Economics Questions and Answers for Competitive Exams | Indian Economy Quiz Set 7

Questions
1 In which of the following sectors, the employment elasticity has been estimated to be greater than one during the period (2004 - 05 to 2009 - 10) :
1 Agriculture
2 Construction
3 Manufacturing
4 Mining and Quarrying

Answer:Construction
2 Which amongst the following statements are true in relation to Indian economy during the period 2014-16 ?
1 Exports have been buoyant
2 Private capital investment happened at brisk pace
3 Both (1) and (2) are true
4 Neither (1) nor (2) is true

Answer:Neither (1) nor (2) is true

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3 Which among the following states has the smallest % of urban population as per census 2011 ?
1 Bihar
2 Odisha
3 Himachal Pradesh
4 Meghalaya

Answer:Himachal Pradesh
4 If the price data for 1980 and 2000 are given and quantity data are given only for the year 2000 then which type of index number, taking 1980 as the base can be constructed ?
1 Laspeyre’s Index
2 Paasche Index
3 Fisher Index
4 Kelly Index

Answer: Paasche Index
5 If two events A and B are mutually exclusive then which one of the following is correct ?
1 P(A+B)=P(A)+P(B)
2 P(AB)=P(A)⋅ P(B)
3 P(AB)=P(A)/P(B)
4 P(A/B)=P(A)−P(B)

Answer:P(A+B)=P(A)+P(B)
6 If a sample of 100 is to be taken from a population of 1,000 farmers consisting of marginal, small and large farmers, which of the following will be the most appropriate sampling method ?
1 Simple random sampling
2 Cluster sampling
3 Stratified random sampling
4 Systematic sampling

Answer:Stratified random sampling
7 The sum of squares of deviations of a set of values is minimum when deviations are taken about :
1 Arithmetic mean
2 Harmonic mean
3 Median
4 Geometric Mean

Answer:Arithmetic mean
8 A good is called a ‘Giffen good’ when the income effect is :
1 positive and is greater than the substitution effect
2 Equal to substitution effect
3 Less than the substitution effect
4 Negative and is greater than the substitution effect

Answer:Negative and is greater than the substitution effect
9 Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will :
1 increase the utility of all individuals
2 increase the utility of at least one individual, but may decrease the level of utility of another person
3 increase the utility of one individual, but cannot decrease the utility of any individual
4 decrease the utility of all individuals

Answer: increase the utility of one individual, but cannot decrease the utility of any individual
10 Market prices adjusted to consider differences between social cost - benefit and private cost-benefit calculations are :
1 Consumer Surplus
2 Price distribution
3 Exchange rate
4 Shadow prices

Answer:Shadow prices
11 ‘Bandwagon Effect’ is found in which of the following ?
1 Life cycle hypothesis
2 Permanent income hypothesis
3 Absolute income hypothesis
4 Relative income hypothesis

Answer: Relative income hypothesis
12 Permanent income hypothesis assumes positive correlation between which of the following pairs of variables ?
1 Permanent income and transitory income
2 Permanent income and transitory consumption
3 Permanent income and permanent consumption
4 Transitory income and transitory consumption

Answer: Permanent income and permanent consumption
13 Which of the following would be the initial impact on an economy if wages were to increase more than workers productivity ?
1 Employment would increase, causing a rightward shift in the aggregate demand curve
2 The aggregate demand curve would shift to the left, increasing the price level
3 The short - run aggregate supply curve would shift to the left, increasing the price level
4 Employment would decrease, causing a rightward shift in the aggregate demand curve

Answer:The short - run aggregate supply curve would shift to the left, increasing the price level
14 ‘Golden rule of accumulation’ refers to the savings rate that :
1 maximises the growth rate of output
2 optimises the investment in the economy
3 maximises the growing per capita consumption
4 None of the above

Answer:maximises the growing per capita consumption
15 In Marxian model, the rate of profit on capital is :
1 Directly proportional to rate of exploitation as well as organic composition of capital
2 Inversely proportional to rate of exploitation and organic composition of capital
3 Inversely proportional to rate of exploitation and directly proportional to organic composition of capital
4 Directly proportional to rate of exploitation and inversely proportional to organic composition of capital

Answer: Directly proportional to rate of exploitation and inversely proportional to organic composition of capital

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