Basics Of Economics Set 5

Bachelor of Commerce (B Com),

Bachelor of Arts in Sociology (BA Sociology ),

Union Public Service Commission (UPSC),

Indian Administrative Service (IAS)

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This set of Basics of Economics Multiple Choice Questions & Answers (MCQs) focuses on Basics Of Economics Set 5

Q1 | Pick the odd one out:
  • real national income
  • ni at constant price
  • ni at current prices
  • ni at base year price
Answer: ni at current prices
Q2 | GDP deflator is given by:
  • nominal ni/real ni
  • nominal dgp/real gdp
  • nominal gdp/ nominal gnp
  • real gdp/real gnp
Answer: nominal dgp/real gdp
Q3 | Value of output minus intermediate consumption is:
  • depreciation
  • value added
  • net value added
  • net exports
Answer: value added
Q4 | Personal income minus personal taxes is:
  • national income
  • private income
  • disposable income
  • per capita income
Answer: disposable income
Q5 | National income is a --------variable.
  • flow
  • stock
  • static
  • dynamic
Answer: flow
Q6 | In India, National income is estimated at:
  • current prices
  • constant prices
  • both current and constant prices
  • none of these
Answer: both current and constant prices
Q7 | Which of the following is true:
  • gdp is a geographical concept
  • gdp is not a geographical concept
  • gdp and gnp are same
  • none of them
Answer: gdp is a geographical concept
Q8 | GNP measured in terms of current market prices is called:
  • nominal gnp
  • real gnp
  • both
  • none
Answer: nominal gnp
Q9 | In India, the current base year is:
  • 1980-81
  • 1993-94
  • 1999-2000
  • 2004-05
Answer: 2004-05
Q10 | Which of the following doest not include in the group?
  • gdp
  • gnp
  • gva
  • ndp
Answer: ndp
Q11 | The term “Classical Economics” was first used by:
  • j.m. keynes
  • adam smith
  • karl marx
  • david ricardo
Answer: karl marx
Q12 | Who is the leader of the Classical school?
  • thomas robert malthus
  • j.s. mill
  • david ricardo
  • adam smith.
Answer: adam smith.
Q13 | The core of classical economists is:
  • effective demand
  • employment
  • say’s law of market
  • socialism
Answer: say’s law of market
Q14 | ‘Law of Market’ is attributed to:
  • j.s. mill
  • j.b. say
  • alfred marshall
  • a.c. pigou
Answer: j.b. say
Q15 | The Classicals adopted ---------policy:
  • governmental policy
  • laissez-faire
  • policy of restriction
  • none of these
Answer: laissez-faire
Q16 | According to Classicals, full employment is a:
  • rare phenomenon
  • normal phenomenon
  • abnormal phenomenon
  • none of these
Answer: normal phenomenon
Q17 | According to the Classical economists, general over production is:
  • possible
  • impossible
  • both
  • none
Answer: impossible
Q18 | According to the Classical economists, savings and investments are:
  • always unequal
  • always equal
  • never equal
  • sometimes equal
Answer: always equal
Q19 | Classical aggregate supply curve is:
  • perfectly elastic
  • perfectly inelastic
  • more elastic
  • unitary elastic
Answer: perfectly inelastic
Q20 | Pick the odd one from the following:
  • law of market
  • j.b. say
  • full employment
  • j.m. keynes
Answer: j.m. keynes
Q21 | According to the Classicals, investment is a function of:
  • saving
  • income
  • employment
  • rate of interest
Answer: rate of interest
Q22 | “Supply creates its own demand” is called:
  • law of supply
  • law of market
  • law of demand
  • law of elasticity
Answer: law of market
Q23 | Under the classical system, the equilibrium will be at:
  • under employment
  • full employment
  • voluntary employment
  • disguised unemployment
Answer: full employment
Q24 | When savings exceeds the demand for savings, the rate of interest will:
  • rise
  • fall
  • remain constant
  • none of these
Answer: fall
Q25 | Rate of interest will increase when the demand for saving is:
  • less than its supply
  • equal to its supply
  • more than its supply
  • less than or equal to its supply
Answer: more than its supply
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