Practice Quiz set 4 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Which of the following is a better measurement of Economic Development ?
(a)
(b)
(c)
(d)
Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city.
It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population. Measurement of personal income is the best measure of the economic well-being of individuals and nations.
Besides, it helps to show the level of inequality in a society or country.
Q-2) Which term is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country?
(a)
(b)
(c)
(d)
Gross National Product (GNP) is defined as “the market value of all goods and services produced in one year by labour and property supplied by the residents of a country.”
It is contrasted to Gross domestic product (GDP), defined as “the value of all final goods and services produced in a country in 1 year.”
Q-3) “The national income consists of a collection of goods and services reduced to common basis by being measured in terms of money.”–– Who says this ?
(a)
(b)
(c)
(d)
British economist John Hicks said that National income is a collection of goods and services reduced to a common basis by being measured in terms of money. Hicks was one of the most important and influential economists of the twentieth century.
The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model (1937), which summarized a Keynesian view of macroeconomics.
His book Value and Capital (1939) significantly extended general-equilibrium and value theory.
Q-4) An indifference curve measures ______________ level of satisfaction derived from different combinations of commodity X and Y.
(a)
(b)
(c)
(d)
An indifference curve may be defined as the locus of points, each representing a different combination of two substitute goods, which yield the same utility or level of satisfaction to the consumer. Therefore, he is indifferent between any two combinations of goods when it comes to making a choice between them.
So if, for example, a consumer makes five combinations a, b, c, d and e of two substitute commodities, X and Y, all these combinations yield the same level of satisfaction indicated by U.
Q-5) Investment multiplier shows the effect of investment on
(a)
(b)
(c)
(d)
Investment multiplier is simply the multiplier effect of an injection of investment into an economy.
The multiplier effect refers to the idea that an initial spending rise can lead to an even greater increase in national income.
Q-6) What is included in the Tetiary sector ?
(a)
(b)
(c)
(d)
The tertiary industry is the segment of the economy that provides services to its consumers.
It includes a wide range of activities that are service-based and give non-tangible value to customers such as the provision of trading, insurance, banking, etc.
The other sectors are the secondary sector (manufacturing), and the primary sector (agriculture and allied activities).
Q-7) Who said ‘Supply creates its own demand’?
(a)
(b)
(c)
(d)
“Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes.
The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics.
Say’s law, or the law of the market is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767– 1832), who stated that “products are paid for with products” and “a glut can take place only when there are too many means of production applied to one kind of product and not enough to another
Q-8) The price of a commodity is the same as
(a)
(b)
(c)
(d)
Average Revenue refers to revenue received per unit of output sold. It is the same as the Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Thus, Average Revenue (AR) = $\text"Total Revenue (TR)"/\text"Quantity sold (Q)"$
When we take the case of a single commodity,
TR = P × Q
So, AR= ${P × Q}/Q$ = P,
where P = Price of the commodity
Q-9) Insider trading is related to
(a)
(b)
(c)
(d)
Insider trading is the trading of a public company’s stock or other securities by individuals with access to non-public information about the company. It is related to share markets.
Insider trading is an unfair practice, wherein the other stockholders are at a great disadvantage due to the lack of important insider nonpublic information.
Q-10) Which of the following is not a feature of a capitalist economy?
(a)
(b)
(c)
(d)
Capitalism is an economic system in which each individual in his capacity as a consumer, producer, and the resource owner is engaged in economic activity with a large measure of economic freedom.
The inspiring force in this system is self-interest and maximization of profit. The decisions of businessmen, farmers, producers, including that of wage-earners are based on the profit motive.