1) Effective demand depends on -
Answer
supply price
2) The basic problem studied in Macro-Economics is -
Answer
production of income
3) Prof Miltion Fridman was leader of -
Answer
Chicago school
4) Who is called the 'Father of Economics'?
Answer
Adam Smith
5) The bank cheques are processed by using -
Answer
MICR
6) When was the Minimum Wages Act enacted in India?
Answer
1948
7) Identify the one which is not related to the Agricultural Price Policy.
Answer
Licensing
8) Steel sheets used in the production of furnitures is an example of
Answer
an intermediate good
9) The main source of long-term credit for a business unit is -
Answer
sale of stocks and bonds to the public
10) Devaluation of money means :
Answer
decrease in the internal value of money
11) Under flexible exchange rate system, the exchange rate is determined by -
Answer
the forces of demand and supply in the foreign exchange market
12) Bank rate is the rate of interest -
Answer
at which Commercial Banks borrow money from RBI
13) Open Market Operations refer to _.
Answer
Purchase and sale of Government securities by RBI
14) The New Economic Policy was introduced by:
Answer
Lenin
15) "Functional Finance" is associated with :
Answer
Abba 'V Lerner
16) Multiplier process in economic theory is conventionally taken to mean:
Answer
income of an economy grows on account of an initial investment
17) Personal disposable income is :
Answer
equal to personal income minus direct taxes paid by household.
18) Transfer payments include :
Answer
Employee's contribution to social security
19) Capacity utilization -
Answer
is a measure of the proportional of the existing capital stock used for current production.
20) Apart from the availability of raw material location of an industry is also dependent on the availability of:
Answer
man power and energy source
21) What happens when there is a demand deficiency in an economy?
Answer
Stagnation
22) Engel's Law states the relationship between -
Answer
quantity demanded and income of the consumers
23) The demand curve for a Giffen good is -
Answer
upward rising
24) If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for -
Answer
Coke and 7-Up will decrease
25) The demand curve shows that price and quantity demanded are -
Answer
inversely proportional and aslo inversely related
26) If the main objective of the government is to raise revenue, it should tax commodities with -
Answer
low elasticity of demand
27) Monopoly means -
Answer
single seller
28) Kinked demand curve is a feature of -
Answer
Oligopoly
29) Demand for complementary goods is known as -
Answer
Joint demand
30) Quasi rent is a phenomenon.
Answer
short term
31) Perfectly inelastic demand is equal to :
Answer
Zero
32) A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to -
Answer
Infinity
33) 'Capital gains' refers to goods which -
Answer
help in the further production of goods
34) Returns to scale is a -
Answer
long-run phenomenon
35) Rent is a factor payment paid to -
Answer
land
36) Plant and machinery are -
Answer
Producers' goods
37) Which activity is not included in production?
Answer
Services done by a house-wife in her own house
38) Marginal cost is the -
Answer
cost of producing an extra unit of output
39) Under hill cost pricing, price is determined -
Answer
by adding a margin to the average cost
40) As output increases, average fixed cost -
Answer
falls
41) Fixed cost is known as -
Answer
Overhead cost
42) All of the goods which are scarce and limited in supply are called -
Answer
Economic goods
43) The terms "Micro Economics" and "Macro Economics" were coined by -
Answer
Ragner Frisch
44) 'Hire and Fire' is the policy of -
Answer
Mixed Economy
45) Consumption function expresses the relationship between consumption and -
Answer
income
46) The relationship between the rate of interest and level of consumption was first visualized by -
Answer
Irving Fisher
47) The Liquidity Preference Theory of Interest was propounded by :
Answer
J.M. Keynes
48) Consequent upon the recommendations of the Working Group on Rural Banks, 5 Rural Regional Banks were initially set up in the year -
Answer
1975
49) Poverty in less developed countries is largely due to -
Answer
income inequality
50) Which unit of valuation is known as "Paper gold"?
Answer
SDR
51) A closed economy is one which -
Answer
Does not trade with other countries
52) Who are the creditors of a Corporation?
Answer
Both Bond and Stock holders
53) The ratio of a bank's cash holdings to its total deposit liabilities is called the -
Answer
Cash Reserve Ratio
54) The smaller the Cash Reserve Ratio, the scope for lending by banks is :
Answer
greater
55) For channelizing the unaccounted money for productive purposes the Government Introduced the scheme of :
Answer
Special Bearer Bonds
56) Saving is that portion of money income that is -
Answer
not spent on consumption
57) What is the role of "Ombudsman" in a bank?
Answer
To provide quality and speedy redressal of grievances of customers.
58) The permission given to a bank customer to draw cheques in excess of his current account balance is called -
Answer
an overdraft
59) Forced Savings refer to -
Answer
Reduction of consumption consequent to a rise in prices
60) Say's Law of Market holds that -
Answer
supply creates its own demand
61) 'Marginal efficiency of capital' is -
Answer
expected rate of return on new investment
62) National Income is the -
Answer
Net National Product at factor cost
63) What is meant by 'Capital Gain'?
Answer
Appreciation in the money value of assets
64) Backward bending supply curve belongs to which market?
Answer
Labour
65) In terms of economics, if it is possible to make someone better off without making someone worse off, then the situation is -
Answer
Inefficient
66) Knowledge, technical skill, education etc. in economics, are regarded as -
Answer
human capital
67) Purchasing Power Parity theory is related with -
Answer
Exchange rate
68) The demand for which of the fallowing commodity will not rise in spite of a fall in its price?
Answer
Salt
69) In the long-run equilibrium, a competitive firm earns -
Answer
Normal profit
70) What is selling cost?
Answer
Cost incurred on promoting the sale of the product
71) Who said, "Economics is the Science of Wealth"?
