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.
| 201. |
Which of the following is not an investment expenditure in goods and services? |
| A. | Expansion of the main plant of a company |
| B. | Purchase of a house |
| C. | Purchase of machinery |
| D. | An increase in business inventories |
| Answer» C. Purchase of machinery | |
| 202. |
Investment multiplier shows the effect of investment on |
| A. | Employment |
| B. | Savings |
| C. | Income |
| D. | Consumption |
| Answer» D. Consumption | |
| 203. |
Which of the following best indicates economic growth of a Nation? |
| A. | Agriculture income |
| B. | Per capita income |
| C. | Gross industrial production |
| D. | Inflation |
| Answer» C. Gross industrial production | |
| 204. |
A Transfer Income is an |
| A. | Income which is not produced by any production process |
| B. | Income taken away from one person and given over to another |
| C. | Unearned income |
| D. | Earned income |
| Answer» B. Income taken away from one person and given over to another | |
| 205. |
The main feature of a capitalist economy is |
| A. | Administered prices |
| B. | Public ownership |
| C. | Economic planning |
| D. | Private ownership |
| Answer» E. | |
| 206. |
The Canons of Taxation were propounded by |
| A. | Edwin Canon |
| B. | Adam Smith |
| C. | J.M. Keynes |
| D. | Dalton |
| Answer» C. J.M. Keynes | |
| 207. |
Price mechanism is a feature of |
| A. | Capitalist economy |
| B. | Barter economy |
| C. | Mixed economy |
| D. | Socialist economy |
| Answer» B. Barter economy | |
| 208. |
Which of the following is deducted from GNP to arrive at NNP ? |
| A. | Depreciation |
| B. | Interest |
| C. | Tax |
| D. | Subsidy |
| Answer» B. Interest | |
| 209. |
The supply-side economics lays greater emphasis on |
| A. | Producer |
| B. | Global economy |
| C. | Consumer |
| D. | Middle Man |
| Answer» B. Global economy | |
| 210. |
Which of the statements is correct about India s national income? |
| A. | Percentage share of agriculture is higher than services |
| B. | Percentage share of industry is higher than agriculture |
| C. | Percentage share of services is higher than industry |
| D. | Percentage share of services is higher than agriculture and industry put together |
| Answer» E. | |
| 211. |
Imputed gross rent of owneroccupied buildings is a part of |
| A. | capital formation |
| B. | final consumption |
| C. | intermediate consumption |
| D. | consumer durable |
| Answer» C. intermediate consumption | |
| 212. |
Which of the following is a better measurement of Economic Development ? |
| A. | GDP |
| B. | Disposable income |
| C. | NNP |
| D. | Per capita income |
| Answer» E. | |
| 213. |
Supply creates its own demand Who said this ? |
| A. | J. B. Say |
| B. | J. S. Mill |
| C. | J. M. Keynes |
| D. | Senior |
| Answer» B. J. S. Mill | |
| 214. |
Capital : Output Ratio of a measures |
| A. | its per unit cost of production |
| B. | the amount of capital invested per unit of output |
| C. | the ratio of capital depreciation to quantity of output |
| D. | the ratio of working capital employed to quantity of output |
| Answer» C. the ratio of capital depreciation to quantity of output | |
| 215. |
Income and consumption are : |
| A. | inversely related |
| B. | directly related |
| C. | partially related |
| D. | unrelated. |
| Answer» C. partially related | |
| 216. |
Sectoral distribution of GDP index measures_________ |
| A. | Agriculture development of a country |
| B. | Economic development of a country |
| C. | Social development of a country |
| D. | Socio-Economic development of a Country |
| Answer» C. Social development of a country | |
| 217. |
Which of the following is not included in the National Income? |
| A. | Imputed rent of owner-occupied houses |
| B. | Government expenditure on making new bridges |
| C. | Winning a lottery |
| D. | Commission paid to an agent for sale of house |
| Answer» D. Commission paid to an agent for sale of house | |
| 218. |
What is dual pricing? |
| A. | Wholesale price and Retail pricing |
| B. | Pricing by agents and Pricing by retaliers |
| C. | Price fixed by Government and Price in open market |
| D. | Daily prices and Weekly prices |
| Answer» D. Daily prices and Weekly prices | |
| 219. |
The national income consists of a collection of goods and services reduced to common basis by being measured in terms of money. Who says this ? |
| A. | Samuelson |
| B. | Kuznets |
| C. | Hicks |
| D. | Pigou |
| Answer» D. Pigou | |
| 220. |
Plant and machinery are |
| A. | Producers goods |
| B. | Consumers goods |
| C. | Distributors goods |
| D. | Free goods |
| Answer» B. Consumers goods | |
| 221. |
Demand for complementary goods is known as |
| A. | Joint demand |
| B. | Derived demand |
| C. | Direct demand |
| D. | Cross demand |
| Answer» B. Derived demand | |
| 222. |
In the case of an inferior good, the income elasticity of demand is : |
| A. | Zero |
| B. | Negative |
| C. | Infinite |
| D. | Positive |
| Answer» C. Infinite | |
| 223. |
When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be |
| A. | Highly elastic |
| B. | Inelastic |
| C. | Relatively elastic |
| D. | Perfectly inelastic |
| Answer» C. Relatively elastic | |
| 224. |
Number of sellers in the monopoly market structure is |
| A. | few |
| B. | large |
| C. | one |
| D. | two |
| Answer» D. two | |
| 225. |
A market in which there are a few number of large firms is called as |
| A. | Duopoly |
| B. | Competition |
| C. | Oligopoly |
| D. | Monopoly |
| Answer» D. Monopoly | |
| 226. |
