Economics 75 questions :

1. A fall in the price of a commodity leads to

A. A shift in demand B. A fall in demand
C. A rise in consumers real income D. A fall in the consumers real income

2. A typical demand curve cannot be

A. Convex to the origin B. A straight line parallel to y-axis
C. A straight line para11el to x-axis D. Rising upwards to the right

3. Which one of the following is true increase of normal goods?

A. When Price increases, demand decreases
B. When Price increases, demand also increases
C. When Price remains constant, demand falls down
D. When Price falls down, demand remains constant

4. An exceptional demand curve is one that slopes:

A. Upwards to the right B. Down wards to the right
C. Upwards to the left D. Horizontally

5. When there is decrease in demand the demand curve—

A. Moves downwards towards the axis B. Moves upwards away from the axis
C. Remains unchanged D. None of the above

6. Which of the following pairs of commodities is an example of substitutes

A. Coffee and milk B. Diamond and Cow
C. Pen and ink D. Mustard oil and coconut oil

7. Bread and butter, lamb and mint sauce, the type of inter related demand known
A. Rival demand. B. Composite demand
C. Competitive demand D. Joint demand

8. ‘Change in quantity demanded’ refers to

A. Upward shift of the demand curve B. Downward shift of the demand curve
C. Movement on the same demand curve D. None of these

9. An increase in demand can result from

A. A decline in market price
B. An increase in income
C. A reduction in the price of
D. An increase in the price of the price of coffee suddenly

10. If the price of coffee suddenly shoots up, ceteris expected paribus, the demand for Tea is expected to
A. Move rightward along the original demand curve
B. Increase
C. Remain unaffected
D. Decrease

11. Market demand is:

A. The sum of all, individual demands B. Demand at prevailing average prices
C. Ability to pay the price asked D. Demand in a perfectly free market
12. A negative income elasticity of demand for a ‘I, commodity indicates that as income falls the
amount of the commodity purchased
A. Rises B. Falls C. Remains unchanged D. Any of the above

13. When with a change in price the total outlay on a commodity remains constant, it is a case of
A. Perfect elasticity B. Perfect inelasticity
C. Unit elasticity D. Zero elasticity

14. Cross elasticity of complementary goods is

A Negative B. Zero C. High D. Infinite

15. When the income elasticity of demand is greater than unity, the commodity ‘is
A. A necessity B. A luxury C. An inferior good D. A non-related good

16. Marginal utility (MU) curve is always

A. Rising B. Falling C. Parallel to x-axis D. Parallel to y-axis

17. The total utility is maximum when

A. M. U. is zero B. A.U. is the highest C. M.U. is the highest D. M.U. is equal to AU.

18. The price which a consumer would be willing to pay for a commodity equals to his
A Total utility B. Marginal utility
C. Average utility D. Does not have any relation to any one of these

19. Consumer’ s surplus is the highest in the case of

A. Necessities B. Comforts C. Luxuries D. Conventional
necessities

20. The market period supply curve for perishable commodities is___
A. Relatively inelastic B. Perfectly inelastic
C. Relatively elastic D. Perfectly elastic

21. Supply of a commodity is a

A. Stock concept B. A flow concept
C. Both stock and flow concept D. None of these

22. “Production” may be defined as an act of

A. Creating utility B. Earning profit
C. Destroying utility D. Providing services

23. The real aim of production is

A. To create material goods B. To eliminate poverty
C. To satisfy peoples wants D. To provide basic necessities

24. In perfect competition, there is a process of

A. Free entry but restricted exit of the firms B. Free entry and free exit of the firms
C. Restricted entry and exit of the firms D. Semi-free exit but absolute free entry

25. The difference between gross domestic product and net domestic product equals
A. Transfer payments B. Depreciation cost
C. Indirect taxes D. Subsidies

