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Economics For Competitive Examination (23PECSE41)

Total questions: 80

Worksheet time: 40mins

Name
Class
Date
1.

The two inputs taken into account in the Cobb-Douglas production function are

a)

Cost and capital

b)

Labour and capital

c)

Materials and capital

d)

None of the above

2.

Indian agriculture is typically characterized as

a)

Land surplus, labour scarce economy

b)

Land surplus, labour surplus economy

c)

Land scarce, labour surplus economy

d)

None of the above

3.

The Agricultural Price Commission was set up in the year

a)

1975

b)

1969

c)

1970

d)

1965

4.

In who's model under developed economy hopes to move from a condition of stagnation to self sustained growth

a)

Fei-ranis

b)

Rostow

c)

Malthus

d)

Adam smith

5.

What is first stage of cultivation as per Boserup?

a)

Bush fallow

b)

Forest fallow

c)

Short fallow

d)

Herbs fallow

6.

Agriculture finance corporation was set up in

a)

1968

b)

1969

c)

1970

d)

1988

7.

What is the full form of AOA?

a)

Agreement on agriculture

b)

Administration of agriculture

c)

Advocates of agriculture

d)

Advocates of agreement

8.

Which type of farming is practiced in areas of high population pressure on land?

a)

Extensive subsistence farming

b)

Intensive substance farming

c)

Commercial farming

d)

Consumption farming

9.

An estate where a cash crop is grown for sale is known as

a)

Horticulture farming

b)

Subsistence farming

c)

Kitchen garden

d)

Mixed farming

10.

Green revolution has been most successful in rotation for

a)

Wheat and potato

b)

Barley and rice

c)

Wheat and rice

d)

Wheat and Barley

11.

Under this method, prices are maintained at par with the average level of prices in the industry, it is called

a)

Skimming price

b)

Going rate price

c)

Cost plus price

d)

Average cost Pricing

12.

Net investment divided by cash inflow is called

a)

Pay period

b)

Average rate of return method

c)

Discounted cash flow method

d)

Payback period

13.

The method of valuing a project, or asset using the concepts of time value of the money is called

a)

Return on investment method

b)

Discounted cash flow method

c)

Pay back method

d)

Financial statement method

14.

Private sector can be divided into

a)

Individual ownership

b)

Collective ownership

c)

Joint Venture

d)

All the above

15.

Productivity integration of production processes, is an example of ------- factor influencing industrial productivity

a)

Managerial

b)

Technological

c)

Financial

d)

Social

16.

The first industrial policy in India

a)

Industrial policy resolution 1948

b)

Industrial policy resolution 1947

c)

Industrial policy 1956

d)

Industrial policy resolution 1935

17.

Which was the first Iron and Steel plant in India

a)

Patna

b)

Birla

c)

Rourkela

d)

Tisco

18.

The geographical site selected by a firm to perform its economic functions is called

a)

Economic location

b)

Profitability location

c)

Industrial location

d)

Productivity location

19.

'Theory of location of industries' was published by

a)

Sargent Florence

b)

August Losch

c)

Alfred Weber

d)

Alfred Marshal

20.

Different types of industries are combined into one location is termed as

a)

Agglomeration

b)

Location coupling

c)

Deglomeration

d)

Clustering

21.

'Take off stage' in an economy means

a)

Restrictions are removed

b)

Economy is stagnant

c)

Steady growth begins

d)

Economy is collapsing

22.

GDP is the total value of

a)

All final goods and services

b)

All interactive goods and services

c)

All international goods and services

d)

Per capita income

23.

'Twenty-point programme' was launched in the year.

a)

1969

b)

1975

c)

1977

d)

1980

24.

Unemployment in a developing country is generally take place due to

a)

Switch over from one job to another.

b)

Lack of effective demand

c)

Seasonal factors.

d)

Lack of complementary factors of production.

25.

Poverty gap is

a)

Different between poverty line and actual income level.

b)

Gap between rich and poor.

c)

Gap between developed ration and developing ration

d)

None of these.

26.

The first complete Indian bank was established in the year.

a)

1794

b)

1894

c)

1896

d)

1902

27.

The Gandhian Plan was Presented by

a)

M. N. Roy

b)

Nehru

c)

Shriman Narayan

d)

leading economist

28.

In which among the following years, essentials commodities act enacted?

a)

1955

b)

1958

c)

1961

d)

1975

29.

The type unemployment more prominent in India

a)

Seasonal

b)

Cyclical

c)

Structural

d)

Open.

30.

Who is the father of Green Revolution in India?

a)

Norman E Barlaug

b)

Swaminathan

c)

Garry Backer

d)

Dr. P. M. Jha

31.

In the 19th century _________ argued that ideas pass through three rising stages namely, Theological, Philosophical and Scientific.

a)

Auguste Comte

b)

B. Plato

c)

Aristotle

d)

Socrates

32.

