NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 67 of 122)
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- If sales tax on a commodity is raised, but the revenue earned through its sale decreases sharply, which one of the following statements about the nature of this commodity would be correct?
- price elasticity of demand for its is high
- it must be an essential good
- Price elasticity of demand for it is low
- Price elasticity of demand for it is unity.
- In the liquidity trap, the interest elasticity of the demand for money is
- zero
- unity
- infinity
- between zero and unity
- Marginal revenue will be zero if elasticity of demand is
- less than one
- equal to one
- greater than one
- zero
- Which one of the following significant changes was introduced in India in March, 1993?
- Dual exchange rate was introduced
- Dual exchange rate system came to an end and a uniform market came into being, with exchange rate being determined by the forc3es of demand and supply
- Bank rate was raised from 11% to 12%
- Rupee was devalued.
- The discrepancy between the values of marginal product and marginal revenue product of a factor of production cannot arise if
- AR = MR
- AC-MC
- TC = TR
- AC = AR
- Shadow prices are particularly useful in
- Consumer՚s purchase decisions
- Firm՚s sale decision
- Project evaluation and cost-benefit analysis
- Black market operations
- Consider the following measure:
- changing the bank rate
- Open-market operations
- Increasing the cash-reserve ratio
- Which of the measures given above are taken by the Reserve Bank of India to control inflation in India?
- 1 and 2
- 2 and 3
- 1 and 3
- 1,2 and 3
- Consider the following statements about deadweight loss:
- it is the loss in producer and consumer surplus due to an inefficient level of production
- it is used by economists to measure the size of the waste to society of deviations from the competitive equilibrium.
- by calculating deadweight loss, economists can estimate the benefits and costs of many government programmes
- Which of the statements given above are correct?
- 1 and 2
- and 3
- 1 and 3
- 1,2 and 3
- Union budget 2002 − 03 had extended service tax to ten new services, subsequently which of these was⟋were exempted from service tax?
- cable operation and dry cleaning
- Light agricultural products and cold storage
- Inland cargo handling
- Life insurance.
- Qualitative credit control by a Central Bank exercised by which of the following measure
- Credit rationing
- consumers credit regulation
- changes in margin requirement on security loans
- Variable reserve ratio.
- Select the correct answer using the codes given below:
- 1,2 and 4
- 2,3 and 4
- 1,3 and 4
- 1,2 and 3
- Match List I with List II 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 67 of 122) List-I List-II - Money illusion
- Liquidity trap
- life cycle hypothesis
- Ratchet effect
- Modigliani
- Pigou
- Keynes
- Duesenberry
- A
- B
- C
- D
- 2
- 3
- 1
- 4
- 4
- 1
- 3
- 2
- 2
- 1
- 3
- 4
- 4
- 3
- 1
- 2
- For a commodity with a unitary elastic demand curve, if the price of the commodity rises, then the consumer՚s total expenditure on this commodity would
- Increase
- decrease
- remain constant
- either increase or decrease
- Match List I with List II 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 67 of 122) List-I List-II - Stationary state
- Unlimited supplies of labour
- Knife-edge equilibrium
- Theory of cumulative causation.
- W A Lewis
- G Myrdal
- Harrod-Domar
- A Smith
- A
- B
- C
- D
- 2
- 1
- 3
- 4
- 4
- 3
- 1
- 2
- 2
- 3
- 1
- 4
- 4
- 1
- 3
- 2
- Capital account in the balance of payments of a country does not include which one of the following?
- Foreign investment
- External assistance
- Investment income
- NRI deposits
- The Reserve Bank of India acts as the ′ bankers ′ bank ′ in the sense that
- the scheduled banks can borrow from the RBI in time of need
- the RBI fixes the conditions of cash reserve requirement which the scheduled banks have to follow.
- the RBI controls the credit operations of the scheduled banks.
- the RBI controls the banking system through the system of licensing.