MCQ IN ECONOMICS - 4

conomics mcq questions BA Level India
economics questions bank of objective question
Practice Test Paper
Model Test paper

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1. Frequency density of a class is defined as—
(A) Frequency of the class/Interval of the class
(B) Frequency of the class/ Cumulative frequency for the class
(C) Cumulative frequency for the class/Frequency of the class
(D) Frequency of the class/ Frequency of the previous class

2. Which of the following is statistics?
(A) Profit of a firm has gone up
(B) The production of wheat has increased
(C) The temperature of Delhi is 5 degree more than the temperature of Mumbai
(D) The birth rate has declined in India

3. At end March 2009, India’s total foreign exchange reserves stood at?
(A) Approximately $ 150 billion
(B) Approximately $ 200 billion
(C) Approximately $ 250 billion
(D) Approximately $ 300 billion

4.A firm is called maximum efficient firm if it has?
(A) Minimum Total Cost
(B) Minimum Average Cost
(C) Minimum Variable Cost
(D) Minimum Marginal Cost

5. Implicit cost may be considered as?
(A) Social cost
(B) Private cost
(C) Normal cost
(D) Variable cost

6 ‘The Mid-day Meal’ scheme is covered under the Ministry of?
(A) Human Resource Development
(B) Health and Family Welfare
(C) Social Justice and Empowerment
(D) Consumer Affairs, Food and Public Distribution

7. Which of the following associate bank has been taken over by the State Bank of India in 2008?
(A) State Bank of Travancore
(B) State Bank of Hyderabad
(C) State Bank of Mysore
(D) State Bank of Saurashtra

8. Which of the following demand curves is not a constant elasticity curve?
(A) Vertical
(B) Horizontal
(C) Linear
(D)Rectangular hyperbola

9. The following theory of profit has been given by J. A. Schumpeter?
(A) Risk theory of profit
(B) Uncertainty bearing theory of profit
(C) Innovation theory of profit
(D) Dynamic theory of profit

10. The formula for determination of number of class-interval for a frequency distribution is given by?
(A) Connor
(B) Spur
(C) Sturges
(D) Secrist

11. In the Union Budget, the term ‘Primary Deficit’ means?
(A) Revenue Deficit — Interest Payment
(B) Fiscal Deficit — Interest Payment
(C) Revenue Expenditure — Revenue Receipts
(D) Total Expenditure — Total Borrowing

12. As a measure to unearth black money, the demonetisation of Rupees 1000 currency notes in
India was done in the year?
(A)1968
(B) 1978
(C)1988
(D)1998

13. The Lead Bank scheme was launched in India on the recommendation of?
(A) M. Narasimhan
(B) F. K. F. Nariman
(C) D. T. Lakdawala
(D) V. M. Dandekar

14. Firms have chronic excess production capacity in?
(A) Duopoly
(B) Oligopoly
(C) Pure competition
(D) Monopolistic competition

15. In a two sector model when consumption is equal to 40 + 0.90 Y and investment is equal to 50, the equilibrium output will be equal to?
(A) 500
(B) 700
(C) 900
(D) 1100

16. The positional average is shown by ?
(A) Mean deviation
(B) Standard deviation
(C) Mean
(D) Median

17. The shutdown point is that level of output of a firm where?
(A) MC=AFC
(B) MC=AVC
(C) MC=TFC
(D) MC=TVC

18. Which of the following functions is not a component of Kaldor’s model of grow?
(A) Employment function
(B) Technical progress function
(C) Saving function
(D) Investment function

19. Walra’s Law states that the sum of the excess demand for money, bonds and current output must be?
(A) Less than zero
(B) Equal to zero
(C) Equalto one
(D) More than zero

20. For a unitary elastic demand curve, when price increases ,the amount spent by a consumer on a /good?
(A) Decreases
(B) Increases
(C) Remains unchanged
(D) Becomes zero

21. Correlation coefficient is significant if it is?
(A) Less than 6 times of pro able error
(B) More than 6 times of probable error
(C) Equal to probable error
(D) Equal to standard error

22. The term rainy day’ used by Keynes is related with?
(A) Effective demand
(B) Precautionary demand
(C) Investment multiplier
(D) Inflationary gap

23. Root mean square of all the deviations is known as?
(A) Mean deviation from median
(B) Mean deviation from mode
(C) Standard deviation
(D) Quartile deviation

24. If there is perfect correlation between two variables, then the regression lines are?
(A) Parallel
(B)Perpendicular
(C)Coincidental
(D)Intersectional

25. A producer’s surplus is equal to?
(A) AR—MC
(B) AR—AC
(C) AR-MR
(D) TR—TC

26. According to 2001 census, the total number of persons living in urban slums was approximately?
(A)1 crore
(B) 2 crore
(C)3crore
(D) 4 crore

