ECONOMICS MCQ

1. VAT is imposed:
a.onfinalstageofproduction
b.onfirststageofproduction
c.directlyonconsumers

d. at every stage between production and consumption

2. Which group represents the interests of the developing countries?
a.G-7
b.G-10

c. G - 77
d.G-80

3. The firms in the modern world, use reserve capacity to:

a. ensure greater flexibility in operations
b.reducecosts
c.reducewages
d.reducetaxes

4. Which of the following averages is known as root-mean square?

a. Quadratic Mean
b.HarmonicMean
c.GeometricMean
d.CombinedMean

5. Tax on inherited property is an example of:

a.SalesTax
b.IncomeTax

c. Wealth Tax
d.VAT

6. Taxes raised are credited into:

a. Consolidated Fund
b.ContingencyFund
c.PublicAccounts
d.PrivateAccounts

7. According to Milton Friedman, quantity theory of Money deals with:

a.Prices
b.Income
c.Supplyofmoney

d. Demand for money

8. Assertion (A) : Low levels of labour productivity exist in underdeveloped countries.
Reason (R) It is due to the lack physical capital.
a.Both(A)and(R)arefalse
b.(A)istrue,but(R)isfalse
c.Both(A)and(R)aretrueand(R)isthecorrectexplanationof(A)

d. Both (A) and (R) are true, but (R) is not the correct explanation of (A)

ECONOMICS MCQ

9. Arrange the option having the right chronological order.

(i) Formation of WTO
(ii) Uruguay Round of GATT
(iii) Formation of GATT
(iv) Formation of UNCTAD
a.(i)(iii)(ii)(iv)
b.(iv)(iii)(ii)(i)

c. (iii) (iv) (ii) (i)

d.(ii)(iv)(i)(iii)

10. During the Great Depression:

a. Unemployment rate in the World was 25%
b.UnemploymentrateinEnglandwas20%
c.UnemploymentrateintheU.S.A.was25%
d.UnemploymentrateinIndiawas20%

11. Funds not belonging to the Government are called

a.ContingencyFund
b.ConsolidatedFund

c. Private Accounts
d.PublicAccounts

12. For any given individual preferences, which are reflexive transitive and complete, majority rule based social preferences are:
(i) Reflexive
(ii) Transitive
(iii) Complete
a. All above are true
b.Only(i)and(iii)aretrue
c.Only(i)and(ii)aretrue
d.Only(ii)and(iii)aretrue

13. The demand for labour by a firm is a derived demand because it depends upon
a. the demand for goods and services that labour helps to produce
b.thedegreeofsubstitutionbetweenlabourandotherfactorsofproduction
c.theelasticityofdemandforlabour
d.thedemandforotherfactorsofproduction

14. Gross Capital Formation percentage of Gross Domestic Products as per Economic Survey in 1995-98 was:
a.21percent
b.30percent
c.24percent

d. None of these
15. A person who left the job to find another job would be classified as:
a. fractionally unemployed
b.structurallyunemployed
c.cyclicallyunemployed
d.nolongerinthelabourforce

ECONOMICS MCQ

16. Match the following

GroupIGroupII
1.Planningforanexpandingeconomy(i)V.K.R.V.Raoeconomy
2.IndustrialevolutionofIndia(ii)DadabhaiNauroji
3.Draintheory(iii)D.RGadgil
4.IndiasNationalincome(iv)VakilandBrahmanand
a.1-(iii),2-(i),3-(iv),4-(ii)
b.1-(i),2-(ii),3-(iii),4-(iv)

c. 1-(iv), 2-(iii), 3-(ii), 4-(i)

d.1-(i),2-(iv),3-(iii),4-(ii)

17. Which of the following is not a measure of dispersion?

a.Meanofdeviations

b. Variance
c.Range
d.lnter-quartilerange

18. An economic union is the most advanced type of economic integration.

a. It unifies the monetary and fiscal policies of member states
b.Itpermitsnotariffbarriersontradeamongmembers
c.Itallowsfreemovementofcapitalandlabouramongmembernations
d.Itallowsnotariffsontradeamongmembersandacommontariffpolicytowardstherestoftheworldisfollowed

19. Match the following:

GroupIGroupII
1.ForeignTradePolicy(i)MinimumSupportPrices
2.IndustrialPolicy(ii)BalancedBudget
3.AgriculturalPolicy(iii)inportsubstitution
4.FiscalPolicy(iv)EximPolicy

a.1-(ii),2-(iii),3-(i),4-(v)

b. 1 - (iv), 2 - (iii), 3 - (i), 4 - (ii)

c.1-(iv),2-(ii),3-(iii),4-(v)
d.1-(i),2-(v),3-(iv),4-(ii)

20. Items which are of recurring nature are covered under:

a.CapitalBudget

b. Revenue Budget
c.CashBudget
d.UnifiedBudget

21. High -powered money is produced by:

a.Commercialbanks
b.Co-operativebanks
c.MinistryofFinance

d. Reserve Bank of India

22. Assertion (A) : Colin Clark hypothesised that the safe upper limit of taxation is 25 percent of national income.

ECONOMICS MCQ
Reason (R) The excess burden of taxation will be very high if it goes beyond the 25 percent limit.
a.(A)istruebut(R)isfalse
b.Both(A)and(R)aretrue

c. Both (A) and (R) are true, and (R) is the correct explanation of (A)
d.Both(A)and(R)arefalse

23. The IMF was assigned:

a.Thetaskofacceleratingeconomicgrowthoftheworld
b.Thetaskofcontrollinginflationintheworldeconomy

c. The task of ensuring economic stability in the world economy

d.ThetaskofremovingimbalancesfromtheU.S.A.

24. Assertion (A): When the IS curve is not vertical, monetary policy cannot change the level of aggregate demand.
Reason (R) Monetary policy depends on the existence of some interest-sensitive spending for its success.
a.Both(A)and(R)aretrueand(R)isthecorrectexplanationof(A).
b.Both(A)and(R)aretruebut(R)isnotthecorrectexplanationof(A).
c.(A)istruebut(R)isfalse.

d. (A) is false but (R) is true

25. The statistical technique used to determine the degree of relationship between two variables is called
a.Dispersion
b.IndexNumbers
c.Association

d. Correlation