26. The best method of computing national income is

A. Product Method B. Income Method
 C. Expenditure Method D. Combination of income and production method

27. The National income is equal to

A. GNP — Subsides — Taxes B. NNP — Indirect Taxes + Subsidies
C. NNP — Direct Taxes + Subsides D. GNP — Subsidies + Taxes

28. Which is the first Export Processing Zone declared as Free Trade Zone in India?
A. Santacruz B. Kandla C. Falta D. Noida

29. Which institution is known as ‘soft loan window’ of World Bank?

A.IFC B. IDA C.IMF D. Indian Development Forum

30. ‘Backwash Effect’ was firstly introduced by —

A. Gunnar Myrdal B. Peter Suderland
C. Arthur Dunkel D. Kindelberger

31. ‘SAPTA’ is related to—

A. Education B. Trade C. Security D. Enviroment

32. National Income estimates by__

A Planning Commission B. RBI
C. Finance Ministry D. C.S.O.

33. Scheduled bank is that, bank which is_______

A. Nationalised B. Not-nationalised
C. Based at foreign country D. Included in the second schedule of R.B.F

34. The definition of small scale industry in India is based an

A. Sales of a unit B. Investment in machines and equipments
C. Market coverage D. Export Capacity

35. The book ‘Politics with Charkha’ is written by

A Ashok Mehta B. J.B. Kriplani C. K. G. Mashruwala D. Morarji Desai

36. CAPART is related with-

A Assisting and evaluating rural welfare programmes
B. Computer hardware
C. Consultant service of export promotion
D. Controlling pollution in big industries

37. Note issuing deptt. of RBI should always possess the minimum gold stock of worth
A. Rs. 85 crores B. Rs. 115 crores
C. Rs. 200 crores D. None of these

38. Which of the following does not grant any tax rebate?
A. National Saving Certificate B. Indira Vikas Patra
C. National Saving Scheme D. Public Provident Fund

39. SEBI was established in

A. 1993 B. 1992 C. 1988 D. 1990

40. Chairman of Tax Reform Committee was

A. Pranab Mukherjee B. K.P. Narsimham
C.S. Janakiraman D. Raja Chelliah
41. SAIL was established in
A. 1974 B. 1984 C. 1990 D. 1964

42. Rural women can avail the benefit of Mahila Samriddhi Yojana if they open their account in-
A. Rural Post Offices B. Commercial Banks
C. Rural Development Bank D. Any of the above

43. The Headquarter of CAPART is situated at

A Mumbai B. Kolkata C. New Delhi D. Bangalore

44. ‘Closed Economy’ is that economy in which

A. Only export takes place B. Money supply is fully controlled
C. Deficit financing takes place D. Neither export nor import takes place

45. National Rural Development Ins is situated at-

A. Shimla B. Hyderabad C. Patna D. New Delhi

46. Headquarter of World Bank is situated at

A. Manila B. Washington D.C. C. New York D. Geneva

47. Which of the rate is not determined of RBI ?

A. Bank Rate B. CRR C. SLR D. PLR

48. The main food grains of India is

A. Rice B. Wheat C. Sugarcane D. Maize

49. ‘Food for work programme’ was renamed as

A. RLEGP B. IRDP C. NREP D. MNP

50. India has emerged in the world as the

A. Second Largest Steel Producer B. Third Largest Steel Producer
C. Fourth Largest Steel Producer D. None of these

51. The goods can be taxed heavily to earn additional revenue if they are
A. Highly elastic B. Unit elastic C. Perfectly elastic D. Inelastic

52. Which fertilizer is mostly consumed in India?

A. N B. P C. K D. All are used in equal ratio

53. Who is the Chairman of NDC?

A. Finance Minister B. Prime Minister
C. Planning Minister D. Lok Sabha Speaker

54. The field given to Rangarajan Committee was

A. Modernisation of Cloth Industry B. To probe Share scam
C. To probe Sugar scam D. To suggest measures for controlling BOP deficit

