Competitive Exams: Economics MCQs (Practice-Test 114 of 122)

    • Assertion (A): Rostow regards the development leading sectors as a condition for take off of the economy.
    • Reason (R): The demand for products of other sectors is transmitted through the demand of these sectors.
    1. Both A and R are true and R is the correct explanation of A

    2. Both A and R are true but R is NOT a correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): Agricultural production characterised by growth and instability in India.
    • Reason (R): There are marked interregional and inter-crop variations in farm production in India
    1. Both A and R are true and R is the correct explanation of A

    2. Both A and R are true but R is NOT a correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): The industrial structure in India has become non-competitive over time.
    • Reason (R): The government's licensing and other interventionist policies were devised to benefit the public.
    1. Both A and R are true and R is the correct explanation of A

    2. Both A and R are true but R is NOT a correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): The government's internal liabilities registered a sharp increase in the 1980s, from 35.6 percent of GDP in 1980 − 81 to 53.3 percent of GDP in 1990 − 91.
    • Reason (R): A combination of revenue deficits and poor returns on assets financed by capital receipts has been responsible.
    1. Both A and R are true and R is the correct explanation of A

    2. Both A and R are true but R is NOT a correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

  1. Which one of the following statements in NOT correct?

    1. Compensation of employees plus operating surplus plus mixed income of self-employed plus consumption of fixed capital equal GDP at factor cost

    2. GDP at factor cost plus indirect taxes minus subsidies equal GDP at market prices

    3. GDP at factor cost minus depreciation equals net domestic product at factor cost.

    4. GDP at market prices minus net receipts from abroad plus indirect taxes minus subsides equals net nation product.

  2. Which one of the following denotes net state domestic product?

    1. Money value of final goods and services produced within the boundary of a state plus net inflow of income from outside the state.

    2. Money value of final goods and services produced within the boundary of a state minus depreciation plus indirect taxes of fixed assets.

    3. Money value of final goods and services produced within the boundary of a sate minus depreciation plus indirect taxes.

    4. Money value of goods and service consumed within the boundary of a state plus net income from outside the state.

  3. Which one of the following constitutes government consumption expenditure?

    1. Compensation to employees plus net purchases from business enterprises.

    2. Wages and salaries of government employees

    3. Government expenditure on defence

    4. Transfer payments to individuals and state governments.

  4. Which one of the following equal value of output of a factory?

    1. total value added by factors

    2. value of all non-factor inputs 0plus indirect taxes

    3. Payments for factor inputs and nonfactor inputs

    4. Payments for non-factor inputs plus wages

  5. Which on of the following items is excluded in calculating national income

    1. Services of a rented TV set

    2. s. 10, 000/-won in a lottery

    3. Rented residences

    4. Paid housework

  6. In which of the following sectors, is product method used in computing national income in India?

    1. Agriculture and allied activities

    2. Mining and quarrying

    3. Registered manufacturing

    4. Unregistered manufacturing

    Select the correct answer using the codes given below:

    1. 2, 3 and 4

    2. 1, 2 and 3

    3. 1 and 2

    4. 1, 3 and 4

  7. Consider the following statements regarding savings in different sectors of an economy:

    1. Savings of private corporate sector constitute undistributed profits.

    2. Savings of private corporate sector constitute excess of income over expenditure.

    3. Savings of Government sector constitute excess of revenue receipts over revenue expenditure.

    4. Savings of government sector constitute excess of total revenue over total expenditure.

    Of the above statements

    1. 2 and 3 are correct

    2. 3 and r are correct

    3. 1 and 3 correct

    4. 2 and 4 correct

  8. the implicit national income deflator represents price index number of the type know as

    1. Laspeyre's index number

    2. Fisher's index number

    3. Paasche's Index number

    4. Marshall-Egeworth's index number

  9. In the IS-LM model of income determination, an increase in the propensity to save leads to a

    1. rightward shift of the LM curve

    2. rightward shift of the IS curve

    3. leftward shift of the LM curve

    4. leftward shift of the IS curve

  10. Under the keynesian system, a fall in money wage rate will lead to a/an

    1. increase in employment

    2. fall in the price level

    3. fall in the interest rate

    4. fall in the quantity of money

  11. If these is to be large oscillation in the path of income through the interaction of multiplier and accelerator then the

    1. value of marginal propensity to save must be less than the value of accelerator.

    2. value of marginal propensity to save must be greater than the value of accelerator

    3. value of accelerator must be greater than one

    4. sum of the value of marginal propensity to save and accelerator must be greater than one