McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) .
| 51. |
The primary functions of money are of ______ types. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» A. 2 | |
| 52. |
The money supply affects the rate of interest; when the money supply increases, rate of interest will be decreased. It is explained by _____________ |
| A. | Keynes |
| B. | Walker |
| C. | Robbins |
| D. | Crowther |
| Answer» A. Keynes | |
| 53. |
SDRs are used in place of _________ |
| A. | commercial papers |
| B. | gold |
| C. | shares |
| D. | company deposits |
| Answer» B. gold | |
| 54. |
__________ is one among the qualitative credit control instruments used by the RBI. |
| A. | Bank Rate Policy |
| B. | Moral Suasion |
| C. | Open Market Operations |
| D. | Cash Reserve Ratio |
| Answer» B. Moral Suasion | |
| 55. |
Money market is controlled by the ___________ |
| A. | RBI |
| B. | Government |
| C. | IDBI |
| D. | IMF |
| Answer» A. RBI | |
| 56. |
On the basis of functions, financial markets are classified into _________ types. |
| A. | 5 |
| B. | 4 |
| C. | 3 |
| D. | 2 |
| Answer» D. 2 | |
| 57. |
The ‘Welfare definition’ of Economics was introduced by ______________ |
| A. | Adam Smith |
| B. | Alfred Marshall |
| C. | Lionel Robbins |
| D. | J. R. Hicks |
| Answer» B. Alfred Marshall | |
| 58. |
Micro-economics deals with the ___________ |
| A. | economic behavior of the individual |
| B. | economy as a whole |
| C. | trade relations |
| D. | economic growth of the society |
| Answer» A. economic behavior of the individual | |
| 59. |
Point Elasticity was propounded by ________________ |
| A. | Alfred Marshall |
| B. | Adam Smith |
| C. | Lionel Robbins |
| D. | Jacob Viner |
| Answer» A. Alfred Marshall | |
| 60. |
Production creates __________ utility. |
| A. | Place |
| B. | Time |
| C. | Form |
| D. | possession |
| Answer» C. Form | |
| 61. |
A Production Function refers to ________________ |
| A. | Scale of production |
| B. | relationship between resources |
| C. | relationship between inputs and output |
| D. | relationship between costs and output |
| Answer» C. relationship between inputs and output | |
| 62. |
__________ cost remains constant even if production is stopped. |
| A. | Fixed |
| B. | Variable |
| C. | Semi-Variable |
| D. | Marginal |
| Answer» A. Fixed | |
| 63. |
________ refers to the quantity of a commodity which a firm is willing to produce and offer for sale. |
| A. | Individual Supply |
| B. | Market Supply |
| C. | Individual Demand |
| D. | Market Demand |
| Answer» A. Individual Supply | |
| 64. |
On the basis of area, markets are classified into _________ types. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» B. 3 | |
| 65. |
Total input is maximum when _____________ |
| A. | MP = 0 |
| B. | MP is increasing |
| C. | MP is decreasing |
| D. | MP is constant |
| Answer» A. MP = 0 | |
| 66. |
Which of the following does not characterize monopolistic competition? |
| A. | product differentiation |
| B. | many producers |
| C. | absence of advertising 8 |
| D. | partial control over price |
| Answer» C. absence of advertising 8 | |
| 67. |
Pricing for selling the same commodity at different selling prices is known as ______ |
| A. | Skimming Pricing |
| B. | Differential Pricing |
| C. | Penetration Pricing |
| D. | Cost – Plus Pricing |
| Answer» B. Differential Pricing | |
| 68. |
In a perfect competition, a firm earns super normal profit when the AR of the firm _____ the ACT of the firm. |
| A. | equals to |
| B. | exceeds |
| C. | is lower than |
| D. | neither exceeds nor is lower than |
| Answer» B. exceeds | |
| 69. |
________ refers to the market situations whether there is one seller and there is not close substitute to the commodity sold by the seller. |
| A. | Perfect Competition |
| B. | Monopoly |
| C. | Oligopoly |
| D. | Monopolistic Competition |
| Answer» B. Monopoly | |
| 70. |
Cash Money is created by the _________________ |
| A. | Central Bank of a country |
| B. | Commercial Banks |
| C. | State Bank of India |
| D. | Co-operative Banks |
| Answer» A. Central Bank of a country | |
| 71. |
“Money is what money does”. This definition was given by __________ |
| A. | Adam Smith |
| B. | Walker |
| C. | Robbins |
| D. | Robertson |
| Answer» B. Walker | |
| 72. |
Traditional function of a commercial bank is ______________ |
| A. | issue of gift cheque |
| B. | credit creation |
| C. | providing locker facilities |
| D. | acceptance of deposits |
| Answer» D. acceptance of deposits | |
| 73. |
________ is one among the quantitative methods of credit control. |
| A. | Bank Rate Policy |
| B. | Moral Suasion |
| C. | Direct Action |
| D. | Rationing of Credit |
| Answer» A. Bank Rate Policy | |
| 74. |
Securities market in India is regulated by the ___________ |