Answer
Adam Smith
72) The addition to total cost by producing an additional unit of output by a firm is called -
Answer
Marginal cost
73) In a perfectly competitive market, a firm's -
Answer
Average Revenue is always equal to Marginal Revenue
74) An increase in the quantity supplied suggests -
Answer
a movement up along the supply curve
75) Price and output are determinates in market structure other than -
Answer
perfect competition
76) Bilateral monopoly situation is
Answer
when there is only one buyer and one seller of a product
77) A 'Market Economy' is one which -
Answer
is free from the Government control
78) The law of demand states that -
Answer
if the price of a good increases, the quantity demanded of that good decreases
79) The demand curve facing a perfectly competitive firm is -
Answer
perfectly elastic
80) If average cost falls, marginal cost -
Answer
falls at the same rate
81) Consumer gets maximum satisfaction at the point where -
Answer
Marginal Utility = Price
82) Micro-economics is also called :
Answer
Price theory
83) Demand in Economics means :
Answer
Demand backed by purchasing power
84) A fall in demand or rise in supply of a commodity—
Answer
decreases the price of that commodity
85) The relationship between the value of money and the price level in an economy is -
Answer
Inverse
86) Production function relates -
Answer
Inputs to output
87) If total utility is maximum at a point, then marginal utility is -
Answer
zero
88) Economies of Scale means reduction in -
Answer
unit cost of production
89) Who is authorized to issue coins in India?
Answer
Ministry of Finance
90) Reserve Bank of India was nationalized in -
Answer
1949
91) Scheduled Banks have to be registered with -
Answer
RBI
92) The difference between visible exports and visible imports is defined as -
Answer
Balance of trade
93) A commercial bank law creates credit only if it has -
Answer
Cash in the vault
94) "Dear Money" means -
Answer
high rate of interest
95) Commercial banks create credit -
Answer
on the basis of their deposits
96) Bank money refers to -
Answer
cheques
97) A financial instrument is called a 'primary security' if ii represents the liability of :
Answer
some ultimate borrower
98) Founded in the year 1886 by a pharmacist named John Pemberton, this product is the second most widely understood term in the world after "OK". What is its name?
Answer
CocaCola
99) Indirect tax means :
Answer
There is not direct relationship between the tax payer and the government.
100) A short-term government security paper is called -
Answer
Treasury bill
101) The existence of a parallel economy or Black Money -
Answer
makes the monetary policies less effective
102) The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are -
Answer
Implicit costs
103) The method of calculating the national income by the product method is otherwise known as :
Answer
Net output method
104) The best measure to assess a country's economic growth is -
Answer
per capita income at constant prices
105) Rate of interest is determined by -
Answer
Commercial Banks
106) The total value of goods and services produced in a country during a given period is -
Answer
National income
107) Income and consumption are :
Answer
directly related
108) Regarding money supply situation in India it can be said that the :
Answer
Currency with the public is less than the deposits with the banks.
109) The equilibrium price of a commodity will definitely rise if there is a/an:
Answer
increase in demand accompanied by a decrease in supply.
110) Short term contractions and expansions in economic activity are called .
Answer
The business cycle
111) The concept of joint sector implies cooperation between -
Answer
Public sector and private sector industries
112) When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will -
Answer
increase
113) The income elasticity of demand being greater than one, the commodity must be -
Answer
a luxury
114) The main determinant of real wage is -
Answer
purchasing power money
115) A refrigerator operating in a chemist's shop is an example of -
Answer
final good
116) The situation in which total revenue is equal to total cost, is known as -
Answer
break-even point
117) The relationship between price of a commodity and the demand for it -
Answer
is an inverse relationship
118) Consumer's sovereignty means:
Answer
consumers are free to spend their income as they like.
119) The situation in which total Revenues equals total cost, is known as :
Answer
Break even point
120) A market in which there are a few number of large firms is called as
Answer
Oligopoly
121) Number of sellers in the monopoly market structure is -
Answer
one
122) When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be -
Answer
Inelastic
123) Production function is the relationship between -
Answer
Production and Production factors
124) Any factor of production can earn economic-rent, when its supply will be -
Answer
Perfectly inelastic
125) The father of Economics is -
Answer
Adam Smith
126) The sale of branded articles is common in a situation of -
Answer
monopolistic competition
127) Who propounded Dynamic Theory of profit?
Answer
Clark
128) Demand curve of a firm under perfect competition is :
Answer
horizontal to ox-axis
129) The marginal revenue of a monopolist is:
Answer
less than price
130) Payment of water charges by the farmers to the government represents -
Answer
intermediate consumption
131) The problem of Economics arises from -
Answer
More wants and less goods
132) When average cost production (AC) falls, marginal cost of production must be -
Answer
Less than the average cost
133) Production function expresses -
Answer
technological relationship between physical inputs and output
134) When there is one buyer and many sellers then that situation is called -
Answer
Single buyer right
135) The measure of a worker's real wage is -
Answer
The purchasing power of his earnings
136) Bull and bear are related to which commercial activity?
Answer
Stock market
137) The share broker who sells shares in the apprehension of falling prices of shares is called -
Answer
Bear
138) "Bad money will drive out good money from circulation." This is known as :
Answer
Gresham's Law
139) If the Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should -
Answer
lower cash reserve ratio
140) What was the objective of Command Area Development Programme?
Answer
To ensure better utilization of irrigation potential
141) Distribution of food rains operates under a two her system with the introduction of -
Answer
Targetted Public Distribution System
142) A favorable Balance of Trade of a country implies that -
Answer
Exports are greater than Imports
143) 'Quota' is -
Answer
limit on the quantity of imports
144) A tax is characterized by horizontal equity if its liability is -
Answer
proportional to the income of tax payers
145) What does a Leasing Company provide?
Answer
Machinery and capital equipment on hire
146) The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into -
Answer
aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system
147) What is dual pricing?
Answer
Price fixed by Government and Price in open market
148) A tax is said to be regressive when its burden falls -
Answer
more heavily on the poor than on the rich
149) Mixed Economy means :
Answer
Co-existence of public and private sectors
150) When aggregate supply exceeds aggregate demand -
Answer
inventories accumulate
151) Investment is equal to -
Answer
gross total of all capital assets minus wear and tear
152) An Increase in national income because of an increase in price is called-
Answer
an increase in national income at base year prices
153) A ‘Transfer Income' is an -
Answer
Income which is not produced by any production process
154) National Income is also called as :
Answer
GNP at Factor Cost
155) Excise duty is levied on -
Answer
production of goods
156) Average Revenue means -
Answer
the revenue per unit of commodity sold
157) Economic rent refers to -
Answer
Payment made for the use of land
158) "Interest is a reward for parting with liquidity" is according to -
Answer
Keynes
159) Extension or contraction of quantity demanded of a commodity is a result of a change in the -
Answer
unit price of the commodity
160) Why is rent earned by land even in the long run?
