievable economic growth rate, it is known as: |
| A. | Population Explosion |
| B. | Population Trap |
| C. | Population Crisis |
| D. | None of the above |
| Answer» C. Population Crisis | |
| 308. |
By __ growth rate of an economy can be speeded up. |
| A. | Investment in share market |
| B. | Investment abroad |
| C. | Investment in human capital formation |
| D. | Investment in primary sector |
| Answer» D. Investment in primary sector | |
| 309. |
Most of the underdeveloped economies suffer from ____ which do not let the rate of growth go up from a lower level. |
| A. | High population pressures |
| B. | High infant mortality |
| C. | Hugh monetary mismanagement |
| D. | High level of technological unemployment |
| Answer» B. High infant mortality | |
| 310. |
According to W.W. Rostow, the stages of economic growth are: |
| A. | Two |
| B. | Three |
| C. | Four |
| D. | Five |
| Answer» E. | |
| 311. |
Which among the following is a characteristic of underdevelopment? |
| A. | Vicious circle of poverty |
| B. | Rising mass consumption |
| C. | Growth of industries |
| D. | High rate of urbanization |
| Answer» B. Rising mass consumption | |
| 312. |
“Underdeveloped countries are the slums of the world Economy.” This statement is by |
| A. | Ragnar Nurkse |
| B. | A.N. Caimcross |
| C. | Colin Clark |
| D. | Jagdish Bhagwati |
| Answer» C. Colin Clark | |
| 313. |
The most simple and popular method of measuring economic development is to calculate the trend of gross national product (GNP) at __________ |
| A. | Current prices |
| B. | Constant prices |
| C. | Both of the above |
| D. | None of the above |
| Answer» C. Both of the above | |
| 314. |
The credit of developing the concept of modern economic growth goes to: |
| A. | Arthur Lewis |
| B. | Michael P. Todaro |
| C. | Gunnar Mydral |
| D. | Simon Kuznets |
| Answer» E. | |
| 315. |
Natural resources determine the course of development and constitute the challenge which may not be accepted by the human mind. “Who has said it”? |
| A. | W. Arthur Lewis |
| B. | J.I. Fisher |
| C. | Jan Tinbergen |
| D. | W.W. Rostow |
| Answer» B. J.I. Fisher | |
| 316. |
A high average level of rear income per head is always associated with a high proportion of the working population engaged in __________ sector. |
| A. | Primary |
| B. | Secondary |
| C. | Tertiary |
| D. | None of the above |
| Answer» D. None of the above | |
| 317. |
What have been the reasons of deficit in India’s Balance of Trade in the past? |
| A. | Very large rise in imports |
| B. | Modest growth of exports |
| C. | High cost and low quality production |
| D. | All of the above |
| Answer» E. | |
| 318. |
Which among the following may be considered as a significant cause of low agriculture productivity in India? |
| A. | Defective tenancy reforms |
| B. | Lack of enthusiasm among farmers |
| C. | Conservative social systems |
| D. | Absence of agricultural inputs to raise productivity |
| Answer» B. Lack of enthusiasm among farmers | |
| 319. |
Which among below is the economic effect of population pressure in India? |
| A. | Higher burden of unproductive consumers on total population |
| B. | Disintegration of family |
| C. | Overcrowding of cities |
| D. | Ecological degradation |
| Answer» B. Disintegration of family | |
| 320. |
_____unemployment may result when some workers are temporarily out of work while changing job |
| A. | Seasonal |
| B. | Frictional |
| C. | Disguised |
| D. | Technical |
| Answer» C. Disguised | |
| 321. |
To eradicate the problem of poverty, Twenty Point Economic Programme was launched for the first time in India on: |
| A. | 7th July, 1971 |
| B. | 7th July, 1975 |
| C. | 26th January, 1951 |
| D. | 15th August, 1983 |
| Answer» C. 26th January, 1951 | |
| 322. |
Which country was the first to adopt a gold standard in the modern sense? |
| A. | Italy |
| B. | France |
| C. | Great Britain |
| D. | Portugal |
| Answer» D. Portugal | |
| 323. |
Balance of Payment on capital account includes: |
| A. | Balances of private direct investments |
