Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 19

Questions
1 The monopolist has no supply curve because
1 there is a single seller in the market.
2 the relationship between price and quantity depends on both marginal cost and average cost.
3 the monopolist’s marginal cost curve changes considerably over time.
4 the quantity supplied at any particular price depends on the monopolist’s demand curve.

Answer:the quantity supplied at any particular price depends on the monopolist’s demand curve.
2 If the Consumer Price Index Number for April 2015 was 120 and in April 2016, the same increased to 126, then the percentage rate of inflation will be
1 5
2 6
3 12.6
4 10.5

Answer:5

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3 According to the purchasing power parity theory of exchange rate determination, the currency of country X would appreciate against that of country Y if :
1 the inflation rate in country Y is less than that in country X
2 the country X gets more foreign direct investment than country Y
3 the inflation rate in country X is less than that in country Y
4 the rate of growth of Gross Domestic Product in country X is greater than that in country Y

Answer: the inflation rate in country X is less than that in country Y
4 Who among the following is credited with first drawing attention to trade creation and trade diversion effects ?
1 Jacob Viner
2 Bella Ballsa
3 Paul Samuelson
4 G. Heberler

Answer:Jacob Viner
5 International trade is based on the idea that
1 Exports exceed imports
2 Imports exceed exports
3 Resources are more easily mobile internationally than goods
4 Resources are less mobile internationally than the goods

Answer:Resources are less mobile internationally than the goods
6 Which one of the following denotes the size of an operational holding in Indian Agriculture ?
1 Own Land
2 Own land + leased – in – land
3 Own land + leased – in – leased – out land
4 Own land – leased – out land

Answer:Own land + leased – in – leased – out land
7 In an open economy input-output model if (I – A) is technology matrix, the viability condition to be satisfied is
1 |I – A| < 0
2 |I – A| > 0
3 |I – A| = 0
4 All principal minors of the matrix (I – A) must be positive

Answer: All principal minors of the matrix (I – A) must be positive
8 Which one of following pairs is not correctly matched ?
1 Durbin’s h Test – Autocorrelation in autoregressive models
2 Dicky-Fuller Test – Heteroscedasticity
3 F-Test – Overall significance of regression
4 Distributed Lag Model – Koyck Approach

Answer:Dicky-Fuller Test – Heteroscedasticity
9 Full demographic dividend will be realised when government promotes
1 more social security
2 more intensive growth
3 more skill development
4 more capital market

Answer:more skill development
10 Which one of the following is true for the General Fertility Rate ?
1 It is an actual measure of fertility.
2 It is a potential measure of fertility.
3 It is an actual measure of female population composition.
4 It is based on hypothetical age specific birth rate profile.

Answer:It is a potential measure of fertility.
11 Which among the following curves is used to depict the long run behaviour of population growth ?
1 Normal Curve
2 Logistic Curve
3 Exponential Curve
4 Ogive

Answer:Logistic Curve
12 Infrastructure cess is a levy/tax on
1 Builders
2 Railways
3 Motor vehicles
4 Public Transport

Answer:Motor vehicles
13 The banks which are implementing the Micro Finance Programme linked with Self Help Groups (SHGs) are
1 Commercial Banks and Co-operative Banks, only.
2 Regional Rural Banks and Commercial Banks, only.
3 Co-operative Banks and Regional Rural Banks, only.
4 Commercial Banks, Regional Rural Banks and Co-operative Banks.

Answer:Commercial Banks, Regional Rural Banks and Co-operative Banks.
14 Which of the following is generally called as Aggregate monetary measure of money supply ?
1 M4
2 M1
3 M2
4 M3

Answer:M3
15 The traders reduce the risk of loss in currency fluctuations through which of the following ?
1 Speculations
2 Arbitrage
3 Hedging
4 None of the above

Answer:Hedging

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