Multiple Choice
questions
1- Introduction to Macro
Economics
1. The branches of the
subject Economics is
a) Wealth and welfare
b) Production and consumption
c) Demand
and supply
d) Micro and
macro
Ans:- d) Micro
and Macro
2.
Who coined the word ‘macro’?
a) Adam
Smith
b) J M
Keynes
c) Ragnar Frisch
d) Karl Marx
Ans:- c) Ragnar Frisch
3. Who is regarded as
Father of Modern Macro Economics?
a) Adam
smith
b) J M
Keynes
c) Ragnar Frisch
d) Karl Marx
Ans:- b) J M
Keynes
4. Identify the other
name for macro Economics.
a) Price Theory
b) Income Theory
c) Market Theory d) Micro Theory
Ans:- b) Income
Theory
5. Macro economics is
a study of __________.
a) individuals
b) firms
c) a nation
d) aggregates
Ans:- d) aggregates
6. Indicate the
contribution of J M Keynes to economics
a) Wealth
of nations
b) General
Theory
c) Capital
d) Public Finance
Ans:- b) General
Theory
7. A steady increase in general price level
is termed as__________.
a)
Wholesale price index
b) Business
Cycle
c)
Inflation
d) National
Income
Ans:- c) Inflation
8. Identify the
necessity of Economic policies.
a) to solve the basic problems
b) to overcome the obstacles
c) to achieve growth
d) all the above
Ans:- d) all
the above
9. Indicate the
fundamental economic activities of an economy.
a)
Production and Distribution
b)
Production and Exchange
c)
Production and Consumption
d) Production and
Marketing
Ans:- c) Production
and Consumption
10. An economy consists of
a)
Consumption sector
b)
Production sector
c)
Government sector
d) All the above
Ans:- d) All
the above
11. Identify the economic system where only
private ownership of production exists.
a)
Capitalistic Economy
b)
Socialistic Economy
c) Globalisic Economy
d) Mixed Economy
Ans:- a) Capitalistic
Economy
12. Economic system representing equality in distribution
is
a)
Capitalism
b)
Globalism
c) Mixedism
d) Socialism
Ans:- d) Socialism
13. Who is referred as `Father of capitalism`?
a) Adam
smith
b) Karl
Marx
c)
Thackeray
d) J M keynes
Ans:- a) Adam
smith
14. The country following
Capitalism is __________.
a) Russia
b) America
c) India
d) China
Ans:- b) America
15. Identity The
Father of socialism,
a) J M Keynes
b) Karl Marx
c) Adam smith
d) Samuelson
Ans:- b) Karl
Marx
16. An economic system where the
economic activities of a nation are done both by the private and public
together is termed as__________.
a)
Capitalistic Economy
b)
Socialistic Economy
c) Globalisic Economy
d) Mixed Economy
Ans:- d) Mixed
Economy
17. Quantity of a commodity accumulated at a point of time
is termed as __________.
a) production
b) stock
c) variable
d) flow
Ans: b) stock
18. Identity the flow variable
a) money supply
b) assets
c) income
d) foreign exchange reserves
Ans: c) Income
19. Identify the sectors of a Two sector Model.
a)
Households and Firms
b) Private
and Public
c) Internal
and External
d) Firms and
Government
Ans: a) Households
and Firms
20. The Circular Flow Model that
represents an open Economy.
a) Two
sector Model
b) Three
sector Model
c) Four
sector Model
d) All the above
Ans: c) Four
sector Model
2- National Income
1. Net National
product at factor cost is also known as
a) National
Income
b) Domestic
Income
c) Per
capita Income
d) Salary
Ans :
a) National Income
2. Primary sector is
a) Industry
b) Trade
c)
Agriculture
d) Construction
Ans :
c) Agriculture
3. National income is
measured by using __________ methods.
a) Two
b) Three
c) Five
d) Four
Ans :
b) Three
4. Income method is
measured by summing up of all forms of
a) Revenue
b) Taxes
c) expenditure
d) Income
Ans :
d) Income
5. Which is the
largest figure?
a)
Disposable income
b) Personal
Income
c) NNP
d) GNP
Ans :
d) GNP
6. Expenditure method
is used to estimate national income in
a) Construction
sector
b)
Agriculture sector
c) Service
sector
d) Banking sector
Ans :
a) Construction sector
7. Tertiary sector is
also called as ________ sector.
a) Service
b) Income
c) Industrial
d) Production
Ans :
a) Service
8. National income is
a measure of the ___ performance of an economy.
a)
Industrial
b)
Agricultural
c) Economic
d) Consumption
Ans :
c) Economic
9. Percapita
income is obtained by dividing the National income by.
a)
Production
b)
Population of a country
c)
Expenditure
d) GNP
Ans :
b) Population of a country
10. GNP =
____________ + Net factor income from abroad.
a) NNP
b) NDP
c) GDP
d) Personal
income
Ans :
c) GDP
11. NNP stands for __________.
a) Net
National Product
b) National
Net Product
c) National
Net Provident
d) Net National
Provident
Ans :
a) Net National Product
12. __________ is deducted from
gross value to get the net value.
a) Income
b)
Depreciation
c)
Expenditure
d) Value of final
goods.
