Indian Economic Quiz Questions and Answers
1. A demand curve, which is parallel to the horizontal axis, showing
quantity, has the price elasticity equal to–(A) Zero (B) Infinity
(C) Less than one (D) One
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2. In Joan Robinson's growth model, capital accumulation depends on–
(A) Saving–income ratio
(B) Profit–wage relation and labour productivity
(C) Profit–income ratio and capital productivity
(D) Saving–investment ratio
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3. Which of the following is not relevant in case of Sweezy's oligopoly model ?
(A) A price cut by a firm is followed by the price cut by the rival firms
(B) Price hike is not followed by the rival firms
(C) Firms do not react to price change made by one of the firms
(D) Firms react to all kinds of price changes made by the rival
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4. Quasi rent is the reward to a factor of production which is–
(A) Economic rent in the short run but transfer earnings in the long run
(B) Transfer earnings in the short run
(C) Transfer earnings both in the short and long run
(D) Economic rent both in the short and long run
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5. According to the Loanable Funds Theory, the rate of interest is a function of–
(A) Investment (B) Desire to hoard money
(C) Quantity of money (D) All the above
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6. While analyzing the marginal productivity theory of distribution, Clark gave more emphasis on–
(A) Demand for Labour
(B) Supply of Labour
(C) Both Demand as well as Supply of Labour
(D) Profit Maximization
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7. A general equilibrium is defined as a state in which all economic units maximize their respective objective functions, all prices are simultaneously in equilibrium and all markets are cleared. The statement is–
(A) Correct (B) Not correct
(C) Perfectly correct (D) None of the above
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8. According to Mundell in an optimum currency area, the achievement of internal and external balance is possible through–
(A) Capital flows
(B) Inflow of funds from abroad
(C) Official development assistance
(D) The mobility of factors
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9. An agreement between two countries to maintain a free trade area, a common external tariff, free mobility of capital and labour and degree of unification in government policies and monetary policy is called–
(A) Common market (B) Free trade area
(C) Economic union (D) Customs union
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10. What does Hedging mean ?
(A) The acceptance of a foreign exchange risk
(B) The covering of a foreign exchange risk
(C) Foreign exchange speculation
(D) Foreign exchange arbitrage
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11. In which terms a unit of SDR was originally denominated ?
(A) The world marked value of U.S. Dollar
(B) The gold value equivalent of one US Dollar
(C) the Pound-Sterling
(D) The German Mark
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12. Which of the following is an adverse effect of Euro Currency Market ?
(A) International Capital Market
(B) Decrease in World's Nominal Money Supply
(C) Integration of International Capital Markets
(D) Meeting BOP Deficit
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13. Employment Guarantee Scheme was first introduced in–
(A) Gujarat (B) Madhya Pradesh
(C) Maharashtra (D) Tamil Nadu
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14. Match labour force with the appropriate item from amongst the following–
(A) Workforce (B) All educated
(C) Employed+ Unemployed (D) All rural workers
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15. Which of the following represents the concepts of human capital?
(A) Total human resources
(B) Total population
(C) Human resources gainfully employed in productive activities
(D) All of the above
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16. The production of 'finished steel' in India, since independence, has increased over–
(A) 10 times (B) 20 times
(C) 30 times (D) 50 times
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17. The concept of 'Effective Revenue Deficit' has been. used for the first time in the Union Budget for–
(A) 2009-10 (B) 2010-11
(C) 2011-12 (D) 2008-09
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18. Which tax is likely to contribute maximum to the Central Government tax revenue during the year 2011-12 ?
(A) Central Excise Duty (B) Customs Duties
(C) Income Tax (D) Corporate Tax
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19. The most important characteristics of a federation is–
(A) Centre's Supremacy over States
(B) Non-correspondence between the functions and resources of the Centre and State Governments
(C) Perfect match between the functions and resources of the Central and State Governments
(D) None of the above
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20. The concept of 'learning by doing' was given by–
(A) J. R. Hicks (B) Kenneth Arrow
(C) Joan Robinson (D) Nicholas Kaldor
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