Economics Questions and Answers - Set 15 | Indian Economy Solved Multiple Choice Questions(MCQs)

1 Who among the following is not associated with the compensation principle of welfare economics ?

1 Kaldor

2 Hicks

3 Scitokosky

4 Pareto

View Answer

Answer:Pareto

2 Substitution of leisure for income leads to

1 Backward sloping supply curve

2 Need for overtime payment

3 Both (1) and (2)

4 Neither (1) nor (2)

View Answer

Answer: Both (1) and (2)

3 Which of the following describes the Lemons problem in economies ?

1 Bad currency drives out the good currency.

2 Low-quality goods can drive high quality goods out of the market

3 Low cost firms drive out high cost firms from the market.

4 Excess production of a horticulture crop.

View Answer

Answer:Bad currency drives out the good currency.

4 Assuming that firm A increases its advertising and firm B responds by increasing its advertising. If profits of both firms increase, then firms A and B are engaged in

1 a zero-sum game

2 a positive-sum game

3 a negative-sum game

4 behaviour which cannot be understood in terms of games theory

View Answer

Answer:`behaviour which cannot be understood in terms of games theory

5 Changes in the portfolio assets of the people take place due to

1 Current rate of interest

2 Future rate of interest

3 Current rate of interest in relation to future rate of interest

4 Current price of bonds

View Answer

Answer:Current rate of interest in relation to future rate of interest

6 Which among the following measures the intensity of poverty ?

1 Head Count Ratio of Poverty

2 Poverty Gap

3 Square of Poverty Gap

4 Per Capita Income

View Answer

Answer:Square of Poverty Gap

7 Which among the following has not been declared as a special category State in India ?

1 Uttarakhand

2 Bihar

3 Jammu & Kashmir

4 Himachal Pradesh

View Answer

Answer:Bihar

8 In the context of project evaluation, the net present value method mainly depends upon :

1 interest rate prevalent at a given time

2 exchange rate prevalent at a given time

3 sales tax rate prevalent at a given time

4 both income and sales tax rates prevalent at a given time

View Answer

Answer: interest rate prevalent at a given time

9 Which among the following economists advocated the use of social marginal productivity criterion ?

1 Hollis B. Chenery

2 A.K. Sen

3 Maurice Dobb

4 J.J. Polak

View Answer

Answer:Hollis B. Chenery

10 Trickle down strategy explains process associated with which of the following economic systems ?

1 Capitalist system

2 Socialist system

3 Mixed economy

4 Both (1) and (3)

View Answer

Answer:Both (1) and (3)

11 Who among the following is not a regulator of financial sector in India ?

1 Securities and Exchange Board of India

2 Insurance Regulatory and Development Authority

3 Competition Commission of India

4 Forward Market Commission of India

View Answer

Answer:Competition Commission of India

12 Dumping in international trade means that a country

1 exports all the domestic production of a commodity

2 imports a commodity at a very low price

3 exports a commodity at a price less than its cost of production

4 exports a commodity at a price equal to its cost of production

View Answer

Answer:exports a commodity at a price less than its cost of production

13 International trade in goods and services is sometimes used as a substitute for all of the following, except

1 international movement of capital

2 international movement of labour

3 domestic production of same goods and services

4 domestic production of different goods and services

View Answer

Answer:international movement of labour

14 If the elasticities of supply of exports and imports are large in relation to the elasticity of demand for exports and imports, devaluation of a country's currency will :

1 not effect the terms of trade

2 worsen the terms of trade

3 improve the terms of trade

4 All of the above

View Answer