Friday, February 4, 2011

Economics Multiple Choice Questions

1.Growth rate in NNP at factor cost (at constant prices) has been highest during which Five-Year Plan?
(a) Ninth Plan
(b) Eighth Plan
(c) Seventh Plan
(d) Fifth Plan
Ans. b

2.Consider the following statements in respect of the Tenth Plan
1. This plan has specific monitorable targets in respect of poverty.
2. Decline in incremental capital-output ratio is to be achieved through creating new capacities.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both
(d) Neither 1 nor 2
Ans. a

3.Which one of the following committees was set up to review the concept of poverty line?
(a) S. Chakravarty Committee
(b) D.T, Lakdawala Committee
(c) K.N. Wanchoo Committee
(d) R.C. Dust Committee
Ans. b

4.Assertion (A) : Fisher’s index number is an ideal one.
Reason (R) : In the Fisher’s index number, the upward bias of Laspeyre’s index and downward bias of Paasche’s index are balanced to a great extent.
Codes:
(a) Both A and Rare individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true -
Ans. c

5.In a certain distribution, the following results were obtained
X = 45, Median = 48, Coefficient of skew ness = — 0.3.
What is the value of standard deviation?
(a) 20
(b) 25
(c) 28
(d) 30
Ans. d

6.How is ‘Path dependency defined as?
(a) A condition of the past affecting the past situation
(b) A comparatively fast path of progress of economy
(c) A condition on which the past conditions of an individual or economy affects future condition
(d) A slow path of progress of the economy
Ans. c

7.Which one of the following is the correct expression for the actual rate of growth (g)?
(a) g = s/c
(b) g = s x c
(c) g = s + c
(d) g =
Where s = the ratio of saving to income
c = actual incremental capital- output ratio
Ans. a

8.Theory of linkages is most appropriate for which kind of development models?
(a) Balanced growth models
(b) Unbalanced growth models
(c) Population growth models
(d) One sector growth models
Ans. b

9.Assertion (A) A balance of payments deficit is always and every where a monetary phenomenon.
Reason (R): A balance of payments deficit cannot be corrected through changes in money supply
Codes:
(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans. c

10.What is the assumption that economic growth will percolate down to all sectors, known as?
(a) Dispersal theory
(b) Trickle down theory
(c) Pump priming
(d) Decentralized growth theory
Ans. b

11.Prebisch-Singer thesis enunciates which of the following?
1. International trade has been operating as a mechanism of international inequalities and has, therefore, retarded the development of less developed countries.
2. The strategy of import substitution as a means to achieve self-sufficiency in industrial production, has led to ma! allocation of resources and a very bad effect on industrial productivity.
Select the correct answer by using the code given below
(a) l only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans. a

12.The inflationary impact of the inflow of foreign capital in India is neutralized by the Reserve Bank of India by which one of the following methods?
(a) Permitting outflow of foreign exchange
(b) Sale of securities in the open market
(c) Facilitating imports of essential commodities
(d) Permitting depreciation of Indian rupee in the foreign exchange market
Ans. b

13.Which one of the following does not constitute a part of the jurisdiction of WTO?
(a) Trade related tariff and non-tariff barriers
(b) Trade related intellectual property rights
(c) Agreement related to agriculture
(d) Regional trade agreements
Ans. d

14.Consider the following A dual economy implies
1. the existence of domestic and export markets.
2. modern industry and commercial agriculture co-existing with subsistence farming and traditional handicrafts.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans. b

15.What are the sufficient conditions for operation of stage theories of growth?
1. Well-integrated commodity and money markets.
2. Highly developed transport facilities
3. Well-trained workforce and an efficient bureaucracy
4. Existence of a federal structure.
Select the correct answer by using the codes given below
(a) 1, 2, and 4
(b) 2, 3, and 4
(c) 1, 3, and 4
(c) 1, 2, and 3
Ans. d

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