_________ is distinctive for much greater use of mathematics than the other social sciences, a development made possible by the development of a concept of utility

a)

Sociology

b)

Political science

c)

Economics

d)

Anthropology

33.

_____ has distinguished between different types of societies on basis of economicsystem

a)

Joseph W. Eaton

b)

Max Webber

c)

Karl Marx

d)

Alphons Silbermann

34.

Implicit costs are

a)

Equal to total fixed costs.

b)

Comprised entirely of variable costs.

c)

"Payments" for self-employed resources.

d)

Always greater in the short run than in the long run.

35.

When a firm doubles its inputs and finds that its output has more than doubled, this is known as

a)

Economies of scale.

b)

Constant returns to scale.

c)

Diseconomies of scale.

d)

A violation of the law of diminishing returns

36.

Measurable utility is the postulate of

a)

Neo-Classical school

b)

Ordinalist school

c)

Behaviourist school

d)

Keneysians

37.

Which of the following is Gossen's first law

a)

Law of Diminishing Marginal Utility

b)

Law of Equi Marginal Utility

c)

Law of substitution

d)

Law of Diminishing Returns

38.

In the case of an indifference curve

a)

dU/dX>dU/dY

b)

dU/dX = dU/dY

c)

dU/dX

d)

dU/dX≤dU/Dy

39.

When Q = f (P), the elasticity coefficient is measured by

a)

ΔQ/ΔP / P/Q

b)

ΔP/ΔQ * Q/P

c)

ΔQ/ΔP * P/Q

d)

P/ΔQ / Q/P

40.

Which one of the following elasticity's takes the average of prices and quantities?

a)

Point elasticity of demand

b)

Arc elasticity of demand

c)

Income elasticity of demand

d)

Cross elasticity of demand

41.

The relationship between money supply and price level under Quantity theory of money is

a)

Direct non proportionate relationship

b)

Inverse proportionate relationship

c)

Direct proportionate relationship

d)

Inverse non proportionate relationship

42.

In equation C= a+by, the value of b lies between

a)

0<b<1

b)

0>b<1

c)

0=b<1

d)

0>b<1

43.

Cash balance approach in Quantity theory emphasis on

a)

Money as a medium of exchange

b)

Money as a store of value

c)

Money as a measure of value

d)

Money as a transfer of value

44.

This independence of real variables from changes in money supply and nominal variables is called

a)

Money illusion

b)

Neutrality of money

c)

Classical dichotomy

d)

Money multiplier

45.

The two cornerstones of classical economics are

a)

The Phillips Curve and Say's Law

b)

Say's Law and the Quantity Theory of Money

c)

The Quantity Theory of Money

d)

Say's Law and the Liquidity preference theory

46.

The two cornerstones of classical economics are

a)

The Phillips Curve and Say's Law

b)

Say's Law and the Quantity Theory of Money

c)

The Quantity Theory of Money and the Liquidity Preference Theory

d)

Say's Law and the Liquidity Preference Theory

47.

In a three-sector economy, Y equals

a)

C+I

b)

C+I+G

c)

C+I+G=(X-M)

d)

None of these

48.

Statement 1: Model assumes stickiness prices

Statement 2: Classical model assumes flexibility of prices

a)

Statement one and two are correct

b)

Statement one only correct

c)

Statement two only correct

d)

Both are incorrect

49.

Statement 1:There exists an inverse relationship between market rates of interest and price of bond Statement 2:The liquidity trap is a situation when at some very low rate of interest all asset holders become bears

a)

Both are incorrect

b)

Both are correct

c)

Statement one is correct and two is not correct

d)

Statement one is incorrect and two is correct

50.

According to Keynesian theory Statement 1:Price are sticky Statement 2:After full employment change in aggregate demand lead to statements

a)

Only statement 1 is correct

b)

Only statement 2 are correct

c)

Both are correct

d)

None of the above are correct

51.

Ct = f(Yt-I) is

a)

Static Model

b)

Dynamic model

c)

Comparative static

d)

None of these

52.

Who coined the phrase 'demonstration effect'?

a)

W.W.Rostow

b)

James Duessenberry

c)

R.Nurkse

d)

J.K.Galbraith

53.

The 'big-push' strategy of development was first advocated by

a)

Paul N-Rosenstein-Rodan

b)

Simon Kuznets

c)

W.A, Lewis

d)

A.O.Hirshman

54.

Balanced growth implies

a)

Simultaneous development of a variety of activities, which support oneanother

b)

Equal allocation of resources to different sectors

c)

Different sectors growing at their natural rates of growth

d)

Uniform rate of growth of output over time

55.

Marx refers to the concept of organic composition of capital. Which of the following ratios stands for this capital? Constant capital = C; Variable capital = V; Surplus value = S

a)

C/(V+S)

b)

C/V

c)

C/(C+V)

d)

(C+V)/V

56.

