Competitive Exams: Economics MCQs (Practice-Test 17 of 122)

    • Assertion (A): An investor will invest in capital asset.
    • Reason (R): Marginal efficiency of Capital (MEC) > market rate of interest.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): People's desire for transactions balances in creases with increases in income.
    • Reason (R): People spend on increasing proportion of their income on consumption.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): Reserve Bank of India raises money supply through purchase of securities in the money market.
    • Reason (R): Increase in money supply may result in the expansion of investment and employment.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): Public finance is a normal science.
    • Reason (R): The objective of fiscal operation implies proper allocation of resources distribution of income, for employment and stability with growth.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): The Ricardian theory of comparative costs s based on the labour theory of value.
    • Reason (R): Labour theory of value holds good in domestic trade, but breaks down when applied in international trade.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): Devaluation changes ipso facto exchange rates.
    • Reason (R): Revaluation in the opposite of devaluation.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): Customs duties primarily influence commodity prices.
    • Reason (R): Quantitative restrictions are designed to determine the amount of goods imported or exported.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): The effective-protection approach has been wide practiced by the industrial advance countries.
    • Reason (R): Industrialized countries impose relatively lower tariff on capital goods.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): Technological change is regarded as an important factor in the process of economic growth.
    • Reason (R): Changes in the technology leads to increase in the production of labour, capital and other factors of production.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): The growth of per capital income in India is slow.
    • Reason (R): India has experienced a high rate of growth of population.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): Productivity of land in India is low.
    • Reason (R): Small farmers are not motivated to produce more.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

  1. Assertion (A) India's occupational structure has remained more or less the same over the years. Reason (R): Investment pattern has been largely directed towards capital intensive industries.

    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): The Reserve Bank of India used selective credit control methods for restraining the growth of inflationary forces in the country.
    • Reason (R): Selective credit control methods checks inflation by reducing directly the demand for goods and services.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): The fiscal deficit of Centre had decline from 8.3 percent of GDP in 1990 − 91 to 5.5 percent in 1995 − 96.
    • Reason (R): Such a fall in the fiscal deficit has come mainly from the reduction in avenue expenditure.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true

    • Assertion (A): The public distribution system (PDS) in India has close links with food security for the vulnerable segments of population.
    • Reason (R): Public distribution system has sustained mainly due to the demand from the vulnerable sections of population.
    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 the correct explanation of A

    3. A is true but R is false

    4. A is false but r is true