MCQs in Economics
1. Which period is known as the
period of stagnant growth of population
in India:
2. Fiscal Policy refers to the
manipulation of government income and expenditure to
a)
Control
the value of money b) control
the income
c)
Affect
the exchange rate d) affect the level of total expenditure,
Output and employment
Answer: d)3. A budget
a) is a statement of economy's transactions in goods and services with rest of the world b) is a statement of government's borrowing requirements
c) is a statement of anticipated revenue, outlays and borrowing requirements by government in a year
d) is a statement of revenue, outlays and borrowing requirements of all state governments in India
Answer c)
4. Automatic Stabilizersa) Counter balance volatility in the economy
b) reinforce fluctuations in economic activity
c) do not occur in recession
d) reduce the size of the deflationary gap
Answer a)
5. A budget deficit can be financed by
a) a decrease in interest rates
b) reducing the level of government expenditurec) reducing the level of income tax
d) financing expenditure by printing new currency by the Reserve Bank of India
Answer d)
6. Whose economics studies positive aspect of economics?
Answer d)
6. Whose economics studies positive aspect of economics?
a.
Adam Smith b. Marshall c. Robins
d. Samuelson
Answer a)
Which branch of economics deals with the
study of behaviour of individual decision making units?
a.
Macroeconomics
b. Microeconomics
c. Wealth economics
d.
Development economics
Answer b)
Cost of alternative opportunity given up
is called
a.
Fixed cost
b. Marginal cost
c. Opportunity cost
d.
Alternative
cost
Answer c)
The subject of economics is:
a.
A physical science
b. A natural science
c. An exact science
d.
A social science
All of the following are in the purview
of microeconomics except:
a.
What to produce?
b. How to produce?
c. For whom to produce?
d.
Is the economy growing?
Answer d)
A long run is a time period:
a.
All factors are fixed
b. Technology is given
c. One factor is variable
d.
Time enough for consumers and producers to adjust
to any new situation.
Answer d)
Q.7 Welfare economics deals with:
a.
Whether
resources are optimally generated
b. Whether the distribution is done
on the basis of ability to pay principle
c. How to identify a socially efficient allocation of resources
d.
For whom to produce
Answer c)
Q.8 Normative economics refers to what
a.
is
b. should be
c. maximizes efficiency
d.
is politically correct
Answer a)
Q.9 Normally a demand curve will have the
shape
a. Horizontal b.
vertical c. Downward sloping d.
Upward sloping
Answer c)
Q.10 This is an assumption of law of Demand
a.
Price should not change
b. Quantity should not change
c. Supply should not change
d.
Income of consumer should not change
Answer d)
Paper 2
Q.1
Welfare Economics is the study
of
a.
The well-being of less fortunate people.
b. Welfare programmes in India
c. The effect of income redistribution on work efforts.
d.
How the allocation of resources affects economic
well-being.
Q.2 Positive analysis
refers to what
a.
is
b. should be
c. could be
d.
is politically correct
Q.3 The equilibrium of
supply and demand in a market
a.
Maximizes the profits of producers
b. Can only be achieved with government intervention.
c. Produces both an efficient and equitable market outcome
d.
Maximizes the total benefits received by buyers and
sellers
Q.4 Law of demand show relation
between:
a.
Income and Price of a commodity
b. Price and quantity of a commodity
c. Income and quantity demanded
d.
Quantity demanded and quantity supplied
Q.5 If quantity demanded is completely
unresponsive to changes in price, demand is
a.
Inelastic
b. Elastic
c. Unit elastic
d.
Perfectly inelastic
Q.6 The following is not a cause of shift in
demand
a.
Change in
income
b. Change in price
c. Change in fashion
d.
Change in
the price of substitutes.
Q.7 Price and demand are positively correlated in case of:
a. Necessities
b. Comforts
c. Giffen
good
d.
Luxuries
Q.8 Supply curve will shift when:
a. Price falls
b. Price rises
c. Demand shifts
d. Technology change
Q.9 Problems of unemployment, illiteracy, etc. are studied under
which branch of economics?
a. Monetary economics
b. Development Economics
c. Macroeconomics
d. Microeconomics
Q.10 Problem of What to
produceand how to produce are studied under which branch of economics?
a. Theory of Production
b. Theory of Growth
c. Price theory
d. Theory of Distribution
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