180+ Basics of Economics Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Bachelor of Arts in Sociology (BA Sociology) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .

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101.	Pick the odd one out:
A.	real national income
B.	ni at constant price
C.	ni at current prices
D.	ni at base year price
Answer» C. ni at current prices

102.	GDP deflator is given by:
A.	nominal ni/real ni
B.	nominal dgp/real gdp
C.	nominal gdp/ nominal gnp
D.	real gdp/real gnp
Answer» B. nominal dgp/real gdp

103.	Value of output minus intermediate consumption is:
A.	depreciation
B.	value added
C.	net value added
D.	net exports
Answer» B. value added

104.	Personal income minus personal taxes is:
A.	national income
B.	private income
C.	disposable income
D.	per capita income
Answer» C. disposable income

105.	National income is a --------variable.
A.	flow
B.	stock
C.	static
D.	dynamic
Answer» A. flow

106.	In India, National income is estimated at:
A.	current prices
B.	constant prices
C.	both current and constant prices
D.	none of these
Answer» C. both current and constant prices

107.	Which of the following is true:
A.	gdp is a geographical concept
B.	gdp is not a geographical concept
C.	gdp and gnp are same
D.	none of them
Answer» A. gdp is a geographical concept

108.	GNP measured in terms of current market prices is called:
A.	nominal gnp
B.	real gnp
C.	both
D.	none
Answer» A. nominal gnp

109.	In India, the current base year is:
A.	1980-81
B.	1993-94
C.	1999-2000
D.	2004-05
Answer» D. 2004-05

110.	Which of the following doest not include in the group?
A.	gdp
B.	gnp
C.	gva
D.	ndp
Answer» D. ndp

111.	The term “Classical Economics” was first used by:
A.	j.m. keynes
B.	adam smith
C.	karl marx
D.	david ricardo
Answer» C. karl marx

112.	Who is the leader of the Classical school?
A.	thomas robert malthus
B.	j.s. mill
C.	david ricardo
D.	adam smith.
Answer» D. adam smith.

113.	The core of classical economists is:
A.	effective demand
B.	employment
C.	say’s law of market
D.	socialism
Answer» C. say’s law of market

114.	‘Law of Market’ is attributed to:
A.	j.s. mill
B.	j.b. say
C.	alfred marshall
D.	a.c. pigou
Answer» B. j.b. say

115.	The Classicals adopted ---------policy:
A.	governmental policy
B.	laissez-faire
C.	policy of restriction
D.	none of these
Answer» B. laissez-faire

116.	According to Classicals, full employment is a:
A.	rare phenomenon
B.	normal phenomenon
C.	abnormal phenomenon
D.	none of these
Answer» B. normal phenomenon

117.	According to the Classical economists, general over production is:
A.	possible
B.	impossible
C.	both
D.	none
Answer» B. impossible

118.	According to the Classical economists, savings and investments are:
A.	always unequal
B.	always equal
C.	never equal
D.	sometimes equal
Answer» B. always equal

119.	Classical aggregate supply curve is:
A.	perfectly elastic
B.	perfectly inelastic
C.	more elastic
D.	unitary elastic
Answer» B. perfectly inelastic

120.	Pick the odd one from the following:
A.	law of market
B.	j.b. say
C.	full employment
D.	j.m. keynes
Answer» D. j.m. keynes

121.	According to the Classicals, investment is a function of:
A.	saving
B.	income
C.	employment
D.	rate of interest
Answer» D. rate of interest

122.	“Supply creates its own demand” is called:
A.	law of supply
B.	law of market
C.	law of demand
D.	law of elasticity
Answer» B. law of market

123.	Under the classical system, the equilibrium will be at:
A.	under employment
B.	full employment
C.	voluntary employment
D.	disguised unemployment
Answer» B. full employment

124.	When savings exceeds the demand for savings, the rate of interest will:
A.	rise
B.	fall
C.	remain constant
D.	none of these
Answer» B. fall

125.	Rate of interest will increase when the demand for saving is:
A.	less than its supply
B.	equal to its supply
C.	more than its supply
D.	less than or equal to its supply
Answer» C. more than its supply

180+ Basics of Economics Solved MCQs

Pick the odd one out:

GDP deflator is given by:

Value of output minus intermediate consumption is:

Personal income minus personal taxes is:

National income is a --------variable.

In India, National income is estimated at:

Which of the following is true:

GNP measured in terms of current market prices is called:

In India, the current base year is:

Which of the following doest not include in the group?

The term “Classical Economics” was first used by:

Who is the leader of the Classical school?

The core of classical economists is:

‘Law of Market’ is attributed to:

The Classicals adopted ---------policy:

According to Classicals, full employment is a:

According to the Classical economists, general over production is:

According to the Classical economists, savings and investments are:

Classical aggregate supply curve is:

Pick the odd one from the following:

According to the Classicals, investment is a function of:

“Supply creates its own demand” is called:

Under the classical system, the equilibrium will be at:

When savings exceeds the demand for savings, the rate of interest will:

Rate of interest will increase when the demand for saving is:

In the Classical system, the role of the government is:

Equilibrium in the economy is settled by ---------, according to the Classicals.

Self interest, competition, profit motive are the features of:

The Great Depression was during:

The equilibrium price is determined by the forces of:

Temporary unemployment is -------------, according to the Classical economists:

J.B. Say was a ---------------Economist.

Pick the odd one out:

Author of the book ‘The General Theory of Employment, Interest and Money’:

‘The General Theory’, was published in :

The branch of Economics that deals with economic aggregate is called:

The central theme of Keynesian Theory is:

Who repudiated Say’s law of market?

Effective demand is that demand when:

The concept of effective demand is associated with the name of:

The proportion between total income and total consumption is called:

The proportion between incremental income and incremental consumption is called:

The proportion between total income and total saving is called:

1- MPC is called:

APC + APS is equal to:

Multiplier is obtained by:

Exports minus imports is termed as:

As income increases consumption also increases, but:

The expected return on investment is called:

Marginal efficiency of investment curve is:

126.	In the Classical system, the role of the government is:
A.	the highest
B.	not at all needed
C.	limited
D.	important
Answer» C. limited

127.	Equilibrium in the economy is settled by ---------, according to the Classicals.
A.	centralized planning
B.	price mechanism
C.	both the planning and price mechanism
D.	none of these
Answer» B. price mechanism

128.	Self interest, competition, profit motive are the features of:
A.	socialism
B.	capitalism
C.	marxism
D.	mixed economy
Answer» B. capitalism

129.	The Great Depression was during:
A.	1930s
B.	1920s
C.	1940s
D.	1830s
Answer» A. 1930s

130.	The equilibrium price is determined by the forces of:
A.	supply only
B.	demand only
C.	both demand and supply
D.	none of these
Answer» C. both demand and supply

131.	Temporary unemployment is -------------, according to the Classical economists:
A.	impossible
B.	permanent
C.	possible
D.	none of these
Answer» C. possible

132.	J.B. Say was a ---------------Economist.
A.	swedish
B.	german
C.	french
D.	american
Answer» C. french

133.	Pick the odd one out:
A.	j.b. say
B.	david ricardo
C.	adam smith
D.	j.m. keynes
Answer» D. j.m. keynes

134.	Author of the book ‘The General Theory of Employment, Interest and Money’:
A.	karl marxq
B.	j.b. say
C.	j.m. keynes
D.	adam smith
Answer» C. j.m. keynes

135.	‘The General Theory’, was published in :
A.	1776
B.	1890
C.	1936
D.	1950
Answer» C. 1936