Principles Of Economics And Management Set 1
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This set of Principles of Economics and Management Multiple Choice Questions & Answers (MCQs) focuses on Principles Of Economics And Management Set 1
Q1 | Demand for a commodity refers to:
- Need for the commodity
- Desire for the commodity
- Amount of the commodity demanded at a particular price and at a particular time
- Quantity demanded of that commodity
Q2 | If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:
- Increase
- Decrease
- Remain the same
- Become zero
Q3 | Income elasticity of demand is defined as the responsiveness of:
- Quantity demanded to a change in income
- Quantity demanded to a change in price
- Price to a change in income
- Income to a change in quantity demanded
Q4 | The supply of a good refers to:
- Stock available for sale
- Total stock in the warehouse
- Actual Production of the goo
- D. Quantity of the good offered for sale at a particular price per unit of time
Q5 | In the short run, when the output of a firm increases, its average fixed cost:
- Remains constant
- Decreases
- Increases
- First decreases and then rises
Q6 | The cost of one thing in terms of the alternative given up is called:
- Real cost
- Production cost
- Physical cost
- Opportunity cost
Q7 | In which of the following market structure is the degree of control over the price of its product by a firm very large?
- Imperfect competition
- Perfect competition
- Monopoly
- In A and B both
Q8 | Demand for factors of production is:
- Derived demand
- Joint demand
- Composite deman
- D None of the above
Q9 | The producer’s demand for a factor of production is governed by the ___ of that factor.
- Price
- Marginal productivity
- Availability
- Profitability
Q10 | Who is the ‘lender of the last resort’ in the banking structure of India?
- State Bank of India
- Reserve Bank of India
- EXIM Bank of India
- Union Bank of India
Q11 | ____ is the official minimum rate at which the Central Bank of a country is prepared to rediscount approved bills held by the commercial banks.
- Repo rate
- Bank rate
- Prime lending rate
- Reverse repo rate
Q12 | Which among the following is a function of the Reserve Bank of India?
- Bank issues the letters of credit to their customers certifying their creditability
- Collecting and compilation of statistical information relating to banking & other financial sectors
- Banks under write the securities issued by public or private organizations
- Accepting deposits from the public
Q13 | The following is the direct tax among:
- House tax
- Entertainment tax
- Service tax
- Value added tax
Q14 | Which among the following is a cause of inflation?
- Deficit financing
- Rise in external loans
- Unfavorable balance of payment
- A hike in the CRR by the central bank of the country
Q15 | The capital that is consumed by an economy or a firm in the production process is known as:
- Capital loss
- Production cost
- Dead-weight loss
- Depreciation
Q16 | Which of the following is also known as International Bank for Reconstruction andDevelopment?
- Asian Development Bank
- World Bank
- Reserve Bank of India
- International Monetary Fund
Q17 | A change in fiscal policy affects the balance of payments through:
- The current account only
- The capital account only
- Both, the current account and capital account
- Neither current account nor capital account
Q18 | Fiscal Policy means:
- Policy relating to money and banking in a country
- Policy relating to non-banking financial institutions
- Policy relating to government spending’ taxation and borrowing
- Policy relating to financial matters of international trade
Q19 | Which one of the following is NOT the objective of fiscal policy of government of India?
- Full employment
- Price stability
- Regulation of inter-state trade
- Economic growth
Q20 | Monetary policy is implemented by in India.
- The Ministry of Finance
- Planning Commission
- The Parliament
- Reserve Bank of India
Q21 | The most simple and popular method of measuring economic development is to calculatethe trend of gross national product (GNP) at __________
- Current prices
- Constant prices
- Both of the above
- None of the above
Q22 | By __ growth rate of an economy can be speeded up.
- Investment in share market
- Investment abroad
- Investment in human capital formation
- Investment in primary sector
Q23 | When national income is calculated with reference to a base year, it is called:
- Nominal national income
- Net national income
- Real national income
- Gross national income
Q24 | Which market structure symbolizes the existence of ‘few sellers’?
- Oligopoly
- Monopoly
- Monopolistic competition
- Perfect competition
Q25 | Which among the following are the factors that determine the national income of a country?
- Quantity and Quality of factors of production
- The state of technical knowledge
- Economic and political stability
- All of the above