General Economics Examination MCQs with solutions

1. When two goods are perfectly complementary, the indifference curve

A

intersect each other

B

is L shaped

C

is a straight line

D

is concave at the origin

# General Economics
Correct Answer: B
Explanation

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2. From the following options, indentify the reason, best suited why underdeveloped countries make a fiscal policy?

A

Reduces labor taxes, especially at low income levels.

B

Accelerate the rate of capital formation and investment

C

Provide well-designed tax incentives that reduce the cost of capital

D

Increase the potential output as a major advanced and emerging market economies.

Fiscal Policy General Economics
Correct Answer: B
Explanation

The foremost aim of fiscal policy in underdeveloped countries is to mobilize resources in the private and public sectors. ... Therefore, the governments of such countries through forced savings pushes the rate of investment and capital formation which in turn accelerates the rate of economic development.

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3. Which of the following options points to a demand for one product as a consequence of demand for a parent product?

A

Company Demand

B

Composite Demand

C

Short-term Demand

D

Derived Demand

Demand Curve General Economics
Correct Answer: D
Explanation

Derived demand—in economics—is the demand for a good or service that results from the demand for a different, or related, good or service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question. Derived demand can have a significant impact on the derived product`s market price.

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4. Which of the following in example of variable cost?
i. Rent
ii. Utility cost.
iii. Employee salaries

A

Only i

B

Only ii

C

Both i and ii

D

Both ii and iii

Cost General Economics
Correct Answer: B
Explanation

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5. The Gram Panchayats have been mandated for the preparation of Gram Panchayat Development Plans (GPDP). The People`s plan campaign for preparing GPDP for 2020-21 was initiated under

A

Sabki Yojna Sabka Vikas

B

Pradhan Mantri Kaushal Vikas Yojana

C

Pradhan Mantri Adhrash Gram Yojana

D

Mission Indradhanush

GPDP General Economics
Correct Answer: A
Explanation

The People`s Plan Campaign commenced on 1st May to 15th June, 2020 for preparing GPDP for 2020-21. The campaign initiated under "Sabki Yojana Sabka Vikas" will be an intensive and structured exercise for planning at Gram Sabha through convergence between Panchayati Raj Institutions (PRIs) and concerned Line Departments of the State

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6. When a commodity is sold at a lower price in "Foreign markets: and at a higher price in "Domestic markets" then the strategy is known as

A

Dumping

B

Multi Plant Monopoly

C

Peak load Pricing

D

Price Ceiling

Pricing General Economics
Correct Answer: A
Explanation

Dumping is a term used in the context of international trade. It`s when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter`s domestic market.

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7. The cost inflation index is mainly used to compute :

A

Business income

B

Long term capital gain

C

Short term capital gain

D

Income from other sources

Inflation General Economics
Correct Answer: B
Explanation

A Cost Inflation Index table is used to calculate the long term capital gains from a transfer or sale of capital assets.

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8. According to the economist Coulborn, too much money chasing too few goods is

A

Globalization

B

Inflation

C

Liberalization

D

Economic growth

inflation General Economics
Correct Answer: B
Explanation

According to economist Coulborn, "too much money chasing too few goods" is a description of inflation. This is a definition of it as a monetary phenomenon rather than a phenomenon of rising prices. This is a common view perspective of the situation.

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9. Which type of inflation is caused due to excessive growth of money supply in the economy?

A

Cost push inflation

B

Cost pull inflation

C

Demand pull inflation

D

Demand push inflation

inflation General Economics
Correct Answer: A
Explanation

According to Keynesian economists, inflation comes in two varieties: demand-pull and cost-push. Demand-pull inflation occurs when consumers demand goods, possibly because of the larger money supply, at a rate faster than production. Cost-push inflation occurs when the input prices for goods tend to rise, possibly because of a larger money supply, at a rate faster than consumer preferences change.

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10. The economic reform, popularly known as Liberalization, Privatization, and Globalization was aimed at making the Indian economy as fastest growing economy and globally competitive. This process started in the

A

Early 1990s

B

Early 1980s

C

Early 2000s

D

Late 1980s

General General Economics
Correct Answer: A
Explanation

Early 1990s

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11. Whose opinions have revolutionised the scope of macro economics?