Answer
Its supply is inelastic in the long run
161) Who is called the Father of Economics?
Answer
Adam Smith
162) A horizontal demand curve is -
Answer
perfectly elastic
163) The theory of monopolistic competition has been formulated in the United States of America by -
Answer
Edward Chamberlin
164) The remuneration of the entrepreneur in production is -
Answer
Net profit
165) Elasticity (e) expressed by the formula 1 > e > 0 is -
Answer
Relatively inelastic
166) Production refers to -
Answer
creation of utilities
167) The study of factor pricing is alternatively called the theory of -
Answer
functional distribution
168) In a free enterprise economy, resource allocation is determined by -
Answer
the pattern of consumers' spending
169) Who developed the innovations theory of profit?
Answer
Schumpeter
170) In the case of an inferior good, the income elasticity of demand is :
Answer
Negative
171) Production Function relates to:
Answer
inputs to outputs
172) Under increasing returns the supply curve is -
Answer
positively sloped from is to right
173) The term "market" in Economics means -
Answer
A central place
174) Division of labour is limited by -
Answer
extent of the market
175) Cross elasticity of demand between petrol and car is -
Answer
negative
176) The Law of Demand expresses -
Answer
effect of change in price of a commodity on its demand
177) If the price of an inferior good falls, its demand -
Answer
rises
178) The Marginal Utility Curve slopes downward from left to right indicating -
Answer
An inverse relationship between marginal utility and the stock of commodity
179) The term 'Macro Economics' was used by _.
Answer
Ragner Frisch
180) Tax on inheritance is called -
Answer
Estate duty
181) Which nationalized bank of India has a shining star as its emblem?
Answer
Bank of India
182) The duties levied on alcoholic liquors, narcotic drugs and opium come under—
Answer
Central Excise Duty
183) Theoretically trade between two countries lakes place on account of -
Answer
comparative differences in costs
184) Short term loans to correct Balance of Payments problems is given by -
Answer
I.M.F.
185) The outcome of 'devaluation of currency' is -
Answer
increased export and improvement in balance of payment
186) 'Gresham's Law' in Economics relates to -
Answer
circulation of currency
187) 'Money' is an example of -
Answer
Floating capital
188) The existence of a Parallel Economy or Black Money -
Answer
makes the monetary policies less effective
189) An economy is in equilibrium when -
Answer
intended investment equals intended investment
190) The 'Canons of Taxation' were propounded by -
Answer
Adam Smith
191) Beyond a certain point deficit financing will certainly lead to -
Answer
inflation
192) VAT is imposed:
Answer
On all stages between production and sale
193) The aim of Differentiated Interest Scheme was to provide concessional loans to -
Answer
weaker section of the society
194) Investment and savings are kept equal through a change in the level of -
Answer
Consumption
195) In a highly developed country the relative contribution of agriculture to GDP is -
Answer
relatively low
196) The demand for money, according to Keynes, is for -
Answer
precautionary motive
197) Economic progress of a country is determined by -
Answer
Increase in per capita income of people of country
198) What is "book-building"?
Answer
A process of inviting subscriptions to a public offer of securities, essentially through a tendering process
199) A hammer in the hands of a house-wife is a good.
Answer
intermediary
200) Surplus budget is recommended during :
Answer
Depression
201) Economic profit or normal profit is the same as -
Answer
net profit
202) When the demand for a good increases with an increase in income, such a good is called -
Answer
Superior good
203) In equilibrium, a perfectly competitive firm will equate -
Answer
marginal revenue with marginal cost
204) Equilibrium is a condition that can -
Answer
change only if some internal factor changes
205) Enterpreneurial ability is a special kind of labour that -
Answer
organizes the process of production
206) An exceptional demand curve is one that moves -
Answer
downward to the right
207) Production function explains the relationship between -
Answer
initial inputs and ultimate output
208) The four factors of production are -
Answer
land, labour, capital, organisation,
209) The term utility means -
Answer
the satisfaction which a commodity yields
210) The degree of monopoly power is to be measured in terms of the firm's-
Answer
supernormal profit
211) Who propounded the Innovation theory of profits?
Answer
J.A. Schumpeter
212) The principle of maximum social advantage is the basic principle of -
Answer
Fiscal Economics
213) Diamonds are priced higher than water because :
Answer
their marginal utility to buyers is higher than that of water.
214) Buyers and Sellers will have perfect knowledge of market conditions under -
Answer
Duopoly
215) In short run, if a competitive firm incurs losses, it will -
Answer
stop production.
216) If the average revenue is a horizontal straight line, marginal revenue will be -
Answer
Identical with average revenue
217) The demand of a factor of production is -
Answer
derived
218) Bilateral monopoly refers to the market situation of -
Answer
one seller and one buyer
219) Production function refers to the functional relationship between input and _.
Answer
output
220) Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its -
Answer
long-run average cost curve
221) Exploitation of labour is said to exist when -
Answer
Wage < Marginal Revenue Product
222) The size of the market for a product refers to -
Answer
the number of potential buyers of the product
223) Economic problem arises mainly due to -
Answer
scarcity of resources
224) In Economics the 'Utility' and 'Usefulness' have -
Answer
different meaning
225) If two commodities are complements, then their crossprice elasticity is-
Answer
imaginary number
226) Transfer earning or alternative cost is otherwise known as -
Answer
Opportunity cost
227) Human Development Index was developed by :
Answer
Mahbub-ul-Haq
228) Rate of interest is determined by -
Answer
Liquidity preference
229) Speculative demand for cash is determined by -
Answer
The rate of interest
230) Gross National Product is the money measure of -
Answer
final goods and services produced in the economy
231) The difference between GNP and NNP equals -
Answer
depreciation
232) Investment multiplier shows the effect of investment on -
Answer
Income
233) Barter transactions means -
Answer
Goods are exchanged with goods.
