INDIAN ECONOMY MCQs

1. Production function expresses—
(A) Technological relationship between physical inputs and output
(B) Financial relationship between physical inputs and output
(C) Relationship between finance and technology
(D) Relationship between factors of production
Ans. (A)
2. Which one of the following is not a characteristic of the population of a developed country?
(A) Low birthrate and low death rate
(B) High birthrate and high death rate
(C) High proportion of urban population
(D) Low growth rate of population
Ans. (B)
3. Which Plan gave emphasis on removal of poverty for the first time?
(A) Fourth
(B) Fifth
(C) Sixth
(D) Seventy
Ans. (C)
4. “Interest is a reward for parting with liquidity” is according to—
(A) Keynes
(B) Marshall
(C) Haberler
(D) Ohlin
Ans. (A)
5. Extension or contraction of quantity demanded of a commodity is a result of a change in the—
(A) Unit price of the commodity
(B) Income of the consumer
(C) Tastes of the consumer
(D) Climate of the region
Ans. (A)
6. Cross elasticity of demand between petrol and car is—
(A) Infinite
(B) Positive
(C) Zero
(D) Negative
Ans. (D)
7. The period of the Eleventh Five-Year Plan is—
(A) 2005 to 2010
(B) 2006 to 201l
(C) 2007 to 2012
(D) 2008 to 2013
Ans. (C)
8. For price discrimination to be successful, the elasticity of demand for the product in the two markets should be—
(A) Same
(B) Different
(C) Constant
(D) Zero
Ans. (B)
9. FERA in India had been replaced by—
(A) FEPA
(B) FEMA
(C) FENA
(D) FETA
Ans. (B)
10. Finance Commission is constituted—
(A) Every year
(B) Once in four years
(C) Once in two years
(D) Once in five years
Ans. (D)
11. National Income Estimates in India are prepared by—
(A) Central Statistical Organization
(B) National Development Council
(C) Ministry of Finance
(D) Planning Commission
Ans. (A)
12. The term ‘Mixed Economy’ denotes—
(A) Existence of both rural and urban sectors
(B) Existence of both private and public sectors
(C) Existence of both heavy and small industries
(D) Existence of both developed and under-developed sectors
Ans. (B)
13. The Law of Demand expresses—
(A) Effect of change in price of a commodity on its demand
(B) Effect of change in demand of a commodity on its price
(C) Effect of change in demand of a commodity over the supply of its substitute
(D) None of the above
Ans. (A)
14. Which one of the following is not a plantation crop?
(A) Tea
(C) Rubber
(B) Coffee
(D) Sugarcane
Ans. (D)
15. Imputed gross rent of owner-occupied buildings is a part of—
(A) Capital formation
(B) Final consumption
(C) Intermediate consumption
(D) Consumer durable
Ans. (A)