A

Adam Smith

B

J.M. Keynes

C

Marshall

D

Pigou

# General Economics
Correct Answer: B
Explanation

J.M. Keynes opinions have revolutionised the scope of macro economics.

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12. What is the structure or format of TAN?

A

Five Alphabets followed by four digits and an alphabet

B

Four Alphabets followed by five digits and an alphabet

C

Four alphabets follwed by six digits

D

Five alphabets followed by five digits

# General Economics
Correct Answer: B
Explanation

TAN structure is as follows: RAJA99999B: First four characters are letters, next five are numerals, last character is a letter. Each tax deductor is uniquely identified by a TAN. The first three characters represent the city or state where the TAN was issued.

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13. An underdeveloped economy is characterized by

A

High per capita real income

B

Large proportion of labour force in the tertiary sector

C

State of deprivation of large proportion of population

D

Low per capita real income

# General Economics
Correct Answer: D
Explanation

An underdeveloped economy is characterised by state of deprivation of large proportion of population. Apart from that, other characteristics of an underdeveloped economy are low per capita income, a higher proportion of labour force involved in primary sector activities.

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14. Which one of the following is CORRECT with reference to econometrics?

A

The application of statistical and mathematical theories to economics

B

Calculations with regard to supply and demand

C

It is a branch of macro economics of mathematical methods

D

It is a branch of micro economics of mathematical methods

General General Economics
Correct Answer: A
Explanation

Econometrics is the use of statistical methods using quantitative data to develop theories or test existing hypotheses in economics or finance. Econometrics relies on techniques such as regression models and null hypothesis testing. Econometrics can also be used to try to forecast future economic or financial trends.

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15. The term which is the opposite situation of inflation and is the state of falling of prices and rising of money is

A

Deflation

B

Stagflation

C

Consumption

D

Recession

# General Economics
Correct Answer: A
Explanation

Inflation is an increase in the general prices of goods and services in an economy. Deflation, conversely, is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent.

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16. National Expenditure may be equal to

A

National Income

B

National Income+Taxes

C

National Income - Taxes

D

National Income + National Savings

# General Economics
Correct Answer: A
Explanation

Total level of expenditure in a national economy, equivalent to its total level of output and total level of income.

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17. Rolling Plan was also known as

A

Second Five Year Plan

B

Fourth Five year Plan

C

Fifth Five year Plan

D

Sixth Five year Plan

# General Economics
Correct Answer: D
Explanation

The Janta Government terminated the fifth five year plan in 1977-78 and launched its own sixth five year plan for period 1978-83 and called it a Rolling Plan.

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18. Which method of calculating National Income relates to different factors-land, labor, capital and organisation?

A

Income Method

B

Production Method

C

Expenditure Method

D

Source Method

# General Economics
Correct Answer: A
Explanation

Income method, also known as factor income method, is used to calculate all income accrued to the basic factors of production used in producing national product. Traditionally, there are four factors of production, namely land, labor, capital, and organization.

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19. Microeconomics is concerned with

A

the economy as a whole

B

the electronics industry

C

the study of individual economic behaviour

D

the interactions within entire econmy

# General Economics
Correct Answer: C
Explanation

Microeconomics is a branch of economics that studies the behaviour of individuals and firms in making decisions regarding the allocation of limited resources.

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20. In 1944, the Gandhian plan based upon Gandhian philosophy was presented by

A

Shriman Narayan Agarwal

B

P. Mahanbolish

C

Indira Gandhi

D

Jawahar Lal Nehru

# General Economics
Correct Answer: A
Explanation

Gandhian Plan: Sriman Narayan Agarwal formulated `Gandhian Plan` in 1944.

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21. The government introduced an agricultural starategy which gave rise to green revolution in india, this is with regard to which plan?

A

Sixth Five Year Plan

B

Second Five Year Plan

C

Third Five Year Plan

D

First Five Year Plan

# General Economics
Correct Answer: C
Explanation

The third five-year plan was implemented during the 1961-1966 time period. It was emphasized on the need for growth in agriculture and hence production

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22. What is National disposable income?

