Competitive Exams: Economics MCQs (Practice-Test 97 of 122)

  1. Consider the following consumption and saving functions:

    1. C = 200 + 0.8Y

    2. S = 200 + 0.2Y

    3. C = 150 + 0.8Y

    4. S = -150 + 0.2Y

    Which of the above are consistent pairs of functions?

    1. 1 and 2

    2. 1 and 4

    3. 2 and 3

    4. 3 and 4

  2. In the context of the figure given above, which of the following statements is/are correct?

    1. Investment is autonomous.

    2. Saving is autonomous.

    3. Investment is dependent on income.

    4. Saving is dependent on income.

    Select the correct answer using the code given below

    1. 2 and 3

    2. 1 and 4

    3. 2 only

    4. 1 only

  3. Which of the following is not a characteristic of indicative planning?

    1. The government sets targets for all sectors of the economy including those dominated by private enterprises

    2. The emphasis is on consistency of the targets with each other

    3. Given the consistency of targets with each other, the government directs the private enterprises to attain those targets

    4. The government provides the right incentives to the private sector to attain the targets

  4. The two gaps in a two-gap model refer to which of the following?

    1. Revenue-expenditure gap

    2. Saving-investment gap

    Select the correct answer using the code given below:

    1. 1 only

    2. 2 only

    3. Both 1 and 2

    4. Neither 1 nor 2

  5. Which one of the following statements is correct? J. M. Keynes assumed that supply of money as a function of rate of interest is

    1. perfectly elastic

    2. highly elastic

    3. unitary elastic

    4. perfectly inelastic

  6. Which of the following sectors has the largest percentage share in India's total exports for the period April 2006-October 2007?

    1. Chemicals and related goods

    2. Engineering goods

    3. Gems and jewellery

    4. Textiles including readymade garments

  7. Consider the following agreements

    1. ISLFTA (India-Sri Lanka Free Trade Agreement)

    2. SAFTA (South Asia Free Trade Area)

    3. CECA (Comprehensive Economic Cooperation Agreement between India and Singapore)

    4. SAPTA (South Asia Preferential Trade Area)

    Which one of the following is the correct chronological sequence of the above agreements?

    1. 1 − 3 − 2 − 4

    2. 4 − I − 2 − 3

    3. 2 − 1 − 4 − 3

    4. 1 − 2 − 3 − 4

  8. The National Horticulture Mission (NHM) has aimed at doubling the horticultural production. For this, the target year is

    1. 2010

    2. 2011

    3. 2012

    4. 2015

  9. What does infant mortality rate refer to?

    1. The ratio of number of children who die before their fifth birthday out of every 1000 live births

    2. The ratio of number of children who die before their first birthday out of every 100 live births

    3. The ratio of number of children who die before their fifth birthday out of every 100 live births

    4. The ratio of number of children who die before their first birthday out of every 1000 live births

  10. Which group of infrastructure industry has the highest gap in targets and achievements of production during the year 2006 − 07?

    1. Finished steel

    2. Crude Petroleum

    3. Power

    4. Fertilizers

  11. Consider the following statements.

    1. The coverage of integrated Child Development programme is limited and often the youngest children in the 0 − 3 year age group get left out of its ambit.

    2. According to ICMR, at any given time, 7 − 15% of Indian children suffer from mental disorder.

    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

  12. Why is demographic divided likely to be manifested in India in future?

    1. Population in the age group between 8 − 15 years is likely to increase

    2. Population of children below 7 years is likely to increase

    3. Population in the age group of 15 − 64 years is likely to increase

    4. Population in the age group above 65 years is likely to increase

  13. Match List-I with List-II and select the correct answer using the code given below the lists:

    List-I (Property of a Plan) List-II (Model used)
    1. Feasibility

    2. Consistency

    3. Optimality

    1. Input-output model

    2. Linear programming

    3. Harrod-Domar type equation

    • A
    • B
    • C
      • 1
      • 2
      • 3
      • 3
      • 1
      • 2
      • 2
      • 3
      • 1
      • 1
      • 3
      • 2
  14. Match List-I with List-II and select the correct answer using the code given below the lists:

    List-I (Economist) List-II (Concept/Theory)
    1. Ragner Nurkse

    2. Paul N. Rosenstein-Rodan

    3. Gunnar Myrdal

    4. A O Hirschman

    1. Backwash effects

    2. Theory of balanced growth

    3. The big push theory

    4. Theory of unbalanced growth

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 3
      • 4
      • 4
      • 3
      • 1
      • 2
      • 2
      • 3
      • 1
      • 4
      • 4
      • 1
      • 3
      • 2
  15. Using Harrod-Domar growth equation, what is the rate of growth of a closed economy with C/Y = ¾ and aK/aY = 3 where C = consumption, Y = output, K = capital?

    1. 8.66%

    2. 8.50%

    3. 8.33%

    4. 7.50%