Economics Questions and Answers - Set 35 | Indian Economy Solved Multiple Choice Questions(MCQs)

1 Lump sum grant means :

1 A grant whose amount is sufficient to meet the expenditure.

2 A matching and conditional grant.

3 Grant given for a special purpose and it can be utilised only for that purpose.

4 A grant whose amount is not dependent on any matching effort of the recipient.

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Answer: A grant whose amount is not dependent on any matching effort of the recipient.

2 Geometric mean of Laspeyre’s and Paasche’s indices provides :

1 Marshall-Edgeworth Index

2 Bowley’s Index

3 Fisher’s Index

4 Kelley’s Index

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Answer:EFisher’s Index

3 Which one of the following denotes the power of the Test ? [α is probability of Type I error and β is probability of Type II error]

1 α

2 β

3 1 – α

4 1 – β

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Answer:1 – β

4 In a frequency distribution the standard deviation of which is 15.8, the value of median is more than mean by 4, what will be its coefficient of skewness ?

1 – 0.76

2 + 0.76

3 – 0.86

4 + 0.86

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Answer:– 0.76

5 In a frequency distribution if each item is multiplied by 5, the coefficient of variation will remain

1 unchanged

2 will be multiplied by 5

3 will be multiplied by 25

4 will be multiplied by 1/5

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Answer:unchanged

6 Demand for foodstuff is income inelastic. This is explained by

1 Giffen’s Paradox

2 Engel’s Law

3 Gossen’s Law

4 Ricardo’s Law

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Answer:Engel’s Law

7 Non-symmetric risk means :

1 A risk that can be eliminated by diversifying.

2 A risk that cannot be eliminated by diversifying.

3 A risk that can be eliminated without diversifying.

4 A risk that cannot be eliminated.

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Answer: A risk that can be eliminated by diversifying.

8 Who among the following economists developed the concept of ‘Barriers to Entry’ of firms ?

1 J.S. Bain

2 W.J. Baumol

3 Alfred Marshall

4 W.S. Jevons

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Answer:J.S. Bain

9 Even as fixed average cost continues to fall, the average variable cost begins to rise because

1 returns to factors start diminishing

2 returns to factors start rising

3 input prices start rising

4 producers budget starts shrinking

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Answer:producers budget starts shrinking

10 Which among the following is not a characteristic of Imperfect Competition ?

1 Perfect knowledge

2 Free transport

3 Free Entry of firms

4 Homogeneous product

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Answer:Perfect knowledge

11 Which among the following were neglected by Keynes in his theory of employment ?

1 Role of expectations

2 Role of capital stock

3 Role of consumption

4 Role of government

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Answer:Role of capital stock

12 The theoretical proposition of stable velocity of money is being weakened by the recent researchers. This has the effect of weakening the position of

1 Keynesians

2 Monetarists

3 New Classicals

4 Utopians

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