Arrange in the right order the contribution of sectors to the GDP from highest to lowest

a)

Agriculture, manufacturing, tertiary

b)

Agriculture, tertiary, manufacturing

c)

Tertiary, manufacturing, agriculture

d)

Manufacturing, tertiary, agriculture

57.

A multi-dimensional measure of poverty include includes which of the following elements?

a)

Health level

b)

Education level

c)

Living standards

d)

All of the above

58.

In the Solow model, if capital is in the steady state, output

a)

will continue to grow

b)

is also in the steady state

c)

will continue to grow, but its rate of growth will slow down

d)

will decline, but its rate of growth will be positive

59.

How does Sen define poverty?

a)

The lack of material well-being

b)

The deprivation of basic capabilities for an individual

c)

The lack of supportive social institutions to ensure one's basic livelihood

d)

The lack of a cultural or religious identity

60.

Which of the following may be termed as long-term objectives of Indian planning?

1. Self-reliance

2. Productive employment generation

3. Growth of 7 per cent per annum

4. Growth in infrastructure

a)

1 and 2

b)

3 and 4

c)

1,2 and 4

d)

2,3 and 4

61.

The Planning Commission of India

I. was set up in 1950

II. is a constitutional body

III. is an advisory body

IV. is a government department

a)

I and II

b)

II and III

c)

I and III

d)

III only

62.

Under ……………..the government maintains stability by following deficit financing during recession here as, during prosperity, the government may follow surplus budgeting

a)

stabilization function

b)

allocation function

c)

growth function

d)

administrative function

63.

…………………….is concerned with the creating of the situation where one cannot be made better off without making other worse off

a)

Pareto efficiency

b)

Parallel efficiency

c)

Administrative efficiency

d)

Utility maximization

64.

Principle of Maximum Social Advantage (MSA) deals with……………...

a)

Public expenditure

b)

Public entertainment

c)

General theory

d)

Social welfare

65.

Optimum size of budget is achieved when ………….

a)

MSS=MSB

b)

MSB = negative

c)

MSB = zero

d)

MSS > MSB

66.

………….has suggested canons of a good tax system

a)

Adam Smith

b)

David Ricardo

c)

J M Keynes

d)

Adolf Wagner

67.

In India the ……………issues treasury bills, post office savings certificate, national saving certificate

a)

RBI

b)

Commercial bank

c)

Government

d)

Insurance company

68.

Development Expenditure includes industrial and tertiary activities, increasing expenditure on subsidies and ……………..

a)

Expenditure on social services

b)

Expenditure on defence

c)

Expenditure on interest payment on debt

d)

Tax collection charges

69.

Fiscal Responsibility and Budget Management Act (FRBM) was implemented in the year ………

a)

1991

b)

2000

c)

2004

d)

2010

70.

The key issues under…………, include Tax competition, Tax subsidies, financial imbalance

a)

Fiscal Federalism

b)

Social problems

c)

Taxation policy

d)

Monetary management

71.

The central govt shall take suitable measures to ensure ……………………..in its fiscal operations and minimize, as far as practicable, secrecy in the preparation of the annual budget

a)

Greater transparency

b)

Greater secrecy

c)

Debt management

d)

Deficit financing

72.

Which amoung the following is the oldest international trade theory

a)

Country Similarly Theory

b)

Theory of Absolute Cost Advantage

c)

Product Life Cycle Theory

d)

Mercantilist Theroy

73.

Michael porter's diamond Model is related with

a)

International marketing

b)

International trade

c)

International financial repairing

d)

International finance

74.

The theory of Absolute advantage is given by

a)

David Ricardo

b)

Adam smith

c)

F. W Taylor

d)

Ohlin and Hecksche

75.

According to Smith "Vent for surplus" approach is applicable in

a)

Developed countries

b)

Underdeveloped countries

c)

Developing countries

d)

All of the above

76.

Offer curve of the country determined by

a)

Elasticity of the demand of the product

b)

Elasticity of the supply of the product

c)

Elasticity of the income of the both the countries

d)

Elasticity of substitution of the both countries

77.

According to Leontief capital Rich country will

a)

Export capital intensive and import labour intensive

b)

Export labour intensive and import capital intensive

c)

Export both goods

d)

Import both goods

78.

Hedging refers to

a)

Fixed exchange rate

b)

Flexible exchange rate

c)

It covers foreign exchange risk

d)

It is related with devaluation

79.

Zero sum game theory applies to

a)

Mercantilism

b)

Absolute cost advantage theory

c)

Factor equalization theorem

d)

New trade theory

80.

Economies of scale and network effects resulting in exports of goods is related to

a)

New trade theory

b)

Factor equalization theorem

c)

Comparative cost advantage

d)

The Heckscher - Ohlin theory