Top 50 Economics MCQS part:2


1) THE TERMS SUCH AS ‘PLACEMENT, LAYERING, INTEGRATION OF FUNDS’ ARE RELATED TO WHICH AMONG THE FOLLOWING ?

(a) Fiscal Management

(b) Financial Stability

(c) Money Laundering

(d) Capital Market Trading 

Ans)(c) Money Laundering

2) A RISE IN PRICE OF ONE COMMODITY WILL INDUCE A FALL IN DEMAND OF ANOTHER COMMODITY, THEN THE COMMODITIES ARE___ ?

(a) Complimentary

(b) Supplementary

(c) Competing

(d) Auxiliary

Ans)(a) Supplementary

3) WHICH AMONG THE FOLLOWING IS A SUITABLE TERM FOR THE STATE OF ECONOMY IN WHICH ECONOMIC ACTIVITY IS SLOWING DOWN BUT WAGES AND PRICES CONTINUE TO RISE ?

(a) Inflation

(b) Deflation

(c) Skweflation

(d) Stagflation

Ans)(d) Stagflation

4) THE PORTION OF TOTAL DEPOSITS OF A COMMERCIAL BANK WHICH IT HAS TO KEEP WITH ITSELF IN THE FORM OF LIQUID ASSETS IS CALLED ___ ?

(a) Statutory Liquidity Ratio

(b) Cash Reserve Ratio

(c) Statutory Reserve Ratio

(d) Cash ratio

Ans)(a) Statutory Liquidity Ratio

5) EXPENDITURES OF THE CENTRAL GOVERNMENT ON FLAGSHIP DEVELOPMENT PROGRAMMES COMES UNDER WHICH OF THE FOLLOWING ?

(a) Plan expenditures

(b) Non Plan expenditures

(c) Revenue expenditures

(d) Capital expenditures

Ans)(a) Plan expenditures

6) WHICH AMONG THE FOLLOWING BODY IN INDIA REQUIRES TO PROTECT THE INTERESTS OF CONSUMERS AGAINST ANTI-COMPETITIVE PRACTICES OF ALL MARKET ENTITIES ?

(a) National Consumer Forum

(b) Competition Commission of India

(c) National Consumer Disputes Redressal Commission

(d) Central Vigilance Commission

Ans)(b) Competition Commission of India

7) IT HAS BEEN GENERALLY VIEWED THAT WHEN AN ECONOMY GROWS BEYOND ITS POTENTIAL GROWTH RATE, IT CAUSES INFLATION. HOW DOES GROWING FASTER THAN THE POTENTIAL RATE CAUSE INFLATION ?

(a) Fast growth causes quick resource utilization to fulfill the higher demand

(b) Fast growth causes more employment opportunities which leads to rise in prices

(c) Fast growth causes more productivity which leads to higher supply and cost push inflation

(d) All of above mentioned reasons

Ans)(a) Fast growth causes quick resource utilization to fulfill the higher demand

8) SEEMA DARSHAN PROJECT FOR BORDER TOURISM BELONGS TO WHICH STATE ?

(a) Jammu & Kashmir

(b) Rajasthan

(c) Gujarat

(d) Sikkim

Ans)(c) Gujarat

9) THE TERM “OPEN UNEMPLOYMENT” IS USED WHEN :

(a) people are not willing to work

(b) people are willing but not get work

(c) people leave their jobs in search of better ones

(d) people get the jobs but no regular payments

Ans)(b) people are willing but not get work

10) THE GREEN SHOE OPTION IS A CLAUSE IN THE UNDERWRITING AGREEMENT OF AN IPO, WHICH ALLOWS TO ___ ?

(a) Sell additional shared 

(b) Record Investor demands

(c) Purchase the shares back from Investors

(d) None of them

Ans)(a) Sell additional shares

11) IN WHICH OF THE FOLLOWING CITIES DIESEL LOCOMOTIVE WORKS OF THE INDIAN RAILWAYS LOCATED ?

(a) Varanasi

(b) Chennai

(c) Mumbai

(d) Jhansi

Ans)(a) Varanasi

12) IN TERMS OF COTTON PRODUCTION, WHAT IS INDIA’S CURRENT GLOBAL RANKING ?

(a) First 

(b) Fourth

(c) Second

(d) Fifth

Ans)(a) First

13) WHICH OF THE FOLLOWING IS NOT INCLUDED IN THE CALCULATION OF NATIONAL INCOME ?

(a) Value of annual goods production

(b) Value of annual services

(c) Value of old goods sold

(d) Value of new technology

Ans)(d) Value of new technology

14) WHICH OF THE FOLLOWING COUNTRIES DOESN’T MATCHES TO ITS FAMOUS TOURIST PLACE ?

(a) China – Great Wall of China

(b) Bhutan – Paro Taktsang

(c) Nepal – Pashupatinath Temple

(d) Sri Lanka – Padmanabhaswamy Temple

Ans)(d) Sri Lanka – Padmanabhaswamy Temple

15) WHICH OF THESE IS USED AS PROMISE FROM A BANK TO MAKE A PAYMENT ASSUMING CERTAIN CONDITIONS ARE MET ?