| B. | Private portfolio investments |
| C. | Government loans to foreign governments |
| D. | All of the above |
| Answer» E. | |
| 324. |
Under the Industrial policy of 1991: |
| A. | The mandatory convertible clause is applicable to all term loans. |
| B. | The mandatory convertible clause is applicable to term loans of more than 10 years. |
| C. | The mandatory convertible clause is applicable to term loans of less than 10 years. |
| D. | The mandatory convertible clause is no longer applicable. |
| Answer» E. | |
| 325. |
Monetary policy is implemented by in India. |
| A. | The Ministry of Finance |
| B. | Planning Commission |
| C. | The Parliament |
| D. | Reserve Bank of India |
| Answer» E. | |
| 326. |
Which one of the following is NOT the objective of fiscal policy of government of India? |
| A. | Full employment |
| B. | Price stability |
| C. | Regulation of inter-state trade |
| D. | Economic growth |
| Answer» D. Economic growth | |
| 327. |
Fiscal Policy means: |
| A. | Policy relating to money and banking in a country |
| B. | Policy relating to non-banking financial institutions |
| C. | Policy relating to government spending’ taxation and borrowing |
| D. | Policy relating to financial matters of international trade |
| Answer» D. Policy relating to financial matters of international trade | |
| 328. |
A change in fiscal policy affects the balance of payments through: |
| A. | The current account only |
| B. | The capital account only |
| C. | Both, the current account and capital account |
| D. | Neither current account nor capital account |
| Answer» D. Neither current account nor capital account | |
| 329. |
The new world Trade organization (WTO), which replaced the GATT came into effect from____ |
| A. | 1 January 1991 |
| B. | 1 January 1995 |
| C. | 1 April 1994 |
| D. | 1 May 1995 |
| Answer» C. 1 April 1994 | |
| 330. |
Which among the following is not a function of International Monetary Fund? |
| A. | It serves a medium term and long term credit institution’ |
| B. | It provides a mechanism for improving short term balance of payments position’ |
| C. | It provides machinery for international consultations’ |
| D. | It provides reservoir of the currencies of the member countries and enables members to borrow one another’s currency’ |
| Answer» B. It provides a mechanism for improving short term balance of payments position’ | |
| 331. |
Which of the following is also known as International Bank for Reconstruction and Development? |
| A. | Asian Development Bank |
| B. | World Bank |
| C. | Reserve Bank of India |
| D. | International Monetary Fund |
| Answer» C. Reserve Bank of India | |
| 332. |
‘Infant industry argument’ in international trade is given in support of: |
| A. | Granting Protection |
| B. | Free trade |
| C. | Encouragement to export oriented small and tiny industries |
| D. | None of the above |
| Answer» B. Free trade | |
| 333. |
Who among the following enunciated the concept of single factoral terms of trade? |
| A. | Jacob Viner |
| B. | G.S.Donens |
| C. | Taussig |
| D. | J.S.Mill |
| Answer» B. G.S.Donens | |
| 334. |
Terms of trade that relate to the Real Ratio of international exchange between commodities is called: |
| A. | Real cost terms of trade |
| B. | Commodity terms of trade |
| C. | Income terms of trade |
| D. | Utility terms of trade |
| Answer» D. Utility terms of trade | |
| 335. |
Which among below is NOT a correct statement? |
| A. | Bretton Woods conference gave birth to two international organizations- |
| B. | Theory of Absolute Advantage in international trade is given by Adam Smith’ |
| C. | Pure and perfect competition is the same market structures. |
| D. | Mint par theory of exchange rate determination is applicable in countries under gold standard. |
| Answer» D. Mint par theory of exchange rate determination is applicable in countries under gold standard. | |
| 336. |
Who propounded the opportunity cost Theory of international trade? |
| A. | Ricardo |
| B. | Marshall |
