1. What happens to marginal cost when average cost increases
[a] Marginal cost is below average cost
[b] Marginal cost is above average cost
[c] Marginal cost is equal to average variable cost
[d] Marginal cost is equal to average cost
2. Development means economic growth with
[a] price stability
[b] social change
[c] inflation
[d] deflation
3. Which one of the following is more effective in controlling prices in the long run?
[a] decrease in production
[b] increase in production
[c] decrease in the rate of interest
[d] increase in the rate of employment
4. Through open market operations, the RBI purchase and sell
[a] foreign exchange
[b] gold
[c] government securities
[d] all of these
5. A firm is said to be of optimum size when
[a] average total cost is at a minimum
[b] marginal cost is at a minimum
[c] marginal cost is equal to marginal revenue
[d] the firm is maximizing its profit
6. All revenues received, loans raised and money received in repayment of loans by the Union government go into
[a] Public account of India
[b] Contingency fund of India
[c] Consolidated fund of India
[d] None of the above
7. The law of demand states that
[a] demand increases with increase in income
[b] when income and prices rise, the demand also rises
[c] when price falls, demand increases
[d] when price increases, demand increases
8. The balance of payment comprises
[a] a current account of goods and services only
[b] a capital account of financial assets only
[c] official settlement accounts only
[d] all of these
9. What is Net National Product?
[a] The money value of final goods and services produced annually in the economy
[b] The money value of annual service generation in the economy
[c] The money value of tangible goods produced annually in the economy
[d] The money value of tangible goods available in the economy
10. Other things being equal, what causes a decrease in demand?
[a] rise in the price of the substitute
[b] fall in the price of the commodity
[c] rise in the income of the consumer
[d] rise in the price of the commodity
11. Deflation is
[a] deficit budget
[b] reduction in taxation
[c] contraction in volume of money or credit that results in a decline of price level
[d] increase in public expenditure
12. Bank rate means
[a] interest rate charged by moneylenders
[b] interest rate charged by scheduled banks
[c] rate of profit of the banking institution
[d] the official rate of interest charged by the central bank of the country
13. Which agency estimates the national income of India?
[a] Reserve Bank of India
[b] Planning Commission
[c] Ministry of Finance
[d] Central Statistical Organization
14. What is Gross National Product?
[a] the total output of goods and services produced by the country’s economy
[b] the total domestic and foreign output claimed by residents of the country
[c] the sum of gross domestic product and investment
[d] national income minus national expenditure
15. Which of the following taxes is levied and collected by the union, but assigned to the states?
[a] sales tax
[b] octroi
[c] excise
[d] consignment tax
Answers:
1. Marginal cost is above average cost
2. social change
3. increase in production
4. all of these
5. average total cost is at a minimum
6. Consolidated fund of India
7. when price falls, demand increases
8. all of these
9. The money value of final goods and services produced annually in the economy
10. rise in the price of the commodity
11. contraction in volume of money or credit that results in a decline of price level
12. the official rate of interest charged by the central bank of the country
13. Central Statistical Organization
14. the total domestic and foreign output claimed by residents of the country
15. consignment tax
[a] Marginal cost is below average cost
[b] Marginal cost is above average cost
[c] Marginal cost is equal to average variable cost
[d] Marginal cost is equal to average cost
2. Development means economic growth with
[a] price stability
[b] social change
[c] inflation
[d] deflation
3. Which one of the following is more effective in controlling prices in the long run?
[a] decrease in production
[b] increase in production
[c] decrease in the rate of interest
[d] increase in the rate of employment
4. Through open market operations, the RBI purchase and sell
[a] foreign exchange
[b] gold
[c] government securities
[d] all of these
5. A firm is said to be of optimum size when
[a] average total cost is at a minimum
[b] marginal cost is at a minimum
[c] marginal cost is equal to marginal revenue
[d] the firm is maximizing its profit
6. All revenues received, loans raised and money received in repayment of loans by the Union government go into
[a] Public account of India
[b] Contingency fund of India
[c] Consolidated fund of India
[d] None of the above
7. The law of demand states that
[a] demand increases with increase in income
[b] when income and prices rise, the demand also rises
[c] when price falls, demand increases
[d] when price increases, demand increases
8. The balance of payment comprises
[a] a current account of goods and services only
[b] a capital account of financial assets only
[c] official settlement accounts only
[d] all of these
9. What is Net National Product?
[a] The money value of final goods and services produced annually in the economy
[b] The money value of annual service generation in the economy
[c] The money value of tangible goods produced annually in the economy
[d] The money value of tangible goods available in the economy
10. Other things being equal, what causes a decrease in demand?
[a] rise in the price of the substitute
[b] fall in the price of the commodity
[c] rise in the income of the consumer
[d] rise in the price of the commodity
11. Deflation is
[a] deficit budget
[b] reduction in taxation
[c] contraction in volume of money or credit that results in a decline of price level
[d] increase in public expenditure
12. Bank rate means
[a] interest rate charged by moneylenders
[b] interest rate charged by scheduled banks
[c] rate of profit of the banking institution
[d] the official rate of interest charged by the central bank of the country
13. Which agency estimates the national income of India?
[a] Reserve Bank of India
[b] Planning Commission
[c] Ministry of Finance
[d] Central Statistical Organization
14. What is Gross National Product?
[a] the total output of goods and services produced by the country’s economy
[b] the total domestic and foreign output claimed by residents of the country
[c] the sum of gross domestic product and investment
[d] national income minus national expenditure
15. Which of the following taxes is levied and collected by the union, but assigned to the states?
[a] sales tax
[b] octroi
[c] excise
[d] consignment tax
Answers:
1. Marginal cost is above average cost
2. social change
3. increase in production
4. all of these
5. average total cost is at a minimum
6. Consolidated fund of India
7. when price falls, demand increases
8. all of these
9. The money value of final goods and services produced annually in the economy
10. rise in the price of the commodity
11. contraction in volume of money or credit that results in a decline of price level
12. the official rate of interest charged by the central bank of the country
13. Central Statistical Organization
14. the total domestic and foreign output claimed by residents of the country
15. consignment tax