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1. Personal disposable income is equal to _____

A

Personal income (1 – personal taxes)

B

Personal taxes – Personal income

C

Personal income + Personal taxes

D

Personal income – Personal taxes

2. Why is the capital – output ratio in developing countries higher?

A

Due to relative efficiency of the industries producing consumer goods

B

Due to relative inefficiency of the industries producing capital goods

C

Due to relative efficiency of the industries producing capital goods

D

Due to relative inefficiency of the industries producing consumer goods

3. ______ refers to a mechanism whereby on the one hand borrowers manage to obtain short-form loanable funds and on the other, lenders succeed in getting credit worthy borrowers for their money

A

Industrial market

B

Money market

C

Capital market

D

Agricultural market

4. Which of the following illustrates the three basic economics concepts, namely: scarcity of resource, choice by a society from the opportunity set and opportunity cost?

A

Indifference curve

B

Law of supply

C

Production possibility curve

D

Law of demand

5. Which of the following measures talk about abolishing intermediary interests in land and transfer of land to actual tiller of the soil?

A

Land reforms

B

Technological measures

C

Institutional credit

D

Support prices

6. ______ is concerned with the income and expenditure of public authorities and with the adjustment of one to the other.

A

Public finance

B

Capital market

C

Capital finance

D

Financial market

7. Which assumption holds for the law of variable proportions?

A

This law applies to various fields, like production, consumption, distribution, etc

B

It operates in the long run

C

State of technology is assumed to be given and unchanged

D

Effect of change in output due to change in variable factor cannot be easily determined

8. Which of the following is classified as Revenue Expenditure?

A

Expenditure on public health

B

Expenditure on ports

C

Expenditure on steel plants

D

Expenditure on highways

9. Which transaction is included in the current account of balance of payments?

A

Payments of debts

B

External assistance

C

Payments of claims

D

Exports of goods

10. According to Domar`s growth model, the ______ the rate of investment, the ______ the rate of growth of income

A

greater, lower

B

greater, insignificant

C

lower, greater

D

greater, greater

11. Which measure has been taken under land reforms for agricultural development?

A

Technological measures

B

Input subsidies to agriculture

C

Abolition of intermediaries

D

Rural employment programmes

12. Which individuals or private firms receive deposits and give loans and thereby operate as banks?

A

Money lenders

B

Non-indigenous bankers

C

Unregulated non-bank financial intermediaries

D

Indigenous bankers

13. What will be the effect of fall in price of a commodity on the total revenue when demand is elastic?

A

Total revenue will decrease

B

Total revenue will reduce to zero

C

Total revenue will remain unchanged

D

Total revenue will increase

14. Beyond the break even point, the short run total cost curve increases at ___

A

a constant rate

B

an increasing rate

C

a decreasing rate

D

a negative rate

15. Which industries were granted automatic approval for direct foreign investment under the new industrial policy of 1991?

A

Drugs and Pharmaceuticals

B

Entertainment Electronics

C

Defence Equipment

D

Electronic Aerospace

16. Which source of funds are classified as bank`s liabilities?

A

Balances with other banks

B

Balances with central bank

C

Borrowings

D

Advances

17. The price at which quantity demanded of a commodity equals the quantity supplied is called the ____

A

Excess demand

B

Equilibrium quantity

C

Equilibrium price

D

Market equilibrium

18. Which programme aimed at providing 100 days of unskilled manual work on demand to two members of a rural family in the age group of 18 to 60 years in the agricultural lean season within the blocks covered under the scheme?

A

Integrated Rural Development Programme

B

Jawahar Rozgar Yojana

C

Employment Assurance Scheme

D

Rural Landless Employment Guarantee Programme

19. Which market is characterised by a large number of firms and product differentiation?

A

Oligopoly

B

Monopolistic competition

C

Monopoly

D

Perfect competition

20. Which equation shows the growth in capacity-output as per the Domar`s Growth Model’? (Where I = Investment, ∆Y = change in output, σ = Output – Capital Ratio)

A

∆Y = σ

B

∆Y = σ/I

C

∆Y = I/σ

D

∆Y = Iσ