| C. | Heckscher & Ohlin |
| D. | Haberler |
| Answer» E. | |
| 337. |
The capital that is consumed by an economy or a firm in the production process is known as: |
| A. | Capital loss |
| B. | Production cost |
| C. | Dead-weight loss |
| D. | Depreciation |
| Answer» E. | |
| 338. |
Which among the following is NOT correct? |
| A. | During inflation lenders suffer and borrowers benefit out’ |
| B. | Rising inflation indicates rising aggregate demand and indicates comparatively lower supply and higher purchasing capacity among the consumers’ |
| C. | With rising inflation the currency of the economy depreciates provided it follows the flexible currency regime. |
| D. | Inflation decreases the nominal (face) value of the wages while the real value increases. |
| Answer» E. | |
| 339. |
Cost push inflation occurs because of: |
| A. | Wage push |
| B. | Profit push |
| C. | Both A and B |
| D. | Ineffective policies of the government |
| Answer» D. Ineffective policies of the government | |
| 340. |
Which among the following is a cause of inflation? |
| A. | Deficit financing |
| B. | Rise in external loans |
| C. | Unfavourable balance of payment |
| D. | A hike in the CRR by the central bank of the country |
| Answer» B. Rise in external loans | |
| 341. |
The following is the direct tax among: |
| A. | House tax |
| B. | Entertainment tax |
| C. | Service tax |
| D. | Value Added tax |
| Answer» B. Entertainment tax | |
| 342. |
What is meant by Autarky in international trade? |
| A. | Monopoly in international trade |
| B. | Imposition of restrictions in international trade |
| C. | Removal of all restrictions from international trade |
| D. | The idea of self sufficiency and no international trade by a country |
| Answer» E. | |
| 343. |
_____ is the difference between total receipts and total expenditure. |
| A. | Capital deficit |
| B. | Budget deficit |
| C. | Fiscal deficit |
| D. | Revenue deficit |
| Answer» C. Fiscal deficit | |
| 344. |
Number of times a unit of money changes hands in the course of a year is called_______ |
| A. | Supply of money |
| B. | Purchasing power of money |
| C. | Velocity of money |
| D. | Value of money |
| Answer» D. Value of money | |
| 345. |
Credit creation power of the commercial banks gets limited by which of the following? |
| A. | Banking habits of the people |
| B. | Cash reserve ratio |
| C. | Credit policy of the central bank |
| D. | All of the above |
| Answer» E. | |
| 346. |
Which among the following is a function of the Reserve Bank of India? |
| A. | Bank issues the letters of credit to their customers certifying their creditability |
| B. | Collecting and compilation of statistical information relating to banking & other financial sectors |
| C. | Banks under write the securities issued by public or private organizations |
| D. | Accepting deposits from the public |
| Answer» C. Banks under write the securities issued by public or private organizations | |
| 347. |
In order to control credit, Reserve Bank of India should: |
| A. | Increase CRR and decrease Bank rate |
| B. | Decrease CRR and reduce Bank rate |
| C. | Increase CRR and increase Bank rate |
| D. | Reduce CRR and increase Bank rate |
| Answer» D. Reduce CRR and increase Bank rate | |
| 348. |
____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks. |
| A. | Repo rate |
| B. | Bank rate |
| C. | Prime lending rate |
| D. | Reverse repo rate |
| Answer» C. Prime lending rate | |
| 349. |
Who is the ‘lender of the last resort’ in the banking structure of India? |
| A. | State Bank of India |
| B. | Reserve Bank of India |
| C. | EXIM Bank of India |
| D. | Union Bank of India |
| Answer» C. EXIM Bank of India | |
| 350. |
Which among the following is NOT a correct statement? |
| A. | Welfare economics is based on value judgements. |
| B. | Welfare economics is also called ‘economics with a heart’. |
| C. | Welfare economics focuses on questions about equity as well as efficiency. |
| D. | The founder of Welfare economics was Alfred Marshall. |
| Answer» E. | |