Ans :
b) Depreciation
13. The financial year in India is
__________.
a) April 1
to March 31
b) March 1
to April 30
c) March 1
to March 16
d) January 1 to
December 31
Ans :
a) April 1 to March 31
14. When net factor income from
abroad is deducted from NNP, the net value is __________.
a) Gross
National Product
b)
Disposable Income
c) Net
Domestic Product
d) Personal
Income
Ans :
c) Net Domestic Product
15. The value of NNP at production
point is called __________.
a) NNP at
factor cost
b) NNP at
market cost
c) GNP at
factor cost
d) Per capita
income
Ans :
a) NNP at factor cost
16. The average income of the
country is __________.
a) Personal
Income
b) Per
capita Income
c)
Inflation Rate
d) Disposal
Income
Ans :
b) Per capita Income
17. The value of national income
adjusted for inflation is called __________.
a)
Inflation Rate
b) Disposal
income
c) GNP
d) Real national
income
Ans :
d) Real national income
18. Which is a flow concept?
a) Number
of shirts
b) Total
wealth
c) Monthly
income
d) Money supply
Ans :
c) Monthly income
19. PQLI is the indicator of
a) Economic
growth
b) Economic
welfare
c) Economic
progress
d) Economic
development
Ans :
b) Economic welfare
20. The largest proportion of
national income comes from __________.
a) Private sector
b) Local
sector
c) Public
sector
d) None of the
above
Ans :
a) Private sector
3- Theories of Employment
and Income
1.
Every able bodied person who is willing to work at the prevailing wage rate is
employed called as
___________.
a)
Full employment
b)
Under employment
c) Unemployment
d) Employment opportunity
Ans :
a) Full employment
2.
Structural unemployment is a feature in a ___________.
a)
Static society
b)
Socialist society
c) Dynamic society
d) Mixed economy
Ans :
c) Dynamic society
3. In disguised unemployment,
the marginal productivity of labour is _________.
a) Zero
b) One
c) Two
d) Positive
Ans :
a) Zero
4.
The main concention of the classical Economic Theory
is ___________.
a) Under employment
b) Economy is always in the state of equilibrium
c) Demand creates its supply
d) Imperfect competition
Ans :
b) Economy is always in the state of equilibrium
5.
J.B. Say is a ___________.
a)
New classical Economist
b)
Classical Economist
c)
Modern Economist
d)
New Economist
Ans :
b) Classical Economist
6.
According to Keynes, which type of unemployment prevails in capitalist
economy?
a)
Full employment
b)
Voluntary unemployment
c)
Involuntary unemployment
d)
Under employment
Ans :
d) Under employment
7. The
core of the classical theory of employment is
___________.
a)
Law of Diminishing Return
b)
Law of Demand
c) Law of Markets
d) Law of Consumption
Ans :
c) Law of Markets
8.
Keynes attributes unemployment to ___________.
a) A
lack of effective supply
b) A
lack of effective demand
c) A lack of both
d) None of the above
Ans :
b) A lack of effective demand
9.
___________ Flexibility brings equality between saving and investment.
a)
Demand
b)
Supply
c)
Capital
d)
Interest
Ans :
d) Interest
10. ___________
theory is a turning point in the development of modern economic theory.
a)
Keynes
b)
Say’s
c)
Classical
d)
Employment
Ans :
a) Keynes
11. The basic concept
used in Keynes Theory of Employment and Income is _____.
a)
Aggregate demand
b)
Aggregate supply
c)
Effective demand
d)
Marginal Propensity to Consume
Ans :
c) Effective demand
12. The component of
aggregate demand is ___________.
a)
Personal demand
b)
Government expenditure
c)
Only export
d)
Only import
Ans :
b) Government expenditure
13. Aggregate supply is
equal to
a) C
+ I + G
b) C+
S+ G + (x-m)
c) C+
S+ T+ (x - m)
d) C+ S+ T+ Rf.
Ans :
d) C+ S+ T+ Rf.
14.
Keynes theory pursues to replace Laissez faire by
___________.
a) No
government intervention
b)
Maximum intervention
c)
State intervention in certain situation
d)
Private Sector Intervention
Ans :
c) State intervention in certain situation
15.
In Keynes theory of employment and income ___________ is
the basic cause of economic depression.
a)
Less production
b)
More demand
c)
Inelastic supply
d) Less aggregate demand in relation to productive capacity
Ans :
d) Less aggregate demand in relation to productive capacity
16.
Classical theory advocates ___________.
a)
Balanced budget
b)
Unbalanced budget
c)
Surplus budget
d)
Deficit budget
Ans :
a) Balanced budget
17. Keynes theory
emphasized on ___________ equilibrium.
a)
Very short run
b)
Short run
c)
Very long run
d)
Long run
Ans :
b) Short run
18. According to classical theory, rate of
interest is a reward for _____.
a)
Investment
b)
Demand
c)
Capital
d)
Saving
Ans :
d) Saving
19. In Keynes theory, the demand for and
supply of money are determined by
___________.
a)
Rate of interest
b)
Effective demand
c)
Aggregate demand
d)
Aggregate supply
Ans :
a) Rate of interest
20.
Say’s law stressed the operation of ___________ in the economy.
a)
Induced price mechanism
b)
Automatic price mechanism
c)
Induced demand
d)
Induced investment
Ans :
b) Automatic price mechanism
4 - Consumption and
Investment Functions
1. The average propensity to consume is
measured by
a) C\Y
b) C x Y
c) Y\C
d) C + Y
Ans :
a) C\Y
2. An increase in the marginal propensity
to consume will :
a) Lead to consumption function becoming steeper
b) Shift the consumption function upwards
c) Shift the consumption function downwards
d)
Shift savings function upwards
Ans : a) Lead to
consumption function becoming steeper
3.
