Competitive Exams: Economics MCQs (Practice-Test 62 of 122)

  1. Which one of the following is not a component UNDP's Human Development Index?

    1. Per capita GDP

    2. Life expectancy at birth

    3. Combind primary, secondary and tertiary gross enrolment ratio

    4. Percentage of babies born with low birth weight

  2. Arithmetic mean of earning of 42 workers in a factory is Rs. 1200 per month. On account of price rise, the workers managed to get 10% hike in their earnings. In addition to this, the management paid Rs. 100 per month to each employee as bonus. The arithmetic means of total earning of the workers after this change will be.

    1. Rs. 1300

    2. Rs. 1320

    3. Rs. 1420

    4. Rs. 1510.

  3. if the Karl Pearson coefficient of correlation between x and y is 0.3, then the coefficient of correlation between x and 2 y is:

    1. -0.6

    2. -0.3

    3. 0.3

    4. 0.5

  4. Which one of the following is not a function of the National Development Council?

    1. Review of the progress of the five-year plans

    2. Examination of the important socioeconmic policies

    3. Decision on budgetary allocation among the States

    4. Improvement of the efficiency of administrative services required for plan implementation

  5. In respect of the production possibility curve under increasing opportunity costs given above, consider the following statements:

    1. The production possibility curve is not identical with price curve as in the case of constant costs.

    2. There would be complete specialization of a country in a single commodity in a two-commodities and two countries model.

    Which of these statements is/are correct?

    1. 1 only

    2. 2 only

    3. Both 1 and 2

    4. Neither 1 nor 2

  6. Gains in trade results from

    1. exporting as much as possible and receiving gold

    2. reallocation of existing goods between the two countries

    3. the fact that exchange brings both specialization and reallocation of greater output and the increased welfare in each country.

    4. one country receiving both imports and gold

  7. The diagram shows the demand and supply DD and SS, curves respectively, for fertilisers in India. Opi = price of fertilisers in India, before trade OwP = price of fertilisers in world market. Consider the following statements: Under free trade

    1. prices of fertilizers will be lowered compared to world prices.

    2. consumption of fertilizers will increase.

    3. import of fertilizers will be zero.

    Which of these statements are correct?

    Which of these statements are correct?

    1. 1 and 2

    2. 1 and 3

    3. 2 and 3

    4. 1, 2 and 3

  8. A high birth rate of population along with a declining death rate in a thickly populated country like India leads to

    1. balanced population growth in the long run

    2. an increase in the economically active population

    3. rapid economic development

    4. an increase in the dependency load

  9. Indian economy has experienced different annual average growth rates of NNP at constant price (1993 − 94 taken as price level 100). The correct sequence of Fifth, sixth, Seventh and Eighth plans in descending order of these annual growth rates is

    1. Fifth-Sixth-Seventh-Eighth

    2. Eighth-Seventh-Fifth-Fifth

    3. Eighth-Sixth-Fifth-Seventh

    4. Seventh-Eighth-Fifth-Sixth

  10. Which one of the following is not a feature of India's economic planning?

    1. Imperative planning

    2. Limited centralization

    3. Democratic socialism

    4. Indicative planning

  11. Decentralised planning on the basis of Panchayati Raj Institutions was recommended by

    1. Balwant Raj Mehta committee

    2. Mahalanobis Committee

    3. Ashok Mehta Committee

    4. Gadgil committee

  12. Consider the following programmes:

    1. IRDP

    2. TRYSEM

    3. MWS

    4. DWCRA

    Which of these programmes are included in ‘Swarna Jayanti Gram Swarojgar Yojna’

    1. 1 and 2

    2. 1, 2 and 4

    3. 3 and 4

    4. 1, 2 3 and 4

  13. The above graph shows different effects of tariffs in partial equilibrium. Which one of the following indicates the revenue effect of tariff equal to PP'per unit?

    1. Area represented by ‘a’

    2. Area represented by ‘b’

    3. Area represented by ‘c’

    4. Area represented by ‘d’

  14. Which of the following statements is not correct in respect of the balance of payments of a country?

    1. The current account of balance of payments consists of export and import of goods and capital accounts consists of export and import of service borrowings and leadings.

    2. The surplus on current account in the balance of payments must be equal to the deficit on capital account and vice versa

    3. if in the actual balance of payments, the credit and debit do not balance, the balance is usually achieved by adding one item errors and omissions

    The balance of payments of a country must always balance in the accounting sense

  15. Table: Balance of Payments of India (Million US$)

Year Exports Imports 1999 − 2000 37, 542 55, 383 2000 − 01 44, 9894 59, 264 2001 − 02 21, 558 27, 812 (AprilSept.)

Based on the above table, the deficit in the balance of trade in India, during the period 1999 − 2000 to 2001 − 02 showed