When was the New Liberalization Industrial policy announced in India?
1989
1990
1991
1992
Which Five-Year Plan was designed by the National Front Government under Prime Minister V.P.Singh?
Sixth
Seventh
Eighth
None
Which of the Five-Year Plans accorded top priority to the development of power in terms of allocation?
Sixth
Fifth
Fourth
Third
/
I, II, III
I, IV
II, III, IV
I, II, III, IV
Which of the following could explain why the demand curve for a particular product slopes down from left to right?
The cost of production falls are output increase
More consumers enter the market at low prices than at high
Incomes are rising at the same time as prices
All of the above
Which of the following could explain why the supply curve for a commodity slopes downwards?
Producers do not like increasing production
Producers have to lower prices to induce consumers to buy more
Costs fall as production increases
Diminishing marginal utility is in operation
Which of the following deductions should not be made from the total revenue of a firm for arriving at its profit for a year?
Depreciation of capital
Dividends paid to ordinary shareholders
Excess of the value of stocks over their purchase
Imputed interest on owner’s capital left in the business
Which of the following do not enter into marginal costs?
Direct costs
Fixed costs
Prime costs
Variable costs
/
I, II, III, IV
I, II, III
II, III, IV
I, III, IV
Which of the following equation is wrong?
National Income (NI) = GNP
NI = Effective demand
NI = Consumption+ Investment
NI = Consumption + Saving
Which of the following is associated with the term ‘deflation’ in economics?
Decrease in the supply of coins and currency notes
Decrease in the supply of goods and services
Decrease in the import of goods and services
Decrease in the money relative to the supply of goods and services
/
I, II, III, IV
II
I, IV
III
Which of the following is correct regarding the gross domestic savings in India?
Contribution of corporate sector is the largest
Contribution of the government sector is the largest
Contribution of household sector is the largest
None of the above
WHICH DECADE OF India planning has been the best decade of agricultural growth?
Fifties
Sixties
Seventies
Eighties
Which of the following business would probably find it easiest to borrow money from complete strangers?
A private joint stock company
A public joint stock company
A partnership of 50 years’ standing
Any partnership
Which Five-year Plan accorded the highest priority to the development of transport and communication in terms of percentage allocation of plan outlay?
Fifth
Fourth
Third
Second
Which Five-Year Plan emphasized dependence on deficit financing for mobilization for resources?
First
Second
Third
Fourth
Which Five-Year Plan gave the first place to irrigation, in terms of percentage allocation of planned resources?
First
Second
Third
Fourth
Which Five-Year Plan had the highest percentage of total plan outlay to be invested in health?
First
Second
Third
Fourth
Which Five-Year Plan laid main emphasis on the development of basic and heavy industries?
First
Second
Third
Sixth
Which of the following is more effective to control prices in the long run?
Decrease in the government expenditure
Increase in production
Decrease in the rate of interest
Increase in employment
Which of the following is not a principal objective of planned development in the decentralized sector?
To improve the incomes of the big business
To widen employment opportunities
To improve wages of artisans and craftsman
To mobilize resources of capital and skill particularly outside the urban areas
Which of the following is not a reason for the modest level of saving in India?
Low per capita income
Exemption of agricultural income from the tax net
Tax evasion
High expenditure on education on education and health services
Which of the following is not viewed as national debt?
Life Insurance policies
Long-term Government Bonds
National Saving Certificates
Provident Funds
Which of the following is the basis for determining the national income?
Total revenue of the state
Production of goods and services
New profit earned and expenditure incurred by the State
All the above
Which of the following is the most likely reason why total income tends to fluctuate?
Consumption is not always a constant fraction of income
People adjust to changing incomes by changing saving habits
Consumption habits often undergo dramatic changes
Many savings and investment decisions are taken by different people
Which of the following is true?
Physical and financial planning are complementary
Physical and financial planning are equally important
Physical planning is more important than financial planning
Financial planning is more important than physical planning
Which of the following is used for measuring the economic growth of a country?
