MCQOPTIONS
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MCQOPTIONS
This section includes 476 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 151. |
The worldwide Great Depression took place in |
| A. | 1936 |
| B. | 1929 |
| C. | 1928 |
| D. | 1930 |
| Answer» C. 1928 | |
| 152. |
Which one of the following is not a feature of monopoly ? |
| A. | Single seller of the product |
| B. | Heavy selling costs |
| C. | Barriers to entry of new firms |
| D. | Price discriminations |
| Answer» C. Barriers to entry of new firms | |
| 153. |
Human Development Index was developed by : |
| A. | Amartya Sen |
| B. | Friedman |
| C. | Mahbub-ul-Haq |
| D. | Montek Singh |
| Answer» C. Mahbub-ul-Haq | |
| 154. |
The Great Depression occurred during |
| A. | 1914-18 |
| B. | 1929-34 |
| C. | 1939-45 |
| D. | 1922-26 |
| Answer» C. 1939-45 | |
| 155. |
Take-off stage in an economy means |
| A. | Steady growth begins. |
| B. | Economy is stagnant. |
| C. | Economy is about to collapse. |
| D. | All controls are removed. |
| Answer» B. Economy is stagnant. | |
| 156. |
Excise duty is levied on |
| A. | sale of goods |
| B. | production of goods |
| C. | import of goods |
| D. | export of goods |
| Answer» C. import of goods | |
| 157. |
One of the following is Labour in Economics. |
| A. | A Musician performing for a benefit fund |
| B. | A Painter working for his own pleasure |
| C. | Reading a book as a hobby |
| D. | A Mother teaching her own son |
| Answer» B. A Painter working for his own pleasure | |
| 158. |
When the demand for a good increases with an increase in income, such a good is called |
| A. | Superior good |
| B. | Giffin good |
| C. | Inferior good |
| D. | Normal good |
| Answer» B. Giffin good | |
| 159. |
Market segmentation is: |
| A. | Group of Sales Persons |
| B. | Dividing target groups as per their needs |
| C. | Market Division |
| D. | Market Space |
| Answer» B. Dividing target groups as per their needs | |
| 160. |
Which term is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? |
| A. | GDP |
| B. | GPN |
| C. | OMP |
| D. | GNP |
| Answer» E. | |
| 161. |
The supply-side measure to control inflation is |
| A. | Reducing public expenditure |
| B. | Price control through Public Distribution System |
| C. | Higher taxation to mop up liquidity |
| D. | Credit control |
| Answer» C. Higher taxation to mop up liquidity | |
| 162. |
The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit. |
| A. | 0.5 |
| B. | 0.5 |
| C. | 5 |
| D. | 5 |
| Answer» E. | |
| 163. |
Gross National Product Depreciation Allowance = ? |
| A. | Per Capita Income |
| B. | Gross Domestic Product |
| C. | Personal Income |
| D. | Net National Product |
| Answer» E. | |
| 164. |
Paraellel economy emerges due to |
| A. | Tax Avoidance |
| B. | Tax Evasion |
| C. | Tax Compliance |
| D. | Tax Estimation |
| Answer» C. Tax Compliance | |
| 165. |
The business in Stock Markets and other securities markets is regulated |
| A. | Securities and Exchange Board of India |
| B. | Sole Trade and Exchange Bank of India |
| C. | State and Exchange Bank of India |
| D. | Stock and Exchange Bank of India |
| Answer» B. Sole Trade and Exchange Bank of India | |
| 166. |
When income increase, consumption also increases : |
| A. | in a lower proportion |
| B. | in a higher proportion |
| C. | in the same proportion |
| D. | None of the options |
| Answer» B. in a higher proportion | |
| 167. |
Ad Valorem tax is levied |
| A. | according to value added by the Government. |
| B. | according to value addition to a commodity |
| C. | according to value given by producers |
| D. | according to value added by the finance ministry |
| Answer» D. according to value added by the finance ministry | |
| 168. |
National Income is also called as : |
| A. | GNP at Factor Cost |
| B. | GNP at Market Price |
| C. | NNP at Factor Cost |
| D. | NNP at Market Price |
| Answer» B. GNP at Market Price | |
| 169. |
Which one of the following is not a method for computing GNP ? |