A

It refers to acquiring of final goods and services not through regular market transactions

B

It refers to the income which is available to the whole economy for spending or disposal

C

It refers to the flow of goods and services between sectors of economy

D

It refers to the flow of money between sectors of economy

# General Economics
Correct Answer: B
Explanation

National disposable income = National income + Net indirect taxes + Net current transfers from rest of the world simply put. Net Disposable Income Is the Income which is at the disposal of the nation as a whole for spending or disposal.

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23. The statement "Underdeveloped countries are the slums of the World Economy" is given by

A

A. N Cairncross

B

David Ricardo

C

Ragnar Nurkse

D

G. Mrydal

# General Economics
Correct Answer: A
Explanation

This statement was given by Cairncross a famous economist whose findings are basis for macroeconomic study in the current economic world.

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24. Which economic concept deals with relationship between inflation and unemployment

A

Philips Curve

B

Marshall Concept

C

Demand and Supply

D

Wants and Demands

# General Economics
Correct Answer: A
Explanation

The Phillips curve shows the relationship between inflation and unemployment. In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases. In the long-run, there is no trade-off.

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25. The neoclassical model of economic growth

A

assumes that there is a single homogenous good produced by capital and labor

B

was originally conceived of by Robert Solow

C

was originally conceived of by Adam Smith

D

assumes that there is a single homogenous good produced only by labor

# General Economics
Correct Answer: B
Explanation

Robert Solow and Trevor Swan first introduced the neoclassical growth theory in 1956. The theory states that economic growth is the result of three factors—labor, capital, and technology

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26. Which of the following is NOT a type of inflation on the basis of speed?

A

Running inflation

B

Scrolling inflation

C

Galloping inflation

D

Walking inflation

inflation General Economics
Correct Answer: B
Explanation

Types Of Inflation On The Basis Of Speed:
1.Creeping inflation: the inflationary rate is less than 2% that means prices are increasing gradually.
2.Walking inflation: the inflationary rate of a country is around 5% little more than creeping.
3.Running inflation: the rate of growth in prices are more i.e. the inflation is growing at the rate of 10%.
4.Galloping inflation: higher growth rate compared to the earlier stages i.e. the change is around 25%.

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27. Which of the following is a narrow indicator of economic development that excludes non-economic indicators such as leisure time, access to health, education, environment, freedom or social justice?

A

NNP

B

GNP

C

GDP

D

Per Capita income

GDP General Economics
Correct Answer: C
Explanation

Increase in output of goods and services and in income does not imply an improvement in the standard of living of the people because GDP is a narrow indicator of economic development that does not include non-economic indicators such as leisure time, access to health, education, environment, freedom or social justice.

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28. Which of the following is used to refer to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth?

A

Fiscal policy

B

Monetary policy

C

Corporate policy

D

Government policy

# General Economics
Correct Answer: B
Explanation

Monetary policy refers to the actions of central banks to achieve macroeconomic policy objectives such as price stability, full employment, and stable economic growth. Fiscal policy refers to the tax and spending policies of the federal government.

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29. Which of the following is measured against the average age that the individual is expected to reach?

A

Low life expectancy

B

Low standard of education

C

Poor health care

D

Unemployment

# General Economics
Correct Answer: A
Explanation

Life expectancy is a statistical measure of the average time an organism is expected to live, based on the year of its birth, its current age, and other demographic factors including sex. The most commonly used measure is life expectancy at birth, which can be defined in two ways.

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30. Under price discrimination mechanism, Dispose of surplus stock is considered as what?

A

Constraint

B

Feature

C

Objective

D

Criteria

# General Economics
Correct Answer: D
Explanation

Price discrimination charges customers different prices for the same products based on a bias toward groups of people with certain characteristics—such as educators versus the general public, domestic users versus international users, or adults versus senior citizens.

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31. Which of the following curve means that an increase in the wages induces workers to increase the quantity of labour they supply?

A

Upward

B

Downward

C

Vertical

D

Horizontal

# General Economics
Correct Answer: A
Explanation

An upward-sloping labor supply curve means that an increase in the wage induces workers to increase the quantity of labor they supply.

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32. Which growth model was adopted in the 1st Five Year Plan?

A

Harrod - Domar

B

Harrold - Dimmer

C

Doma - Harro

D

Dimman - Harrod

FYP General Economics
Correct Answer: A
Explanation

The First Five-year Plan was launched in 1951 which mainly focused in the development of the primary sector. The First Five-Year Plan was based on the Harrod–Domar model with few modifications.

