Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 35

Questions
1 Lump sum grant means :
1 A grant whose amount is sufficient to meet the expenditure.
2 A matching and conditional grant.
3 Grant given for a special purpose and it can be utilised only for that purpose.
4 A grant whose amount is not dependent on any matching effort of the recipient.

Answer: A grant whose amount is not dependent on any matching effort of the recipient.
2 Geometric mean of Laspeyre’s and Paasche’s indices provides :
1 Marshall-Edgeworth Index
2 Bowley’s Index
3 Fisher’s Index
4 Kelley’s Index

Answer:EFisher’s Index

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3 Which one of the following denotes the power of the Test ? [α is probability of Type I error and β is probability of Type II error]
1 α
2 β
3 1 – α
4 1 – β

Answer:1 – β
4 In a frequency distribution the standard deviation of which is 15.8, the value of median is more than mean by 4, what will be its coefficient of skewness ?
1 – 0.76
2 + 0.76
3 – 0.86
4 + 0.86

Answer:– 0.76
5 In a frequency distribution if each item is multiplied by 5, the coefficient of variation will remain
1 unchanged
2 will be multiplied by 5
3 will be multiplied by 25
4 will be multiplied by 1/5

Answer:unchanged
6 Demand for foodstuff is income inelastic. This is explained by
1 Giffen’s Paradox
2 Engel’s Law
3 Gossen’s Law
4 Ricardo’s Law

Answer:Engel’s Law
7 Non-symmetric risk means :
1 A risk that can be eliminated by diversifying.
2 A risk that cannot be eliminated by diversifying.
3 A risk that can be eliminated without diversifying.
4 A risk that cannot be eliminated.

Answer: A risk that can be eliminated by diversifying.
8 Who among the following economists developed the concept of ‘Barriers to Entry’ of firms ?
1 J.S. Bain
2 W.J. Baumol
3 Alfred Marshall
4 W.S. Jevons

Answer:J.S. Bain
9 Even as fixed average cost continues to fall, the average variable cost begins to rise because
1 returns to factors start diminishing
2 returns to factors start rising
3 input prices start rising
4 producers budget starts shrinking

Answer:producers budget starts shrinking
10 Which among the following is not a characteristic of Imperfect Competition ?
1 Perfect knowledge
2 Free transport
3 Free Entry of firms
4 Homogeneous product

Answer:Perfect knowledge
11 Which among the following were neglected by Keynes in his theory of employment ?
1 Role of expectations
2 Role of capital stock
3 Role of consumption
4 Role of government

Answer:Role of capital stock
12 The theoretical proposition of stable velocity of money is being weakened by the recent researchers. This has the effect of weakening the position of
1 Keynesians
2 Monetarists
3 New Classicals
4 Utopians

Answer:Monetarists
13 Which of the following is the correct assumption for the Lewis two sector model ?
1 High unemployment in urban sector
2 Rising real wages
3 High marginal productivity in the rural sector
4 Surplus labour in the rural sector

Answer:Surplus labour in the rural sector
14 Which of the following is a major indivisibility of Rosenstein-Rodan Model of development ?
1 Services
2 Agriculture
3 Infrastructure
4 Supply

Answer:Supply
15 Which among the following statement is true for Marxian model of development ?
1 Change in Mode of production and Relations in production happen simultaneously.
2 Change in Mode of production follows change in Relations in production.
3 Change in Mode of production precedes the change in Relations in production.
4 Relations in production are not important.

Answer:Change in Mode of production precedes the change in Relations in production.

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