(a) Cash Credit

(b) Over Draft

(c) Letter of Credit

(d) Term Loan

Ans)(c) Letter of Credit

16) WHICH OF THE FOLLOWING PROBLEMS IS NEEDED TO BE RESOLVED UNDER ISSUE MANAGEMENT ?

(a) Problems with staff

(b) Technical failures

(c) Material shortages

(d) All of the above

Ans)(d) All of the above

17) WHAT DOES DECREASING CONTRIBUTION OF AGRICULTURE TO GDP SIGNIFIES ?

(a) Country is becoming poor

(b) Country is becoming less developed

(c) Country is becoming more developed

(d) None of the above

Ans)(c) Country is becoming more developed

18) WHICH ECONOMIC SYSTEM IS KNOWN AS THE KEYNESIAN ECONOMIC SYSTEM ?

(a) Market economic system

(b) Mixed economic system

(c) Socialist economic system

(d) None of the above

Ans)(b) Mixed economic system

19) WHICH SECTOR CONTRIBUTED MORE TO NATIONAL INCOME ?

(a) Unorganised

(b) Organised

(c) Public

(d) None of the above

Ans)(a) Unorganised

20) WHICH AMONG THE FOLLOWING HAS PERMISSION FOR COMMERCIAL CULTIVATION ?

(a) Bt Brinjal

(b) Bt Cotton

(c) Bt Mustard 

(d) Bt carrot

Ans)(b) Bt Cotton

21) THE LOCAL SYSTEM OF CANAL IRRIGATION FOUND IN PARTS OF HIMACHAL PRADESH OVER FOUR HUNDRED YEARS AGO IS KNOWN AS ?

(a) Baori

(b) Khadin

(c) Jhalara

(d) Kuhl

Ans)(d) Kuhl

22) WHICH OF THE FOLLOWING IS THE MAJOR SOURCE OF IRRIGATION IN INDIA ?

(a) Canals

(b) Wells and Tubewells

(c) Tanks

(d) None of the above

Ans)(b) Wells and Tubewells

23) WHICH OF THE FOLLOWING TYPES OF IRRIGATION IS THE EASIEST SOURCE OF IRRIGATION ?

(a) Tank

(b) Canal

(c) Wells & Tubewells

(d) None of the above

Ans)(c) Wells & Tubewells

24) WHAT IS GEOPOLYMER CEMENT MADE UP OF ?

(a) aluminium and silicon

(b) aluminium and raylon

(c) aluminium and fly ash

(d) aluminium and potash

Ans)(a) aluminium and silicon

25) WHAT IS INDIA’S RANK IN THE PRODUCTION OF CHEMICALS IN THE WORLD ?

(a) 4

(b) 12

(c) 8

(d) 7

Ans)(b) 12

26) WHAT IS THE SHARE OF INDIAN CAPITAL GOODS IN WORLD EXPORTS ?

(a) %

(b) 0.8%

(c) 3%

(d) 5%

Ans)(b) 0.8%

27) WHAT IS THE PER CAPITA STEEL CONSUMPTION OF INDIA ?

(a) 192 kg

(b) 74.1 kg

(c) 94.3 kg

(d) 98.45 kg

Ans)(b) 74.1 kg

28) WHICH AMONG THE FOLLOWING ARE PART OF CHAMPION SECTOR IDENTIFIED BY INDIA?

1. INFORMATION TECHNOLOGY & INFORMATION TECHNOLOGY ENABLED SERVICES (IT& ITES)

2. TOURISM AND HOSPITALITY SERVICES

3. MEDICAL VALUE TRAVEL

4. TRANSPORT AND LOGISTICS SERVICES

Choose the correct option from the choices given below:

(a) 1,2 and 3 only

(b) 2,3 and 4 only

(c) 1,2 and 4 only

(d) 1,2,3 and 4

Ans)(d) 1,2,3 and 4

29) WHAT IS THE SHARE OF PRINT MEDIA REVENUE IN THE TOTAL REVENUE OF MEDIA AND ENTERTAINMENT INDUSTRY ?

(a) 34%

(b) 21%

(c) 24%

(d) 56%

Ans)(c)  24%

30) WHAT IS A CONSUMER COOPERATIVE STORE ?

(a) It is owned by cooperatives

(b) It is owned by consumers

(c) It is owned by government

(d) None of the above

Ans)(b) It is owned by consumers

31) WHEN WAS SOFTWARE TECHNOLOGY PARKS ESTABLISHED IN INDIA ?

(a) 1999

(b) 1991

(c) 1995

(d) 2000

Ans)(b) 1991

32) WHICH OF THE FOLLOWING IS A RESULT OF CONTRACTIONARY MONETARY POLICY ?

(a) Decrease in interest rates

(b) Decrease in Inflation

(c) Increase in money with the banks

(d) combat unemployment

Ans)(b) Decrease in Inflation

33) WHAT IS MSF STANDS FOR ?