If the Keynesian consumption function is C=10 +0.8 Y then, if disposable income
is Rs 1000, What is the amount of total consumption?
a) ` 0.8
b) ` 800
c) ` 810
d) ` 0.81
Ans : c) ` 810
4.
If the Keynesian consumption function is C=10 +0.8 Y then when disposable
income is Rs 100, What is the marginal propensity to
consume?
a) ` 0.8
b) ` 800
c) ` 810
d) ` 0.81
Ans : a) ` 0.8
5.
If the Keynesian consumption function is C=10 +0.8 Y then, and disposable
income is ` 100, what is the average propensity to
consume?
a) ` 0.8
b) ` 800
c) ` 810
d) ` 0.9
Ans : d) ` 0.9
6. As national
income increases
a) The APC falls and gets nearer in value to the MPC
b) The APC increases and diverges in value from the MPC
c) The APC stays constant
d) The APC always approaches infinity.
Ans : a)
The APC falls and gets nearer in value to the MPC
7. As increase in consumption at any given
level of income is likely to lead
a) Higher aggregate demand
b) An increase in exports
c) A fall in taxation revenue
d) A decrease in import spending
Ans : a)
Higher aggregate demand
8. Lower interest rates are likely to :
a) Decrease in consumption
b) increase cost of borrowing
c) Encourage saving
d) increase borrowing and spending
Ans : d)
increase borrowing and spending
9. The MPC is equal to :
a) Total spending / total consumption
b) Total consumption / total income
c) Change in consumption/ change in income
d) none of the above.
Ans : c)
Change in consumption/ change in income
10. The
relationship between total spending on consumption and the total income is the __________.
a) Consumption function
b) Savings function
c)
Investment function
d) aggregate demand function
Ans : a)
Consumption function
11. The sum of the
MPC and MPS is __________.
a) 1
b) 2
c)
0.1
d) 1.1
Ans : a)
1
12. As income
increases, consumption will __________.
a)
Fall
b) not change
c) fluctuate
d) increase
Ans : d)
increase
13. When investment is
assumed autonomous the slope of the AD schedule is determined by the __________.
a) marginal propensity to invest
b) disposable income
c) marginal propensity to consume
d) average propensity to consume.
Ans : c)
marginal propensity to consume
14.
The multiplier tells us how much ____ changes after a shift in ____.
a)
Consumption, income
b) investment, output
c) savings, investment
d) output, aggregate demand
Ans : d)
output, aggregate demand
15.
The multiplier is calculated
as.
a) 1/(1- MPC)
b) 1/
MPS
c) 1/
MPC
d) a and b
Ans : d)
a and b
16.
If the MPC is 0.5 , the multiplier is __________.
a) 2
b)
1/2
c)
0.2
d) 20
Ans : a)
2
17. In an
open economy import __________ the value of the
multiplier.
a)
Reduces
b) increase
c) does not change
d)
Changes
Ans : a)
Reduces
18. According to Keynes, investment is a
function of the MEC and _____.
a)
Demand
b)
Supply
c)
Income
d)
Rate of interest
Ans : d)
Rate of interest
19.
The term Super multiplier was first used by
a)
J.R. Hicks
b)
R.G.D Allen
c)
Kahn
d)
J.M. Keynes
Ans : a)
J.R. Hicks
20.
The term MEC was introduced by.
a)
Adam smith
b)
J.M. Keynes
c)
Ricardo
d)
Malthus
Ans : b)
J.M. keynes
5. Monetary Economics
1. The RBI Headquarters is located at
a) Delhi
b) Chennai
c) Mumbai
d) Bengaluru
Ans : c)
Mumbai
2. Money is
a) acceptable only when it has intrinsic value
b) constant in purchasing power
c) the most liquid of all assets
d) needed for allocation of resources
Ans :
c) the most liquid of all assets
3. Paper currency system is managed by the
a) Central Monetary authority
b) State Government
c) Central government
d) Banks
Ans :
a) Central Monetary authority
4. The basic distinction between M1 and
M2 is with regard to.
a) post office deposits
b) savings deposits with post office savings bank
c) Term deposits of banks
d) currency
Ans :
b) savings deposits with post office saving bank
5. Irving Fisher`s Quantity Theory of
Money was popularized in
a) 1908
b) 1910
c) 1911
d) 1914
Ans : c) 1911
6. MV stands for
a) demand for money
b) supply of legal tender money
c) supply of bank money
d) Total supply of money
Ans :
b) supply of legal tender money
7.
Inflation means
a) Prices are rising
b) Prices are falling
c) Value of money is increasing
d) Prices are remaining the same
Ans :
a) Prices are rising
8. _____inflation results in a serious
depreciation of the value of money.
a) Creeping
b) Walking
c) running
d) Hyper
Ans :
d) Hyper
9. _____ inflation occurs when general prices of
commodities increases due to increase in production costs such as wages and raw
materials.
a) Cost - push
b) demand pull
c) running
d) galloping
Ans :
a) Cost - push
10. During
inflation, who are the gainers?
a)
Debtors
b) Creditors
c) wage and salary earners
d) Government
Ans :
a) Debtors
11. _____ is a decrease in
the rate of inflation.
a) Disinflation
b) Deflation
c) Stagflation
d) Depression
Ans :
a) Disinflation
12. Stagflation
combines the rate of inflation with
a) Stagnation
b) employment
c) output
d) price
Ans :
a) Stagnation
13.
