NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 75 of 122)
Doorsteptutor material for competitive exams is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of your exam.
- Between two periods, in a closed economy, the savings propensity triples while the level of investment remains unchanged. As a result of this, which one of the following is correct?
- Savings triple
- National Income triples
- National Income remains unchanged
- Savings remain unchanged
- If money supply rises, then in the IS-LM framework which one of the following statements is correct?
- LM curve shifts to the right
- IS curve shifts to the right
- IS and LM curves both shift to the right
- LM curve does not undergo any change
- Reserve Bank of India calculates four components of money supply, M1, M2, M3, M4. Which one of the following statements is correct?
- M1 = currency with public + demand deposits with banks
- M2 = M1 + post office savings deposit
- M3 = M1 + M2
- M4 = M3 + total post office deposits
- Which one of the following factors does not influence velocity of circulation of money?
- Quantity of money
- Selling costs of business firms
- Credit facilities
- Business conditions
- Slutsky՚s decomposition of price effect is not possible without a prior knowledge of which one of the following?
- Income-elasticity of demand
- Price elasticity of demand
- Substitution-elasticity
- Cross-elasticity of demand
- Which one of the following statements is correct? In India, estimates of National Income are based on:
- net income method only
- net output method only
- net income, net output and net expenditure methods
- net expenditure method only
- Consider the following statements:
- Whenever a bank grants a loan, it creates a deposit or a liability against itself.
- Deposits of the bank circulate as money, the creation of such deposits lead to a net increase in the money stock.
- Whenever a bank grants a loan, it creates a loan.
- Which of the statement (s) given above is⟋are correct?
- 1 only
- 2 and 3
- 3 only
- 1 and 2
- Which one of the following statements is correct? The money multiplier in an economy increases with
- improvement in banking habit of the population
- increase in statutory liquidity ratio
- increase in the case reserve ratio
- increase in the population of the country
- Match List-I (Activity of bank) with List-II (Function performed) and select the correct answer using the codes given below the lists
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 75 of 122) List-I (Activity of bank) List-II (Function performed) - Bank of Issue
- Custodian of foreign balances of the country
- Lender of last resort
- Controller of credit
- It is the provision of extra liquidity to an illiquid but presumably solvent bank by the central bank
- Government delegates the right to print currency notes
- It maintains both gold and foreign currencies as reserves against note issue
- It controls credit operation of commercial banks
- A
- B
- C
- D
- 1
- 3
- 2
- 4
- 2
- 4
- 1
- 3
- 1
- 4
- 2
- 3
- 2
- 3
- 1
- 4
- How can the inflationary gap at full employment be wiped out?
- By rise in voluntary saving of the community.
- By imposition of tax to mop up the surplus.
- By increasing output to absorb excess demand.
- Through increase in money supply.
- Select the correct answer using the codes given below:
- 1 only
- 1,2 and 3
- 2,3 and 4
- 1 and 2
- In which one of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?
- Change in quantity of money-change in investment-change in employment and output-change in rate of interestchange in price level
- Change in quantity of money-change in employment and output-change in investment-change in rate of interestchange in price level
- Change in quantity of money-change in investment-change in rate of interest-change in employment and output-change in price level
- Change in quantity of money-change in rate of interest-change in investment-change in employment and output-change in price level
- 39. Match List-I (Type of Inflation) with List-II (Characteristic) and select the correct answer using the codes given below the lists
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 75 of 122) List-I (Type of inflation) List-II (Characteristic) - Demand-pull Inflation
- Cost-push Inflation
- Suppressed Inflation
- Creeping Inflation
- Initially price rises
- Price-rise controlled by rationing and other means
- Inflation in which prices increase as a result of increased production costs, as labour and raw materials, even when demand remains the same
- Inflation in which rising demand results in a rise in prices
- Fall in price of raw materials
- A
- B
- C
- D
- 4
- 1
- 2
- 5
- 2
- 3
- 4
- 1
- 4
- 3
- 2
- 1
- 2
- 1
- 4
- 5
- Match List-I (Nature of price change) with List-II (Linked phenomenon) and select the correct answer using the codes given below the lists
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 75 of 122) List-I (Nature of price change) List-II (Linked phenomenon) - Relation between a monetary and a real variable
- Price rise at full employment
- Reflation
- Stagflation
- Inflation deliberately undertaken to relieve a depression
- Relationship between money wage increase and level of unemployment
- Rise in prices with little change in output
- Continuous inflation
- A
- B
- C
- D
- 3
- 4
- 1
- 2
- 2
- 1
- 4
- 3
- 3
- 1
- 4
- 2
- 2
- 4
- 1
- 3
- Match List-I (Economic function) with List-II (Used for) and select the correct answer using the codes given below the lists
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 75 of 122) List-I (Economic function) List-II (Used for) - Allocation function
- Distribution function
- Stabilisation function
- Management of public debt
- Manage government borrowing
- Control of economic fluctuation
- Efficient public distribution
- Efficient provision of government fund for various uses
- To reduce inequality in the Society
- A
- B
- C
- D
- 4
- 1
- 2
- 5
- 2
- 5
- 3
- 1
- 4
- 5
- 2
- 1
- 2
- 1
- 3
- 5
- What is the excess burden of a Lumpsum tax?
- 1.0
- 0.0
- 2.0
- > 5