Uttar Pradesh PSC Exam: Economics MCQs (Practice_Test 29 of 122)

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  1. Match List I (international finances) with List II (Principal kinds of loans purpose) and select the correct answer using the codes given below the list
    List-IList-II
    1. IBRD
    2. International Development Association
    3. Association Finance Corporation
    4. IMF
    1. Building infra-structure
    2. Soft Loan window
    3. Soft loan window
    4. Balance of payment deficit
    • A
    • B
    • C
    • D
      • 2
      • 1
      • 3
      • 4
      • 1
      • 2
      • 4
      • 3
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1
      • 4
      • 3
  2. Match List I with List I and select the correct answer using the codes given below the lists
    List-IList-II
    1. Concertina effect
    2. Veblen effect
    3. ratchet effect
    4. Crowding out effect
    1. Investment
    2. Consumption
    3. Prices
    4. Oscillations
    • A
    • B
    • C
    • D
      • 2
      • 4
      • 1
      • 3
      • 4
      • 2
      • 1
      • 3
      • 4
      • 2
      • 3
      • 1
      • 2
      • 4
      • 3
      • 4
    • Assertion (A) : One of the characteristics of many undeveloped countries is that they have a low saving rate and low capital formation.
    • Reason (R) : In underdeveloped countries like India this is mainly due to a high level of 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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
  3. Assertion (A) In India an inverse relationship exists between farm size and production traditional farming. Reason (R) : Small farms invariably used family labour
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : India has in the recent past resorted to significant food imports.
    • Reason (R) : Food imports had become necessary to meet shortages arising out of persistent droughts in select pockets of the country.
    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 a 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 industries during 1991 − 93 has experienced a decelerating tendency in India.
    • Reason (R) : There is a deficiency of demand for the industrial goods which has been caused by asymmetric distribution of benefits from growth in agriculture.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
  4. Assertion (A) Based on the data a available for 1991 − 93, it could be maintained that India՚s overall debt is within manageable limits both in terms of serviceability and in relation to the GDP of the country. Reason (R) : During the period under reference imports have fallen and the GDP has risen.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : Central Government liabilities registered a sharp increase in the eighties from 35.6 % of GDP in 1980 − 81 to 53.2 % of GDP in 1990 − 91.
    • Reason (R) : A combination of revenue deficits and poor returns on assets financed by capital receipts was responsible.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : There are increasing returns to scale when increase in total output is more than proportional to the increase in inputs.
    • Reason (R) : Returns to scale result due to the indivisibility of 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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : In the short-run under perfect competition, given the market demand and the market supply, the industry is in equilibrium at that price which clears the market.
    • Reason (R) : In the long-run all the firms in the industry earn profit.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : The imposition of Sales Tax does NOT affect the profit of the monopolist.
    • Reason (R) : The monopolist shifts the burden of Sales tax on to the consumer.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : Public utilities do not opt for the profit-maximizations pricing policy.
    • Reason (R) : It would lead to underutilization of capacity.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : The level of employment in a economy, according of Keynes, is a function of GNP.
    • Reason (R) : GNP is determined by aggregate demand which in turn depends upon consumption of the households and investment decisions of business.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : Deficit financing could never be a good technique of resource mobilisation in a developing country.
    • Reason (R) : Deficit financing leads to inflation.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true
    • Assertion (A) : With-economic development, occupational structure of a country undergoes significant changes.
    • Reason (R) : An increasing number of job opportunities get created in the onagricultural sectors.
    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 a correct explanation of A
    3. A is true but R is false
    4. A is false but R is true

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