NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 17 of 122)

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    • Assertion (A) : An investor will invest in capital asset.
    • Reason (R) : Marginal efficiency of Capital (MEC) > market rate of interest.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : People՚s desire for transactions balances in creases with increases in income.
    • Reason (R) : People spend on increasing proportion of their income on consumption.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : Reserve Bank of India raises money supply through purchase of securities in the money market.
    • Reason (R) : Increase in money supply may result in the expansion of investment and employment.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : Public finance is a normal science.
    • Reason (R) : The objective of fiscal operation implies proper allocation of resources distribution of income, for employment and stability with growth.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : The Ricardian theory of comparative costs s based on the labour theory of value.
    • Reason (R) : Labour theory of value holds good in domestic trade, but breaks down when applied in international trade.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : Devaluation changes ipso facto exchange rates.
    • Reason (R) : Revaluation in the opposite of devaluation.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : Customs duties primarily influence commodity prices.
    • Reason (R) : Quantitative restrictions are designed to determine the amount of goods imported or exported.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : The effective-protection approach has been wide practiced by the industrial advance countries.
    • Reason (R) : Industrialized countries impose relatively lower tariff on capital goods.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : Technological change is regarded as an important factor in the process of economic growth.
    • Reason (R) : Changes in the technology leads to increase in the production of labour, capital and other factors of production.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : The growth of per capital income in India is slow.
    • Reason (R) : India has experienced a high rate of growth of population.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : Productivity of land in India is low.
    • Reason (R) : Small farmers are not motivated to produce more.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
  1. Assertion (A) India՚s occupational structure has remained more or less the same over the years. Reason (R) : Investment pattern has been largely directed towards capital intensive industries.
    1. Both A and R are true and R is the correct explanation of A
    2. Both a and R are true but R is NOT the correct explanation of A
    3. A is true but R is false
    4. A is false but r is true
    • Assertion (A) : The Reserve Bank of India used selective credit control methods for restraining the growth of inflationary forces in the country.
    • Reason (R) : Selective credit control methods checks inflation by reducing directly the demand for goods and services.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : The fiscal deficit of Centre had decline from 8.3 percent of GDP in 1990 − 91 to 5.5 percent in 1995 − 96.
    • Reason (R) : Such a fall in the fiscal deficit has come mainly from the reduction in avenue expenditure.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true
    • Assertion (A) : The public distribution system (PDS) in India has close links with food security for the vulnerable segments of population.
    • Reason (R) : Public distribution system has sustained mainly due to the demand from the vulnerable sections of population.
      1. Both A and R are true and R is the correct explanation of A
      2. Both a and R are true but R is NOT the correct explanation of A
      3. A is true but R is false
      4. A is false but r is true