Competitive Exams: Economics MCQs (Practice-Test 88 of 122)

  1. What is the principle which is applied to redress the imbalance between distribution and welfare, known as?

    1. Principle of taxation

    2. Compensation principle

    3. Principle of effective demand

    4. Principle of supply

  2. The inconsistency of which one of the following criteria is labelled as Scitovsky Paradox?

    1. Little Criterion

    2. Pareto Criterion

    3. Bergson Criterion

    4. Kaldor-Hicks Criterion

  3. Consider the following statements The distribution of two commodities between two individuals is Pareto optimal if

    1. one individual cannot be made better off without making the other worse off:

    2. the individuals are on their consumption contract curve.

    Which of the statements given above is/are correct?

    1. 1 only

    2. 2 only

    3. Both 1 and 2

    4. Neither 1 nor 2

  4. What is maximising the level of satisfaction with the given level of inputs and technology, called?

    1. Technical efficiency

    2. Allocative efficiency

    3. Economics of scale

    4. X-efficiency

  5. Match List-I with List-II arid select the correct answer by using the code given below the lists

    List-I (Model) List-II (Proposition)
    1. Marxist model of economic development

    2. Harrod-Domar growth model

    3. Solow's growth model

    4. Kaldor's growth model

    1. Give importance to non-economic variables

    2. Flexible capital-output ratio is assumed

    3. Productive capacity is equal to aggregate demand

    4. Structural maladjustment in a growing economy

    • A
    • B
    • C
    • D
      • 4
      • 2
      • 3
      • 1
      • 1
      • 3
      • 2
      • 4
      • 4
      • 3
      • 2
      • 1
      • 1
      • 2
      • 3
      • 4
  6. Which one of the following is a component of disequilibrium mentioned often in the context of trade and development?

    1. Revenue gap

    2. Savings-investment gap

    3. Income gap

    4. Expenditure gap

  7. The Feldman-Mahalanobis growth model, which one of the following strategies is followed?

    1. Emphasize the consumer goods first and then the investment goods

    2. Emphasize the investment goods first and consumer goods later

    3. Emphasize both the above sectors simultaneously

    4. Put emphasis on foreign trade only

  8. Theory of demographic transition is consistent with what kind of population growth curve when plotted against income?

    1. U-shaped with a flat tail

    2. Inverted U-shaped with a flat tail

    3. S-shaped with a flat tail

    4. Flat-shaped

  9. What is the major underlying assumption of efficiency wage models?

    1. Labour productivity depends on level of nutrition

    2. Labour productivity is independent of number of labourers

    3. Capital productivity is maximum

    4. Capital and labour productivities are equal

  10. Which one of the following is not a component of foreign aid of a country?

    1. Bilateral grant

    2. Multilateral grant

    3. Loans from international financial institutions

    4. Commercial borrowing

  11. How is ‘Path dependency’ defined as?

    1. A condition of the past affecting the past situation

    2. A comparatively fast path of progress of economy

    3. A condition on which the past conditions of an individual or economy affects future condition

    4. A slow path of progress of the economy

  12. What are the sufficient conditions for operation of stage theories of growth?

    1. Well-integrated commodity and money markets.

    2. Highly developed transport facilities.

    3. Well-trained workforce and an efficient bureaucracy.

    4. Existence of a federal structure.

    Select the correct answer by using the codes given below

    1. 1, 2, and 4

    2. 2, 3, and 4

    3. 1, 3, and 4

    4. 1, 2, and 3