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.
| 251. |
Minimum payment to factor of production is called |
| A. | Quasi Rent |
| B. | Rent |
| C. | Wages |
| D. | Transfer Payment |
| Answer» E. | |
| 252. |
Extreme forms of markets are |
| A. | Perfect competition; Oligopoly |
| B. | Oligopoly; Monopoly |
| C. | Perfect competition; Monopoly |
| D. | Perfect competition; Monopolistic competition |
| Answer» D. Perfect competition; Monopolistic competition | |
| 253. |
The term Green GNP emphasises |
| A. | rapid growth of GNP |
| B. | increase in per capita income |
| C. | economic development |
| D. | sustainable development |
| Answer» E. | |
| 254. |
As the number of investments made by a firm increases, its internal rate of return |
| A. | declines due to diminishing marginal productivity. |
| B. | declines because the market rate of interest will fall, ceteris paribus. |
| C. | increases to compensate the firm for the current consumption foregone. |
| D. | increases because the level of savings will fall. |
| Answer» D. increases because the level of savings will fall. | |
| 255. |
A low interest policy is also known as : |
| A. | cheap money policy |
| B. | income generating |
| C. | dear money policy |
| D. | investment policy |
| Answer» B. income generating | |
| 256. |
The internal rate of return |
| A. | must be less than the interest rate if the firm is to invest. |
| B. | makes the present value of profits equal to the present value of costs. |
| C. | falls as the annual yield of an investment rises. |
| D. | is equal to the market interest rate for all the firm s investment. |
| Answer» D. is equal to the market interest rate for all the firm s investment. | |
| 257. |
Subsidies are payment by government to |
| A. | Consuming units |
| B. | Producing units |
| C. | Banking units |
| D. | Retired persons |
| Answer» C. Banking units | |
| 258. |
The Psychological law of consumption states that |
| A. | proportionate increase in consumption is less than proportionate increase in income |
| B. | increase in income is equal to increase in consumption |
| C. | increase in consumption is greater than increase in income |
| D. | consumption does not change with a change in income |
| Answer» B. increase in income is equal to increase in consumption | |
| 259. |
If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be |
| A. | less than unity |
| B. | infinitely large |
| C. | greater than unity |
| D. | equal to unity |
| Answer» E. | |
| 260. |
If the average revenue is a horizontal straight line, marginal revenue will be |
| A. | U shaped |
| B. | Kinked |
| C. | Identical with average revenue |
| D. | L shaped |
| Answer» D. L shaped | |
| 261. |
A unit price elastic demand curve will touch |
| A. | both price and quantity axis |
| B. | neither price axis, nor quantity axis |
| C. | only price axis |
| D. | only quantity axis |
| Answer» C. only price axis | |
| 262. |
The demand of a factor of production is |
| A. | direct |
| B. | derived |
| C. | neutral |
| D. | discretion of the producer |
| Answer» C. neutral | |
| 263. |
Price and output are determinates in market structure other than |
| A. | monopoly |
| B. | perfect competition |
| C. | oligopoly |
| D. | monopsony |
| Answer» C. oligopoly | |
| 264. |
An increase in the quantity supplied suggests : |
| A. | a leftward shift of the supply curve |
| B. | a movement up along the supply curve |
| C. | a movement down along the supply curve |
| D. | a rightward shift of the supply curve |
| Answer» C. a movement down along the supply curve | |
| 265. |
Rent is a factor payment paid to |
| A. | land |
| B. | restaurant |
| C. | building |
| D. | factory |
| Answer» B. restaurant | |
| 266. |
The sale of branded articles is common in a situation of |
| A. | excess capacity |
| B. | monopolistic competition |
| C. | monopoly |
| D. | pure competition |
| Answer» C. monopoly | |
| 267. |
A financial instrument is called a primary security if it represents the liability of : |
| A. | some ultimate borrower |
| B. | the Government of India |
| C. | a primary cooperative bank |
| D. | a commercial bank |
| Answer» B. the Government of India | |
| 268. |
Supply creates its own demand . This statement is related to |
| A. | Prof. J.B. Say |
| B. | John Robinson |
| C. | Adam Smith |
| D. | J.S. Mill |
| Answer» B. John Robinson | |
| 269. |
Perfectly inelastic demand is equal to : |
| A. | One |
| B. | Infinite |
| C. | Zero |
| D. | Greater than one |
| Answer» D. Greater than one | |
| 270. |
Which law states that with constant taste and preferences, the proportion of income spend on food stuff diminishes as income increases? |
| A. | Say s Law |
| B. | Griffin s Law |
| C. | Gresham s Law |
| D. | Engel s Law |
| Answer» E. | |
| 271. |
A Market Economy is one which |
| A. | is controlled by the Government |
| B. | is free from the Government control |
| C. | in influenced by international market forces |
| D. | All of these |
| Answer» C. in influenced by international market forces | |
| 272. |
In calculating National Income which of the following is included ? |
| A. | Services of housewives |
| B. | Pensions |
| C. | Income of smugglers |
| D. | Income of watchmen |
| Answer» E. | |
| 273. |
In the context of the stock market, IPO stands for |
| A. | Immediate Payment Order |
| B. | Internal Policy Obligation |
| C. | Initial Public Offer |
| D. | International Payment Obligation |
| Answer» D. International Payment Obligation | |
| 274. |
Capital gains refers to goods which |
| A. | serve as a source of raising further capital |
| B. | help in the further production of goods |
| C. | directly go into the satisfaction of human wants |
| D. | find multiple uses |
| Answer» D. find multiple uses | |
| 275. |
A demand curve will not shift: |
| A. | When only income changes |
| B. | When only prices of substitute products change |
| C. | When there is a change in advertisement expenditure |
| D. | When only price of the commodity changes |
| Answer» E. | |
| 276. |
Economics classifies the manmade instrument of production as : |
