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Mixed Tests( Economics)

Description: Economics Test - 15
Number of Questions: 50
Created by:
Tags: Economics Test - 15 General Economics
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Which of the following statements is correct?

  1. Robbins has made economics as a form of welfare economics.

  2. The law of demand is always true.

  3. All capital is wealth, but all wealth is not capital.

  4. None of these


Correct Option: C

Which of the following represent(s) macro-economics from the national point of view?

  1. Turnover ratio of Reliance Limited

  2. Capital-output ratio of Indian industries

  3. Debt equity ratio of TELCO

  4. All of the above


Correct Option: B

When as a result of decrease in the price of a commodity, the total expenditure made on it decreases, we say that price elasticity of demand is

  1. less than unity

  2. unity

  3. zero

  4. greater than unity


Correct Option: A

The point elasticity at the mid-point on the demand curve is

  1. one

  2. zero

  3. less than one

  4. more than one


Correct Option: A

If as a result of 50 percent increase in all inputs, the output rises by 75 per cent, this is a case of

  1. increasing returns to a factor

  2. increasing returns to scale

  3. constant returns to a factor

  4. constant returns to scale


Correct Option: B

Which of the following can be regarded as a law of economics?

  1. Ceteris Paribus, i.e. if the price of a commodity rises, the demanded of it will fall.

  2. Higher the income, greater is the expenditure.

  3. Taxes have no relation with the benefits which a person derives from the state.

  4. None of these


Correct Option: A

If the income of a household rises by 20 per cent, the demand for computer rises by 25 per cent. This means computer (in Economics) is a/an

  1. inferior good

  2. luxury good

  3. necessity

  4. none of these


Correct Option: B

The structure of the cold drink industry in India is best described as

  1. perfectly competitive

  2. monopolistic

  3. oligopolistic

  4. monopolistically competitive


Correct Option: C

Which of the following is not a property of the indifference curve?

  1. Indifference curve is convex to the origin

  2. Indifference curve slopes downwards from left to right

  3. No two indifference curves can cut each other

  4. None of these


Correct Option: D

If the price of apples rises from Rs. 30 per kg to Rs. 40 per kg and the supply increases from 240 kg to Rs. 300 kg, then the elasticity of supply is

  1. .77

  2. .67

  3. (-) .67

  4. (-) .77


Correct Option: A

Which of the statements is correct?

  1. Land is a highly mobile factor of production.

  2. Man cannot create matter.

  3. The services of housewife are termed as production in economics.

  4. None of these


Correct Option: B

Under which market structure, average revenue of a firm is equal to its marginal revenue?

  1. Oligopoly

  2. Monopoly

  3. Perfect competition

  4. Monopolistic competition


Correct Option: C

If a seller realises Rs. 10,000 after selling 100 units and Rs. 14,000 after selling 120 units, what is the marginal revenue?

  1. Rs. 4,000

  2. Rs. 450

  3. Rs. 200

  4. Rs. 100


Correct Option: C

Under which market condition, though the firms earn normal profits in the long run, there is always excess capacity with them?

  1. Perfect competition

  2. Monopoly

  3. Oligopoly

  4. Monoplistic competition


Correct Option: D

The cost of one thing in terms of the alternative given up is known as

  1. opportunity cost

  2. real cost

  3. actual cost

  4. deffered cost


Correct Option: A

Which of the following statements is incorrect?

  1. Even monopolist can earn losses.

  2. Firms in a perfectly competitive market are price takers.

  3. It is always beneficial for a firm in the perfectly competitive market to discriminate prices.

  4. Economic laws are less exact than the laws of physical sciences.


Correct Option: C

Price discrimination is profitable when

  1. the elasticity of a product is the same in different markets

  2. the elasticity of a product is different in different markets

  3. the elasticity of a product is zero in different markets

  4. none of these


Correct Option: B

In economics, what a consumer is ready to pay minus what he actually pays, is termed as

  1. consumer's equilibrium

  2. consumer's surplus

  3. consumer's expenditure

  4. none of these


Correct Option: B

The producer is in equilibrium at a point where the cost line is

  1. above the isoquant

  2. below the isoquant

  3. cutting the isoquant

  4. tangent to isoquant


Correct Option: D

If the price of X rises by 10 per cent and the quantity demanded falls by 10 per cent, X has

  1. inelastic demand

  2. unit elastic demand

  3. zero elastic demand

  4. elastic demand


Correct Option: B

Which of the following is not an economic activity?

  1. A son looking after his ailing mother

  2. A chartered accountant doing his own practice

  3. A soldier serving at the border

  4. A farmer growing millets


Correct Option: A

If real national income rises by 10 percent and population increases by 2 percent, per capita income will increase by

  1. 5 percent

  2. 8 percent

  3. 12 percent

  4. 6 percent


Correct Option: B

Which of the following statements is correct?