55. VAT is imposed

A. Directly on consumer B. On final stage of production
C. On first stage of production D. On all stages between production and final sale

56. OTCEI is—

A. Atomic submarine of China B. Economic policy of USA
C. A Indian Share Market D. A defence research organisation
57. Which is the most liquid measure of money 1 supply?
A. M1 B.M2 C.M3 D.M4

58. Indian Planning Commission was constituted in

A. 1948 B. 1949 C. 1950 D. 1951

59. What is ‘Super 301’?

A. A name of modem computer B. A new variety of Rice
C. American trade law D. American treatment name for Aids

60. When development in economy takes place the share of tertiary sector in National Income?
A. Declines B. Increases C. Remains constant D. First rises and then falls

61. Plan expenditure in India is met by

A. Internal debt and other resources B. Assistance from Aid India Club
C. Assistance from IMF D. Assistance from OECD countries

62. Population Density means :

A. No. of persons living per sq. km.
B. No. of persons living per kilometre
C. Ratio of population living below poverty line to total population
D. No. of persons in a village

63. Which tax is collected by Panchayat?

A. Sales Tax B. Custom Duty C. Land Revenue D. Tax on local fairs

64. Centralised planning was first adopted in the economy of

A. Russia B. Poland C. China D. India

65. Which among the following states is a leading industrialised state?

A. West Bengal B. Orissa C. Maharashtra D. Madhya Pradesh

66. The largest source of National Income in India is

A. Service Sector B. Agriculture C. Industrial Sector D. Trade Sector

67. Indian Green Revolution is the most successful in

A. Wheat and Potato B. Jwar and Oil Seeds
C. Wheat and Rice D. Tea and Coffee

68. Economic Planning is in

A. Union list B. State list C. Concurrent list D. Not any specified list

69. Which types of tax helps in reducing disparities of income?

A. Proportionate tax B. Progressive tax C. Regressive tax D. All of these

70. ‘Golden Handshake Scheme’ is associated with

A. Inviting foreign companies B. Private investment in public enterprises
C. Establishing joint enterprises D. Voluntary retirement

71. The official exchange rate of Indian rupee is associated with

A. Pound Sterling B. Dollar
C. SDR D. A basket of selected currencies
72. As a result of Green Revolution which foodgrains had a reduced percentage in total foodgrain
production?
A. Wheat B. Rice C. Cereals and Pulses D. None of these

73. Corporate Tax is imposed by

A. State Government B. Local Government
C. Central Government D. Both Centre and State Government

74. MRTP is related to

A. Monopoly and trade restrictions B. Inflation control
C. Transport control D. Foreign Exchange Regulations

75. The basis of determining dearness allowance to employee in India is

A. National Income B. Consumer Price Index
C. Standard of Living D. Per Capita Income

Answer Key

1. (b) 2. (d) 3. (a) 4. (a) 5. (a) 6. (d) 7. (d) 8. (c) 9. (b) 10. (b)
11. (a) 12. (a) 13. (c) 14. (a) 15. (b) 16. (b) 17. (a) 18. (d) 19. (a) 20. (b)
21. (b) 22. (a) 23. (c) 24. (b) 25. (b) 26. (d) 27. (b) 28. (a) 29. (b) 30. (a)
31. (b) 32. (d) 33. (d) 34. (b) 35. (b) 36. (a) 37. (b) 38. (b) 39. (c) 40. (d)
41. (a) 42. (a) 43. (c) 44. (d) 45. (b) 46. (b) 47. (d) 48. (a) 49. (c) 50. (b)
51. (d) 52. (a) 53. (b) 54. (d) 55. (d) 56. (c) 57. (a) 58. (c) 59. (c) 60. (b)
61. (a) 62. (a) 63. (d) 64. (a) 65. (c) 66. (a) 67. (c) 68. (c) 69. (b) 70. (d)
71. (d) 72. (c) 73. (c) 74. (a) 75. (b)