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Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 25

Questions
1 Which of the following conditions is most likely to benefit a debtor under new classical economic framework ?
1 Anticipated deflation
2 Paasche’s index number
3 Anticipated inflation
4 Unanticipated inflation

Answer:Unanticipated inflation
2 Which theory assumes that increase in stock of money is directly spent on goods ?
1 Quantity theory of money
2 IS - LM theory
3 Keynes
4 None of the above

Answer:Quantity theory of money
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3 In Harrod’s model of economic growth, if warranted rate is below the natural rate of growth then it is possible to maintain steady state growth at warranted rate with :
1 Continually increasing unemployment
2 A constant rate of unemployment
3 Continually decreasing unemployment
4 None of the above

Answer:Continually increasing unemployment
4 According to Harrod, neutral technical progress is characterised as :
1 Capital augmenting
2 Labour augmenting
3 Both labour and capital augmenting
4 Productivity increasing

Answer:Labour augmenting
5 The capacity creating aspect of investment in growth theory was explained by :
1 R.F. Harrod
2 E.D. Domar
3 R.M. Solow
4 P.A. Samuelson

Answer:E.D. Domar
6 The rate at which banks lend to RBI is known as :
1 Bank Rate
2 Repo Rate
3 Reverse Repo rate
4 Interest Rate

Answer:Reverse Repo rate
7 A less elastic IS curve means that :
1 Monetary policy is more effective
2 Monetary policy is less effective
3 Fiscal policy is less effective
4 Both (1) and (3) are true

Answer:Monetary policy is less effective
8 When LM curve is vertical, which one of the following is correct ? An increase in money supply will lead to :
1 Fall in interest rate
2 Fall in the level of income
3 Rise in the rate of interest
4 No change in the level of income

Answer:Fall in interest rate
9 Who among the following believe the velocity of money to be constant ?
1 Classicals
2 Keynesians
3 Monetarists
4 Both (1) and (3) above

Answer:Both (1) and (3) above
10 For Keynesian demand for money, which of the following is correct ? People wish to hold money in the form of :
1 Cash
2 Bonds
3 Both Cash and Bonds
4 Neither Cash nor Bonds

Answer:Neither Cash nor Bonds
11 Crowding out will emerge in the economy, if :
1 government spending is on the rise
2 deficit financing is in control
3 both (1) and (2) are relevant
4 neither (1) nor (2) are relevant

Answer:government spending is on the rise
12 Population replacement level of total fertility rate is :
1 2.1
2 1.0
3 2.5
4 4.0

Answer:2.1
13 Which one of the following is not an Hirofumi Ujawa condition for a well behaved production function ?
1 Continuously differentiable
2 When x50, f(x)50
3 The second derivative of the function is negative
4 The function is concave

Answer:The function is concave
14 Value of the Marginal Product (VMP) is :
1 MPP3MR
2 MPP3AR
3 APP3MR
4 APP3AR

Answer:MPP3AR
15 Which of the following is not a part of Bharat Nirman ?
1 Rural Housing
2 Agro-based Industries
3 Rural Electrification
4 Rural Telephony

Answer:Agro-based Industries

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