234) The supply-side measure to control inflation is -
Answer
Price control through Public Distribution System
235) HDI is an aggregate measure of progress in which of the three dimensions?
Answer
Health, Education, Income
236) What is an octroi?
Answer
Tax
237) Demand of commodity mainly depends upon -
Answer
Purchasing power
238) NIFTY is associated with -
Answer
NSE Index
239) The data collection for national income estimation is conducted in India by—
Answer
The NSSO (National Sample Survey Organization
240) What is AGMARK?
Answer
It stands for agricultural marketing
241) The Imperial Bank of India, after its nationalization came to be known as :
Answer
State Bank of India
242) Floating Exchange Rate is also referred to as -
Answer
Flexible Exchange Rate
243) Countries that depend mainly on the export of primary products for their income, are prone to -
Answer
increasing unemployment
244) Bank deposits that can be withdrawn without notice are called -
Answer
demand deposits
245) What does ECS in banking transactions stand for?
Answer
Electronic Clearing Service
246) Which one is not a function of money?
Answer
Price stabilization
247) Inflation is caused by -
Answer
increase in money supply and decrease in production
248) What are the main components of basic social infrastructure of an economy?
Answer
Education, Health and Civil amenities
249) The tax levied on gross sales revenue from business transactions is called -
Answer
Turnover Tax
250) Ad Valorem tax is levied -
Answer
according to value given by producers
251) Equilibrium price means -
Answer
Price determined by demand and supply
252) Opportunity cost of production of a commodity is -
Answer
the next best alternative output
253) Surplus earned by a factor other than land in the short period of referred to as-
Answer
quasi-rent
254) If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is -
Answer
perfectly elastic
255) Cost of production of the producer is given by:
Answer
sum of wages, interest, rent and normal profit.
256) The market price is related to :
Answer
very short period
257) The demand for necessities is -
Answer
perfectly inelastic
258) If a good has negative income elasticity and positive price elasticity of demand, it is a -
Answer
giffen good
259) A unit price elastic demand curve will touch -
Answer
neither price axis, nor quantity axis
260) If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be -
Answer
equal to unity
261) According to Modern Theory of Rent, rent accrues to -
Answer
any factor
262) As the number of investments made by a firm increases, its internal rate of return -
Answer
increases to compensate the firm for the current consumption foregone.
263) The opportunity cost of a factor of production is -
Answer
what it can earn in some other use.
264) The demand for labour is called -
Answer
Derived demand
265) Equilibrium price is the price when :
Answer
supply is equal to demand
266) Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a -
Answer
change in the price of the goods
267) Product differentiation is the most important feature of -
Answer
monopolistic competition
268) Division of labour is the result of -
Answer
specialization
269) Labour Intensive Technique would get chosen in a -
Answer
Labour Surplus Economy
270) When marginal utility is zero, the total utility is -
Answer
Maximum
271) Operating Surplus arises in the -
Answer
Government Sector
272) The definition of 'small-scale industry' in India is based on -
Answer
Investment In machines and equipments
273) What type of products, does CACP recommend minimum support price for?
Answer
Agricultural products
274) Special Economic Zone (SEZ) concept was first introduced in -
Answer
China
275) The balance of payments of a country is in equilibrium when the -
Answer
demand for the domestic currency is equal to its supply
276) Cheap money means -
Answer
Low rates of interest
277) When too much money is chasing too few goods, the situation is -
Answer
Inflation
278) Who benefits the most during the inflationary period?
Answer
entrepreneurs
279) Pegging up of a currency means, fixing the value of a currency -
Answer
at a constant level
280) Deficit financing is an instrument of -
Answer
fiscal policy
281) Interest on public, debt is part of -
Answer
Transfer payments by the government.
282) The incidence of Tax refers to -
Answer
Who bears the burden of Tax?
283) Core Industries are -
Answer
Basic industries
284) An economic theory is a/an -
Answer
Proposition
285) The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called -
Answer
trickle down Hypothesis
286) Who propounded the 'market law?
Answer
J.B. Say
287) "The national income consists of a collection of goods and services reduced to common basis by being measured in terms of money,"— Who says this?
Answer
Hicks
288) Gross National Product means -
Answer
money values of the total national production for any given period
289) The self-employed in a developing country who are engaged in small scale labour intensive work belong to the -
Answer
Primary sector
290) The incomes of Indians working abroad are a part of -
Answer
net domestic product of India
291) Production of a commodity mostly through the natural process is an activity of -
Answer
Primary Sector
292) Average Fixed Cost Curve is -
Answer
Downward sloping
293) Lorenz curve shows -
Answer
Income distribution
294) Sellers market denotes a situation where :
Answer
demand exceeds supply
295) The fixed cost on such factors of production which are neither hired nor bought by the firm is called -
Answer
social cost
296) Under which market condition do firms have excess capacity?
Answer
Monopolistic competition
297) Price theory is also known as -
Answer
Micro Economics
298) Different firms constituting the industry, produce homogeneous goods under -
Answer
perfect competition
299) Gross Profit means -
Answer
Total receipts over total expenditure
300) In which market structure is the demand curve of the market represented by the demand curve of the firm?
Answer
Monopoly
301) If a firm is operating at loss in the short-period in perfect combination, it should :
Answer
continue to operate as long as it covers even the variable costs.
302) At "Break-even point",
Answer
the firm is at zero-profit point
303) The internal rate of return -
Answer
falls as the annual yield of an investment rises.
304) The basic object of all production is to -
Answer
satisfy human wants
305) The equilibrium of a firm under perfect competition will be determined when -
Answer
Marginal Revenue = Marginal Cost
306) Same price prevails throughout the market under -
Answer
perfect competition
307) Selling cost means:
Answer
Cost Incurred in advertisement
308) A want becomes a demand only when it is backed by the -
Answer
Ability to purchase
309) "Economics is what it ought to be" - This statement refers to -
Answer
Normative economics
310) The 'breali-even point' is where -
Answer
average revenue equals average cost
311) One of the essential conditions of Monopolistic competition is -
Answer
Product differentiation
312) The General Equilibrium Analysis" was developed by -
Answer
Walras
313) Capital market deals with -
Answer
Long term fund
314) Debenture holders of a company are its -
Answer
Creditors
315) Excise duty on a commodity is payable with reference to its -
Answer
production
316) Compared to the rich the poor save -
Answer
A smaller part of their income
317) One of the main factors that led to rapid expansion of Indian exports is -
Answer
Diversification of exports
318) The Minimum Wages Act was first passed in India in the year:
Answer
1948
319) AGMARK is a guarantee of standard:
Answer
quality
320) In the balance of payments account, unrequited receipts and payments are also regarded as -
Answer
unilateral transfers
321) "Wall Street" is the name of the :
Answer
Stock Exchange of New York
322) Green banking means -
Answer
financing of environmental friendly projects by banks
323) The best Index of Economic Development is provided by:
Answer
Growth in Percapita Real Income from year to year.