27. The tax called CENVAT is related to?
(A) Central Sales Tax
(B) Union Excise Duty
(C) Corporate Tax
(D) Custom Duty

28. The price and quantity,both are indeterminate under?
(A) Pure competition
(B) Perfect competition
(C) Monopoly
(D) Bilateral monopoly

29. Which of the following is not an example of Internal Economies?
(A) Economies of superior technology
(B) Economies of division of labour
(C) Economies of competition
(D) Economies of management

30. Which of the following type of facts are not Considered under the study of statistics
(A) Quantitative facts
(B) Qualitative facts
(C) Comparative facts
(D) Relative facts

31. The statistical calculations in classified data are based on?
(A) The actual values of observations
(B) The upper class limits
(C) The lower class limits
(D) The mid-points of the classes

32. The concept of merit goods has been introduced by?
(A)Buchanan
(B) Musgrave
(C)Samuelson
(D) Tiebout

33. The Child Labour (Prohibition and Regulation) Act, 1986 prohibits the employment of Children below the age of?
(A) 10 years
(B) 12 years
(C) 14years
(D) 16years

34.The Prime Lending Rate of Commercial Banks are decided by?
(A)Positive
(B) Negative
(C)Zero
(D) Infinite

35. The cross elasticity of demand for substitute commodities is always?
(A)Positive
(B) Negative
(C)Zero
(D) Infinite

36. The K-factor analysis is related with?
(A)Economic growth rate
(B)Tends in foreign trade
(C)Causes of mortality
(D)Infrastructure facilities

37. The ‘knife-edge equilibrium’ in Harrod’s model is an equality between?

(A) G and Gw
(B) Gw and Gn
(C) G and Gn
(D) G,Gw and Gn

38.Stratified sampling is preferred, where?
(A) Population is homogeneous
(B) Population is heterogeneous
(C) Random sampling is not possible
(D) Small samples are required

39. Pure interest is?
(A) Equal to the gross interest
(B) Less than gross interest
(C) More than gross interest
(D) Not related to gross interest

40. Which of the following is totally different from logical multiplier?
(A) Instant multiplier
(B) Lagless multiplier
(C) Static multiplier
(D) Dynamic multiplier

41.Availability hypothesis explains a country’s
(A) Production capacity
(B) Natural resources availability
(C) Commodity composition of foreign trade
(D) Consumption pattern

42. For a Giffen good
(A) Income effect is positive and substitution effect is negative
(B) Income effect is negative and substitution effect is positive
(C) Income effect and substitution effect both are positive
(D)Income effect and substitution effect both are negative

43. To meet the objective of inflation control, the Central Bank should adopt following policy measures
(A) Increase in cash reserve ratio, along with purchase of securities under open market operations
(B) Increase in cash reserve ratio, along with sale of securities under open market operations
(C) Decrease in cash reserve ratio, alongwith purchase of securities under pen market operations
(D) Decrease in cash reserve ratio, alongwith.sale of securities under open market operations

44. The relative measures of dispersion are generally called?
(A) Dispersion coefficient
(B) Dispersion multiplier
(C) Dispersion accelerator
(D) Dispersion variable

45. Which of the following is not expressed by a transformation curve?
(A) Choice
(B) Scarcity
(C) Factor price
(D) Opportunity cost

46. The central theme of the World Development Report, 2009 pub lished by the World Bank is?
(A) Agriculture for development
(8) Development and next generation
(C) A better investment climate for every one
(D) Reshaping economic geography

47. Under the first degree of price discrimination in discriminating monopoly, the consumer’s surplus will be?
(A)Zero
(B) Maximum
(C) Minimum
(D) Indeterminate

48.A rational consumer moves to a higher indifference curve due to?
(A) Monotonic preference
(B) Polytonic preference
(C) Convex preference
(D) Concave preference

49. When was the concept of core sector introduced in Indian industries ?
(A)1970
(B) 1980
(C)1990
(D) 2000

50 .Which is the apex bank for micro finance in India?
(A) State Bank of India
(B) Industrial Development Bank of India
(C) Small Industries Development Bank of India
(D) National Bank for Agriculture and Rural Development

Answers:

1	A
2	C
3	C
4	B
5	B
6	A
7	D
8	C
9	C
10	C
11	B
12	B
13	B
14	D
15	C
16	D
17	B
18	B
19	B
20	C
21	B
22	B
23	C
24	C
25	B
26	D
27	B
28	D
29	C
30	B
31	D
32	B
33	C
34	B
35	A
36	C
37	D
38	B
39	D
40	D
41	B
42	B
43	B
44	A
45	C
46	B
47	A
48	C
49	A
50	D