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33. Restrictions to entry is a characteristic of which of the following market?

A

Perfect Market

B

Imperfect Market

C

Totally perfect

D

Oligopoly

Market General Economics
Correct Answer: D
Explanation

In an oligopoly, there are only a few firms that make up an industry. This select group of firms has control over the price and, like a monopoly; an oligopoly has high barriers to entry. Main characteristic of oligopoly is interdependence of firms in the industry

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34. Which of the following situation occurs when aggregate demand is growing at an unsustainable rate leading to increased pressure on scarce resources and a positive output gap?

A

Cost Pull Inflation

B

Cost Push Inflation

C

Demand Push Inflation

D

Demand pull inflation

In General Economics
Correct Answer: D
Explanation

Demand pull inflation occurs when aggregate demand and output is growing at an unsustainable rate leading to increased pressure on scarce resources and a positive output gap

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35. Who originated the technique of indifference curve in England in 1881?

A

Fransis. Y. Edworth

B

Adam Smith

C

Alfred Marshall

D

A.C. Pigou

# General Economics
Correct Answer: A
Explanation

The theory of indifference curves was developed by Francis Ysidro Edgeworth, who explained in his 1881 book the mathematics needed for their drawing; later on, Vilfredo Pareto was the first author to actually draw these curves, in his 1906 book.

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36. Which of the following is considered as factor of production as economic resources can exist in an economy and non -transferable into consumer goods?

A

Knowledge

B

Entrepreneurship

C

Land

D

Capital

# General Economics
Correct Answer: A
Explanation

The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

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37. Under which of the following System there is no business cycle since all economic activities are controlled by the central planners?

A

Communist

B

Socialist

C

Radicals

D

Marxist

# General Economics
Correct Answer: A
Explanation

The command economy is a key feature of any communist society. ... Also known as a planned economy, command economies have as their central tenet that government central planners own or control the means of production within a society.

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38. Which of the following tool is used as one way to measure the inequalities in the distribution of income and wealth in different countries?

A

Correlation Coefficient

B

Gardey Coefficient

C

Gini Coefficient

D

Phi Coefficient

# General Economics
Correct Answer: C
Explanation

The Lorenz curve is a commonly used metric that allows for the quick and visual comparison of inequality across countries. The Gini coefficient uses information from the entire income distribution and is independent of the size of a country`s economy and population.

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39. Which of the following technique is used in economics to get market demand curve?

A

Vertical Summation

B

Equilibrium

C

Horizontal summation

D

Interdependency

# General Economics
Correct Answer: C
Explanation

Horizontal (or lateral) summation

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40. Products such as jewels, diamonds and so on confer distinction on the part of the user, where in consumers tend to buy more goods when the price increases, and vice versa. This is an example of which type of good?

A

Veblen Goods

B

Giffen Goods

C

Substitute Goods

D

Complementary Goods

# General Economics
Correct Answer: A
Explanation

Products such as jewels, diamonds and so on, confer distinction on the part of the user. ... Such products are called Veblen good.

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41. Short term economic growth is mainly driven by the level of

A

Aggregate Supply

B

Aggregate Demand

C

Difference between Export and Import

D

Domestic Consumption

# General Economics
Correct Answer: B
Explanation

In the short term, economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy, then an increase in AD will cause a higher level of real GDP.

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42. Which of the following tool measures income distribution that identifies the share of the nation’s income earned by different segments of the population?

A

Equilibrium curve

B

Multiplier

C

Demand curve

D

Gini-Lorenz Curve

# General Economics
Correct Answer: D
Explanation

Gini-Lorenz curve portrays the graph between cumulative shares of people from lowest to highest income versus cumulative share of income earned. It has a line of perfect equality in distribution of wealth with a slope equal to 1 against a curved line which represents unequal distribution of wealth (Lorenz curve). The area between the two lines is the Gini coefficient which measures the degree of inequality. Higher the Gini coefficient greater is the inequality and vice versa.