| A. | Income Approach |
| B. | Expenditure Approach |
| C. | Savings Approach |
| D. | Value Added Approach |
| Answer» B. Expenditure Approach | |
| 170. |
Production of a commodity mostly through the natural process is an activity of |
| A. | Primary Sector |
| B. | Secondary Sector |
| C. | Tertiary Sector |
| D. | Technology Sector |
| Answer» B. Secondary Sector | |
| 171. |
The Keynesian consumption function shows a relation between |
| A. | aggregate consumption and total population. |
| B. | aggregate consumption and general price level. |
| C. | aggregate consumption and aggregate income |
| D. | aggregate consumption and interest rate |
| Answer» D. aggregate consumption and interest rate | |
| 172. |
The incomes of Indians working abroad are a part of |
| A. | domestic income of India |
| B. | income earned from Abroad |
| C. | net domestic product of India |
| D. | gross domestic product of India |
| Answer» D. gross domestic product of India | |
| 173. |
Over short period, when income rises, average propensity to consume usually |
| A. | rises |
| B. | falls |
| C. | remains constant |
| D. | fluctuates |
| Answer» C. remains constant | |
| 174. |
Average propensity to consume is defined as |
| A. | Aggregate consumption Total population |
| B. | Aggregate income Aggregate consumption |
| C. | Change in consumption Change in income |
| D. | Aggregate consumption Aggregate income |
| Answer» E. | |
| 175. |
Capacity utilisation |
| A. | is usually near 100 percent. |
| B. | represents the percent of the labour force that is employed. |
| C. | is a measure of the proportional of the existing capital stock used for current production. |
| D. | rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production. |
| Answer» D. rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production. | |
| 176. |
The basic problem studied in Macro - Economics is |
| A. | production of income |
| B. | usage of income |
| C. | flow of income |
| D. | distribution of income |
| Answer» B. usage of income | |
| 177. |
The book which is at the centrepiece of the study of Macro - Economics was written by |
| A. | Prof. Samuelson |
| B. | Prof. J.M. Keynes |
| C. | Prof. Benham |
| D. | Prof. Baumol |
| Answer» C. Prof. Benham | |
| 178. |
The main emphasis of Keynesian economics is on |
| A. | Expenditure |
| B. | Exchange |
| C. | Foreign trade |
| D. | Taxation |
| Answer» B. Exchange | |
| 179. |
According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations , in the |
| A. | Marginal efficiency of capital |
| B. | Marginal propensity to save |
| C. | Marginal propensity to consumption |
| D. | Marginal efficiency to investment |
| Answer» B. Marginal propensity to save | |
| 180. |
Collective consumption means |
| A. | household consumption |
| B. | individual consumption |
| C. | self consumption |
| D. | consumption by the citizens of the country |
| Answer» E. | |
| 181. |
What is meant by Capital Gain ? |
| A. | Part of profits added to the capital |
| B. | Appreciation in the money value of assets |
| C. | Additions to the capital invested in a business |
| D. | None of these |
| Answer» C. Additions to the capital invested in a business | |
| 182. |
The value of investment multiplier relates to |
| A. | change in income due to change in autonomous investment. |
| B. | change in autonomous investment due to change in income. |
| C. | change in income due to change in consumption. |
| D. | change in the income due to change in induced investment. |
| Answer» C. change in income due to change in consumption. | |
| 183. |
Which of the following is a consequence of inflationary price rise ? |
| A. | Obstacle in development |
| B. | Increase in economic inequalities |
| C. | All of these |
| D. | Adverse effect on the balance of payment |
| Answer» D. Adverse effect on the balance of payment | |
| 184. |
If a change in all inputs leads to a proportionate change in output, it is case of |
| A. | Constant returns to scale |
| B. | Diminishing returns to scale |