The study of alternating fluctuations in business activity is referred to in
Economics as
a) Boom
b) Recession
c) Recovery
d) Trade cycle
Ans :
d) Trade cycle
14. During depression the level of economic activity
becomes extremely.
a) high
b) bad
c) low
d) good
Ans :
c) low
15. ``Money can be anything that is generally
acceptable as a means of exchange and that the same time acts as a measure and
a store of value``, This definition was given by
a) Crowther
b) A. C. Pigou
c) F.A. Walkar
d) Francis Bacon
Ans :
a) Crowther
16. Debit card is an example of
a) Currency
b) Paper currency
c) Plastic money
d) Money
Ans :
c) Plastic money
17. Fisher`s
quantity Theory of money is based on the essential function of money as
a) measure of value
b) store of value
c) medium of exchange
d) standard of deferred payment
Ans :
c) medium of exchange
18. V in MV = PT equation stands for
a) Volume of trade
b) Velocity of circulation of money
c) Volume of transaction
d) Volume of bank and credit money
Ans :
b) Velocity of circulation of money
19. When prices rise slowly, we call it
a) galloping inflation
b) mild inflation
c) hyper inflation
d) deflation
Ans :
b) mild inflation
20. _____ inflation which is in no way dangerous to the
economy.
a) walking
b) running
c) creeping
d) galloping
Ans :
c) creeping
6 - Banking
1. A Bank is a
a) Financial institutions
b) Corporate
c) An Industry
d) Service institutions
Ans :
a) Financial institutions
2. A commercial Bank is an institution
that provides services
a) Accepting deposits
b) Providing loans
c) Both a and b
d) None of the above
Ans :
c) Both a and b
3. The Functions of commercial banks are
broadly classified into
a) Primary Functions
b) Secondary Functions
c) Other Functions
d) a, b, and c
Ans :
d) a, b, and c
4. Bank credit refers to
a) Bank loans
b) Advances
c) Bank loans and advances
d) Borrowings
Ans :
c) Bank loans and advances
5. Credit creation means.
a) Multiplication of loans and advances
b) Revenue
c) Expenditure
d) Debt
Ans :
a) Multiplication of loans and advances
6. NBFI does not have.
a) Banking license
b) government approval
c) Money market approval
d) Finance ministry approval
Ans :
a) Banking license
7.
Central bank is _____ authority of any country.
a) Monetary
b) Fiscal
c) Wage
d) National Income
Ans :
a) Monetary
8. Who will act as the banker to the
Government of India?
a) SBI
b) NABARD
c) ICICI
d) RBI
Ans :
d) RBI
9. Lender of the last resort is one of the
functions of.
a) Central Bank
b) Commercial banks
c) Land Development Banks
d) Co - operative banks
Ans :
a) Central Bank
10. Bank
Rate means.
a) Re - discounting the first class securities
b) Interest rate
c) Exchange rate
d) Growth rate
Ans :
a) Re - discounting the first class securities
11. Repo
Rate means.
a) Rate at which the Commercial Banks are willing to lend to RBI
b) Rate at which the RBI is willing to lend to commercial banks
c) Exchange rate of the foreign bank
d) Growth rate of the economy
Ans :
b) Rate at which the RBI is willing to lend to commercial banks
12. Moral
suasion refers.
a) Optimization
b) Maximization
c) Persuasion
d) Minimization
Ans :
c) Persuasion
13.
ARDC started functioning from
a) June 3, 1963
b) July 3, 1963
c) June 1, 1963
d) July 1, 1963
Ans :
d) July 1, 1963
14. NABARD was set up in.
a) July 1962
b) July 1972
c) July 1982
d) July 1992
Ans :
c) July 1982
15. EXIM bank was established in
a) June 1982
b) April 1982
c) May 1982
d) March 1982
Ans :
d) March 1982
16. The State Financial Corporation Act was passed by
a) Government of India
b) Government of Tamilnadu
c) Government of Union Territories
d) Local Government
Ans :
a) Government of India
17. Monetary
policy is formulated by.
a) Co - operative banks
b) Commercial banks
c) Central bank
d) Foreign banks
Ans :
c) Central bank
18. Online Banking is also known as.
a) E - Banking
b) Internet Banking
c) RTGS
d) NEFT
Ans :
b) Internet Banking
19. Expansions of ATM.
a) Automated Teller Machine
b) Adjustment Teller Machine
c) Automatic Teller mechanism
d) Any Time Money
Ans :
a) Automated Teller Machine
20. 2016 Demonetization of currency includes
denominations of
a) ` 500 and ` 1000
b) ` 1000 and ` 2000
c) ` 200 and ` 500
d) All the above
Ans :
a) ` 500 and ` 1000
7 - International Economics
1.
Trade between two countries is known as _____ trade.
a) External
b)
Internal
c)
Inter-regional
d)
Home
Ans: a) External
2. Which of the following factors
influence trade?
a)
The stage of development of a product.
b)
The relative price of factors of productions.
c)
Government
d)
All of the above
Ans: d) All
of the above
3.
International trade differs from domestic trade because of
a)
Trade restrictions
b)
Immobility of factors
c)
Different government polices
d)
All the Above
Ans: d) All
of the above
4. In
general, a primary reason why nations conduct international trade is because
a) Some
nations prefer to produce one thing while others produce another
b)
Resources are not equally distributed among all trading nations
c)
Trade enhances opportunities to accumulate profits
d)
Interest rates are not identical in all trading nations
Ans: b) Resources
are not equally distributed among all trading nations.
