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Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 5

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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) If a sample survey of the same 100 households is conducted in a particular village, annually for five years, the data so collected will be described as :
(1) Time Series Data
(2) Cross-section Data
(3) Panel Data
(4) Pooled Time Series and Cross-section Data
Answer: Panel Data
(2) If in a distribution mean is 40, mode is 60 and the standard deviation is 10, then the coefficient of skewness will be :
(1) −2
(2) 2
(3) −20
(4) 5
Answer: −2

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(3) In a multiple linear regression with 4 independent variables, the overall regression’s significance is to be tested. Which test would be used ?
(1) Z test
(2) F test
(3) χ2 test
(4) t test
Answer: F test
(4) If a sample of 100 is to be taken from a population of 1000 farmers consisting of marginal small and large farmers, which of the following will be the most appropriate sampling method ?
(1) Simple random sampling
(2) Cluster sampling
(3) Stratified random sampling
(4) Systematic sampling
Answer: Stratified random sampling
(5) If the producer pays the price for each of the inputs that is used is equal to its value of Marginal product, then which one of the following does he earn ?
(1) Zero supernormal profit
(2) Monopoly profit
(3) Positive supernormal profit
(4) Negative supernormal profit
Answer: Zero supernormal profit
(6) In 2016, the Nobel prize in Economics was awarded for :
(1) analysis of trade pattern and location of economic activity
(2) analysis of asset prices
(3) analysis of globalization
(4) contributions to contract theory
Answer: contributions to contract theory
(7) Which of the following is not true for perfect competition ?
(1) Price =LAC
(2) Market demand curve for a commodity is horizontal to X-axis
(3) Firms earn normal profits
(4) In the long run firms operate at the minimum point of average cost
Answer: Market demand curve for a commodity is horizontal to X-axis
(8) Which amongst the following statements is correct ?
(1) The minimum point of AVC and MC are at the same level of output
(2) Minimum of AVC is at lesser output than the minimum of MC
(3) Minimum of AVC is at larger output than the minimum of MC
(4) Any of the above is possible depending upon operating of the law of returns
Answer: Minimum of AVC is at larger output than the minimum of MC
(9) A firm in monopolistic competition advertises in order to :
(1) make its product more similar to its competitors’
(2) shift the demand curve for its product to the left
(3) make the demand for its product less price elastic
(4) reduce the industry’s price
Answer: make the demand for its product less price elastic
(10) Assume that people like onions on their hamburgers. If the supply of hamburgers decreases, the demand for onions will most likely :
(1) remain unchanged because hamburgers and onions are different goods
(2) increase because hamburgers and onions are substitutes
(3) increase because hamburgers and onions are complements
(4) decrease because hamburgers and onions are complements
Answer: decrease because hamburgers and onions are complements
(11) In the shortrun, which of the following costs must continuously decrease as output increases ?
(1) Total variable cost
(2) Total fixed cost
(3) Average variable cost
(4) Average fixed cost
Answer: Average fixed cost
(12) If export price increases by 5 percent and import price by 20 percent, the commodity terms of trade is :
(1) 0.91
(2) 0.87
(3) 0.25
(4) 4
Answer: 0.87
(13) If economic agents perfectly anticipate policy changes and if all prices, including wages, are completely flexible, which of the following will be true in the long run ?
(1) There will be no trade - off between inflation and unemployment
(2) The unemployment rate will be less than the natural rate of unemployment
(3) The price level will be constant
(4) Changes in the money supply will not lead to changes in the price level
Answer: There will be no trade - off between inflation and unemployment
(14) Who made the statement, “Inflation is everywhere and always a monetary phenomenon’’ ?
(1) Milton Friedman
(2) James Tobin
(3) T.W. Swan
(4) A.W. Phillips
Answer: Milton Friedman
(15) Who argued that Keynes’s theory of equilibrium with involuntary unemployment is a special case of the general equilibrium model, augmented to include money ?
(1) W. Leontief
(2) J.R Hicks
(3) M. Friedman
(4) D. Patinkin
Answer: D. Patinkin

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