324) The business in Stock Markets and other securities markets is regulated -
Answer
Securities and Exchange Board of India
325) Liberalism stands for -
Answer
freedom in social, political and economic aspects
326) Imputed gross rent of owner-occupied buildings is a part of -
Answer
final consumption
327) An increase in per capital income is not an indication of an increase in the economic welfare of the people -
Answer
When such increase is the result of increased production of intoxicants
328) The functional relationship between income and consumption expenditure is explained by -
Answer
Keynes's psychological law of consumption
329) Preparation of butter, ghee by a household for their own use is a part of :
Answer
consumption
330) Average propensity to consume is defined as -
Answer
Aggregate consumption +Aggregate income
331) Market segmentation is:
Answer
Dividing target groups as per their needs
332) What will be the effect on inferior commodities when income of the consumer rises?
Answer
Negative effect
333) An indifference curve measures level of satisfaction derived from different combinations of commodity X and Y.
Answer
same
334) A motion that seeks to reduce the amount of demand presented by government to Re. 1 /is known as -
Answer
Disapproval of policy Cut
335) A firm is in equilibrium when its
Answer
marginal cost equals the marginal revenue
336) The excess of price a person is to pay rather than forego the consumption of the commodity is called -
Answer
Producers' surplus
337) When the price of a commodity falls, we can expect -
Answer
the demand for it to increase
338) A situation of large number of firms producing similar goods is termed as :
Answer
Perfect competition
339) The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called -
Answer
Consumer's Surplus
340) For an inferior good, demand falls when -
Answer
income rise
341) Wage fund theory was propounded by -
Answer
J.S. Mill
342) Cross demand expresses the functional relationship between -
Answer
demand and prices of related commodities
343) Third stage of Law of Variable Proportion is called -
Answer
negative returns
344) Other things being equal, a decrease in quantity demanded of a commodity can be caused by –
Answer
a rise in the price of the commodity
345) The Psychological law of consumption states that –
Answer
Proportionate increase in consumption is less than proportionate increase in income
346) Subsidies are payment by government to –
Answer
Producing units
347) Tha Law of Demand is based on -
Answer
Consumer's preference
348) A supply function expresses the relationship between -
Answer
price and output
349) The expenses on advertising is called -
Answer
Selling cost
350) Name the curve which shows the quantity of products a seller wishes to sell at a given price level.
Answer
Supply curve
351) Under Perfect Competition -
Answer
Average Revenue is equal to the Marginal Revenue
352) It is prudent to determine the size of the output when the industry is operating in the stage of -
Answer
diminishing returns
353) The most distinguishing feature of oligopaly is -
Answer
interdependence
354) 'Law of demand' implies that when there is excess demand for a commodity, then -
Answer
price of the commodity rises
355) Given the money wages, if the price level in an economy increases, then the real wages will -
Answer
decrease
356) In Economics, production means -
Answer
creating utility
357) What is included in the Tetiary sector?
Answer
Banking
358) Minimum payment to factor of production is called -
Answer
Transfer Payment
359) Consumer's surplus is the highest in the case of:
Answer
necessities
360) Perfect competition means -
Answer
large number of buyers and sellers
361) Bread and butter, car and petrol are examples of goods which have -
Answer
derived demand
362) In a Capitalistic Economy, the prices are determined by :
Answer
Demand and Supply
363) Tooth paste is a product sold under :
Answer
Monopolistic Competition
364) Prime cost is equal to -
Answer
Variable cost plus administrative cost
365) An expenditure that has been made and cannot be recovered is called -
Answer
Sunk cost
366) Elasticity of demand is the degree of responsiveness of demand of a commodity to a -
Answer
change in its price
367) The price of a commodity is the same as -
Answer
Average revenue
368) Equilibrium output is deter-mined by:
Answer
the equality between Marginal cost and Marginal revenue.
369) An employer goes on employing more and more of a factor units until :
Answer
the Marginal Revenue Productivity of a factor becomes equal to its reward.
370) The main emphasis of Keynesian economics is on -
Answer
Expenditure
371) The book which is at the centrepiece of the study of Macro - Economics was written by -
Answer
Prof. J.M. Keynes
372) Indian agriculture is typically characterised as -
Answer
land scarce, labour surplus economy
373) The most accessible medium in India is -
Answer
Newspapers
374) Capital Market Regulator is:
Answer
SEBI
375) The term 'Dumping' refers to -
Answer
Sale in a foreign market of a commodity at a price below marginal cost
376) "Globalisation of Indian Economy" denotes :
Answer
having minimum intervention in economic relations with other countries
377) Full convertibility of a rupeee means -
Answer
determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
378) The term stagflation refers to a situation where -
Answer
rate of growth is slower than the rate of price increase
379) What does the letter `e' denotes in the term `e - banking'?
Answer
Electronic Banking
380) The Cash Reserve Ratio is a tool of :
Answer
Monetary policy
381) The 'Interest Rate Policy' is a component of -
Answer
Monetary Policy
382) A mixed economy works primarily through the -
Answer
market mechanism guided by Government participation and planning
383) Which is the parameter for the economic development?
Answer
Per capita monetary income
384) The supply-side economics lays greater emphasis on -
Answer
Producer
385) Personal disposable income is -
Answer
equal to personal income minus direct taxes
386) Depreciation is equal to —
Answer
Gross national product —Net national product
387) National Income Estimates in India are prepared by:
Answer
Central Statistical Organization
388) Over short period, when income rises, average propensity to consume usually -
Answer
falls
389) According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the -
Answer
Marginal efficiency of capital
390) When average product of an input is at its maximum then : (AP= Average product) (MP= Marginal product.)