5. Which
of the following is a modern theory of international trade?
a)
Absolute cost
b)
Comparative cost
c)
Factor endowment theory
d) none of these
Ans: c) Factor
endowment theory
6.
Exchange rates are determined in
a)
Money Market
b)
Foreign exchange market
c)
Stock Market
d)
Capital Market
Ans: b) Foreign
exchange market
7.
Exchange rate for currencies is determined by supply and demand under the
system of
a)
Fixed exchange rate
b)
Flexible exchange rate
c)
Constant
d)
Government regulated
Ans: b) Flexible exchange
rate
8. Net
export equals _____.
a) Export x Import
b) Export + Import
c)
Export – Import
d)
Exports of services only
Ans: c) Export + Import
9.
Who among the following enunciated the concept of single factorial terms of
trade?
a)
Jacob Viner
b) G.S.Donens
c) Taussig
d) J.S.Mill
Ans: a) Jacob
Viner
10. Terms of Trade of
a country show _____.
a)
Ratio of goods exported and imported
b)
Ratio of import duties
c)
Ratio of prices of exports and imports
d)
Both (a) and (c)
Ans: c) Ratio
of prices of exports and imports
11.
Favourable trade means value of exports are _____ than that of imports.
a) More
b) Less
c) More or Less
d) Not more than
Ans: a) More
12. If there is an
imbalance in the trade balance (more imports than exports), it can be reduced
by
a)
Decreasing customs duties
b)
Increasing export duties
c)
Stimulating exports
d)
Stimulating imports
Ans: c) Stimulating
exports
13. BOP includes
a)
Visible items only
b) invisible items only
c) both visible and invisible items
d) merchandise trade only
Ans: c) both
visible and invisible items
14.
Components of balance of payments of a country includes
a) Current account
b)
Official account
c)
Capital account
d)
All of above
Ans: d) All
of above
15. In the case of
BOT,
a)
Transactions of goods are recorded.
b)
Transactions of both goods and services are recorded
c)
Both capital and financial accounts are included
d)
All of these
Ans: a) Transactions
of goods are recorded
16. Tourism and travel
are classified in which of balance of payments accounts?
a) merchandise trade account
b) services account
c) unilateral transfers account
d) capital account
Ans: b) Services
account
17. Cyclical disequlibrium in BOP occurs because of
a)
Different paths of business cycle.
b)
The income elasticity of demand or price elasticity of demand is different.
c) long – run changes in an economy
d)
Both (a) and (b).
Ans: d) Both
(a) and (b)
18. Which of the
following is not an example of foreign direct investment?
a)
The construction of a new auto assembly plant overseas
b)
The acquisition of an existing steel mill overseas
c)
The purchase of bonds or stock issued by a textile company overseas
d)
The creation of a wholly owned business firm overseas
Ans: c) The
purchase of bonds or stock issued by a textile company overseas
19. Foreign direct
investments not permitted in India
a)
Banking
b)
Automatic energy
c) Pharmaceutical
d)
Insurance
Ans: b) Automatic
energy
20. Benefits of FDI
include, theoretically
a)
Boost in Economic Growth
b)
Increase in the import and export of goods and services
c)
Increased employment and skill levels
d) All of these
Ans: d) All
of these
8- International Economic
Organisations
1.
International Monetary Fund was an outcome of
a) Pandung Conference
b) Dunkel Draft
c) Bretton Woods Conference
d) Doha Conference
Ans:- c) Bretton woods conference
2.
International Monetary Fund is having its headquarters at
a)
Washington D. C.
b)
New York
c)
Vienna
d)
Geneva
Ans:- a) Washington
D.C.
3. IBRD is otherwise called
a)
IMF
b) World bank
c)
ASEAN
d) International Finance corporation
Ans:- b) World
bank
4.
The other name for Special Drawing Right is
a) Paper gold
b) Quotas
c) Voluntary Export Restrictions
d) None of these.
Ans:- a) Paper
gold
5.
The organization which provides long term loan is
a)
World Bank
b)
International Monetary Fund
c)
World Trade Organisation
d)
BRICS
Ans: a) World
Bank
6.
Which of the following countries is not a member of SAARC?
a)
Sri Lanka
b)
Japan
c)
Bangladesh
d)
Afghanistan
Ans:- b) Japan
7. International
Development Association is an affiliate of
a)
IMF
b)
World Bank
c)
SAARC
d)
ASEAN
Ans:- b) World
Bank
8.
_____ relates
to patents, copyrights, trade secrets, etc.,
a)
TRIPS
b)
TRIMS
c)
GATS
d)
NAMA
Ans:- a) TRIPS
9.
The first ministerial meeting of WTO was held at
a)
Singapore
b)
Geneva
c)
Seattle
d)
Doha
Ans:- a) Singapore
10. ASEAN meetings
are held once in every _____ years
a) 2
b) 3
c) 4
d) 5
Ans:- b) 3
11. Which of the
following is not the member of SAARC?
a)
Pakistan
b) Sri lanka
c)
Bhutan
d)
China
Ans: - d) China
12. SAARC meets once
in _____ years.
a) 2
b) 3
c) 4
d) 5
Ans: - a) 2
13. The headquarters of
ASEAN is
a) Jaharta
b)
New Delhi
c)
Colombo
d)
Tokyo
Ans: - a) Jaharta
14.
