2nd Important MCQs
1. When did the Reserve Bank of India
become a state owned institution ?
1943
1949 ✅
1947
1954
2. Ratchet effect relates to:
Life-
cycle hypothesis
Permanent income hypothesis
Relative income hypothesis✅
Absolute income hypothesis
3. Money appears to have a major influence on
Inflation
The bus cycle
Interest rates
Each of the above✅
4. Banks create funds using following methods except....
Share capital
Reserve fund
Borrowing from general public
Investments✅
5. In a multiple regression model given by Yi + β1 + β2α2i + β3α3i uv the partial regression coefficients are given by
Both β1 and β2
Both β2 and β3✅
Both β1 and β3
Both β1 and ui
6. All internationally traded services are covered under which of the following WTO agreements?
GATS✅
TRIPS
TRIMS
PTA
7. Kaldor's Model of growth identifies the factor causing growth as
savings
capital accumulation
human capital investment
technical dynamism✅
8. In India, minimum support price for agricultural products is finally approved by
Union Cabinet ✅
Ministry of Agriculture
The Parliament of India
The President of India
9. National income Is defined as
GDP at market price
NNP at market price
GNP at market price
NNP at Factor cost✅
10. Suppose the demand curve is downward sloping and supply curve is positively sloping. Imposition of tax would
increase producer's surplus
reduce consumer's surplus✅
leaves producer's surplus unchanged but reduces consumer's surplus
11. The overall goodness of fit of the regression model is measured by
Coefficient of variation
Coefficient of determination✅
Coefficient of correlation
Coefficient of association
12. “Underdevelped countries are the slums of the world economy.” This statement is stated by
Ragner Nurkse
A. K. Cairncross✅
Colin Clark
Jadgish Bhagwati
13.The Indian soft drinks market is dominated by two companies, Coke & Pepsi. What typo of market structure prevails in the industry?
Perfect competition
Monopolistic competition
Duopoly ✅
None of these
14. Shut-down point is one where
Marginal revenue equals zero
A firm cannot reach a no profit no-loss position
Average revenue fails to cover average variable cost ✅
Marginal revenue equals price
15. Who was the Chairman of 14th Finance Commission of India?
vijay Kelkar
Abhijeet Sen
Raghuram Rajan
Y.V. Reddy✅
16. Which are the two main phases of a business cycle?
Recession & expansion ✅
Depression & boom
Peak & down
Boom & recession
17. In classical linear regression model, xi and ui are
Positively correlated
Negatively correlated
Highly correlated
Not correlated✅
18. Which of the following is an example of credit Investment?
A share
A draft
A banker's acceptance
A bond✅
19. A price taker is
a firm that accepts different prices from different customers
a consumer who accepts different prices from different firms
a firm that accepts the best offers it can get from its customers
a firm that cannot influence price✅
20. The exchange of goods or services between individuals and institutions is known as
Market economy
Economic interaction ✅
Medium of exchange
None of the above
21. How should a government react to a depression in the economy?
Increase taxation
Increase govt. expendi-ture
Reduce govt. expenditure
Increase govt. expenditure and reduce✅
22. The costs that do not vary with the level of output but can be avoided at zero level of output are
Sunk costs ✅
Total costs
Fixed costs
Implicit costs
23. If the demend for LIPG remain the same even after the Increase In LPG prices, It means LPG is a
Norma' good
Necessity✅
Luxury good
Inferior good
24. How should a government react to a recovery situation In an economy?
Increase govt expenditure
Reduce govt. expenditure ✅
Increase govt. expenditure and reduce taxation
None of the above
25. In India, minimum support price for agricultural products is finally approved by
Union Cabinet ✅
Ministry of Agriculture
The Parliament of India
The President of India
26. Who assumed elasticity of demand for money equal to 1?
Mill
Hicks
Marshall✅
Samuelson
27.HDI is constructed with reference to
(i) Life expectancy or birth
(ii) Real GDP/per capita
(iii) Inflation index
(iv) Nominal GDP
Code:
(i) and (ii) ✅
(ii) and (iii)
(iii) and (iv)
(iv)only
28. In standard bivariate regression, the coefficient of determination is given by:-
Residual sum or squares divided by total sum of squares
Total sum of squares divided by residual sum of squares
One minus residual sum of squares divided by total sum of squares
One plus residual sum of squares✅ divided by total sum of sguares
29. In the Lewis Model of growth the process or capital accumulation by:- capitalists results in
higher productivity✅
reduction of surplus labour
technical progress
shortage or unskilled labour
30. The Introduction of new product with added features in the market Is known as
Process innovation
Product innovation✅
Plant innovation
Product function
become a state owned institution ?
