Competitive Exams: Economics MCQs (Practice-Test 72 of 122)

  1. Match List I with List II and select the correct answer using the codes given below:

    List-I List-II
    1. W W Rostow

    2. R F Harrod

    3. R Nurkse

    4. A O Hirschman

    1. Warranted Rate of Growth

    2. take-off stage

    3. Unbalanced growth

    4. Balanced Growth

    • A
    • B
    • C
    • D
      • 3
      • 1
      • 4
      • 2
      • 2
      • 4
      • 1
      • 3
      • 2
      • 1
      • 4
      • 3
      • 3
      • 4
      • 1
      • 2
  2. International trade & commodities acts as a substitute for international mobility of factors of production. Free trade in goods will bring about an equalization of both absolute and relative prices of all factors production between countries engaged in trade. This theory is known as

    1. Factor proportion theorem

    2. Factor-price equalization theorem

    3. Factor endowment theorem

    4. Factor remuneration theorem

  3. assuming some degree of factor substitution, an isoquant refers to

    1. various quantities of a commodity that can be produced with a given quantity of two factors of production.

    2. A given quantity of a commodity that can result from various quantities of two factors of production.

    3. various quantities of a a commodity that can be produced with a varying quantities of two factors of production

    4. a given quantity of a commodity that can be produced by a given quantity of two factors of production.

  4. Which one of the following statements is not correct?

    1. Commercial bank reserves held by, the RBI are an asset of commercial banks

    2. Commercial banks decrease the supploy of money when they purchase government bonds from households or business.

    3. Actual reserves do not necessrily always exceed required reserves.

    4. The supply of money increase when the RBI buys government securities from households or businesses

  5. Match List I (Committee) with List II (Purpose) and select the correct answer using the codes given below:

    List-I List-II
    1. Dantwala committee

    2. P. L. Tandon committee

    3. Vaghul committee

    4. Tarapoore committee

    1. To examine the feasibility of introducing full convertibility to rupee on capital account of the balance of payment.

    2. To examine the possibilities of enlarging the scope of the money market and to recommend specific measures for evolving money market instruments.

    3. To review the working of Regional Rural Banks.

    4. To make recommendation for appropriate export strategy for the eighties.

    5. To review the operation of licensing under the Industries (Development and Regulation) Act, 1951.

    • A
    • B
    • C
    • D
      • 3
      • 4
      • 2
      • 1
      • 2
      • 1
      • 5
      • 4
      • 3
      • 1
      • 2
      • 4
      • 2
      • 4
      • 5
      • 1
  6. Consider the following statements: Input-output analysis helps development planning by:

    1. providi9ng a simplified picture of the economy

    2. examining the consistency and feasibility of the plans

    3. giving input requirements for a particular sector

    Which of the statements given above is/are correct?

    1. 1 only

    2. 1, 2 and 3

    3. 2 only

    4. 3 only

  7. The Mahalanobis strategy of planning adopted during the Second Five Year Plan emphasized investment in

    1. heavy industries

    2. agriculture

    3. consumer goods industries

    4. export industries

  8. Consider the following statements: The competition Act, 2002 passed by the Indian Parliament aims at

    1. prohibition of anti-competitive practices

    2. stopping abuse of dominance by firms

    3. encouraging exports

    4. encouraging large Indian firms to operate in International markets.

    Which of the statements given above are correct?

    1. 1 and 3

    2. 2 and 3

    3. 1 and 2

    4. 1, 2 and 3

  9. Which one of the following is correct in respect of the concept of specie flow price mechanism?

    1. It is a mechanism evolved by Haberler to restore equilibrium in balance of payments

    2. It is a mechanism for purchasing gold from aboard

    3. It is a mechanism devised by Marshall-Lerner to check fluctuations in exchange rates.

    4. It is propounded by David Hume to disregard the mercantilists who believed it useful to accumulate gold in the country as war ches.

  10. Which of the following statements is/are not correct?

    1. The quantum of consumer's surplus reflects the state of social welfare.

    2. Consumer's surplous may serve as a convenient measure of aggregate gains from trade.

    3. Consumer's surplus is independent of prices of the commodities in an economy.

    4. If market demand curves are horizontal there will be no consumer's surplus.

    Select the correct answer using the codes given below:

    1. 1 and 2

    2. 3 only

    3. 1 and 3

    4. 3 and 4

  11. To achieve a high rate of growth of capital formation, Mahalanobis suggested that allocation of investment to capital goods sector should be.

    1. 40%

    2. 33.3%

    3. 66.5%

    4. 50%

  12. Consider the following statements: Public borrowing leads to

    1. increase in defence expenditure

    2. transfer of purchasing power from one section of the society to another.

    3. decrease in investment by private firms

    4. reduction in transfer payments

    Which of the statements given above are correct?

    1. 1 and 2

    2. 2 and 3

    3. 3 and 4

    4. 1 and 4

  13. Foreign Institutional Investors have been allowed to invest since 1991 in which of the following securities?

    1. Pension fund

    2. Mutual funds

    3. Investment trusts

    4. All of the above

  14. Which of the following foreign exchange functions are performed by commercial banks?

    1. Transfer purchasing power through telegraphic transfers

    2. Provides credit for foreign trade.

    3. Furnish facilities for hedging foreign exchange risks.

    Select the correct answer using the codes given below:

    1. 1, 2 and 3

    2. 1 and 2

    3. 2 and 3

    4. 1 and 3

  15. The incremental capital output ration (ICOR) during the IX Plan of India was:

    1. 5.02

    2. 3.04

    3. 4.53

    4. 6.37