Competitive Exams: Economics MCQs (Practice-Test 63 of 122)

  1. The flexible exchange rate has a number of advantages. Which one of the following is not to be considered as such an advantage?

    1. The exchange rate moves in a free market to equate demand and supply so that the market does not face the problem of scarcity or surplus of foreign currency.

    2. It permits a continued existence of free trade and convertible currencies

    3. it permits a country to follow independent monetary and fiscal policies

    4. There is not need for keeping official foreign exchange reserves

  2. Which one of the following pairs is not correctly matched?

      • Exchange depreciation
      • Market mechanism
      • Devaluation
      • Policy action of the Government
      • Deflation
      • Cheap money policy
      • Exchange control
      • Foreign exchange rationing
  3. The arithmetic mean of series ‘A’ is twice that of series ‘B’ and the standard deviation of series ‘B’ is twice that of series ‘A’ The coefficient of variation of series ‘A’ in relation to that of series ‘B’ will be

    1. N/A

    2. nil

    3. same

    4. twice

  4. In India, the main source of national income is

    1. primary sector

    2. secondary sector

    3. tertiary sector

    4. foreign sector

  5. Which of the following has not shown a faster rate increase in the country during the last five years?

    1. Rate of growth of the economy

    2. Rate of inflation

    3. budgetary deficit

    4. Volume of money supply

  6. During the Ninth Five-year Plan, which one of the following sectors registered the highest growth rate in India?

    1. Agriculture and allied sectors

    2. manufacturing

    3. Construction

    4. Services

  7. Consider the following States:

    1. Kerala

    2. Mizoram

    3. Goa

    4. Maharashtra

    The correct sequence of these Stats in the descending order of literacy rate as per the figures of Census 2001 is

    1. 1, 2, 3, 4

    2. 3, 2, 4, 1

    3. 1, 3, 4, 2

    4. 3, 4, 1, 2

  8. Which one of the following not an element of Industrial Policy of India since 1991?

    1. Removal of entry barriers

    2. Reservation of areas reserved exclusively for the public sector.

    3. Public sector monopoly for power development

    4. Liberalization of foreign investment policy

  9. Rate of interest s begin reduced in India

    1. to reduce the burden of public debt

    2. to create easy credit facilities

    3. to align the interest rate structure with world interest rate

    4. to accomplish all the above three.

  10. Match List I with List and select the correct answer:

    List-I (Year) List-II (Event)
    1. Year 1947

    2. Year 1957

    3. Year 1964

    4. Year 1970

    1. Bretton Woods Agreement

    2. Creation of SDRs by IMF

    3. Signing of GATT

    4. Establishment of EEC

    5. Establishment of UNCTAD

    • A
    • B
    • C
    • D
      • 5
      • 1
      • 3
      • 4
      • 3
      • 4
      • 5
      • 2
      • 5
      • 4
      • 3
      • 2
      • 3
      • 1
      • 5
      • 4
  11. Which one of the following statements is not correct is respect of subsidies?

    1. Subsidies are similar to indirect taxes is that they open a gap between the cost of production and distribution and the price paid by the subsidized buyer

    2. subsidies disturb the pattern of consumption

    3. The indirect cost of subsidies is much greater than the direct cost of budgetary subsidies

    4. subsidies are anti-inflationary

  12. Match List I with List II and select the correct answer:

    List-I List-II
    1. Keynes

    2. Modigliani

    3. Hicks

    4. Pigou

    1. Money illusion

    2. IS-curve

    3. Life cycle hypothesis

    4. Liquidity trap

    • A
    • B
    • C
    • D
      • 4
      • 1
      • 2
      • 3
      • 2
      • 3
      • 4
      • 1
      • 4
      • 3
      • 2
      • 1
      • 2
      • 1
      • 4
      • 3
  13. Which one of the following pairs is not correct matched?

    1. Gross barter terms of trade: Trussing

    2. Purchasing power parity theory: J S Mill

    3. Offer curve: A. Marshall

    4. Factor-endowment model: Heckscher-Ohlin

  14. Which one of the following taxes yielded lowest revenue to the Central Government during the financial year 2001 − 02?

    1. Personal income tax

    2. Corporation tax

    3. Customs

    4. Union excise duty

  15. Which one of the following Finance commission s has recommended 29.5% share from the total central tax revenue to the states?

    1. VIII

    2. IX

    3. X

    4. XI