Answer
AP = MP
391) If total product is at its maximum then: (AP= Average product) (MP= Marginal product)
Answer
MP = 0
392) The innovation theory of profit was proposed by -
Answer
Schumpeter
393) An economy in which there are no flows of labour, goods or money to and from other nations is a/an -
Answer
closed economy
394) Seawater, fresh air, etc., are regarded in Economics as -
Answer
free goods
395) The 'break-even' point is where
Answer
total revenue equals total cost
396) The value of a commodity expressed in terms of money is known as -
Answer
Price
397) Total fixed cost curve is -
Answer
Horizontal
398) Economic rent does not arise when the supply of a factor unit is -
Answer
Perfectly elastic
399) The supply of labour in the economy depends on -
Answer
Population
400) Goods which are meant either for consumption or for investment are called -
Answer
Final goods
401) Which is the most essential function of an entrepreneur?
Answer
Risk bearing
402) One of the essential conditions of perfect competition is :
Answer
Only one price for identical goods at any one time.
403) Pump priming should be resorted to at a time of?
Answer
Deflation
404) When will demand become a grant?
Answer
After the demand is granted
405) The value of investment multiplier relates to -
Answer
change in autonomous investment due to change in income.
406) Savings rate is relatively low in developed economies because of -
Answer
Welfare programmes
407) A rising Per Capita Income will indicate a better welfare if it is accompanied by -
Answer
changed Income distribution in favour of poor.
408) National Income is generated from:
Answer
any laborious activity
409) Net National Product of a country is -
Answer
GNP minus depreciation allowances
410) Who said 'Supply creates its own demand'?
Answer
J.B.Saw
411) Investment is equal to :
Answer
gross total of all capital assets minus wear and tear
412) 'Gold' is mainly related to -
Answer
International market
413) Value-added means value of -
Answer
goods and services less cost of intermediate goods and services
414) In India, disguised unemployment is generally observed in -
Answer
the Agricultural sector
415) Excise duty on a commodity is payable with reference to its -
Answer
production
416) "Smart Money" term is used for -
Answer
Credit Card
417) 'Green Banking' means :
Answer
Banks financing pro environmental projects
418) A currency having a falling exchange rate due to continuing balance of payments deficit is called a-
Answer
Soft currency
419) A speculator who enters into a purchase transaction with a view to sell in the near future when the price would have risen is called a -
Answer
Bull
420) Bank rate is that rate on which -
Answer
Central Bank of Country lends money to the commercial banks
421) Devaluation usually causes the internal prices to :
Answer
remain unchanged
422) A seller or buyer protects his business or holdings from changing prices and takes action against it. It is known as -
Answer
defence
423) Who defined 'Rent' as that portion or produce of the earth which is paid to the landlord for the use of original and indestructible power of the soil?
Answer
Ricardo
424) Economies of a firm are :
Answer
Saving in it's production costs
425) The monetary policy is India is formulated by -
Answer
Reserve Bank of India
426) The system of "Memorandum of Understanding” (MoU) was introduced in -
Answer
1987 - 88
427) The upper limit of investment in plant and machinery for small-scale industries has been fixed currently at -
Answer
Rs. 1 crore
428) What is USP in marketing field?
Answer
None of these
429) When too much money is chasing too few goods, the situation is -
Answer
inflation
430) When there is an official change in the exchange rate of domestic currency, then it is called :
Answer
Depreciation
431) Inflation redistributes income and wealth in favour of :
Answer
Rich
432) Money market is a market for -
Answer
Short term fund
433) MUDRA Bank has been launched to help -
Answer
Small business
434) Industrial exit policy means -
Answer
allowing business units to close down
435) Capital formation in an economy depends on -
Answer
Total savings
436) If the tax rate increases with the higher level of income, it shall be called -
Answer
Progressive tax
437) New capital issue is placed in -
Answer
Primary market
438) If a country devalues its currency, its -
Answer
Exports become cheaper and imports become costlier
439) 'Residex' is associated with -
Answer
Land prices
440) In a period of inflation and price rises the supply of money remains -
Answer
increases
441) What is "narrow money"?
Answer
The sum of currency in circulation and the demand deposits in banks
442) How the interest-level of a country is affected by FDI?
Answer
decreases
443) If people's income of a country is denoted in a curved line space that it has increased, then what does it denote?
Answer
dissimilarity is decreasing in income distribution
444) Funds which flow into a country to take advantage of favorable rates of interest in that country is called -
Answer
Hot Money
445) Legal Tender Money is -
Answer
accepted by people and Government as per the law
446) Bank rate is the rate of interest:
Answer
At which Commercial Banks borrow money from R.B.I.
447) The annual record for all the monetary transactions of a country with other countries of the world is known as -
Answer
Balance of payments
448) A country's balance of trade is unfavorable when —
Answer
imports exceed exports
449) The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called -
Answer
Excess reserves
450) J. B. Say's Law of Market was not accepted by -
Answer
Marshall
451) The time element in price analysis was introduced by :
Answer
Alfred Marshall
452) Selling cost have to be incurred in case of -
Answer
Monopolistic Competition
453) Inflation is a situation characterized by -
Answer
Too much money chasing too few goods
454) If a change in all inputs leads to a proportionate change in output, it is case of -
Answer
Constant returns to scale
455) Price mechanism is a feature of -
Answer
Capitalist economy
456) The main feature of a capitalist economy is -
Answer
Private ownership
457) Personal Income' equals -
Answer
Personal disposable income plus miscellaneous receipts of the Goverment
458) According to the classical system, saving is a function of -
Answer
Income
459) When the total product rises at an increasing rate, the -
Answer
marginal product is rising
460) If an industry is characterized by economies of scale then -
Answer
long run unit costs of production decreases as the quantity the firm produces increases
461) Movement along the same demand curve is know as -
Answer
Increase and Decrease of Demand
462) What are gilt-edged securities?
Answer
Securities issued by the Government
463) Which curve shows the inverse relationship between unemployment and inflation rates?
