Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Economics -29

1. Marginal Revenue of a Monopoly firm is less than the price. Because:
(A) Demand curve has a positive slope.
(B) Demand curve has a negative slope.
(C) Monopolist incurs losses.
(D) Monopolist is in equilibrium.


2. For an inferior goods, income consumption curve and Engles curves are
(A) Positively sloped
(B) Negatively sloped
(C) Are the same
(D) Income consumption curve positively sloped and the Engles curve is negatively sloped


3. The classical economists focused on the role of money as
(A) medium of exchange
(B) medium of distribution
(C) wealth
(D) link between present and future


4. A point of ‘Kink’ in the kinked demand curve indicates
I. Price rigidity
II. Quantity rigidity
III. Price flexibility
IV. Quantity flexibility
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) III and IV are correct.
(D) I and IV are correct.


5. If the demand for money is perfectly interest inelastic, the LM schedule will be
(A) Upward sloping
(B) Downward sloping
(C) Horizontal line
(D) Vertical line


6. Harrod-Domar model of economic growth is based on the equilibrium between
(A) Income generation and productive capacity creation
(B) Equilibrium between income and consumption
(C) Equilibrium between savings and investment
(D) None of the above


7. HDI is entrusted with reference to :
I. Life expectancy at birth
II. Real GDP/per capita
III. Infant mortality
IV. Morbidity
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) III and IV are correct.
(D) All the above


8. In calculating the buoyancy of a tax, we consider
(A) Only discretionary changes
(B) Only automatic changes
(C) Both (A) and (B)
(D) Neither (A) nor (B)


9. Which of the following measures of the central tendency suits the data best if the objective is to assess the distribution of values ?
(A) Arithmetic mean
(B) Mode
(C) Median
(D) Kurtosis


10. Fiscal policy relates to the Government decision in respect of
I. Taxation
II. Government spending
III. Government borrowing
IV. Public Debt
Codes :
(A) III and IV are correct.
(B) II, III and IV are correct.
(C) I and II are correct.
(D) All the above are correct.


11. Comparative cost advantage in Ricardo’s international trade theory arises due to
(A) Labour cost differences
(B) Differences in factor endowment
(C) Factor abundance defined in terms of factor prices
(D) All of the above


12. Improvement in the BOP deficit may be effected through
I. Import control
II. Export promotion
III. Foreign exchange control
IV. Devaluation
Codes :
(A) I and II are correct.
(B) I, II, III and IV are correct.
(C) II and III are correct.
(D) I, II and III are correct.


13. Which of the following is not a component of Bharat Nirman?
(A) Rural housing
(B) Rural electrification
(C) Agro-based industries
(D) Rural telephony


14. Assertion (A) : Financial inclusion is desirable to help weaker sections of society in the country. Reason (R) : Investment activity needs to be promoted to facilitate access to development benefits to masses.
Codes :
(A) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(B) Both (A) and (R) are correct and (R) is the correct explanation of (A).
(C) (A) is not correct, but (R) is correct.
(D) (A) is correct, but (R) is not correct.


15. The problem relating to burden of public debt has been dealt by
I. A.P. Learner
II. E.D. Domar
III. A.C. Pigou
IV. A.H. Henson
Codes :
(A) I and II are correct.
(B) II and III are correct.
(C) I and IV are correct.
(D) II and III are correct.

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