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Free download in PDF Development Economics Objective Type Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams. These short solved questions or quizzes are provided by Gkseries.
(21)
Number of times a unit of money changes hands in the course of a year is called_______
[A]
Velocity of money
[B]
Value of money
[C]
Supply of money
[D]
Purchasing power of money
Answer: Velocity of money
(22)
_____ is the difference between total receipts and total expenditure.
[A]
Capital deficit
[B]
Budget deficit
[C]
Fiscal deficit
[D]
Revenue deficit
(23)
What is meant by Autarky in international trade?
[A]
The idea of self sufficiency and no international trade by a country
[B]
Monopoly in international trade
[C]
Imposition of restrictions in international trade
[D]
Removal of all restrictions from international trade
Answer: The idea of self sufficiency and no international trade by a country
(24)
The following is the direct tax among:
[A]
Value Added tax
[B]
Entertainment tax
[C]
House tax
[D]
Service tax
(25)
Which among the following is a cause of inflation?
[A]
Deficit financing
[B]
Rise in external loans
[C]
Unfavourable balance of payment
[D]
A hike in the CRR by the central bank of the country
Answer: Deficit financing
(26)
Cost push inflation occurs because of:
[A]
Wage push
[B]
Profit push
[C]
Both A and B
[D]
None of the above
(27)
Which among the following is NOT correct?
[A]
During inflation lenders suffer and borrowers benefit out’
[B]
Rising inflation indicates rising aggregate demand and indicates comparatively lower supply and higher purchasing capacity among the consumers’
[C]
With rising inflation the currency of the economy depreciates provided it follows the flexible currency regime.
[D]
Inflation decreases the nominal (face) value of the wages while the real value increases.
Answer: Inflation decreases the nominal (face) value of the wages while the real value increases.
(28)
The capital that is consumed by an economy or a firm in the production process is known as:
[A]
Depreciation
[B]
Dead-weight loss
[C]
Capital loss
[D]
Production cost
(29)
Who propounded the opportunity cost Theory of international trade?
[A]
Haberler
[B]
Marshall
[C]
Ricardo
[D]
Heckscher & Ohlin
(30)
Which among the following is NOT correct?
[A]
The system of floating exchange rate requires comprehensive government intervention
[B]
Floating exchange rate system works on the market mechanism
[C]
Floating exchange rate breeds uncertainties and speculation
[D]
None of the above
Answer: The system of floating exchange rate requires comprehensive government intervention
31
Which among below is NOT a correct statement?
[A]
Pure and perfect competition is the same market structures.
[B]
Bretton Woods conference gave birth to two international organizations-
[C]
Theory of Absolute Advantage in international trade is given by Adam Smith’
[D]
Mint par theory of exchange rate determination is applicable in countries under gold standard.
Answer: Pure and perfect competition is the same market structures.
32
Terms of trade that relate to the Real Ratio of international exchange between commodities is called:
[A]
Income terms of trade
[B]
Real cost terms of trade
[C]
Commodity terms of trade
[D]
Utility terms of trade
Answer: Income terms of trade
33
Who among the following enunciated the concept of single factoral terms of trade?
[A]
Taussig
[B]
G.S.Donens
[C]
Jacob Viner
[D]
None of the above
34
‘Infant industry argument’ in international trade is given in support of:
[A]
Encouragement to export oriented small and tiny industries
[B]
Free trade
[C]
Granting Protection
[D]
None of the above
Answer: Granting Protection
35
Which of the following is also known as International Bank for Reconstruction and Development?
[A]
International Monetary Fund
[B]
Asian Development Bank
[C]
Reserve Bank of India
[D]
World Bank
36
Which among the following is not a function of International Monetary Fund?
[A]
It serves a medium term and long term credit institution’
[B]
It provides reservoir of the currencies of the member countries and enables members to borrow one another’s currency’
[C]
It provides a mechanism for improving short term balance of payments position’
[D]
It provides machinery for international consultations’
Answer: It serves a medium term and long term credit institution’
37
The new world Trade organization (WTO), which replaced the GATT came into effect from____
[A]
1st January 1995
[B]
1st May 1995
[C]
1ST January 1991
[D]
1st April 1994
38
A change in fiscal policy affects the balance of payments through:
[A]
The capital account only
[B]
The current account only
[C]
Both, the current account and capital account
[D]
Neither current account nor capital account
Answer: Both, the current account and capital account
39
Fiscal Policy means:
[A]
Policy relating to government spending’ taxation and borrowing
[B]
Policy relating to financial matters of international trade
[C]
Policy relating to money and banking in a country
[D]
Policy relating to non-banking financial institutions
Answer: Policy relating to government spending’ taxation and borrowing
40
Which one of the following is NOT the objective of fiscal policy of government of India?
[A]
Regulation of inter-state trade
[B]
Economic growth
[C]
Full employment
[D]
Price stability
Answer: Regulation of inter-state trade
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