General Awareness: Economy Online Test

Growth with stability was the main objective of the
Fourth Plan
Third Plan
Second Plan
First Plan
If there is a rise in a wage and a person’s working time is reduced to fewer hours, this means that
The substitution effect of the change in wage rates more than offsets the income effect
The person prefers work to leisure at the margin
The supply curve of labour slopes downwards to the right
The person prefers leisure to work
If two goods are complimentary, it means hat a rise in the price of one commodity will induce
None of the above
A rise in the price of the other commodity
A fall on demand of the other commodity
An upward shift in the demand for the other commodity
In a capitalist economy, the pattern of output is determined
According to customs
According to the decisions of the owner of the firm
By the central authority
By the demand and supply powers
In a free economy, inequalities of income are manily due to
Difference in the marginal productivity of labour
Private property and inheritance
Private property only
Free competition
In a free economy, inequalities of income are manily due to
Private property and inheritance
Difference in the marginal productivity of labour
Private property only
Free competition
In a mixed economy, the price of a commodity is determined by the
Consumers of the product
Share holder of the production unit
Market mechanism
Production unity
In an open economy, the national income(Y) of the economy is: (C, I, G, X, M stand for consumption, Investment, Government, Expenditure and total export and total imports respectively)
Y=C + I + G +X - M
Y=C + I + G (X-M)
Y=C + I + G –X + M
Y=C + I + G +X
In most of our Five- Year Plans the capital output ratio has turned out to be
Nothing can be said firmly
Higher than estimated
Lower than estimated
The same as estimated
In order for the working of the price mechanism to be generally recognized to work well it is necessary that
Consumers preferences should accurately reflect income distribution
Income should accurately reflect individual’s contribution to national output
Income distribution should be regarded as equitable
Income distribution should be equal
In the Eight Plan, the emphasis has shifted from growth rate to
None of the above
Social welfare
Employment generation
Poverty eradication
If a firm in a perfect competition has a U-Shaped average cost curve in the short run, it implies that
The first firm have a choice of plants of different sizes
Diseconomies of scale apply in the industry
The first firm have some element of monopoly power
At last one factor of production must be subject to diminishing return
Which Indian company has acquired management rights of a US hotel?
Indian Hotels Company Ltd.
Welcome Group
If income is below equilibrium
Stocks of unsold goods will tend to increase
Prices will tend to fall
Investment will tend to fall
Income will tend to increase
If the demand and supply schedules for a commodity both increase by an equal absolute amount, the market price will tend to
Remain unchanged
First fall and then rise
Fall in the long run
If the elasticity of demand for a good is equal to (-) 2 then a 1 percent price rise will
Lower the quantity demanded by 1 per cent
Lower the quantity demanded by 2 per cent
Raise the total revenue by 1 per cent
Raise the quantity demanded by 2 per cent
If the marginal propensity to save of the rich is greater than that of the poor, then a redistribution of income from poor to rich will raise
Neither consumption nor saving out of a given income
Saving out of a given income
Consumption out of a given income
The average propensity to consume
If the per cent increase in the price of a product causes a decline of 25 per cent in its demand, the demand is said to be
If the production possibility curve for two goods shifts so that it moves further from the origin throughout its length this could be due to
All of the above
An increase in consumers’ demand for both goods
A decline in the level of unemployment
An increase in productivity of one factor of production
If the satisfaction of each individual in a community depends exclusively on the collection of goods and services which he consumes, it follows that
Competition is perfect
Social benefits are greater than private benefits
There are no external economies
There are no external economies or diseconomies in production
In which of the following Five-Year Plans was annual compound growth rate in per capita income the lowest?
In which of the following situations there is no need to calculate a weighted average price index?
All of the above
When prices rise, no single price falls and vice-versa
Every family has exactly the same expenditure pattern
All prices change in the same direction and by the same amount
In which of the Plans, India’s growth of agriculture production was negative?
In which Plan the growth rate target was exceeded?
None of the above
India achieved more than 8 per cent rate of growth in Real Gross Domestic Product in 2003-04. In which three years in the past India achieved a growth rate in Real GDP at more than 8 per cent? Select the answer using the code given bellow:
1972-73, 1985-86, 1999-2000
1955-56, 1982-84, 2001-2002
1966-67, 1980-81, 1994-95
1967-68, 1975-76, 1998-89
India’s GDP grows in 1970-80 at an annual average rate of
4.5 per cent
3.4 per cent
2.8 per cent
2.2 per cent
India’s objective under the plans has been to achieve
None of the above
Growth with stability
Stability, whether there is stability or not
Growth with or without stability
Indian economy in the pre-British period was largely a
Non-market economy
Market economy
Socialist economy
Capitalist economy
Indian planning
Is none of the above
Is totally centralized
Is democratic in nature
Is totalitarian in nature
It will be true to classify India as
A capital surplus economy
A trade surplus economy
A labour surplus economy
A food deficit economy
It will pay a monopolist to cut the price of his product if
Average total cost is falling
Marginal revenue is greater than marginal cost
He is making a loss
The demand curve facing him is relatively elastic
Marginal revenue will be negative if the elasticity of demand is
Perfectly elastic
Relatively elastic
Unit elastic
Marginal revenue will be positive if the demand is
None of the above
Equal to zero
Greater than one
Less than one
Marginal revenue will be zero if the elasticity of demand is
Equal t zero
Greater than one
Market imperfections in the country are reflected in
All of the above
Lack of specialization
Price rigidity
Factor immobility
National figures income are
Only estimates
Practically exact
Very exact
National income is also called
Net Domestic Product
Gross Domestic Product
Net National Product at market price
Net National Product at factor cost
National Income is the
Net Domestic Product at factor cost
Net Domestic Product at market price
Net National Product at factor cost
Net National Product at market price
Nationalization or public control of an industry is often supported by economist because
Similar industries in another country have been nationalized
It is a ‘natural monopoly’
It has been making continuous profits
It has been making excessive losses
Net factor income from abroad added to GDP gives
Per capita income
Net National product does not include
The rental value of house owners
Depreciation charges
Corporate income taxes
Indirect business taxes
NNP (Net National Product) or National income is the money value of
Tangible goods available in the economy
Tangible goods produced annually in the economy
Annual service generation in the economy
Final goods and services produced annually in the country
NNP is equal to
GNP - exports
GNP + exports
GNP - depreciation
GNP + depreciation
Of the following statements, which one best describes the consumption function?
Consumption is highest at the low income level and the upper income level it is less in the middle
Consumption, at first, increases at the lower end of the scale, then it increases at the higher end of the scale
Consumption increase as income does but not by as much, and the rate of increase slows down with increasing income
The increase in consumption is directly proportional to the increase in income
On which of the following did the Mahalonobis Model lay greater emphasis for planned development in India after independence?
Science and technology
Generation of power
Development of heavy industries
One of the first persons to estimate the country’s national income during the British period was
Jawaharlal Nehru
Dadabhai Naoroji
Lala Lajpat Rai
Lokmanya Tilak
Which one of the following is not the cause of inequalities of income?
Occupational differences
Social security programme
The competitive market
Law of inheritance
Other things being equal, a decrease in demand can be caused by a
Rise in the price of the commodity
Rise in the income of the consumer
Fall in the price of the commodity
Rise in the price of the substitute
Perfect competition is said to exist if
The demand curve for the industry is perfectly elastic
The industry consists of a small number of firms
Each firm in the industry accepts the market price
Firms are not independent of each other

This paper has 50 questions which are required to be completed in an hours time.


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