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Mixed Tests( Economics) \

Description: Economics Test - 16
Number of Questions: 50
Created by:
Tags: Economics Test - 16 General Economics
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Per capita national income means

  1. NNP/population

  2. Total capital/population

  3. Population/NNP

  4. None of these


Correct Option: A
Explanation:

Correct Answer: NNP/population

Which of the following is not an essential condition of pure competition?

  1. Large number of buyers and sellers

  2. Homogeneous product

  3. Freedom of entry

  4. Absence of transport cost


Correct Option: D

Which of the following is not a characteristic of a Price taker?

  1. TR = PXQ

  2. AR = Price

  3. Negatively - sloped demand curve

  4. Marginal Revenue = Price


Correct Option: C

Which of the following is not a condition of perfect competition?

  1. A large number of firms

  2. Perfect mobility of factors

  3. Informative advertising to ensure that consumers have good information

  4. Freedom of entry and exit into and out of the market


Correct Option: C

All of the following are characteristics of a monopoly except?

  1. There is a single firm

  2. The firm is a price taker

  3. The firm produces a unique product

  4. The existence of some advertising


Correct Option: B

A monopolist is able to maximize his profits when

  1. his output is maximum

  2. he charges a high price

  3. his average cost is minimum

  4. his marginal cost is equal to marginal revenue


Correct Option: D

What is the other name of the long run average cost curve?

  1. Profit curve

  2. Planning curve

  3. Demand curve

  4. Indifference curve


Correct Option: B

Price discrimination will be profitable only if the elasticity of demand in different markets, in which the total market has been divided, is

  1. uniform

  2. different

  3. less than one

  4. zero


Correct Option: B

Agricultural goods markets depict characteristics close to

  1. perfect competition

  2. oligopoly

  3. monopoly

  4. monopolistic competition


Correct Option: A

The kinked demand curve model of oligopoly assumes that

  1. response to a price increase is less than the response to a price decrease

  2. response to a price increase is more than the response to a price decrease

  3. elasticity of demand is constant regardless of whether price increases or decreases

  4. elasticity of demand is perfectly elastic if price increases, and perfectly inelastic if price decreases


Correct Option: A

The share of agriculture in India's national income has __________ over the years.

  1. remained constant

  2. decreased

  3. increased

  4. first decreased and then increased


Correct Option: B

Which of the statements is correct?

  1. The tertiary sector contributes the maximum to the GDP.

  2. India is a basically a socialist economy.

  3. The distribution of income and wealth in India is quite equitable.

  4. None of these


Correct Option: A

NABARD is the apex bank for ___________ credit(s) in India.

  1. real estate

  2. small scale industries

  3. agriculture

  4. none of these


Correct Option: C

Which of the following is incorrect?

  1. Special schemes have been started to promote agro-products.

  2. India has been a big importer of food grains especially since 1990s.

  3. High yielding varieties programme has resulted in improvement in production and productivity of food grains in India.

  4. None of these


Correct Option: B

Agriculture sector in India faces the problem of

  1. slow and uneven growth

  2. inadequate and incomplete land reforms

  3. inadequate finance

  4. all of the above


Correct Option: D

The Tenth five year plan aimed at achieving a growth rate of ________ in the industrial sector.

  1. 5 percent

  2. 8 percent

  3. 10 percent

  4. 6 percent


Correct Option: C

Which of the following statements is/are correct?

  1. The industrial pattern on the eve of independence was quite balanced.

  2. During the planning period, the structure of Indian industry has shifted in favour of basic and capital goods and intermediate goods.

  3. Most of the big industrial units in India are sick.

  4. All of the above


Correct Option: B

India has the _____________ largest scientific and technical manpower in the world.

  1. fifth

  2. tenth

  3. eighth

  4. second


Correct Option: D

Over the planning period, the share of industrial sector in the GDP of India has

  1. increased

  2. decreased

  3. remained constant

  4. remained above 50 percent


Correct Option: A

Demand for the final consumption arises

  1. in household sector only

  2. in government sector only

  3. in both household and government sectors

  4. neither in household sector nor in government sector


Correct Option: C

Which of the following is an economic activity?

  1. Playing friendly cricket match

  2. Teaching one's own daughter at home

  3. Manufacturing chairs at subsidised rate

  4. A housewife doing household duties


Correct Option: C
Explanation:

Correct Answer: Manufacturing chairs at subsidised rate

In which state is the sex ratio most favourable to women?

  1. Andhra Pradesh

  2. Uttar Pradesh

  3. Kerala

  4. Karnataka


Correct Option: C

India's rank in the world's population comes after

  1. U.S.A

  2. China

  3. Australia

  4. Canada


Correct Option: B

India's present population is

  1. more than that of China

  2. less than that of China

  3. less than that of Pakistan

  4. less than that of England


Correct Option: B

NTPC stands for

  1. National Thermal Power Corporation

  2. National Tidal Power Corporation

  3. National Theological Power Corporation

  4. National Talent and Potential Corporation


Correct Option: A

Which of the following is correct in relation to banks in the post reform period?