The term BRIC was coined in
a)
2001
b)
2005
c)
2008
d)
2010
Ans: - a) 2001
15.
ASEAN was created in
a)
1965
b)
1967
c)
1972
d)
1997
Ans: - b) 1967
16.
The Tenth BRICS summit was held in July 2018 at
a)
Beijing
b)
Moscow
c)
Johannesburg
d)
Brasilia
Ans:- c) Johannesburg
17. New Development
Bank is associated with.
a)
BRICS
b)
WTO
c)
SAARC
d)
ASEAN
Ans:- a) BRICS
18.
Which of the following does not come under ` six dialogue partners` of ASEAN?
a)
China
b)
Japan
c)
India
d)
North Korea
Ans: -d) North
Korea
19.
SAARC Agricultural Information centre ( SAIC ) works
as a central information institution for agriculture related resources was
founded on.
a)
1985
b)
1988
c)
1992
d)
1998
Ans:- b) 1988
20.
BENELUX is a form of
a) Free trade area
b) Economic Union
c) Common market
d) Customs union
Ans:- d) Customs
union
9 - Fiscal Economics
1.
The modern state is
a) Laissez-faire state
b) Aristocratic state
c) Welfare state
d)
Police state
Ans: c) Welfare
state
2.
One of the following is NOT a feature of private finance
a) Balancing of income and expenditure
b) Secrecy
c) Saving some part of income
d)
Publicity
Ans: d) Publicity
3.
The tax possesses the following characteristics
a) Compulsory
b) No quid pro quo
c) Failure to pay is offence
d) All the above
Ans: d) All
the above
4.
Which of the following canons of taxation was not listed by Adam smith?
a) Canon of equality
b) Canon of certainty
c) Canon of convenience
d) Canon of simplicity
Ans: d) Canon
of simplicity
5.
Consider the following statements and identify the correct ones.
i. Central government does
not have exclusive power to impose tax which is not mentioned in state or
concurrent list.
ii. The Constitution also provides for transferring certain
tax revenues from union list to states.
a) i only
b) ii only
c) both
d)
none
Ans: b) ii only
6.
GST is equivalence of
a) Sales tax
b) Corporation tax
c) Income tax
d)
Local tax
Ans: a) Sales
tax
7. The
direct tax has the following merits except
a) equity
b) convenient
c) certainty
d) civic consciousness
Ans: b) convenient
8.
Which of the following is a direct tax?
a) Excise duty
b) Income tax
c) Customs duty
d)
Service tax
Ans: b) Income
tax
9.
Which of the following is not a tax under Union list?
a) Personal Income tax
b) Corporation tax
c) Agricultural Income tax
d) Excise duty
Ans: c) Agricultural
Income tax
10. `` Revenue
Receipts`` of the government do not include
a) Interest
b) Profits and dividents
c) Recoveries and loans
d)
Rent from property
Ans: d) Rent
from property
11. The difference
between revenue expenditure and revenue receipts is
a) Revenue deficit
b) Fiscal deficit
c) Budget deficit
d) primary deficit
Ans: a) Revenue
deficit
12. The difference
between total expenditure and total receipts including loans and other
liabilities is called
a) Fiscal deficit
b) Budget deficit
c) Primary deficit
d)
Revenue deficit
Ans: a) Fiscal
deficit
13. The primary purpose
of deficit financing is
a) Economic development
b) Economic stability
c) Economic equality
d)
Employment generation
Ans: a) Economic
development
14.
Deficit budget means
a) An excess of government`s revenue over expenditure
b) An excess of government`s current expenditure over its current
revenue
c) An excess of government`s total expenditure over its total
revenue
d) None of above
Ans: c) An
excess of government’s total expenditure over its total revenue
15.
Methods of repayment of public debt is
a) Conversion
b) Sinking fund
c) Funded debt
d) All these
Ans: d) All
these
16.
Conversion of public debt means exchange of
a) new bonds for the old ones
b) low interest bonds for higher interest
bonds
c) Long term bonds for short term bonds
d) All the above
Ans: b) low
interest bonds for higher interest bonds
17. The word budget
has been derived from the French word `` bougette``
which means
a) A small bag
b) An empty box
c) A box with papers
d) None of the above
Ans: a) A
small bag
18.
Which one of the following deficits does not consider borrowing as a receipt?
a) Revenue deficit
b) Budgetary deficit
c) Fiscal deficit
d) Primary deficit
Ans: c) Fiscal
deficit
19.
Finance commission determines
a) The finances of Government of India
b) The resources transfer to the states
c) The resources transfer to the various departments
d) None of the above
Ans: b) The resources
transfer to the states
20.
Consider the following statements and identify the right ones.
i. The finance commission is
appointed by the president
ii. The tenure of finance commission is five years.
a) i only
b) ii only
c) both
d) none
Ans: c) both
10 - Environmental
Economics
1. The term environment
has been derived from a French word _______.
a) Environ
b) Environs
c) Environia
d) Envir
Ans:- c) Environia
2. The
word biotic means environment
a) living
b) non – living
c) physical
d) None of the above
Ans:- a) living
3.
Ecosystem is smallest unit of
a) Ionosphere
b) Lithosphere
c) Biosphere
d) Mesosphere
Ans:- c) Biosphere
4.