| A. | Government |
| B. | RBI |
| C. | SEBI |
| D. | SBI |
| Answer» C. SEBI | |
| 75. |
___________ market is the nerve centre of the financial system. |
| A. | Money |
| B. | Capital |
| C. | Local |
| D. | National |
| Answer» A. Money | |
| 76. |
_____________ is the father of Economics. 9 |
| A. | Adam Smith |
| B. | Alfred Marshall |
| C. | Lionel Robbins |
| D. | J.R. Hicks |
| Answer» A. Adam Smith | |
| 77. |
___________ is an act to use the goods or service to satisfy the wants. |
| A. | Production |
| B. | Consumption |
| C. | Savings |
| D. | Distribution |
| Answer» B. Consumption | |
| 78. |
The Law of Diminishing Marginal Utility was developed by ____________ |
| A. | Stanley Jevons |
| B. | Alfred Marshall |
| C. | Adam Smith |
| D. | J.R. Hicks |
| Answer» B. Alfred Marshall | |
| 79. |
_________ demand is also known as Direct Demand. |
| A. | Derived |
| B. | Autonomous |
| C. | Individual |
| D. | Consumption |
| Answer» B. Autonomous | |
| 80. |
Total Outlay Method of measuring Elasticity of Demand was introduced by _________ |
| A. | Stanley Jevons |
| B. | Alfred Marshall |
| C. | Adam Smith |
| D. | J.R. Hicks |
| Answer» B. Alfred Marshall | |
| 81. |
When two or more different goods are produced together by a single firm, it is called as _________ supply. |
| A. | joint |
| B. | composite |
| C. | excess |
| D. | short |
| Answer» A. joint | |
| 82. |
___________ is a gift of nature. |
| A. | Land |
| B. | Labour |
| C. | Capital |
| D. | Organisation |
| Answer» A. Land | |
| 83. |
There are _______ stages of the Law of Variable Proportions |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» B. 3 | |
| 84. |
Which factor of production is considered as a produced means of production? |
| A. | Land |
| B. | Labour |
| C. | Capital |
| D. | Organisation |
| Answer» C. Capital | |
| 85. |
________ means transformation of physical inputs into output. |
| A. | Marketing |
| B. | Production |
| C. | Finance |
| D. | Money |
| Answer» B. Production | |
| 86. |
__________ cost is also known as Alternative Cost. |
| A. | Opportunity |
| B. | Actual |
| C. | Real |
| D. | Money |
| Answer» A. Opportunity | |
| 87. |
The additional cost incurred to produce an additional unit of output is _______ |
| A. | Marginal cost |
| B. | Variable cost |
| C. | Fixed cost |
| D. | Opportunity cost |
| Answer» A. Marginal cost | |
| 88. |
On the basis of time element, markets can be classified into __________ types. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 5 |
| Answer» B. 3 | |
| 89. |
________ competition exists when the basic features of Perfect Competition are not present. |
| A. | Pure |
| B. | Perfect |
| C. | Imperfect |
| D. | All of the above |
| Answer» C. Imperfect | |
| 90. |
The ____ states that bad money drives good money out of circulation. |
| A. | Law of Demand |
| B. | Law of Supply |
| C. | Gresham’s Law |
| D. | Demand Schedule |
| Answer» C. Gresham’s Law | |
| 91. |
Quantity Theory of Money was explained by ___________ |
| A. | Fisher |
| B. | Keynes |
| C. | Crowther |
| D. | Samuelson |
| Answer» A. Fisher | |
| 92. |
__________ account can be opened by business persons only. |
| A. | Current Deposit |
| B. | Savings Deposit |
| C. | Fixed Deposit |
| D. | Recurring Deposit |
| Answer» A. Current Deposit | |
| 93. |
In India, Central Bank was established in _________ |
| A. | 1945 |
| B. | 1955 |
| C. | 1935 |
| D. | 1965 |
| Answer» C. 1935 | |
| 94. |
Wealth was defined by |
| A. | Alfred Marshall |
| B. | Adam Smith |
| C. | Robbins |
| D. | Jacob |
| Answer» B. Adam Smith | |
| 95. |
Income minus Savings is equal to ___________ |
| A. | Consumption |
| B. | Production |
| C. | Investment 11 |
| D. | Demand |
| Answer» A. Consumption | |
| 96. |
______ means the desire backed by the necessary purchasing power. |
| A. | Consumption |
| B. | Production |
| C. | Investment |
| D. | Demand |
| Answer» D. Demand | |
| 97. |
If the proportionate change in the supply is equal to the proportionate change in price, it is said to be _______ supply. |
| A. | Unitary Elastic |
| B. | Perfectly Inelastic |
| C. | Perfectly Elastic |
| D. | Relatively Inelastic |
| Answer» A. Unitary Elastic | |
| 98. |
Production creates _________ utility. |
| A. | Place |
| B. | Time |
| C. | Form |
| D. | Possession |
| Answer» C. Form | |
| 99. |
Law of Variable Proportions was developed by _____________ |
| A. | Alfred Marshall |
| B. | Adam Smith |
| C. | Robbins |
| D. | Jacob |
| Answer» A. Alfred Marshall | |
| 100. |
The average _________ and output have inverse functional relationship. |
| A. | fixed cost |
| B. | variable cost |
| C. | marginal cost |
| D. | total cost |
| Answer» A. fixed cost | |
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