NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 64 of 122)
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- Assertion (A) : Long run equilibrium of the industry in a perfectly competitive market occurs at the point where price equals minimum long run average cost.
- Reason (R) : It this position of zero economic profit, there is not tendency on the part of an existing firm to stage an exit, and no potential entrant wants to enter the industry.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : If the government expenditure and taxation are increased by an equal amount, the equilibrium income of the economy will remain the same, ceteris peribus.
- Reason (R) : a given change in the government expenditure affects aggregate spending more than an equal amount of tax.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : In India, monetary policy along cannot eliminate inflation.
- Reason (R) : There are structural factors which make price rigid in the downward direction but flexible in the upward direction.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Variance is always greater than the standard deviation.
- Reason (R) : Variance is the square of the standard deviation.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Devaluation leads to expenditure switching.
- Reason (R) : Devaluation a make imports relatively costlier than domestic goods.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Indirect taxes are generally regressive in character.
- Reason (R) : They are imposed uniformly on all taxpayers irrespective of their incomes.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : There does not seem to be any clear cut evidence that growth rates of income or income per capita are positively correlated with the resources used through planning in a mixed economy.
- Reason (R) : Planning models are inconsistent unless they use linear programming techniques.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : This is mostly due to the market failures in the less developed countries caused by a variety of imperfections existing in such economies.
- Reason (R) : This is mostly due to the market failures in the less developed countries caused by a variety of imperfections existing in such economies.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : There has been a large accretion to the foreign exchange reserves of India since 1991 − 92.
- Reason (R) : Except for 1995 − 96, the capital account in the balance of payments of India has shown surplus in relation to the corresponding current account deficit in each of the last 10 years.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Special Drawing Rights (SDRs) have the characteristics of an international currency.
- Reason (R) : SDRs wee introduced to increase international liquidity.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : The gains from trade are determined by the terms of trade.
- Reason (R) : The gains from trade depend on the difference in comparative cost ratios.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : India՚s external debts situation has improved significantly in recent years.
- Reason (R) : There has been effective external debt management by the Government.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Revenue deficit of the Central Government has been increasing with the passage of tim.
- Reason (R) : Increasing interest payments are the most important cause of increasing revenue deficit.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Annual rate of inflation in terms of wholesale Price Index (WPI) increased from 3.3% in 1999 − 2000 to 7.1% in 2000 − 01.
- Reason (R) : There was substantial rise in administered prices of petroleum products.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) There was negative growth rate of agriculture in 2000 − 10. Reason (R) : This was primarily due to a decline in the production of coarse cereals and livestock.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true