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PREVIOUS PAPER ECONOMICS HARYANA SCHOOL TEACHERS ELIGIBILITY TEST FOR LECTURER, 2009

MEMORY BASED

MCQ OBJECTIVE QUESTIONS

1. When the given values of x form geometric series and values of y form arithmetic series, the relationship between The variables is given by
(A) Lemon function
(B) Lemon homogeneous function
(C) Binomial function
(D) Exponential function

2. Statistical distrusts are due to?
(A) Nature of statistics
( B)Limited scope of statistics
(C) insufficient tools of statistics
(D) Misuse of statistics

3. Circular test is satisfied by the following index
(A) Laspeyre’s index
(B) Pasche’s index
(C) Fisher’s index
(D) Kelly’s index

4.Which of the following is the largest component of India’s external debt?
(A) Commercial borrowings
(B) NRI deposits
(C) Multilateral debt
(D) Bilateral debt

5. Tobin tax is related with?
(A) Black money transactions
(B) Commodity transactions
(C) Service transactions
(D) Foreign exchange transactions

6. The terms Static’ and Dynamic’ in economics were first used by?
(A)Malthus
(B) Mill
(C)Marshall
(D) Walras

7. A metropolitan city is one which has a population size of more than?
(A)10 lakh
(B)15 lakh
(C) 20 lakh
(D) 25 lakh

8.According to fifth economic census, the highest number of industrial units in the country are
located in the State of?
(A) Maharashtra
(B) Gujarat
(C) Andhra Pradesh
(D) Tamil Nadu

9. Under perfect competition, the entrepreneur’s power of control over the price of the commodity
Is?
(A)Total
(B) Considerable
(C)Some
(D) None
10.Who has regarded the concept of ‘ideal output’ as an indicator of economic welfare?
(A)Hicks
(B) Pareto
(C)Pigou
(D) Kaldor

11. The technique of presenting data by pictogram was developed by?
(A) Croxton and Cowden
(B) Johnson and Jackson
(C) Otto Neurth
(D) Horace Secrist

12 The monetization of economy is measured by?
(A)M⁰/GDP
(B) M¹/GDP
(C) M²/GDP
(D) M³/GDP

13. The shape of average selling cost curve is?
(A) Hyperbola shaped
(B) Rectangular Hyperbola shaped
(C) L-shaped
(D) U-shaped

14.The National Institute of Training for Standardization (NITS) is located at?
(A)Hyderabad
(B) Nagpur
(C)Chandigarh
(D) Noida
15. NABARD is a?
(A) Commercial Bank
(B) Lead Bank
(C) Refinance Bank
(D) Cooperative Bank

16. Cost-plus principle is related with?
(A)Production theory
(B) Value theory
(C) Marginal uti theory
(D) Distribution theory

17. Which one of the following is not a feature of Stagflation?
(A) High input cost
(B) Excess in aggregate demand
(C) High price level
(D) High unemployment level

18.. The Hayek theory of trade cycle is related with?
(A) Over-investment
(B) Price fluctuation
(C) Interaction of multiplier and accelerator
(D) Interaction of saving and investment

19. Which one of the following is a two-dimensional diagram?
(A) Pictogram
(B) Histogram
(C) Bar diagram
(D) Line diagram

20. A firm’s learning curve shows the following relationship between average cost of production and total output over time
(A) Decline in average cost with increase in total output
(B) Decline in average cost with decline in total output
(C) Increase in average cost with decline in total output
(D) Increase in average cost with increase in total output

21. Select the correct statement regarding Harrod’s accelerator and Domar’s accelerator and decide which one is true
(A) Harrod’s accelerator is psychological and Domar’s accelerator is technological
(B) Harrod’s accelerator is technological arid Domar’s accelerator is psychological
(C) Harrod’s accelerator is psychological and Domar’s accelerator is also psychological
(D) 1-larrod’s accelerator is technological and Domar’s accelerator is also technological

22. The transfer payment multiplier in the Keynesian system will be equal to?
(A) MPC/MPS
(B)MPS/MPC
(C)MPS/(1-MPC)
(D)MPC/(1—MPS)

23. The difference between Natural rate’ and ‘Market rate’ of interest has been done by?
(A)Robertson
(B) Keynes
(C)Fisher
(D) Wicksell

24. The quartile deviation for a normal distribution is always equal to?
(A) (2/3)σ
(B) (3/4)σ
(C) (4/5)σ
(D) (5/6)σ

25. Which of the following is not a ‘shift factor of demand’?
(A)Income
(B) Price
(C)Fashion
(D) Taste

Answers:

1	D
2	D
3	D
4	A
5	A
6	B
7	A
8	D
9	D
10	C
11	C
12	B
13	D
14	B
15	C
16	D
17	B
18	A
19	B
20	A
21	D
22	A
23	D
24	A
25	B