Who developed the innovations theory of profit ? |
| A. | Walker |
| B. | Clark |
| C. | Knight |
| D. | Schumpeter |
| Answer» E. | |
| 227. |
Elasticity (e) expressed by the formula l > e > 0 is |
| A. | Perfectly elastic |
| B. | Relatively elastic |
| C. | Perfectly inelastic |
| D. | Relatively inelastic |
| Answer» E. | |
| 228. |
How the interest-level of a country is affected by FDI ? |
| A. | increases |
| B. | decreases |
| C. | remains unaffected |
| D. | there is increase or decrease |
| Answer» C. remains unaffected | |
| 229. |
The remuneration of the entrepreneur in production is |
| A. | Pure profit |
| B. | Gross profit |
| C. | Net profit |
| D. | Super-normal profit |
| Answer» D. Super-normal profit | |
| 230. |
The demand for necessities is |
| A. | elastic |
| B. | perfectly inelastic |
| C. | inelastic |
| D. | perfectly elastic |
| Answer» C. inelastic | |
| 231. |
Production function refers to the functional relationship between input and ___. |
| A. | product |
| B. | produce |
| C. | output |
| D. | service |
| Answer» D. service | |
| 232. |
Bilateral monopoly refers to the market situation of |
| A. | two sellers, two buyers |
| B. | one seller and two buyers |
| C. | two sellers and one buyer |
| D. | one seller and one buyer |
| Answer» E. | |
| 233. |
Who propounded the market law ? |
| A. | Adam Smith |
| B. | J.B. Say |
| C. | T.R. Malthus |
| D. | David Recardo |
| Answer» C. T.R. Malthus | |
| 234. |
The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into |
| A. | codification of tax laws |
| B. | the entire structure of tax laws including the question of imposition of bank tax |
| C. | the concerns of the foreign investors in India with regard to taxation matters |
| D. | aspects of generation of black money, its transfer abroad and bringing back such money into India s legitimate financial system |
| Answer» E. | |
| 235. |
Who propounded Dynamic Theory of profit ? |
| A. | Clark |
| B. | Schumpeter |
| C. | Knight |
| D. | Hawly |
| Answer» B. Schumpeter | |
| 236. |
Marginal Cost equals |
| A. | total cost minus total benefit for the last unit produced |
| B. | total cost divided by total benefit for the last unit produced |
| C. | total cost divided by quantity |
| D. | the change in total cost divided by the change in quantity |
| Answer» E. | |
| 237. |
Goods which are meant either for consumption or for investment are called |
| A. | Final goods |
| B. | Giffen goods |
| C. | Inferior goods |
| D. | Intermediate goods |
| Answer» B. Giffen goods | |
| 238. |
Tha Law of Demand is based on |
| A. | Manufacturer s preference |
| B. | Seller s preference |
| C. | Supplier s preference |
| D. | Consumer s preference |
| Answer» E. | |
| 239. |
The study of factor pricing is alternatively called the theory of |
| A. | functional distribution |
| B. | personal distribution |
| C. | income distribution |
| D. | wealth distribution |
| Answer» B. personal distribution | |
| 240. |
Returns to scale is a |
| A. | timeless phenomenon |
| B. | directionless phenomenon |
| C. | short-run phenomenon |
| D. | long-run phenomenon |
| Answer» E. | |
| 241. |
Which of the following economists is called the Father of Economics ? |
| A. | Malthus |
| B. | Robinson |
| C. | Ricardo |
| D. | Adam Smith |
| Answer» E. | |
| 242. |
A supply function expresses the relationship between |
| A. | price and output |
| B. | price and selling cost |
| C. | price and demand |
| D. | price and consumption |
| Answer» B. price and selling cost | |
| 243. |
Consumer gets maximum satisfaction at the point where |
| A. | Marginal Utility = Price |
| B. | Marginal Utility > Price |
| C. | Marginal Utility < Price |
| D. | Marginal Cost = Price |
| Answer» B. Marginal Utility > Price | |
| 244. |
Quasi rent is a_________ phenomenon. |
| A. | medium term |
| B. | long term |
| C. | short term |
| D. | no time |
| Answer» D. no time | |
| 245. |
In short run, if a competitive firm incurs losses, it will |
| A. | stop production. |
| B. | continue to produce as long as it can cover its variable costs. |
| C. | raise price of its product. |
| D. | go far advertising campaign. |
| Answer» B. continue to produce as long as it can cover its variable costs. | |
| 246. |
If average cost falls, marginal cost |
| A. | increases at a higher rate |
| B. | falls at the same rate |
| C. | increases at a lower rate |
| D. | falls at a higher rate |
| Answer» C. increases at a lower rate | |
| 247. |
If people s income of a country is denoted in a curved line space that it has increased, then what does it denote? |
| A. | the income is increasing |
| B. | the income is decreasing |
| C. | dissimilarity is decreasing in income distribution |
| D. | dissimilarity in income distribution is increasing |
| Answer» D. dissimilarity in income distribution is increasing | |
| 248. |
Buyers and Sellers will have perfect knowledge of market conditions under |
| A. | Duopoly |
| B. | Perfect competition |
| C. | Monopolistic competition |
| D. | Oligopoly |
| Answer» B. Perfect competition | |
| 249. |
In a free enterprise economy, resource allocation is determined by |
| A. | the pattern of consumers spending |
| B. | the wealth of the entrepreneurs |
| C. | decision of the Government |
| D. | the traditional employment of factors |
| Answer» B. the wealth of the entrepreneurs | |
| 250. |
Third stage of Law of Variable Proportion is called |
| A. | negative returns |
| B. | positive returns |
| C. | constant returns |
| D. | increasing returns |
| Answer» B. positive returns | |