Competitive Exams: Economics MCQs (Practice-Test 98 of 122)

  1. Who among the following developed the wage-goods model?

    1. M. Dobb

    2. A. K. Sen

    3. Vakil and Brahmananda

    4. P C Mahalanobis

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

    List-I (Concept) List-II (Explanation)
    1. Vicious circle of poverty

    2. Balanced growth

    3. Big push

    1. Massive increase in investment to initiate economic development in LDCs

    2. A stagnant low level of investment

    3. Simultaneous investment in all interrelated industries

    • A
    • B
    • C
      • 2
      • 3
      • 1
      • 1
      • 2
      • 3
      • 2
      • 1
      • 3
      • 1
      • 3
      • 2
  3. Which one of the following statements is correct? According to the classical economists, the existence of unemployment at any time is only of temporary nature and can be considered as

    1. structural unemployment

    2. cyclical unemployment

    3. frictional unemployment

    4. disguised unemployment

  4. Which one of the following statements is correct? Creeping inflation is a situation in which the rate at which price level rises is

    1. very high

    2. high

    3. moderately high

    4. slow

  5. Which of the following groups are adversely affected by inflation?

    1. Wage earners in the informal sector

    2. Profit earners

    3. Salary earners with salaries indexed to inflation

    4. Pensioners with fixed pensions

    Select the correct answer using the code given below:

    1. 1 and 2

    2. 3 and 4

    3. 1 and 4

    4. 2 and 3

  6. The shift in the SS curve to S's' is due to an imposition of a tax. Which of the following areas in the diagram shows excess burden of the tax?

    1. ODD

    2. SDA

    3. FGA

    4. CAD

  7. Which one of the following is a source of non-tax revenue for governments?

    1. Import duty on cars

    2. Octroi at check points on roads

    3. Entrance fee to museums

    4. Excise duty on beverages

  8. The Laffer Curve explains the relationship between which of the following?

    1. Tax rates and tax revenue

    2. Tax rates and employment

    3. Tax rates and income

    4. Tax rates and government expenditure

  9. What does an increase in the ratio of revenue deficit to gross fiscal deficit indicate?

    1. An increase in investment

    2. An increase in the utilization of borrowed funds for revenue purposes

    3. An increase in the utilization of borrowed funds for imports

    4. An increase in the utilization of borrowed funds for leading

  10. If in a year, the gross fiscal deficit of a government is Rs. 3, 00, 000 crores, revenue deficit is Rs. 1, 50, 000 crores and interest payments are Rs. 80, 000 crores, what is the primary deficit of the government in the year?

    1. Rs. 23, 000 crores

    2. Rs. 45, 000 crores

    3. Rs. 70, 000 crores

    4. Rs. 2, 20, 000 crores

  11. What s the technical progress that increases the productivity of labour (L) proportionately more than the productivity of capital (K) and results in an increase in L/K at constant relative factor prices, called?

    1. Labour-saving technical progress

    2. Neutral technical progress

    3. Wage-saving technical progress

    4. Capital-saving technical progress

  12. Which of the following may not be considered as a merit of the opportunity cost theory over the Ricardiart theory of comparative cost?

    1. It takes into account two or more factors of production instead of labour theory of value.

    2. It takes into account the possibilities of trade under all the laws of production, instead of constant costs only as in the Ricardian theory

    3. The theory provides a theoretical framework for general equilibrium approach

    4. The theory considers the welfare point of view neglected by the Ricardian theory

  13. Which one of the following statements is correct? The Heckscher-Ohlin theory states that the most important cause of trade is the difference in

    1. preferences

    2. technology

    3. magnitude

    4. factor endowments

  14. Which one of the following statements is correct? The Leontief Paradox makes

    1. a critical analysis of Haberler's theory of opportunity cost

    2. an empirical study of factor-price equalization theory of Samuelson

    3. an empirical testing of Mills theory of reciprocal demand

    4. an empirical testing of Heckscher

    Ohlin theory of international trade

  15. What is the ratio between the price of a country's export goods and price of its import goods known as?

    1. Single factoral terms of trade

    2. Double factoral terms of trade

    3. Net barter terms of trade

    4. Income terms of trade