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43. When the price of a good or product decreases, the relative price of that good makes buyer more eager to buy that good or product This effect is referred as

A

Income

B

Demand

C

Substitution

D

Supply

# General Economics
Correct Answer: B
Explanation

Demand refers to the amount of goods and services that buyers are willing to purchase. Typically, demand decreases with increases in price, this trend can be graphically represented with a demand curve. Demand can be affected by changes in income, changes in price, and changes in relative price.

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44. What is referred to as change in the revenue resulting from the employment of an extra unit of the factor?

A

Marginal Revenue Product

B

Marginal expense

C

Marginal Factor Cost

D

Marginal Budget

# General Economics
Correct Answer: A
Explanation

Change in revenue resulting from the employment of an extra unit of the factor is called Marginal Revenue Product (MRP) and the change in cost brought about by hiring an extra unit of the factor is called Marginal Factor Cost (MFC

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45. Payment for manmade factors such as buildings, machineries, etc. is an example of which type of rent?

A

Quasi

B

Recardian

C

Economic

D

Normal

# General Economics
Correct Answer: A
Explanation

Quasi rent is the earning of capital equipments such as machineries, buildings etc., which are inelastic in supply, in short run.

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46. Which of the following problem arises when there is asymmetric information with regard to actions by the government among developing countries?

A

Adverse Selection

B

Moral Hazard

C

Rationality

D

Agency Problem

# General Economics
Correct Answer: A
Explanation

Asymmetric information can lead to adverse selection, incomplete markets and is a type of market failure. When looking at a car, a buyer can only see the externals and cannot know how reliable the engine is.

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47. Which sector currently contributes most of the Gross Domestic Product of India?

A

Manufacturing

B

Agriculture

C

Services

D

Marine

Economics General Economics
Correct Answer: C
Explanation

tertiary sector. Tertiary sector mainly deals with services. Hence, tertiary sector is also known as service sector of the economy. Service sector is the largest contributor to GDP in India.

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48. Goods which are produced in order to produce other goods are known as:

A

Capital

B

Final Goods

C

Resources

D

Investments

GENERAL ECONOMICS General Economics
Correct Answer: A
Explanation

Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods include buildings, machinery, equipment, vehicles, and tools. Capital goods are not finished goods, instead, they are used to make finished goods.

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49. Increase in supply usually .............the price and .............the quantity demanded

A

lowers, lowers

B

raises, raises

C

lowers, raises

D

raises, lowers

GENERAL ECONOMICS General Economics
Correct Answer: C
Explanation

Generally, as price increases, people are willing to supply more and demand less and vice versa when the price falls. The theory is based on two separate "laws," the law of demand and the law of supply. The two laws interact to determine the actual market price and volume of goods on a market.

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50. Employees of a factory are likely to receive increment in wages when ................is/are increasing:

A

Imports

B

Output

C

Labour supply

D

Unemployment

GENERAL ECONOMICS General Economics
Correct Answer: B
Explanation

To increase potential output , Factories had to pay higher wages to get workers to work

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51. The fundamental concept of Economics about resources is that the resources are:

A

Equally distributed

B

Unequally Distributed

C

Scarce

D

Unlimited

GENERAL ECONOMICS General Economics
Correct Answer: C
Explanation

The fundamental concept of Economics about resources is that the resources are. ... Consider a world without scarcity of resources.

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52. Consider a world without scarcity of resources. Then what would be the consequences?

A

All Prices would be Zero

B

Markets would be unnecessary

C

Economics would no longer be a useful Subject

D

All of the Above

GENERAL ECONOMICS General Economics
Correct Answer: D
Explanation

In theory, if there was no scarcity the price of everything would be free, so there would be no necessity for supply and demand. There would be no need for government intervention to redistribute scarce resources. ... But, if there is no scarcity, then a fall in economic growth would be meaningless.

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53. Who is considered the founder of Microeconomics?

A

Adam Smith

B

John keynes

C

Friedrich Hayek

D

Milton Friedman

GENERAL ECONOMICS General Economics
Correct Answer: A
Explanation

Adam Smith is considered the founder of Microeconomics in general.

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54. Who is considered the founder of Macroeconomics?

A

Adam Smith

B

John keynes

C

Friedrich Hayek

D

Milton Friedman

GENERAL ECONOMICS General Economics
Correct Answer: B
Explanation

John Maynard Keynes is the founding father of macroeconomics.

