Competitive Exams: Economics MCQs (Practice-Test 69 of 122)

  1. The average annual a rate of growth in agriculture during the Ninth Five Year Plan was approximately.

    1. 18%

    2. 2.1%

    3. 3.2%

    4. 4.6%

  2. Consider the following statements: Marginal utility analysis of demand

    1. assumes that utility is cardinally measurable

    2. Assumes that utilities are interdependent

    3. assumes that marginal utility of money is not constant

    Which of the statements given above is/are correct?

    1. 1 only

    2. 1 and 2

    3. 2 and 3

    4. 1 and 3

  3. consider the following statements about the natural unemployment rate:

    1. Long-run Phillips curve is vertical at the natural unemployment rate

    2. At the natural rate of unemployment, the actual rate of inflation is not stable

    Which of the statements given above is/are correct?

    1. 1 only

    2. 2 only

    3. Both 1 and 2

    4. Neither 1 nor 2

    • Assertion (A): The classical theory of comparative advantage given an answer to the question: What products will be exported and imported, at what pric3es, and who will gain from the trade? but its is not a complete and realistic theory of international trade.
    • Reason (R): The tastes, factor endowments and technology change over time. All these changes render the classical theory unrealistic.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): Consumption in the current year does not fall proportionately as income of the people falls from the previous peak level.
    • Reason (R): People try to maintain in general, their consumption levels to which they are used to in the past.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. a is false but R is true

    • Assertion (A): Pessimistic attitude of the investors will reduce the planned investment at each interest rate.
    • Reason (R): Investment plans are affected by the expectations of future profit.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): In the early phase of development, labour migration from rural areas to the urban areas occurs on large areas.
    • Reason (R): The migration is due to the disparity of the earning capacity of an individual in the rural and urban areas.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): Neo-classical growth theory always insists upon full employments stability.
    • Reason (R): Substitution between labour and capital makes this stability possible.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): The main object of economic policy under the Gold Standard was to keep the balance of payments in equilibrium.
    • Reason (R): Gold Standard had no mechanism for adjustment.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

  4. Near money is defined as an

    1. asset which is not usable as a medium of exchange but has a store of value

    2. asset that serves as a temporary medium of exchange but has store of value

    3. Asset which adequately fulfils the store of a value function and is readily convertible into a medium of exchange but is not itself a medium of exchange

    4. asset which has a store of value and 100% liquidity

  5. Which one of the following pairs is correctly matched?

      • Equilibrium interest rate
      • Karl Marx
      • Dynamic theory of profit
      • J B Clark
      • Monopoly Theory of profit
      • Hicks-Hansen Synthesis
      • Theory of surplus value
      • Kalecki
  6. Under which one of the following conditions, would it not be possible for a monopolist to shift the burden of a tax to the consumer?

    1. When the supply of the commodity is highly elastic an demand is less elastic

    2. When the production of the commodity takes place under the low of diminishing returns.

    3. When marginal revenue equals marginal cost

    4. When the tax is independent of the size of output, or is a lumpsum tax in the form of a certain percentage of monopoly net revenue.

  7. Which of the following are the causes of inflation in Indian?

    1. Low growth of agricultural products

    2. Increasing non-developmental expenditure

    3. Increase in money supply

    4. Increase burden of exports

    Select the correct answer using the codes given below:

    1. 1, 2 and 3

    2. 3 and 4

    3. 1 and 4

    4. 2 and 4

  8. Match List I (Organizations) with List II (Activities) and select the correct answer using the codes given below:

    List-I List-II
    1. World Bank

    2. IMF

    3. IDA

    4. IFC

    1. Balance of Payments assistance

    2. Development loans at Commercial rates

    3. of interest

    4. Development loans at confessional rates of interest

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 4
      • 3
      • 4
      • 3
      • 2
      • 1
      • 2
      • 3
      • 4
      • 1
      • 4
      • 1
      • 2
      • 3
  9. Indicative planning is based on the principle of

    1. Centralization in operation and execution.

    2. Decentralization in operation and execution

    3. Details of sectoral output

    4. Planning by the people