Answer
Phillips curve
464) Collective consumption means -
Answer
consumption by the citizens of the country
465) The market equilibrium for a commodity is determined by :
Answer
The balancing of the forces of demand and supply for the commodity
466) Who defined investment as "the construction of a new capital asset like machinery or factory building"?
Answer
J.M. Keynes
467) An individual's actual standard of living can be assessed by -
Answer
Per Capita Income
468) The standard of living in a country is represented by its:
Answer
per capita income
469) Capital output ratio of a commodity measures -
Answer
the amount of capital invested per unit of output
470) Taxes on professions can be levied by :
Answer
State government only
471) A part of National Debt known as External Debt is the amount -
Answer
borrowed by its government from abroad
472) Disinvestments is -
Answer
offloading of government shares to private companies
473) According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes -
Answer
a fall in prices of output and resources
474) The theory of "Maximum Social Advantage" in Public Finance Was given by
Answer
Dalten
475) Taxes are as certain as the death, because -
Answer
They constitute the major source of government revenue.
476) In the context of the stock market, IPO stands for -
Answer
Initial Public Offer
477) Disinvestment in Public Sector is called -
Answer
Privatisation
478) Interest on public debt is a part of :
Answer
transfer payments by the Govt.
479) A speculator who sells stocks, in order to buy back when price falls, for gain is a -
Answer
Bear
480) Inflation can be checked by -
Answer
decreasing money supply
481) "Legal Tender Money" refers to :
Answer
Currency notes
482) Gresham's Law means -
Answer
Bad money replaces good money in circulation
483) Free Trade refers to -
Answer
free movement of goods from one country to another
484) Insider trading is related to -
Answer
Share market
485) Situation Analysis is useful for:
Answer
SWOT Analysis
486) Which tems is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country?
Answer
GNP
487) An economy which does not have any relation with the rest of the world is known as -
Answer
Closed economy
488) Consumptions function refers to -
Answer
relationship between income and consumption
489) Capital : Output Ratio of a measures -
Answer
the amount of capital invested per unit of output
490) "Supply creates its own demand" - Who said this?
Answer
J. B. Say
491) 'Take-off stage' in an economy means -
Answer
Steady growth begins.
492) Gross National Product - Depreciation Allowance =?
Answer
Net National Product
493) Interest paid by the government on the loans raised is called -
Answer
Debt Servicing
494) In an economy, the sectors are classified into public and private on the basis of -
Answer
ownership of enterprises
495) Which term is not related to banking?
Answer
N .E.E .R.
496) The process of curing inflation by reducing money supply is called -
Answer
Disinflation
497) Long-term funds in the capital, market can be raised either by borrowing from certain institutions or through -
Answer
issue of securities
498) "Closed Economy" means :
Answer
a country having no imports and exports
499) Dumping is a form of price discrimination at -
Answer
international level
500) Money supply is governed by the -
Answer
Reserve Bank of India
501) The food stocks that are built up during the years of bumper harvest are called :
Answer
Buffer stock
502) 'NABARD' is associated with the development of -
Answer
agricultural sector and rural areas
503) Government takes 'ways and means advances' from -
Answer
RBI
504) Kisan Credit Card scheme was introduced in -
Answer
1998
505) According to Malthusian theory of population -
Answer
Population increases in geometric ratio, food supply increases in arithmetic ratio
506) The Keynesian consumption function shows a relation between -
Answer
aggregate consumption and aggregate income
507) Full employment is a situation where -
Answer
there is involuntary unemployment
508) What is needed for creating demand?
Answer
Production
509) Which of the statements is Correct About India's national income?
Answer
Percentage share of services is higher than agriculture and industry put together
510) The difference in the value of visible exports and visible imports is called :
Answer
Balance of Trade
511) Indirect taxes by nature are -
Answer
regressive
512) Taxation is a tool of -
Answer
Fiscal policy
513) What is Value Added Tax (VAT)?
Answer
A single tax that replaces State taxes like, surcharge, turnover tax, etc.
514) What is referred to as 'Depository Services'?
Answer
An agency for safe-keeping of securities
515) The terms 'Bull' and 'Bear' are associated with -
Answer
Stock Market
516) A currency whose exchange rate is influenced by the government is a/an -
Answer
Managed Currency
517) As a result of higher rate of inflation in India, the U.S. dollar will -
Answer
Appreciate
518) Which type of foreign investment is considered as unsafe?
Answer
Portfolio Investment
519) 'Mixed economy' refers to -
Answer
the co-existence of public as well as private sector
520) Golden Handshake Scheme is associated with -
Answer
Voluntary retirement
521) Stagflation is a situation of -
Answer
stagnation and inflation
522) Devaluation makes import -
Answer
Dearer
523) Gresham's law is related to -
Answer
Circulation of money
524) Commercialization of agriculture implies -
Answer
production of crops for sale
525) Agricultural income tax is a source of revenue to -
Answer
State Government
526) Structural unemployment arises due to :
Answer
inadequate productive capacity
527) The demand of a commodity is a direct demand but the demand of a factor of production is called a -
Answer
Derived demand
528) Depreciation is loss in value of .
Answer
Machinery
529) When income increase, consumption also increases :
Answer
in a lower proportion
530) A camera in the hands of a professional photographer is a _ good.
Answer
Intermediary
531) The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs -
Answer
J. B. Say
532) Liquidity Preference means -
Answer
holding assets in the form of cash
533) Aggregate net value of the output in one year is the -
Answer
Net. National Product at market prices
534) The sum total of incomes received for the services of labour, land or capital in a country is called :
Answer
Gross domestic income
535) The first computer made available for commercial use was -
Answer
UNIVAC
536) Malthusian theory of population explored the relationship between -
Answer
food supply and population growth
537) In public budgets, zero-base budgeting was first introduced in -
Answer
USA
538) The sale proceeds of Government Bonds come under the budget head of -
Answer
Capital Receipts
539) The incidence of sales tax falls on -
Answer
Consumers
540) Government securities are considered liquid because they are -
Answer
quickly and easily marketable
541) Deflation is a situation in which -
Answer
The value of money is increasing.
