NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Economics MCQs (Practice_Test 71 of 122)
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- Consider the following statements:
- Market economy is an economy characterized by freely determined prices and the free exchange of goods and services in market.
- Centrally planned economy is a economy in which big monopoly firms determine prices and production
- Normative economics is about economic analysis that explains what happens in the economy and why, and positive economics is about economic analysis that makes recommendations about economic policy.
- Which of the statements given above is/are correct?
- 1 and 2
- 2 and 3
- 1 only
- 1 and 3
- Which of the following statements is not correct?
- The production possibility curve under increasing costs in concave to the origin.
- Under increasing costs, there would be complete specialization of a country in a single commodity.
- Under increasing costs, the production possibility curve is not identical with price curve, as in the case of constant costs.
- A straight line production possibility curve indicates constant opportunity cost.
- IT exports are included in which of the following categories?
- Merchandise exports
- Invisibles
- Current account
- transfer payments
- Select the correct answer using the codes given below?
- 1,2 and 3
- 2 and 3
- 3 and 4
- 1,2 and 4
- Who has given the well-known ‘Diamond-Water’ paradox?
- Adam Smith
- JM Keynes
- Alfred Marshall
- FY Edgeworth
- Match List with List II and select the correct answer using the codes given below:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 71 of 122) List-I List-II - State Government
- Levied by the Union but collected and appropriate by the states
- Levied and collected by the Unions but are assigned to the states within which they are used
- Levied and collected by the Union but are distributed between the Union and the States in a prescribed manner
- N/A
- N/A
- N/A
- N/A
- A
- B
- C
- D
- 1
- 3
- 2
- 4
- 2
- 4
- 1
- 3
- 1
- 4
- 2
- 3
- 2
- 3
- 1
- 4
- Unbalanced growth hypothesis is formulated on the assumption
- that expansion takes place simultaneously on several fronts
- That supplies of capital and labour are limited
- of unlimited supplies of labour and capital
- of limited supply of labour but unlimited supply of capital
- Match List I (concept and Feature) with List II (Related Concept/Condition) and select the correct answer using the codes given below:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 71 of 122) List-I List-II - Straight line isoquants
- Right angled isoquants
- Isoquants convex to the origin
- Isoquants concave to the origin
- Diminishing marginal rate of substitution.
- Increasing marginal rate of substitution
- Factors are perfect substitutes
- Factors are perfect
- A
- B
- C
- D
- 2
- 4
- 1
- 3
- 3
- 1
- 4
- 2
- 2
- 1
- 4
- 3
- 3
- 4
- 1
- 2
- The aggregate of transaction demand and precautionary demand for money is generally considered as
- The total demand for money
- Active cash balances
- Idele case balances
- Asset demand for money
- Let c = MPC, and t = rate of tax on income. Then the expression of investment multiplier is
- 1 1 − c
- 1 1 − c (c + t)
- 1 1 + c (1 − t)
- 1 1 − c (1 − t)
- The two-gap theory as applied to development planning refers to
- inflationary gap and foreign exchange constraint
- Savings gap and income constraint.
- foreign exchange gap and recessionary gap
- Savings constraint and foreign exchange constraint
- Since all the means of production are scarce and alternatively useable, opportunity cost of production of a unit of a commodity, say X, equal the
- Output sacrificed in any other alternative uses of the resources in the production of a unit X
- Output sacrificed in the least productive use of all alternative uses of these resources
- Average output of all other alternative productive uses of the resources uses in the production of a unit of X
- Output sacrificed in the next best use of the resources used in the production of a unit of X
- Which one of the following is not an assumption of Heckscher-Onlin theorem of international trade?
- differences in factor endowments of two countries
- products in the two countries are differentiated
- Production functions are identical
- Commodity prices determine factor prices
- The ability of a commercial bank to increase its loans and investment depends on its
- holding of government securities
- cash position
- excess cash reserves
- outstanding loans and investments
- Match List I (Economists) with List II (Views) and select the correct answer using the codes given below:
Table Supporting: NET, IAS, State-SET (KSET, WBSET, MPSET, Etc.) , GATE, CUET, Olympiads Etc. : Economics MCQs (Practice_Test 71 of 122) List-I List-II - J. M. Keynes
- J B Say
- A. C. Pigou
- I. Fisher
- Wage rate cut is the solution to unemployment
- Unemployment
- Public expenditure is the cure for depression
- Supply creates its own demand
- A
- B
- C
- D
- 3
- 4
- 1
- 2
- 1
- 2
- 3
- 4
- 3
- 2
- 1
- 4
- 1
- 4
- 3
- 2
- Consider the following statements about Co-operative Collective Farming societies:
- Individual ownership of land disappears
- In addition to land, all other resources of the members are also pooled together.
- The system is akin to ‘Kolkhoz’ system in the former Soviet Union and other communist countries.
- The farm income is divided among the members only according to the work done by each of them.