Competitive Exams: Economics MCQs (Practice-Test 37 of 122)

    • Assertion (A): A phased reduction in the present level of SLR will leave more funds at the disposal of the commercial banks for profitable lending.
    • Reason (R): Commercial banks are profit making institution
    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 burden of Union taxation is borne mainly by the lower and middle income groups in India.
    • Reason (R): The tax structure is such that texes on commodities is predominant.
    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 socio-economic growth strategy should aim at significant redistribution of income and consumption.
    • Reason (R): A substantial in reduction in poverty is possible only through production relation which help redistribution income in favour of the poorer sections of the 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 a correct explanation of A

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): Neoclassical economics always insists on stability of economic growth in an advance economy.
    • Reason (R): In neoclassical economic factor substitutability assumption always leads to steady 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 a correct explanation of A

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): The income gap between the rich and he poor countries keeps widening even when the rates of growth of incomes poor countries are higher than those of rich countries.
    • Reason (R): The differences in the base levels of incomes of the we group wo groups of countries are very wide.
    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): Internal trade along the lines of comparative advantage improves allocative efficiencies of existing resources.
    • Reason (R): International trade is a engine of 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 a correct explanation of A

    3. a is true but r is false

    4. A is false but R is true

    • Assertion (A): A change in the income term of trade is in indicator of welfare.
    • Reason (R): Income terms of trade measure the quantity of imports bought by exports.
  1. In the given figure, DD is the demand curve for commodity X. As the price of the commodity falls from P1 to P2 the quantity demanded increases from Q1 to Q2. The area shaded vertically is found to be much larger than the shaded horizontally. The curve between E1 E2

    1. is elastic

    2. is inelastic

    3. has unit elasticity

    4. is whether elastic or inelastic cannot be inferred from the data given in the figure.

  2. Consider the following factors/statements:

    1. Income effect and substitution effect combine to increase of ability and willingness of a consumer to buy more of a commodity whose price has fallen

    2. increase in production of the commodity.

    3. the law of diminishing marginal utility.

    4. the law of diminishing marginal utility.

    Those which account for the sloping downward demand curve include

    1. 2 and 3

    2. 1 and 3

    3. 1 and 2

    4. 1, 2 and 3

  3. In consumer behaviour theory, which of the following deal with choice under conditions certainty?

    1. Revealed preference approach

    2. Marshallian cardinalist approach

    3. Hicks-allen indifference curve approach

    Select the correct answer using the codes given below:

    Codes:

    1. 1 and 2

    2. 2 and 3

    3. 1 and 3

    4. 1, 2 and 3