Who developed Material Balance Models?
a) Thomas and Picardy
b) AlenKneese and R.V.Ayres
c) Joan Robinson and J.M.Keynes
d) Joseph Stiglitz
and Edward Chamberlin
Ans:- b) AlenKneese and R.V.Ayres
5.
Environmental goods are _____.
a) Market goods
b) Non – market goods
c) Both
d) None of the above
Ans:- b) Non -
market goods
6.
In a pure public good, consumption is _____.
a) Rival
b) Non – rival
c) Both
d) None of the above
Ans:- b) Non -
rival
7.
One of the most important market failures is caused by ______.
a) Positive externalities
b) Negative externalities
c) Both
d) None of the above
Ans:- b) Negative
externalities
8.
The common source of outdoor air pollution is caused by combustion processes
from the following ________.
a) Heating and cooking
b) Traditional stoves
c) Motor vehicles
d) All the above
Ans:- b) Traditional
stoves
9.
The major contributor of Carbon monoxide is
a)
Automobiles
b)
Industrial process
c)
Stationary fuel combustion
d) None
of the above
Ans:- a) Automobiles
10.
Which one of the following causes of global warming?
a) Earth
gravitation force
b) Oxygen
c)
Centripetal force
d) Increasing temperature
Ans:- d) Increasing
temperature
11.
Which of the following is responsible for protecting humans from harmful
ultraviolet rays?
a) UV – A
b) UV – C
c)
Ozone layer
d) None of the above
Ans:- c) Ozone
layer
12. Global warming also refers to as
a)
Ecological change
b) Climate
Change
c)
Atmosphere change
d) None of the above
Ans:- d) None
of the above
13. Which of the following is the
anticipated effect of Global Warming?
a) Rising sea
levels
b) Changing
precipitation
c)
Expansion of deserts
d) All of the above
Ans:- b) Changing
precipitation
14. The process of nutrient
enrichment is termed as
a) Eutrophication
b) Limiting
nutrients
c)
Enrichment
d) Schistosomoasis
Ans:- a) Eutrophication
15. Primary cause of Soil pollution
is _____.
a) Pest control measures
b) Land reclamation
c) Agricultural runoff
d)
Chemical fertilizer
Ans:-d) Chemical
fertilizer
16. Which of the following is main
cause for deforestation?
a) Timber harvesting industry
b) Natural afforestation
c) Soil stabilization
d) Climate stabilization
Ans: a) Timber
harvesting industry
17. Electronic waste
is commonly referred as _____.
a) Solid waste
b) Composite waste
c) e- waste
d) Hospital waste
Ans: c) e-waste
18. Acid rain is one of the
consequences of _____ Air pollution
a) Water Pollution
b) Land pollution
c) Noise pollution
d) None of the above
Ans: a) Water
Pollution
19. Sustainable Development Goals
and targets are to be achieved by ______ .
a) 2020
b) 2025
c) 2030
d) 2050
Ans: c) 2030
20. Alkali soils are predominantly
located in the ____ plains?
a) Indus-Ganga
b) North-Indian
c) Gangetic plains
d) All the above
Ans: d) All
the above
11 - Economics of
Development and Planning
1.
“Redistribution with Growth” became popular (sloga)er which approach?
a)
Traditional approach
b)
New welfare oriented approach
c)
Industrial approach
d)
None of the above
Ans :
b) New welfare oriented approach
2. Which is not the
feature of economic growth?
a)
Concerned with developed nations
b)
Gradual change
c)
Concerned with quantitative aspect
d)
Wider concept
Ans :
d) Wider concept
3.
Which among the following is a characteristic of underdevelopment?
a)
Vicious circle of poverty
b)
Rising mass consumption
c)
Growth of Industries
d)
High rate of urbanization
Ans :
a) Vicious circle of poverty
4.
The non-economic determinant of economic development
a)
Natural resources
b)
Human resource
c)
Capital formation
d)
Foreign trade
Ans :
b) Human resource
5.
Economic growth measures the ______.
a)
Growth of productivity
b)
Increase in nominal income
c)
Increase in output
d)
None of the above
Ans :
c) Increase in output
6.
The supply side vicious circle of poverty suggests that poor nations remain
poor because
a) Saving remains low
b) Investment remains low
c) There is a lack of effective government
d) a and b above
Ans :
d) a and b above
7. Which
of the following plan has focussed on the agriculture
and rural economy?
a) People’s Plan
b) Bombay Plan
c) Gandhian
Plan
d) Vishveshwarya Plan
Ans :
c) Gandhian Plan
8.
Arrange following plans in correct chronological order
a)
People’s Plan
b)
Bombay Plan
c) Jawaharlal Nehru Plan
d) Vishveshwarya Plan
Answer choices
a) (i), (ii), (iii), (iv)
b) (iv),
(iii), (ii), (i)
c) (i), (ii), (iv), (iii)
d) (ii), (i), (iv), (iii)
Ans : b) (iv), (iii),
(ii), (i)
9.
M. N. Roy was associated with ______.
a) Congress Plan
b) People’s Plan
c) Bombay Plan
d) None of the above
Ans :
b) People’s Plan
10.
Which of the following country adopts indicative planning?
a)
France
b)
Germany
c)
Italy
d)
Russia
Ans :
a) France
11.
Short-term plan is also known as _______.
a)
Controlling Plans
b)
De-controlling Plans
c)
Rolling Plans
d)
De-rolling Plans
Ans :
a) Controlling Plans
12.