| A. | organization |
| B. | capital |
| C. | equipment |
| D. | labour |
| Answer» C. equipment | |
| 277. |
Which among the following statements is not true when there is an increase in interest rate in an economy ? |
| A. | increase in saving |
| B. | decrease in loan |
| C. | increase in production cost |
| D. | increase in capital return |
| Answer» E. | |
| 278. |
Investment and savings are kept equal through a change in the level of |
| A. | Consumption |
| B. | Investment |
| C. | Government expenditure |
| D. | Income |
| Answer» B. Investment | |
| 279. |
In a business, raw materials, components, work in progress and finished goods are jointly regarded as |
| A. | capital stock |
| B. | inventory |
| C. | investment |
| D. | net worth |
| Answer» C. investment | |
| 280. |
Capital output ratio of a commodity 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 | |
| 281. |
While determining income the expenditure on which of the following items is not considered as investment ? |
| A. | Construction of factory |
| B. | Computer |
| C. | Increase in the stock of unsold articles |
| D. | Stock and share in joint stock company |
| Answer» D. Stock and share in joint stock company | |
| 282. |
Marginal efficiency of capital is |
| A. | expected rate of return on new investment |
| B. | expected rate of return of existing investment |
| C. | difference between rate of profit and rate of interest |
| D. | value of output per unit of capital invested |
| Answer» B. expected rate of return of existing investment | |
| 283. |
Say s Law of Market holds that |
| A. | supply is not equal to demand |
| B. | supply creates its own demand |
| C. | demand creates its own supply |
| D. | supply is greater than demand |
| Answer» C. demand creates its own supply | |
| 284. |
Which of the following results by dividing national income by size of population ? |
| A. | Per capita income |
| B. | Subsistence level |
| C. | Subsistence expenditure |
| D. | Per capita production |
| Answer» B. Subsistence level | |
| 285. |
The sum total of incomes received for the services of labour, land or capital in a country is called : |
| A. | Gross domestic product |
| B. | National income |
| C. | Gross domestic income |
| D. | Gross national income |
| Answer» D. Gross national income | |
| 286. |
Investment is equal to : |
| A. | gross total of all types of physical capital assets |
| B. | gross total of all capital assets minus wear and tear |
| C. | stock of plants, machines and equipments |
| D. | None of the above |
| Answer» C. stock of plants, machines and equipments | |
| 287. |
When aggregate supply exceeds aggregate demand |
| A. | unemployment falls |
| B. | prices rise |
| C. | inventories accumulate |
| D. | unemployment develops |
| Answer» D. unemployment develops | |
| 288. |
The method of calculating the national income by the product method is otherwise known as : |
| A. | Income method |
| B. | Value added method |
| C. | Expenditure method |
| D. | Net output method |
| Answer» E. | |
| 289. |
Which of the following concepts are most closely associated with J.M. Keynes ? |
| A. | Control of money supply |
| B. | Marginal utility theory |
| C. | Indifference curve analysis |
| D. | Marginal efficiency of captial |
| Answer» E. | |
| 290. |
The best measure to assess a country s economic growth is |
| A. | per capita income at constant prices |
| B. | per capita income at current prices |
| C. | gross domestic product at current prices |
| D. | gross national product at current prices |
| Answer» B. per capita income at current prices | |
| 291. |
According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes |
| A. | a fall in prices of output and resources |
| B. | a fall in real gross National product and employment |
| C. | a rise in real gross National product and investment |
| D. | a rise in prices of output and resources |
| Answer» B. a fall in real gross National product and employment | |
| 292. |
Who said Supply creates its own demand ? |
| A. | Adam Smith |
| B. | J.B.Saw |
| C. | Marshall |
| D. | Ricardo |
| Answer» C. Marshall | |
| 293. |
Personal disposable income is : |
| A. | always equal to personal income. |
| B. | always more than personal income. |
| C. | equal to personal income minus direct taxes paid by household. |
| D. | equal to personal income minus indirect taxes. |
| Answer» D. equal to personal income minus indirect taxes. | |
| 294. |
Multiplier process in economic theory is conventionally taken to mean : |
| A. | the manner in which prices increase |
| B. | the manner in which banks create credit |
| C. | income of an economy grows on account of an initial investment |
| D. | the manner in which government expenditure increases |
| Answer» D. the manner in which government expenditure increases | |
| 295. |
Production function is the relationship between |
| A. | Production and Profit |
| B. | Production and Prices |
| C. | Production and Production factors |
| D. | Production and Income |
| Answer» D. Production and Income | |
| 296. |
The father of Economics is |
| A. | Marshall |
| B. | Adam Smith |
| C. | J.M. Keynes |
| D. | Karl Marx |
| Answer» C. J.M. Keynes | |
| 297. |
Any factor of production can earn economic-rent, when its supply will be |
| A. | Perfectly elastic |
| B. | Perfectly inelastic |
| C. | Elastic in nature |
| D. | All of the above |
| Answer» C. Elastic in nature | |
| 298. |
The law of diminishing returns applies to |
| A. | All sectors |
| B. | Industrial sector |
| C. | Agricultural sector |
| D. | Service sector |
| Answer» B. Industrial sector | |
| 299. |
The basic object of all production is to |
| A. | satisfy human wants |
| B. | provide employment |
| C. | make profits |
| D. | increase physical output |
| Answer» B. provide employment | |
| 300. |
Cross demand expresses the functional relationship between |
| A. | demand and prices of related commodities. |
| B. | demand and income. |
| C. | demand and prices. |
| D. | demand and supply, |
| Answer» B. demand and income. | |