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55. When analyzing the impact of a variable on the economic system, the other things :

A

Must be kept constant

B

Must also be analyzed

C

Must not be taken into consideration

D

None of these

GENERAL ECONOMICS General Economics
Correct Answer: A
Explanation

The economic system operates without staffing how they should operate. ... Every law is subject to clause “other things being Constant”

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56. Inputs are combined with technology to produce outputs. the fundamental inputs(also called factors of production) are:

A

Land and Capital

B

Land and Labour

C

Land, Labour and Capital

D

Land, Labour, Capital and Investment

GENERAL ECONOMICS General Economics
Correct Answer: C
Explanation

Factors of production are inputs used to produce an output, or goods and services. They are resources a company requires to attempt to generate a profit by producing goods and services. Factors of production are divided into four categories: land, labor, capital and entrepreneurship.

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57. Which Economic Term is used to represent Inequality in Income distribution:

A

GDP

B

GNP

C

GINI

D

HDI

GENERAL ECONOMICS General Economics
Correct Answer: C
Explanation

The Gini index, or Gini coefficient, is a measure of the distribution of income across a population developed by the Italian statistician Corrado Gini in 1912. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, wealth distribution among a population.

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58. The Value of the goods or service forgone by choosing another Investment is called:

A

Opportunity cost

B

Purchasing Power Parity

C

Disposable Income

D

Consumer Price Index

GENERAL ECONOMICS General Economics
Correct Answer: A
Explanation

Opportunity cost is the value of the best alternative forgone in making any choice.

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59. The Central role of markets is to determine the:

A

Quality of Goods

B

Quantity of Goods

C

Level of Income

D

Price of Goods

General Knowledge with reference to J&K General Economics
Correct Answer: D
Explanation

The role of the market is defined by two laws: the law of supply and the law of demand. ... The market includes consumers and producers, who together determine the price of a product. Prices affect what is produced, and who can afford what is produced.

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60. The branch of Economics concerned with overall performance of the economy is known as:

A

Microeconomics

B

Macroeconomics

C

Econometerics

D

Keynesian Economics

General Knowledge with reference to J&K General Economics
Correct Answer: B
Explanation

Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy.

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61. The branch of economics concerned with the use of statistical methods to obtain empirical result for economic relations is known as:

A

Microeconomics

B

Macroeconomics

C

Econometerics

D

Keynesian Economics

General Knowledge with reference to J&K General Economics
Correct Answer: C
Explanation

Econometrics is the application of statistical methods to economic data and is described as the branch of economics that aims to give empirical content to economic principles.

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62. The branch of Economics concerned with the behavior of markets, firms and Households is known as:

A

Microeconomics

B

Macroeconomics

C

Econometerics

D

Bayesian Economics

General Knowledge with reference to J&K General Economics
Correct Answer: A
Explanation

Microeconomics is the study of individuals, households and firms behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.

Correct Answered :

Wrong Answered :

63. An Economy is producing efficiently when not individuals economic welfare can be improved unless:

A

Supply is increased

B

Demand is increased

C

Some one else is Improved

D

Someone else is made worseoff

General Knowledge with reference to J&K General Economics
Correct Answer: D
Explanation

An economy is in a Pareto Optimal state when no further changes in the economy can make one person better off without at the same time making another worse off.

Correct Answered :

Wrong Answered :

64. Taxes are used to discourage............of a commodity:

A

Consumption

B

Production

C

Saving

D

Inflation

General Knowledge with reference to J&K General Economics
Correct Answer: A
Explanation

Some taxes are charged to discourage a behavior or purchase of certain goods.

Correct Answered :

Wrong Answered :

65. Subsidies are used to encourage................of a commodity:

A

Consumption

B

Production

C

Saving

D

Inflation

General Knowledge with reference to J&K General Economics
Correct Answer: B
Explanation

When government subsidies are implemented to the supplier, an industry is able to allow its producers to produce more goods and services. This increases the overall supply of that good or service,

Correct Answered :

Wrong Answered :

66. Which of the following economic resources can not be converted into commodity:

A

Land

B

Labour

C

Capital

D

All of these can be converted into Commodity.

General Knowledge with reference to J&K General Economics
Correct Answer: B
Explanation

Labour cannot be converted into commodity.

Correct Answered :

Wrong Answered :

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