General Awareness: Economy Online Test

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

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


Your Facebook Friends on WizIQ

More Tests By Author

Economic Analysis: India
50 Questions | 1216 Attempts

Indian Economy : An Overview
50 Questions | 652 Attempts

India: An Overview of Economy
50 Questions | 363 Attempts