(a) Marginal standing funds

(b) Marginal stauatory funds

(c) Marginal standing facility

(d) Mean statuatory facility

Ans)(c) Marginal standing facility

34) WHO AMONG THE FOLLOWING SETS THE RESERVE RATIO LIMITS FOR THE BANKS ?

(a) Banks borad bureau

(b) RBI

(c) Department of Economic affairs

(d) Monetary policy committee

Ans)(b) RBI

35) WHAT ARE MARKET STABILIZATION BONDS ?

(a) To increase money supply in the market

(b) To Remove excess liquidty from the market

(c) To stabilise the interest rate in market

(d) None of the above

Ans)(b) To Remove excess liquidty from the market

36) WHICH AMONG THE FOLLOWING IS A NOMINAL ANCHOR FOR THE INFLATION TARGETING ?

(a) General inflation

(b) Core inflation

(c) CPI inflation

(d) None of the above

Ans)(c) CPI inflation

37) ADOPT A HERITAGE’ IS A SCHEME IMPLEMENTED BY MINISTRY OF TOURISM IN ASSOCIATION WITH WHICH UNION MINISTRY ?

(a) Ministry of Culture

(b) Ministry of Home Affairs

(c) Ministry of Road Transport and Highways

(d) Ministry of Tribal Affairs

Ans)(a) Ministry of Culture

38) WHICH TERM IS USED TO DESCRIBE THE WANT SATISFYING POWER OF A COMMODITY OR A SERVICE ?

(a) Demand

(b) Want

(c) Utility

(d) Consumption

Ans)(c) Utility

39) IN WHICH COUNTRY FUKUSHIMA NUCLEAR POWER PLANT IS LOCATED ?

(a) Japan

(b) Germany

(c) London

(d) South Korea

Ans)(a) Japan

40) EXPENDITURE ON ADVERTISING AND PUBLIC RELATIONS BY AN ENTERPRISE IS A PART OF WHICH OF THE FOLLOWING ?

(a) consumption of fixed capital

(b) final consumption expenditure

(c) intermediate consumption

(d) fixed capital

Ans)(c) intermediate consumption

41) A TAX IS SAID TO BE REGRESSIVE WHEN ITS BURDEN IS REDUCED___ 

(a) less heavily on the poor than on the rich

(b) more heavily on the poor than on the rich

(c) equally on the poor as on the rich

(d) None of these

Ans)(b) more heavily on the poor than on the rich

42) WHICH OF THE FOLLOWING ECONOMIC ACTIVITY CANNOT BE INCLUDED IN THE TERTIARY SECTOR ?

(a) Working in a call-centre

(b) Tuition occupation

(c) Bee-keeping

(d) Banking

Ans)(c) Bee-keeping

43) SAUBHAGYA SCHEME WAS LAUNCHED TO PROVIDE THE FOLLOWING ?

(a) Water connections

(b) LPG connections

(c) Electricity connections

(d) Broadband connections

Ans)(c) Electricity connections

44) WHAT IS THE CASH RESERVE RATIO ?

(a) Monetary policy

(b) Tax policy

(c) Agricultural policy

(d) Fiscal policy

Ans)(a) Monetary policy

45) WHAT DOES THE ‘PRIORITY SECTOR’ FOR COMMERCIAL BANK LENDING INDICATE ?

(a) Self-employed

(b) Agriculture and Small scale industries

(c) Small industrialists

(d) Small farmers

Ans)(b) Agriculture and Small scale industries

46) THE 14TH FINANCE COMMISSION HAS RECOMMENDED TO INCREASE THE SHARE OF THE STATE IN THE NET INCOME FROM TAX COLLECTION FROM 32% TO___

(a) 35%

(b) 40%

(c) 42%

(d) 45%

Ans)(c) 42%

47) WHICH OF THE FOLLOWING WOULD NOT CONSTITUTE AN ECONOMIC ACTIVITY IN ECONOMICS ?

(a) A teacher teaching students in his college

(b) A teacher teaching students in a coaching institute

(c) A teacher teaching his own daughter at home

(d) A teacher teaching students under Sarva Shiksha Abhiyan Scheme

Ans)(c) A teacher teaching his own daughter at home

48) WHICH OF THE FOLLOWING CURVE SHOWS THE INVERSE RELATIONSHIP BETWEEN UNEMPLOYMENT AND INFLATION RATE ?

(a) Supply curve

(b) Indifference curve

(c) IS curve

(d) Phillips curve

Ans)(d) Phillips curve

49) WHICH OF THE FOLLOWING IS INCLUDED IN THE TERTIARY SECTOR ?

(a) Banking

(b) Manufacturing

(c) Forestry

(d) Mining

Ans)(a) Banking

50) WHICH OF THE FOLLOWING COMES UNDER THE PRIMARY SECTOR OF THE INDIAN ECONOMY ?

(a) Sugar Industry

(b) Dairy

(c) Banking

(d) Transport of Goods

Ans)(b) Dairy






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