1943
1949 ✅
1947
1954
2. Ratchet effect relates to:
Life-
cycle hypothesis
Permanent income hypothesis
Relative income hypothesis✅
Absolute income hypothesis
3. Money appears to have a major influence on
Inflation
The bus cycle
Interest rates
Each of the above✅
4. Banks create funds using following methods except....
Share capital
Reserve fund
Borrowing from general public
Investments✅
5. In a multiple regression model given by Yi + β1 + β2α2i + β3α3i uv the partial regression coefficients are given by
Both β1 and β2
Both β2 and β3✅
Both β1 and β3
Both β1 and ui
6. All internationally traded services are covered under which of the following WTO agreements?
GATS✅
TRIPS
TRIMS
PTA
7. Kaldor's Model of growth identifies the factor causing growth as
savings
capital accumulation
human capital investment
technical dynamism✅
8. In India, minimum support price for agricultural products is finally approved by
Union Cabinet ✅
Ministry of Agriculture
The Parliament of India
The President of India
9. National income Is defined as
GDP at market price
NNP at market price
GNP at market price
NNP at Factor cost✅
10. Suppose the demand curve is downward sloping and supply curve is positively sloping. Imposition of tax would
increase producer's surplus
reduce consumer's surplus✅
leaves producer's surplus unchanged but reduces consumer's surplus
11. The overall goodness of fit of the regression model is measured by
Coefficient of variation
Coefficient of determination✅
Coefficient of correlation
Coefficient of association
12. “Underdevelped countries are the slums of the world economy.” This statement is stated by
Ragner Nurkse
A. K. Cairncross✅
Colin Clark
Jadgish Bhagwati
13.The Indian soft drinks market is dominated by two companies, Coke & Pepsi. What typo of market structure prevails in the industry?
Perfect competition
Monopolistic competition
Duopoly ✅
None of these
14. Shut-down point is one where
Marginal revenue equals zero
A firm cannot reach a no profit no-loss position
Average revenue fails to cover average variable cost ✅
Marginal revenue equals price
15. Who was the Chairman of 14th Finance Commission of India?
vijay Kelkar
Abhijeet Sen
Raghuram Rajan
Y.V. Reddy✅
16. Which are the two main phases of a business cycle?
Recession & expansion ✅
Depression & boom
Peak & down
Boom & recession
17. In classical linear regression model, xi and ui are
Positively correlated
Negatively correlated
Highly correlated
Not correlated✅
18. Which of the following is an example of credit Investment?
A share
A draft
A banker's acceptance
A bond✅
19. A price taker is
a firm that accepts different prices from different customers
a consumer who accepts different prices from different firms
a firm that accepts the best offers it can get from its customers
a firm that cannot influence price✅
20. The exchange of goods or services between individuals and institutions is known as
Market economy
Economic interaction ✅
Medium of exchange
None of the above
21. How should a government react to a depression in the economy?
Increase taxation
Increase govt. expendi-ture
Reduce govt. expenditure
Increase govt. expenditure and reduce✅
22. The costs that do not vary with the level of output but can be avoided at zero level of output are
Sunk costs ✅
Total costs
Fixed costs
Implicit costs
23. If the demend for LIPG remain the same even after the Increase In LPG prices, It means LPG is a
Norma' good
Necessity✅
Luxury good
Inferior good
24. How should a government react to a recovery situation In an economy?
Increase govt expenditure
Reduce govt. expenditure ✅
Increase govt. expenditure and reduce taxation
None of the above
25. In India, minimum support price for agricultural products is finally approved by
Union Cabinet ✅
Ministry of Agriculture
The Parliament of India
The President of India
26. Who assumed elasticity of demand for money equal to 1?
Mill
Hicks
Marshall✅
Samuelson
27.HDI is constructed with reference to
(i) Life expectancy or birth
(ii) Real GDP/per capita
(iii) Inflation index
(iv) Nominal GDP
Code:
(i) and (ii) ✅
(ii) and (iii)
(iii) and (iv)
(iv)only
28. In standard bivariate regression, the coefficient of determination is given by:-
Residual sum or squares divided by total sum of squares
Total sum of squares divided by residual sum of squares
One minus residual sum of squares divided by total sum of squares
One plus residual sum of squares✅ divided by total sum of sguares
29. In the Lewis Model of growth the process or capital accumulation by:- capitalists results in
higher productivity✅
reduction of surplus labour
technical progress
shortage or unskilled labour
30. The Introduction of new product with added features in the market Is known as
Process innovation
Product innovation✅
Plant innovation
Product function
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