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Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 25

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Free Download as PDF Economics Quiz Questions and Answers for Competitive Exams or solved MCQs with answers. These quiz objective questions are helpful for competitive exams SSC, UPSC, IAS, IPS, CDS, NDA, Railways or RRB, psc exams of Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal, Chhattisgarh, Uttarakhand, Jharkhand, Telangana etc.
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(1) Which of the following conditions is most likely to benefit a debtor under new classical economic framework ?
(1) Anticipated deflation
(2) Paasche’s index number
(3) Anticipated inflation
(4) Unanticipated inflation
Answer: Unanticipated inflation
(2) Which theory assumes that increase in stock of money is directly spent on goods ?
(1) Quantity theory of money
(2) IS - LM theory
(3) Keynes
(4) None of the above
Answer: Quantity theory of money

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(3) In Harrod’s model of economic growth, if warranted rate is below the natural rate of growth then it is possible to maintain steady state growth at warranted rate with :
(1) Continually increasing unemployment
(2) A constant rate of unemployment
(3) Continually decreasing unemployment
(4) None of the above
Answer: Continually increasing unemployment
(4) According to Harrod, neutral technical progress is characterised as :
(1) Capital augmenting
(2) Labour augmenting
(3) Both labour and capital augmenting
(4) Productivity increasing
Answer: Labour augmenting
(5) The capacity creating aspect of investment in growth theory was explained by :
(1) R.F. Harrod
(2) E.D. Domar
(3) R.M. Solow
(4) P.A. Samuelson
Answer: E.D. Domar
(6) The rate at which banks lend to RBI is known as :
(1) Bank Rate
(2) Repo Rate
(3) Reverse Repo rate
(4) Interest Rate
Answer: Reverse Repo rate
(7) A less elastic IS curve means that :
(1) Monetary policy is more effective
(2) Monetary policy is less effective
(3) Fiscal policy is less effective
(4) Both (1) and (3) are true
Answer: Monetary policy is less effective
(8) When LM curve is vertical, which one of the following is correct ? An increase in money supply will lead to :
(1) Fall in interest rate
(2) Fall in the level of income
(3) Rise in the rate of interest
(4) No change in the level of income
Answer: Fall in interest rate
(9) Who among the following believe the velocity of money to be constant ?
(1) Classicals
(2) Keynesians
(3) Monetarists
(4) Both (1) and (3) above
Answer: Both (1) and (3) above
(10) For Keynesian demand for money, which of the following is correct ? People wish to hold money in the form of :
(1) Cash
(2) Bonds
(3) Both Cash and Bonds
(4) Neither Cash nor Bonds
Answer: Neither Cash nor Bonds
(11) Crowding out will emerge in the economy, if :
(1) government spending is on the rise
(2) deficit financing is in control
(3) both (1) and (2) are relevant
(4) neither (1) nor (2) are relevant
Answer: government spending is on the rise
(12) Population replacement level of total fertility rate is :
(1) 2.1
(2) 1.0
(3) 2.5
(4) 4.0
Answer: 2.1
(13) Which one of the following is not an Hirofumi Ujawa condition for a well behaved production function ?
(1) Continuously differentiable
(2) When x50, f(x)50
(3) The second derivative of the function is negative
(4) The function is concave
Answer: The function is concave
(14) Value of the Marginal Product (VMP) is :
(1) MPP3MR
(2) MPP3AR
(3) APP3MR
(4) APP3AR
Answer: MPP3AR
(15) Which of the following is not a part of Bharat Nirman ?
(1) Rural Housing
(2) Agro-based Industries
(3) Rural Electrification
(4) Rural Telephony
Answer: Agro-based Industries

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