Economic Questions and Answers Multiple Choice

Economic Questions and Answers Multiple Choice

1. According to which of the following hypotheses, consumption is irreversible ?
(A) Absolute Income Hypothesis
(B) Relative Income Hypothesis
(C) Permanent Income Hypothesis
(D) Life Cycle Hypothesis
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2. Which of the following models of business cycle generates constrained cycles ?
(A) Samuelson's model (B) Hick's model
(C) Kaldor's model (D) All of the above
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3. Which of the following is not an assumption of Harrod's model of growth ?
(A) The desired capital output ratio is constant
(B) Savings are a constant pro-portion of real income in the economy
(C) The labour force grows at some exogenously determined constant exponential rate
(D) Factor prices are flexible in the long run
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4. A. W. Phillips wage-inflation unemployment trade off is based on–
(A) Static expectations hypothesis
(B) Adaptive expectations hypothesis
(C) Extrapolative expectations hypothesis
(D) Rational expectations hypothesis
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5. In Hicks' neutral technical progress, the technical progress is–
(A) Capital augmenting
(B) Labour augmenting
(C) Both Labour and Capital augmenting
(D) Change in the efficiency and productivity of labour
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6. According to the provisional figures for 2011 census, which of the following States has the lowest child sex ratio both in rural and urban areas ?
(A) Uttar Pradesh (B) Kerala
(C) Jammu and Kashmir (D) Haryana
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7. Of the following, which sector experienced maximum growth rate at 2004-05 prices in India during 2009-10 ?
(A) Trade, hotels, transport and communication
(B) Manufacturing, construction, electricity, gas and water supply
(C) Financing, insurance, real estate and business services
(D) Agriculture, forestry, fishing, mining and quarrying
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8. In which of the following years, gross domestic savings as a percentage of GDP was the highest ?
(A) 2009-10 (B) 2008-09
(C) 2007-08 (D) 2006-07
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9. Growth process resulting into broad based benefits and providing equality of opportunity to all is referred to as–
(A) Faster growth (B) Inclusive growth
(C) Exclusive growth (D) Sustained growth
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10. Which of the following plans witnessed the highest growth rate In India ?
(A) Ninth Plan (B) Eighth Plan
(C) Tenth Plan (D) Seventh Plan
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11. In dual gap model, the gap can be filled up by–
(A) Raising the level of saving
(B) Export promotion
(C) Steady rate of growth
(D) Foreign aid
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12. The input coefficients/elements of which of the following matrices are interpreted as inputs required directly and indirectly per unit of final demand.
(A) A (B) (1– A)
(C) (I – A)–l (D) All of these
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13. Total foodgrains production target for the year 2010-11 has been placed at–
(A) 250 million tonnes (B) 240 million tonnes
(C) 244 million tonnes (D) 234 million toness
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14. Indicate the year in which National Food Security Mission (NFSM) was launched–
(A) 2001-02 (B) 2004-05
(C) 2010-11 (D) 2007-08
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15. Low productivity for agriculture in India is attributed to–
(A) Poor irrigation facilities
(B) Heavy dependence on monsoon
(C) Absence of new technology
(D) All the above
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16. Quantum of food subsidy was highest in the year–
(A) 2009-10 (B) 2008-09
(C) 2004-05 (D) 2001-02
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17. Which of the following disadvantageous to developing countries' international trade?
(A) Protection
(B) Free trade
(C) Exports of primary and import of manufactured goods
(D) None of the above
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18. Capital to risk-weighted asset ratio of all scheduled commercial banks in India under the Basel–I framework is stipulated at the minimum of–
(A) 7% (B) 9%
(C) 12% (D) 14%
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19. Which of the following is broad money (M₃) in India ?
(A) Currency with public + demand deposits in the banks
(B) Currency + demand deposits + other deposits with RBI
(C) Currency + demand deposits + time deposits
(D) Currency + demand deposits + time deposits +other deposits with RBI
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20. Which of the following did not contribute significantly to inflationary pressure in Indian economy in 2010-11 ?
(A) Food prices
(B) Prices of manufactured prices
(C) Fuel prices
(D) Metal and mineral prices
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