Long-term plan is also known as _______.
a) Progressive Plans
b) Non-progressive Plan
c) Perspective Plans
d) Non-perspective Plans
Ans : c) Perspective
Plans
13.
The basic philosophy behind long - term planning is to bring
______ changes in the economy?
a) Financial
b) Agricultural
c) Industrial
d) Structural
Ans :
d) Structural
14.
Sarvodaya Plan was advocated by
_________.
a)
Mahatma Gandhi
b)
J.P. Narayan
c) S.
N Agarwal
d) M. N. Roy
Ans : b) J.P. Narayan
15.
Planning Commission was set up in the year _____.
a)
1950
b)
1951
c)
1947
d)
1948
e) Gandhian plan
Ans :
a) 1950
16.
Who wrote the book ‘The Road to Serfdom’?
a)
Friedrich Hayek
b) H. R. Hicks
c) David Ricardo
d) Thomas Robert Malthus
Ans : a) Friedrich
Hayek
17.
Perspective plan is also known as ________.
a)
Short-term plan
b)
Medium-term plan
c)
Long-term plan
d)
None of the above
Ans : c) Long-term
plan
18.
NITI Aayog is formed through ________.
a)
Presidential Ordinance
b)
Allocation of business rules by President of India
c)
Cabinet resolution
d)
None of the above
Ans :
c) Cabinet resolution
19.
Expansion of NITI Aayog?
a)
National Institute to Transform India
b)
National Institute for Transforming India
c)
National Institution to Transform India
d)
National Institution for Transforming India
Ans :
d) National Institution for Transforming India
20.
The Chair Person of NITI Aayog is
a) Prime Minister
b) President
c) Vice - President
d) Finance Minister
Ans :
a) Prime Minister
12 - Introduction to
Statistical Methods and Econometrics
1.
The word ‘statistics’ is used as _________.
a) Singular
b)
Plural
c)
Singular and Plural
d)
None of above
Ans :
c) Singular and Plural
2. Who stated that
statistics as a science of estimates and probabilities.
a)
Horace Secrist
b) R.
A Fisher
c) Ya - Lun - Chou
d) Boddington
Ans :
d) Boddington
3.
Sources of secondary data are _________.
a)
Published sources
b)
Unpublished sources
c) neither published nor unpublished sources
d)
Both (A) and (B)
Ans :
d) Both (A) and (B)
4.
The data collected by questionnaires are _________.
a)
Primary data
b)
Secondary data
c)
Published data
d)
Grouped data
Ans :
a) Primary data
5.
A measure of the strength of the linear relationship that exists between two
variables is called:
a)
Slope
b)
Intercept
c)
Correlation coefficient
d)
Regression equation
Ans : c) Correlation
coefficient
6.
If both variables X and Y increase or decrease
simultaneously, then the coefficient of correlation will be:
a) Positive
b)
Negative
c)
Zero
d) one
Ans :
a) Positive
7. If
the points on the scatter diagram indicate that as one variable increases the
other variable tends to decrease the value of r will be :
a)
Perfect positive
b)
Perfect negative
c)
Negative
d)
Zero
Ans : c) Negative
8.
The value of the coefficient of correlation r lies between :
a) 0
and 1
b) -1
and 0
c) -1
and +1
d)
-0.5 and +0.5
Ans :
c) -1 and +1
9.
The term regression was used by :
a)
Newton
b)
Pearson
c)
Spearman
d)
Galton
Ans :
d) Galton
10. The purpose of
simple linear regression analysis is to:
a)
Predict one variable from another variable
b)
Replace points on a scatter diagram by a straight-line
c)
Measure the degree to which two variables are linearly associated
d) Obtain
the expected value of the independent random variable for a given value of the
dependent variable
Ans :
a) Predict one variable from another variable
11. A process by
which we estimate the value of dependent variable on the basis of one or more
independent variables is called :
a)
Correlation
b)
Regression
c) Residual
d)
Slope
Ans :
b) Regression
12. If Y = 2 - 0.2X,
then the value of Y intercept is equal to
a) -0.2
b) 2
c)
0.2X
d)
All of the above
Ans :
b) 2
13. In the regression
equation Y=β0 +β1X, the Y is called
a)
Independent variable
b)
Dependent variable
c)
Continuous variable
d) none of the above
Ans :
b) Dependent variable
14.
In the regression equation X=β0 +β1X, the X is called :
a)
Independent variable
b)
Dependent variable
c)
Continuous Variable
d) none of the above
Ans :
a) Independent variable
15.
Econometrics is the integration of
a)
Economics and Statistics
b)
Economics and Mathematics
c)
Economics, Mathematics and Statistics
d)
None of the above
Ans :
c) Economics, Mathematics and Statistics
16.
Econometric is the word coined by
a)
Francis Galton
b) RagnarFrish
c)
Karl Person
d) Spearsman
Ans :
b) RagnarFrish
17. The raw materials
of Econometrics are :
a)
Data
b)
Goods
c)
Statistics
d)
Mathematics
Ans :
a) Data
18.
The term Uiin regression equation is
a)
Residuals
b)
Standard error
c)
Stochastic error term
d) none
Ans :
c) Stochastic error term
19.
The term Uiin introduced for the representation of
a)
Omitted Variable
b)
Standard error
c)
Bias
d)
Discrete Variable
Ans :
a) Omitted Variable
20.
Econometrics is the amalgamation of
a) 3
subjects
b) 4
subjects
c) 2
subjects
d) 5
subjects
Ans :
a) 3 subjects
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