NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 85 of 122)
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- Assertion (A) : Gross National Product will always be more than the Gross Domestic Product.
- Reason (R) : To get Gross National Product, not factor income from abroad is added to Gross Domestic Product.
- Codes:
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Indirect taxes promote inequality in the distribution of income.
- Reason (R) : Poor bear more burden of indirect taxes.
- Codes:
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : A balance of payments deficit is always and every where a monetary phenomenon.
- Reason (R) : A balance of payments deficit cannot be corrected through changes in money supply. Codes:
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Fisher՚s index number is an ideal one.
- Reason (R) : In the Fisher՚s index number, the upward bias of Laspeyre՚s index and downward bias of Paasche՚s index are balanced to a great extent.
- Codes:
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- What is the empirically fitted relationship between the rate of change of money wages and rate of unemployment, known as?
- Baumal՚s Hypothesis
- Keynesian Model
- Friedman՚s Model
- Phillips Curve
- In the simplified version of Friedman՚s quantity theory of money, velocity of circulation of money depends on which of the following?
- Rate of interest and rate of price change
- Rate of interest and rate of change of income
- Rate of change of money supply and rate of change of consumption
- Rate of change of price and rate of change of investment
- Consider the following assets
- Cash held by public
- Equity shares of banks
- Deposits of banks
- RBI bonds
- Which of the above assets are considered as part of money supply?
- 1 and 2
- 1 and 3
- 2 and 3
- 1,3 and 4
- Which one of the following is stated by the quantity theory of money?
- An increase in the nominal money supply causes a proportional increase in the price level
- An increase in the real money supply causes a proportional increase in the price level
- An increase in the nominal money supply causes a proportional increase in real GNP
- An increase in the real money supply causes a proportional increase in real
- GNP
- Consider the following statements
- Bond price and interest rate are positively related.
- Bond price and interest rate are negatively related.
- Credit creation varies directly with Cash Reserve Ratio (CRR) .
- Credit creation varies inversely with
- Cash Reserve Ratio (CRR) .
- Which of the statements given above are correct?
- 1 and 3
- 1 and 4
- 2 and 3
- 2 and 4
- Which of the statements given above are correct?
- Suppose, due to an open market purchase of government securities, reserves in the commercial banks increase by ₹ 1,000. If the reserve ratio is 20 percent, what will be the increase in money supply?
- ₹ 5,000
- ₹ 4,000
- ₹ 2,000
- ₹ 1,000
- Which one of the following is not a component of demand-pull inflation?
- An increase in government expenditure with no change in tax rate
- A downward shift in savings function
- A rise in the money wage rate
- An upward shift of investment function
- Which one of the following statements is correct? According to Peacock and Wiseman, public expenditure grows
- steadily over a period of time
- at a constant rate in relation to GNP
- in a step by step manner
- at a lower rate in relation to GNP
- As compared to traditional budgeting, in case of Performance and Programme Budgeting System (PPBS) , which one of the following statements is correct?
- It stresses on outcome only
- It stresses on expenditure allocation only
- It stresses more on outcome and less oh expenditure allocation
- It stresses less on outcome and more on expenditure allocation
- Which one of the following statements is correct? Zero-base budgeting implies that
- it emphasizes physical targets rather than financial targets
- spending on all programmes is reexamined and justified each year rather than following add-on every year
- it is purely an evaluation of existing budget and there is nothing new in it
- it focuses on centralization of expenditure
- Which one of the following statements is correct? The revenue from the imposition of an advolarem tax and that of a unit tax in a perfectly competitive market which results in the same price rise, are
- more for advolarem tax
- more for unit tax
- equal for both the taxes
- zero for both the taxes