Competitive Exams: Economics MCQs (Practice-Test 110 of 122)

  1. Assuming a declining marginal utility of money schedule, which one of the following principles will call for ‘maximum progression’

    1. principle of equal absolute sacrifice

    2. Principle of equal proportional sacrifice

    3. Principle of equal marginal sacrifice

    4. none of the above

  2. In a many person economy with a public and private good. Revenue allocation will be optimal at the point where

    1. the marginal rate of substitution (MRS) is equal to the marginal rate of transformation (MRS) for each individual considered separately

    2. the summation of the MRS is equal to the MRT

    3. the MRS is not equal to the MRT since we are dealing with a public good.

    4. none of the above conditions obtain.

  3. If supply is perfectly inelastic, then the short run impact of a specific sales tax would be to shift the tax burden.

    1. entirely on to the consumers

    2. entirely on to the producers

    3. equally between the producers and the

    4. on to other goods were the supply condition may by more elastic

  4. Consider the following statements:

    1. In the context of the classical model loan finance may be a means of transferring the burden to the future generation.

    2. foreign borrowing permits financing public programmes without placing a burden on the present general

    3. Foreign borrowing is not burdensome to the future generations even if the funds are used unproductively.

    Of the above statement

    1. 1 alone is correct

    2. 1 and 2 are correct

    3. 2 and 3 are correct

    4. 1 and 3 are correct

  5. In the context of the Indian state-wise literacy picture (1991 census), which one of the following statements is INCORRCT?

    1. Kerala has the highest male literacy rate.

    2. Kerala has the highest female literacy rate

    3. Arunachal Pradesh has the lowest male literacy rate

    4. Arunachal Pradesh has the lowest female literacy rate.

  6. The ‘Standing committee of Exports on Population Projects’ has forecast that the Net reproduction Rate will equal unity in India during

    1. 2001 − 2010

    2. 2011 − 2020

    3. 2021 − 2030

    4. 2031 − 2040

  7. Which one of the following statements relating to changes in sectoral composition of India's GD over 1951 − 91 is correct?

    1. The share of the primary sector has declined and those of the secondary and tertiary sectors have increased with a greater rise in the share of the latter

    2. The share of the primary sector has declined and those of the secondary and tertiary sectors have increased, with a greater rise in the share of the former

    3. There is no substantive change in the relative shares of primary, secondary and tertiary sectors

    4. The share of primary and secondary sectors have declined and that of the tertiary sector has increased.

  8. Between 1980 − 81 to 1989 − 90, the highest sectoral growth rate of GDP at factor cost (at 1980 − 81) was in

    1. manufacturing

    2. agriculture, forestry and fishery

    3. banking and insurance

    4. transport, storage and communication.

  9. In India the sex-ratio females per thousand males has been less than 100 from 1901 − 1991, with a declining trend The reason for this is

    1. the biological norm in this matter

    2. additional risk for women at childbirth

    3. low socio-economic status of women

    4. men are physically stronger than women and hence are more in number

  10. According to the 1991 Census, the genderspecification picture of life expectancy at birth is that:

    1. Female life expectancy is greater than the of the male

    2. Male life expectancy is greater than that of the female

    3. Life expectancy is the same for both male and female

    4. Data is inconclusive

  11. Which one of the following statements is correct?

    1. Female life expectancy is greater than that of the male

    2. Per capital national income alone is not a good indicator of development because development is a multi dimensional concept having many other important aspects

    3. per Capital national income and income distribution together are quite adequate to assess development performance.

    4. Per capital national income is quite adequate as a measure of development, but cannot be used in India because the data is particularly unreliable.

  12. Which one of the following statements gives the correct picture of general character of Eighth five-year plane

    1. There is a shift in emphasis from small-scale to large-scale industry, the basic pattern of planning remaining unchanged.

    2. The aim is to dovetail planning and the market mechanism

    3. the aim is to dovetail planning and the market mechanism.

    4. There is no basic shift in character from the Previous plans

  13. Inter-state inequalities in SDP per capital have

    1. increase between 1961 − 1971 and decreased between 1971 − 81

    2. decreased between 1961 − 71 and increase between 1971 − 81

    3. remained constant in both the decades and increased thereafter

    4. remained constant in both the decades and decreased thereafter.

  14. Consider the following statements regarding indicative planning:

    1. I was followed in USSR

    2. It was used in France.

    3. It has been used in all the five year plans of India.

    4. It is being used in India's Eighth five-

    Year plan.

    Of these statements

    1. 1 and 2 are correct

    2. 1, 2 and 4 are correct

    3. 2 and 4 are correct

    4. 2, 3 and 4 are correct

  15. Match List I with List II and select the correct answers using the codes given below the lists

    List-I (5 years plan) List-II (Character of the plan)
    1. Second Plan

    2. Fourth Plan

    3. Fifth Plan

    4. Sixth Plan

    1. Priority to reducing unemployment and poverty by redistributive schemes

    2. Rapid industrialization with emphasis on heavy industry

    3. Perspective plan for 15 years.

    4. Shift in emphasis towards quickyielding products answer light industry.

    • A
    • B
    • C
    • D
      • 2
      • 4
      • 1
      • 3
      • 1
      • 2
      • 3
      • 4
      • 3
      • 4
      • 2
      • 1
      • 3
      • 4
      • 1
      • 2