542) Stagflation refers to a situation which is characterized by -
Answer
inflation and rising unemployment
543) How will a reduction in 'Bank Rate' affect the availability of credit?
Answer
Credit will increase
544) Inflation occurs when aggregate supply is -
Answer
less than aggregate demand
545) Multinational Corporation is also called -
Answer
Trans-national Corporation
546) Freeing the economy from all unnecessary controls and regulations is referred to as -
Answer
Liberalisation
547) A high Statutory Liquidity Ratio (SLR) -
Answer
restricts lending
548) Corporation tax is a tax imposed on -
Answer
the net incomes of the companies
549) The basis of determining dearness allowance to employees in India is -
Answer
Consumer Price Index
550) An indifference curve measures the same level of -
Answer
Satisfaction from two commodities
551) The Ability Principle of Taxation is given by -
Answer
Adam Smith
552) 'Galloping Inflation' is also known as -
Answer
Hyper Inflation
553) Net National Product in National Income Accounting refers to -
Answer
Gross National Product—Depreciation
554) A very high rise in National Income at current market prices and a low rise at constant prices reveals -
Answer
the improper growth of the economy
555) The term 'Green GNP' emphasises -
Answer
sustainable development
556) The Great Depression occurred during -
Answer
1929-34
557) The worldwide Great Depression took place in -
Answer
1929
558) Paraellel economy emerges due to -
Answer
Tax Evasion
559) Under-writting refers to -
Answer
an act of insuring risk
560) Basic infrastructure facilities in Economics are known as :
Answer
Social overheads capital
561) Custom duty is an instrument of -
Answer
Foreign Trade Policy
562) When a large number of investors in a country transfer investments elsewhere because of disturbed economic conditions, it is called -
Answer
Flight of Capital
563) 'Golden Handshake Scheme' is associated with -
Answer
voluntary retirement
564) The major objective of monetary policy is to -
Answer
Promote economic growth with price stability
565) The rate of tax increase as the amount of the Lax base Increases is called-
Answer
Progressive tax
566) During periods of inflation, tax rates should -
Answer
increase
567) Cheap Money means -
Answer
Low Rate of Interest
568) The major aim of devaluation is to -
Answer
encourage exports
569) Buffer stock operations are conducted by -
Answer
Food Corporation of India
570) Coal mines were Nationalized in the year :
Answer
1972
571) Open market operations of RBI refer to buying and selling of -
Answer
Government bonds
572) A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as -
Answer
Absolute Poverty
573) As per the TRIPS Agreement-1994, a good originating from a region with specific character/ quality/reputation is covered/to be protected under the IPR as -
Answer
GI (Geographical Indicator)
574) With which form of economy is the term 'Laissez-faire' associated?
Answer
Capitalist economy
575) National Social Assistance Programme is aimed at providing -
Answer
old age pension to very poor
576) If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm -
Answer
36
577) Equilibrium price in the market is determined by the -
Answer
equality between marginal cost and marginal revenue.
578) Internal economies -
Answer
arise when there is expansion in an industry.
579) One of the features of a free market economy is -
Answer
consumer's sovereignty
580) In accounting terms, what constitutes the 'closing stock'?
Answer
Opening Stock + Net Investment - Capital Losses
581) National income accounting is the study of the income and expenditure of the entire -
Answer
economy
582) In a business, raw materials, components, work in progress and finished goods are jointly regarded as -
Answer
inventory
583) The gradation and standardization of agricultural products are conducted through -
Answer
Directorate of Marketing and Inspection
584) According to the Employment Outlook 2007 reports of the Organisation for Economic Cooperation and Development (OECD), the number of new jobs created in India every year from 2000 to 2005 is -
Answer
11 million
585) "Marginal Cost" equals -
Answer
the change in total cost divided by the change in quantity
586) A low interest policy is also known as –
Answer
cheap money policy
587) Economics classifies the manmade instrument of production as:
Answer
Capital
588) A demand curve will not shift:
Answer
When only price of the commodity changes
589) Which law states that with constant taste and preferences, the proportion of income spend on food stuff diminishes as income increases?
Answer
Engel's Law
590) Extreme forms of markets are -
Answer
Perfect competition; Monopoly
591) National Income include :
Answer
Construction of a new house
592) Value of out put and value added can be distinguished if we know:
Answer
the value of intermediate consumption
593) Who prepared the first estimate of National Income for the country?
Answer
Dadabhai Naoroji
594) 'Supply creates its own demand'. This statement is related to -
Answer
Prof. J.B. Say
595) Sectoral distribution of GDP index measures .
Answer
Economic development of a country
596) The difference between the GNP and the NNP is equal to the -
Answer
capital depreciation
597) By whom was the autonomous investment separated from induced investment?
Answer
Schumpeter
598) When price of a substitute of commodity falls, the demand for -
Answer
falls
599) A mixed economy refers to an economic system where -
Answer
Both the government and the private sectors operate sectors operate simultaneously
600) A Black Market is a situation where in -
Answer
Goods are sold secretly
601) Buoyancy of a tax is defined as -
Answer
increase in tax revenue/increase in tax base
602) What is referred to as "Depository Services"?
Answer
An agency for safe-keeping of securities
603) Regulated markets aim at the development of the marketing structure to -
Answer
narrow down the price spread between the producer and the consumer
604) Evaluating all the options to find out most suitable solution to business problems is inter- displinary activities. It is called -
Answer
Operational research
605) Variation in Cash Reserve Ratio and Open Market Operations are instruments of -
Answer
Monetary policy
606) The purpose of devaluation is to :
Answer
encourage exports
607) Foreign currency which has a tendency of quick migration is called -
Answer
Hot currency
608) Bank Rate refers to the interest rate at which -
Answer
Central bank gives loans to Commercial banks
609) A Trade Policy consists of -
Answer
Export-Import Policy
610) Globalisation means -
Answer
Integration of the domestic economy with the world economy
611) The 'sunrise industries' imply -
Answer
petrochemicals and electronics industry
612) Regional Rural Banks arc sponsored by -
Answer
Nationalized Commercial Bank
613) Scheduled Banks have to be registered with -
Answer
RBI
614) Which organization collects data for the unorganized sector?
Answer
NSSO