  1. Cropping pattern in India is quite balanced.

  2. India is passing through the first stage of demographic transition.

  3. India's population is the second largest in the world.

  4. None of these


Correct Option: C

Which sector of Indian economy contributes the largest share to national income?

  1. Primary sector

  2. Manufacturing sector

  3. Secondary sector

  4. Tertiary sector


Correct Option: D

The concept of economic development is

  1. synonymous to economic growth concept

  2. narrower than economic growth concept

  3. broder than economic growth concept

  4. none of these


Correct Option: C

Which of the following is/are correct?

  1. GDP at market price = GDP at factor cost plus net indirect taxes

  2. NNP at factor cost = GNP at market price

  3. GNP at market price = NNP at market price plus net income from abroad

  4. All of the above


Correct Option: A

In order to control credit and investment, the Central Bank should

  1. decrease cash reserve ratio

  2. decrease bank rate

  3. buy securities in the open market

  4. sell securities in the open market


Correct Option: D

Fiscal policy is concerned with

  1. public revenue, public expenditure and public debt

  2. controlling the BOP situation

  3. controlling the banks

  4. none of these


Correct Option: A

Which of the following is an economic activity?

  1. Medical facilities rendered by a charitable dispensary

  2. Teaching one's own nephew at home

  3. A housewife doing household duties

  4. Watching television


Correct Option: A

Pick up the correct statement(s).

  1. Inflation is a persistent fall in the price level.

  2. The Indian direct tax structure relies on a very narrow population base.

  3. Mixed income of self-employed means gross profits received by proprietors.

  4. All of the above


Correct Option: B

Demand for intermediate consumption arises in

  1. household consumers

  2. government enterprises only

  3. corporate enterprises only

  4. all producing sectors of the economy


Correct Option: D

Which of the following statements is correct?

  1. Income tax was abolished in India in 1991.

  2. Gift tax was abolished in India in 1998.

  3. All the states have adopted the VAT.

  4. Estate duty was abolished in 1995.


Correct Option: B

Transfer payments refer to payment which are made

  1. without any exchange of goods and services

  2. to workers on transfer from one job to another

  3. as compensation to employees

  4. none of these


Correct Option: A

Net National Product at factor cost is

  1. equal to national income

  2. more than national income

  3. less than national income

  4. always more than gross national product


Correct Option: A

The net value added method of measuring national income is also known as

  1. net output method

  2. production method

  3. industry of origin method

  4. all of the above


Correct Option: D

Which of the following is incorrect?

  1. GDP at market price = GDP at factor cost plus net indirect taxes

  2. NNP at factor cost = NNP at market prices minus net indirect taxes

  3. GNP at market prices = GDP at market prices plus net factor income from abroad

  4. None of the above


Correct Option: D

What is India's world rank in terms of population?

  1. First

  2. Second

  3. Third

  4. Fourth


Correct Option: B

In which state or union territory is the literacy rate highest in the country?

  1. Delhi

  2. Chandigarh

  3. Karnataka

  4. Kerala


Correct Option: D

Which is the other name of the average revenue curve?

  1. Profit curve

  2. Demand curve

  3. Average cost curve

  4. Indifference curve


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

Which year is known as 'year of great divide' for India's population?

  1. 1921

  2. 1951

  3. 1991

  4. 1981


Correct Option: A

What is the shape of the demand curve faced by a firm under perfect competition?

  1. Horizontal

  2. Vertical

  3. Positively sloped

  4. Negatively sloped


Correct Option: A

What is the other name of the demand curve?

  1. Profit curve

  2. Average revenue curve

  3. Average cost curve

  4. Indifference curve


Correct Option: B

A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is

  1. zero

  2. infinity

  3. equal to one

  4. greater than zero but less than one


Correct Option: B

The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of

  1. law of demand

  2. law of diminishing returns

  3. law of diminishing marginal utility

  4. law of supply


Correct Option: C

Which of the following statements is incorrect?

  1. An indifference curve slopes downward to the right.

  2. Convexity of a curve implies that the slope of the curve diminishes as one moves from left to right.

  3. The elasticity of substitution between two goods to a consumer is zero.

  4. The total effect of a change in the price of a commodity on its quantity demanded is called the price effect.


Correct Option: C

The second chapter gives lesser satisfaction to a hungry boy. This is a clear case of

  1. law of demand

  2. law of diminishing returns

  3. law of diminishing utility

  4. law of supply


Correct Option: C

About ___ percent of the sick units in India are small units.

  1. 10

  2. 5

  3. 30

  4. 98


Correct Option: D

Three steel plants in Bhilai, Rourlkela and Durgapur were set up in the

  1. first five year plan

  2. second five year plan

  3. third five year plan

  4. fourth five year plan


Correct Option: B

Which of the following has been specifically established to meet the requirements of credit of the farmers and villagers?

  1. ICICI Bank

  2. Regional Rural Banks

  3. State Bank of India

  4. EXIM Bank


Correct Option: B
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