Economics mcq

Economics miscellaneous questions

Question 141
For internal financing of Five Year Plans, the government depends on: [NDA 1991]
A
taxation only
B
taxation and public borrowing
C
public borrowing and deficit financing
D
taxation, public borrowing and deficit financing






Question 142
"Dear Money" means
A
low rate of interest
B
high rate of interest
C
depression
D
inflation
Question 142 Explanation: 
Dear Money is when it is expensive to borrow money because of high real interest rates. For example, if bank rates are 10% and inflation is 6%. The effective real interest rate is 4% which is quite high.
Question 143
The difference between the GNP and the NNP is equal to the
A
Consumer expenditure on durable goods
B
Direct tax revenue
C
Indirect tax revenue
D
Capital depreciation
Question 143 Explanation: 
Capital depreciation.






Question 144
Production function explains the relationship between
A
Initial inputs and ultimate output
B
Inputs and ultimate consumption
C
Output and consumption
D
Output and exports
Question 144 Explanation: 
Production function explains the relationship between initial inputs and ultimate output.
Question 145
Which of the following is not a fixed cost?
A
Salaries of administrative staff
B
Rent of factory bidding
C
Property taxes
D
Electricity charges
Question 145 Explanation: 
Salaries of administrative staff is not a fixed cost. because it is a variable cost, which changes time to time.






Question 146
AGMARK is a guarantee of standard:
A
quality
B
quantity
C
weight
D
size
Question 146 Explanation: 
AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India.
Question 147
The main objective of First Five-year Plan was:
A
economic growth
B
industrial growth
C
development of agriculture including irrigation and power projects
D
self-reliance






Question 148
After the initiation of economic reforms in 1991-92 the percentage share of: [CDS 1999]
A
Both direct and indirect taxes increased in gross tax revenue
B
direct taxes increased and that of indirect taxes decreased in gross tax revenue
C
both direct and indirect taxes decreased in gross tax revenue
D
direct taxes decreased and that of indirect taxes increased in gross tax revenue
Question 149
Industrial Financial Corporation of India was established in
A
1948
B
1950
C
1951
D
1952






Question 150
Forced Savings refer to
A
Reduction of consumption consequent to a rise in prices
B
Taxes on individual income and wealth
C
Compulsory deposits imposed on income tax payers
D
Provident fund contribution of private sector employees
Question 150 Explanation: 
When people spend less than they earn because there are not enough goods available to buy or because goods are too expensive. Forced saving plays an important role in explaining how expansionary monetary policy generates artificial booms.
There are 150 questions to complete.

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