| C. | Increasing returns to scale |
| D. | Variable returns to scale |
| Answer» B. Diminishing returns to scale | |
| 185. |
The equilibrium price of a commodity will definitely rise if there is a/an : |
| A. | increase in supply combined with a decrease in demand. |
| B. | increase in both demand and supply. |
| C. | decrease in both demand and supply. |
| D. | increase in demand accompanied by a decrease in supply. |
| Answer» E. | |
| 186. |
Regarding money supply situation in India it can be said that the : |
| A. | Currency with the public is inconvertible only. |
| B. | |
| C. | Currency with the public is less than the deposits with the banks. |
| D. | Currency with the public is more than the deposits with the banks. |
| E. | Currency with the public is almost equal to the deposits with banks. |
| Answer» C. Currency with the public is less than the deposits with the banks. | |
| 187. |
A hammer in the hands of a house-wife is a ______ good. |
| A. | consumer |
| B. | capital |
| C. | free |
| D. | intermediary |
| Answer» E. | |
| 188. |
Transfer payments mean |
| A. | Old age pensions |
| B. | Unemployment compensations |
| C. | Social security payments |
| D. | All the above |
| Answer» E. | |
| 189. |
Economic progress of a country is determined by |
| A. | Increase in per capita income of people of country |
| B. | Increase in the price of produced capital goods during the year |
| C. | Increased numbers of Trade Unions |
| D. | Fall in the general price level of a country |
| Answer» B. Increase in the price of produced capital goods during the year | |
| 190. |
Which one of the following is not a dimension of human development index ? |
| A. | Life expectancy |
| B. | Knowledge |
| C. | Social status |
| D. | Standard of living |
| Answer» D. Standard of living | |
| 191. |
Which one of the following represents the Savings of the Private Corporate Sector? |
| A. | Dividends paid to shareholders |
| B. | Total profits of a company |
| C. | Undistributed profits |
| D. | Excess of income over expenditure |
| Answer» D. Excess of income over expenditure | |
| 192. |
Equilibrium price in the market is determined by the |
| A. | equality between marginal cost and average cost. |
| B. | equality between total cost and total revenue. |
| C. | equality between average cost and average revenue. |
| D. | equality between marginal cost and marginal revenue. |
| Answer» E. | |
| 193. |
Preparation of butter, ghee by a household for their own use is a part of : |
| A. | own-account production |
| B. | household capital formation |
| C. | industrial production |
| D. | consumption |
| Answer» E. | |
| 194. |
Surplus budget is recommended during : |
| A. | Boom |
| B. | Depression |
| C. | Famines |
| D. | War |
| Answer» C. Famines | |
| 195. |
One of the features of a free market economy is |
| A. | active state intervention |
| B. | public ownership of factors of production |
| C. | rationing and price control |
| D. | consumer s sovereignty |
| Answer» E. | |
| 196. |
Which of the following costs is related to marginal cost? |
| A. | Variable Cost |
| B. | Implicit Cost |
| C. | Prime Cost |
| D. | Fixed Cost |
| Answer» B. Implicit Cost | |
| 197. |
The difference between GNP and NNP equals |
| A. | corporate profits |
| B. | personal taxes |
| C. | transfer payments |
| D. | depreciation |
| Answer» E. | |
| 198. |
A camera in the hands of a professional photographer is a _______ good. |
| A. | Free |
| B. | Intermediary |
| C. | Consumer |
| D. | Capital |
| Answer» C. Consumer | |
| 199. |
The difference in the value of visible exports and visible imports is called : |
| A. | Balance Sheet of items |
| B. | Balance of Payments |
| C. | Balance of Trade |
| D. | Balance of Account |
| Answer» D. Balance of Account | |
| 200. |
The sale proceeds of Government Bonds come under the budget head of |
| A. | Revenue Receipts |
| B. | Current Expenditure |
| C. | Capital Outlay |
| D. | Capital Receipts |
| Answer» E. | |