Gross national product at current prices
Per capita gross national product at current prices
Total real gross national product at current prices
Total gross national product over a period of time
Which of the following provides the largest part of the demand for loan able funds in India?
Hire-purchase borrowers
Private-house purchasers
Corporate businesses
Farmers
Which of the following statements is correct?
When national income increases, national consumption increases in lesser proportion
When national income increases, national consumption increases in greater proportion
When national income increases, national consumption increases in the same proportion
None of the above
Which of the following steps may be taken by a government to check inflation temporarily?
Taxes should be reduced
Wages of workers should be increased
Money supply should be reduced
None of the above
Which of the following tendencies is meant by the U-shaped cost-curve?
Marginal cost rise at first and then fall
Average cost will rise at first and then fall
Average total costs will rise at first and then fall
Marginal revenue will fall at first and then rise
/
I, II
III, IV
I, II, III
I, II, III, IV
Which of the following cannot be described as an achievement of the public sector in India?
Over-capitalization
Strengthening infrastructure
Introduce modern technology
Economies of scale
/
I, II, IV
II, III, IV
I, III, IV
I, II, III
Which of the following will tend to raise the market rate of interest in the long run?
A fall in the marginal productivity of capital
An increase in the amount of savings by individuals
A rise in consumer demand for present over future consumption
None of the above
Which of the following Five-Year Plans recognized human development as the core of all development efforts?
The Third Five Year Plan
The Fifth Five Year Plan
The Sixth Five Year Plan
The Eighth Five Year Plan
Which of the following committees examined and suggested financial sector reforms?
Abid Hussain Committee
Bhagwati Committee
Chelliah Committee
Narasimham Committee
Which of the following is not a flow concept?
Production
Capital
Investment
Consumption
Which of the following is not correct?
The share of primary sector in GDP has been declining over the years
Stationary position of the secondary sector indicates lack of employment orientation of the part of the industrial growth
Rising share of tertiary sector seems to be more important oriented
The proportion of employees’ compensation has been declining over the years
Which of the following is not directly the concern of the economist?
Choice relating to location of a steel plant
Bargaining between the workers’ unions and the employers
Efforts of a change in money supply
Imposition of tax to discourage cigarette smoking
Which of the following is not included in Net National Product (NNP) at factor cost?
Undistributed profits
Rent
Consumption of fixed capital
Interest
Which of the following is not the basic of indifference curve approach of consumer theory?
Consumer is able to set up preference ranking of the combination of goods and services
Consumer is able to measure the utility
The ranking is consistent
Consumer prefers more to less of a commodity
Which of the following is the correct statement?
In case of Giffen goods
Substitution effect is negative
Income effect is negative
Income effect is stronger than the substitution effect
All of the above
Which of the following is the correct statement?
Given two parallel straight line demand curves, the price elasticity of demand in case of each curve is equal
At each price level
At each demand level
Only at points on these demand curves which fall on a straight line emanating fro the origin
In none of the above cases
Which of the following is the correct statement?
The demand for labour is a derived demand because it depends on
The elasticity of labour supply
The demand for other factors of production
The wage rate
The demand for goods and services produced by labour
Which of the following is the correct statement?
Consumer surplus is largest in
Discriminating monopoly
Monopolistic competition
Single-price monopoly
Perfect competition
Which of the following is the correct statement?
Price of a commodity does not go down when
Only supply curve moves rightward
Only supply curve moves leftward
Only demand curve moves leftward
supply curve moves rightward and demand curve moves leftward
Which of the following is the correct statement?
A firm’s long-run average cost curve is derived from a series of short-run average cost curves
There is no relationship between short-run and long-run average cost curves
A firm’s short-run average cost curve is derived from its long-run average cost
Long-run total cost is the sum of the long-run fixed and long-run average costs
Which of the following is the correct statement?
A monopolist charging different prices in two different markets will charge a higher price in the market in which the price elasticity of
Demand is greater
Supply is greater
Demand is smaller
Supply is smaller