Economy : Mock Papers
Mock Question Paper 4
Q1. 'Utility' in economics means the capacity to
A. Provide comforts
B. Earn an income
C. Satisfy human wants
D. Satisfy human motives
Q2. Debt service ratio implies ratio between
A. Import and debt
B. export and principal plus and payment on debt
C. Domestic saving and import
D. Domestic saving and export
Q3. Saving is a function of
A. Investment
B. Income
C. Export
D. Improvement in productivity
Q4. A deflator is a technique of
A. Adjusting for changes in price level
B. Adjusting for change in commodity
C. Accounting for higher increase of GNP
D. Accounting for decline of GNP
Q5. Recession is that economic state of a country when there is
A. Accumulation of unsold stocks
B. Slump in trade and industry
C. Fall in consumer demand
D. All of the above
Q6. A loan bearing low rate of interest is known as
A. Hard Loan
B. Soft Loan
C. Capital Loan
D. Real loan
Q7. White goods are
A. Basic raw materials
B. Cosmetic articles
C. Goods imported from the western countries
D. Durable consumption goods
Q8. Unemployment which occurs when workers move from one job to another job is known as
A. Seasonal unemployment
B. Frictional unemployment
C. Cyclical unemployment
D. Technological unemployment
Q9. Development means economic growth plus
A. Inflation
B. Deflation
C. Price Stability
D. Social Change
Q10. 'A formal evaluation of an individual's or company's credit history and capability of repaying obligations' is known as
A. Amortisation
B. Net Asset Value
C. Credit rating
D. Current Ratio
Q11. Invisible trade is a trade of
A. Government with public institutions
B. The services like the bank, marine companies and shipping companies
C. Corporate and financial institutions with government
D. Government with other countries
Q12. Fabian Socialism first emerged in
A. Russia
B. Germany
C. India
C. Great Britain
Q13. Liberal theory of a state says that State is
A. A state of victors
B. God's Gift
C. Laissez faire region
D. Coercion of government
Q14. Who among the following is a famous economist?
A. Max Muller
B. Gunnar Myrdal
C. Macaulay
D. Henry Francis Carry
Q15. The Gandhian theory of Trusteeship aims at
A. Decentralisation of Political power
B. Purging capitalism of its evils
C. The abolition of violence from public life
D. None of these
Q16. Which of the following is not associated with Socialism
A. Communism
B. Facism
C. Fabianism
D. Syndicalism
Q17. The propounder of the 'Law of Market' is
A. J.B. Say
B. A.C. Pigou
C. T.R. Malthus
D. Ricardo
Q18. Which of the following is sociologically apt in describing the relations between the capitalists and the workers?
A. Competition
B. Mutual tolerance
C. Harmony
D. Conflict of interests
Q19. Structural unemployment arises due to
A. Deflationary Conditions
B. Heavy industry bias
C. Shortage of raw materials
D. Inadequate productive capacity
Q20. Division of labour is promoted by
A. Limited Market
B. Perfect market
C. Extended market
D. Price discrimination
Q21. Who among the following is known for work in the field of removal of bonded labour?
A. Medha Patkar
B. Swami Agnivesh
C. Mamta Banerji
D. Swami Chinmayananda
Q22. A formal evaluation of an indiviual's or company's credit history and capability of repaying obligatins is known as
A. Current Ratio
B. Credit Rating
C. Net Asset Value
D. Amortisation
Q23. With the increase in the production of an industrial concern, which of the following increases continously?
A. Fixed cost
B. Average cost
C. Variable cost
D. Marginal cost
Q24. National income of India is compiled by
A. Planning Commission
B. Finance Commission
C. Indian Statistical Institute
D. Central Statistical Organisation
Q25. In capitalism, the price of a commodity is determined by
A. Production unit
B. Consumers of the Product
C. Share holders of the Production unit
D. Market mechanism
Q26. Fiscal Policy means the
A. Credit policy
B. Planning Policy
C. Taxation policy
D. Policy of expenditure and publlic debt policy
Q27. The main reason for low growth rate in India, inspite of high rate of savings and capital formation is
A. High birth rate
B. Low level of foreign aid
C. Low capital/output ratio
D. High capital/output rato
Q28. Communism ends in
A. Plutocracy
B. World state formation
C. Dictatorship of the proletariat
D. None of these
Q29. The Gandhian economy is based on the principle of
A. Competition
B. Trusteeship
C. State control
D. None of these
Q30. Nurkse's Theory of 'Vicious Circle' is related to
A. Population explosion
B. Poverty
C. Capital formation
D. Unemployment