  1. Bank rate has been increased to 10 per cent.

  2. CRR has been increased to 8 per cent.

  3. CRR has been reduced in stages.

  4. Public sector banks have been asked to raise their funds from their private resources only.


Correct Option: C

Population per bank in India is

  1. around 5000

  2. around 20000

  3. around 16000

  4. around 45000


Correct Option: C

_______________ refers to disposal of public sector's units in equity in the market.

  1. Globalisation

  2. Privatisation

  3. Disinvestment

  4. Liberalisation


Correct Option: C

Commercial banks suffer from

  1. regional imbalances

  2. increasing overdues

  3. lower inefficiency

  4. all of the above


Correct Option: D

Money includes

  1. currencies and demand deposits

  2. bonds and government securities

  3. equity shares

  4. all of the above


Correct Option: D

M1 in the money stock in India refers to

  1. post office saving deposits

  2. total post office deposits

  3. currency plus demand deposits plus other deposits with RBI

  4. time deposits with banks


Correct Option: C

Which of the following is not a characteristic of land?

  1. Its supply for the economy is limited.

  2. It is immobile.

  3. Its usefullness depends on human efforts.

  4. It was produced by our forefathers.


Correct Option: D
Explanation:

Correct Answer: It was produced by our forefathers.

The marginal product of a variable input is best described as

  1. the total product divided by the number of units of variable input

  2. the additional output resulting from one unit increase in the variable input

  3. the additional output resulting from one unit increase in both the variable and fixed inputs

  4. the ratio of the amount of the variable input that is being used to the amount of the fixed input


Correct Option: B

Diminishing marginal returns imply

  1. decreasing average variable costs

  2. decreasing marginal costs

  3. increasing marginal costs

  4. decreasing average fixed costs


Correct Option: C

To economists, the main difference between the short run and the long run is that

  1. in the short run all inputs are fixed, while in the long run all inputs are variable

  2. in the short run the firm varies all of its inputs to find the least cost combination of inputs

  3. in the short-run at least one of the firm's input levels is fixed

  4. in the long run the firm is making a constrained decision about how to use the existing plant and equipments efficiently


Correct Option: C

Which cost increases continuously with the increase in production?

  1. Average cost

  2. Marginal cost

  3. Fixed cost

  4. Variable cost


Correct Option: D
Explanation:

Correct Answer: Variable cost

In the short run, when the output of firm increases, its average fixed cost

  1. increases

  2. decreases

  3. remains constant

  4. first decreases and then increases


Correct Option: B

Marginal cost is defined as

  1. the change in total cost due to a one unit change in output

  2. total cost divided by output

  3. the change in output due to a one unit change in an input

  4. total product divided by the quantity of input


Correct Option: A

Which of the following is an example of an explicit cost?

  1. The wages a proprietor could have made by working as an employee of a large firm.

  2. The income that could have been earned in alternative uses by the resources owned by the firm.

  3. The payment of wages by the firm.

  4. The normal profit earned by a firm.


Correct Option: C

Which of the following is/are function(s) of an entrepreneur?

  1. Initiating a business enterprise

  2. Risk bearing

  3. Innovating

  4. All of the above


Correct Option: D

A firm's average total cost is Rs. 300 at 5 units of output and Rs. 320 at 6 units of output. The marginal cost of producing the 6th unit is

  1. Rs. 20

  2. Rs. 120

  3. Rs. 320

  4. Rs. 420


Correct Option: D

The law of scarcity

  1. does not apply to developed countries

  2. applies only to the less developed countries

  3. implies that consumers wants will be satisfied in a socialistic system

  4. implies that consumers wants will never be completely satisfied


Correct Option: D

Who expressed the view that economics is neutral between end?

  1. Robbins

  2. Marshall

  3. Pigou

  4. Adam Smith


Correct Option: A

An example of positive economic analysis would be

  1. an analysis of the relationship between the price of food and the quantity purchased

  2. determining how much income each person should be granted

  3. determining the fair price for food

  4. deciding how to distribute the output of the economy


Correct Option: A
Explanation:

Correct Answer: an analysis of the relationship between the price of food and the quantity purchased

Which of the following is not a determinant of the firm's cost function?

  1. Production function

  2. Price of labour

  3. Taxes

  4. Price of the firm's output


Correct Option: D

Which of the following does not suggest a macro approach for India?

  1. Determining the GNP of India.

  2. Identifying the causes of inflation in India.

  3. Finding the causes of failure of X and Co.

  4. Analysing the causes of failure of an industry in providing large scale employment.


Correct Option: C

Capital intensive technique would get chosen in a

  1. labour surplus economy

  2. capital surplus economy

  3. developed economy

  4. developing economy


Correct Option: B

Which of the following economies is without scarcity?

  1. The pre-independent Indian Economy, where most people were farmers.

  2. A mythical economy, where everybody is a billionaire.

  3. Any economy, where income is distributed equally among its people.

  4. None of these


Correct Option: D

Which of the following statements is true?

  1. Accumulation of capital depends solely on income.

  2. Savings can also be affected by the state.

  3. External economies go with size and internal economics with location.

  4. Supply curve of labour is an upward slopping curve.


Correct Option: B

What will be one of the future consequences of an increase in the current level of consumption in India?

  1. Slower economic growth in the future

  2. Greater economic growth in the future

  3. No change in our economic growth rate

  4. Greater capital accumulation in the future


Correct Option: A
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