Competitive Exams: Economics MCQs (Practice_Test 25 of 122)

Doorsteptutor material for competitive exams is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of your exam.

  1. Which one of the following is an example of ‘open market operations’
    1. sale of gold by Reserve Bank of India of goldsmiths
    2. Sale of jute by Jute Corporation of India from its stocks to jute mills
    3. Sale of government securities by the Reserve bank of India to commercial banks and other financial organizations on its own initiative
    4. Sales of dollar by the Reserve bank of

    India to exchange banks at their request

  2. The objective of selective credit controls is mainly to
    1. selectively allocates credit to commercial banks
    2. selectively allocate credit among borrowers
    3. regulate the quantity of demand deposits created by commercial banks.
    4. regulate the quantity of credit created by commercial banks.
  3. ‘Maximum social welfare’ in public finance is attained when
    1. marginal disutility of taxation is greater than the marginal utility of public expenditure.
    2. marginal disutility of taxation is less the an the marginal utility of public expenditure.
    3. marginal disutility of taxation is equal to marginal utility of public expenditure.
    4. taxation and public expenditure are the lowest level
  4. Which of the following pairs are examples of direct tax?
    1. Income tax and Wealth tax
    2. Sales tax and Excise duty
    3. Capital gains tax and corporation tax

    Select the correct answer using the codes given below:

    1. 1 and 3
    2. 1 and 2
    3. 2 and 4
    4. 2 and 3.
  5. Consider the following statements Non-plan Revenue Expenditure includes expenditure incurred on
    1. Interest payment
    2. Maintenance of capital assets
    3. flood control

    Of these statements:

    1. 2 and 3 are correct
    2. 1 and 2 correct
    3. 1 and 3 are correct
    4. 1,2 and 3 are correct
  6. Consider the following statements: The division of incidence of tax between buyers and sellers is governed by
    1. elasticity of demand and supply
    2. cost conditions
    3. market structure
    4. cost conditions.

    Of these statements:

  7. Capital gains means
    1. increase in the sales on which capital is invested
    2. increase in the value of the property owned
    3. gross profit earnings on a capital-asset
    4. marginal efficiency of capital
  8. Consider the following statements: A Government may cover up the deflect by
    1. withdrawing its cash balances from the central bank of the country.
    2. borrowing from the central bank and commercial banks.
    3. printing new money.

    Of these statements:

    1. 1 and 2 are correct
    2. 1 and 3 are correct
    3. 2 and 3 are correct
    4. 1,2 and 3 are correct
  9. in case a frequency distribution is given by the number of days one is employed, the rate of unemployment by daily status concepts obtained by subtracting
    1. the mean of the distribution from 1
    2. the mean from 7
    3. the means from 7 and multiplying by 100.
    4. one-seventh of the mean from 1 and multiplying the resultant by 100.
  10. Suppose that the Principal of a school is interested in knowing the average height of his students numbering 749. He knows it will take a lot of time if he asks a teach to measure everybody՚s height. So if he wants to devices a method which allows him to measure the height of only one student, which one of the following measure (s) would he be able to employ
    1. mean and mode
    2. Mean and median
    3. Mode
    4. Medium
  11. If all values of a variable are multiplied by a given number, which one of the following will NOT be affected?
    1. mean
    2. median
    3. range
    4. coefficient of variation
  12. Dispersions are NOT calculated about
    1. mean
    2. median
    3. mode
    4. geometric mean
  13. The price index that uses base year quantities as weight is called.
    1. passche՚s index
    2. Laspeyer՚s index
    3. fisher՚s ideal index
    4. wholesale price index
  14. Consider the scatter given below: The best inference that can be drawn out of this is that
    1. x and y seem to be correlated
    2. x and y are positively correlated
    3. y is caused by x
    4. x is caused by y
  15. Statistician Yule had observed a very high correlation of 0.95 between proportion of marriages celebrated in Anglican churches of England and Wales during 1986 − 1911 and the standardized mortality rates during the same period. Yule called this non sence correlation because
    1. the two phenomena are no important
    2. the tow phenomena are theoretically not related
    3. mortality rates have unnecessarily been standardized
    4. other churches have not been considered