McqMate
| 101. |
Who is authorized to issue coins in India? |
| A. | Reserve Bank of India |
| B. | Ministry of Finance |
| C. | State Bank of India |
| D. | Indian Overseas Bank |
| Answer» B. Ministry of Finance | |
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Explanation: Coins may be coined at the Mint for issue under the authority of the Central Government, (of such denominations not higher than one hundred rupees), such dimensions and designs, and of such metals or of mixed metals of such composition as the Central Government may. by notification in the official Gazette, determine.) Paper Currency in India consists of notes of various denominations which are issued by the RBI and the Government of India. The one rupee note is issued by the Ministry of Finance and bears the signature of the secretary. All currency notes are legal tender. |
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| 102. |
Reserve Bank of India was nationalized in - |
| A. | 1948 |
| B. | 1947 |
| C. | 1949 |
| D. | 1950 |
| Answer» C. 1949 | |
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Explanation: The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation. The Reserve Bank of India (RBI) is India's central banking institution. |
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| 103. |
Scheduled Banks have to be registered with - |
| A. | SEBI |
| B. | RBI |
| C. | Finance Ministry |
| D. | SBI |
| Answer» B. RBI | |
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Explanation: The scheduled primary (urban) cooperative banks are required to maintain with the Reserve Bank of India an average daily balance, the amount of which should not be lessthan 5 per cent of their net demand and time liabilities in India in terms of Section 42 of the Reserve Bank of India Act, 1934. Nonscheduled (urban) cooperative banks, under the provision of Section 18 of Banking Regulation. Act, 1949 (As Applicable to Cooperative Societies) should maintain a sum equivalent to at least 3 per cent of their total demand and time liabilities in India on clay-to-day basis. |
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| 104. |
The difference between visible exports and visible imports is defined as - |
| A. | Balance of trade |
| B. | Balance of payment |
| C. | Balanced terms of trade |
| D. | Gains from trade |
| Answer» A. Balance of trade | |
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Explanation: The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports. |
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| 105. |
A commercial bank law creates credit only if it has - |
| A. | Cash in the vault |
| B. | Excess reserves |
| C. | Permission of Reserve Bank of India |
| D. | (4) Cooperation of other banks |
| Answer» A. Cash in the vault | |
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Explanation: A commercial bank is a profit- seeking business, dealing in money and credit. It is a financial institution dealing in money in the sense that it accepts deposits of money from the public to keep them in its custody for safety. So also, it deals in credit, i.e., it creates credit by making advances out of the funds received as the deposits to needy people. So it creates credit from the cash deposits with it. |
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| 106. |
"Dear Money" means - |
| A. | low rate of interest |
| B. | high rate of interest |
| C. | depression |
| D. | inflation |
| Answer» B. high rate of interest | |
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Explanation: Dear Money, also known as tight money, is money which has to be borrowed at ahigh interest rate, and so restricts expenditure by companies. This situation can be a result of a restricted money supply, causing interest rates to be pushed up due to the forces of supply and demand. Businesses may have a tough time raising capital during a period of dear money. |
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| 107. |
Commercial banks create credit - |
| A. | on the basis of their securities |
| B. | on the basis of their assets |
| C. | on the basis of their reserve fund |
| D. | on the basis of their deposits |
| Answer» D. on the basis of their deposits | |
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Explanation: Commercial banks create credit on the basis of their deposits. Credit creation is the multiple expansions of banks demand deposits. Whenever, customer deposits sum of money, a part of that money is kept by the commercial banks with the credit bank of the country which is obligatory by the law. The amount of credit that can be created by the bank will depend on the primary deposits and also on the amounts of minimum legal resource requirement. |
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| 108. |
Bank money refers to - |
| A. | currency notes |
| B. | coins |
| C. | gold bullions |
| D. | cheques |
| Answer» D. cheques | |
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Explanation: There are two types of money in a fractional-reserve banking system, currency originally issued by the central bank, and hank deposits at commercial banks: (1) central bank money (all money created by the central bank regardless of its form, e.g. banknotes, coins, electronic money): and (2) commercial bank money (money created in the banking system through borrowing and lending) - sometimes referred to as chequebook money. |
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| 109. |
A financial instrument is called a 'primary security' if ii represents the liability of : |
| A. | some ultimate borrower |
| B. | the Government of India |
| C. | a primary cooperative bank |
| D. | a commercial bank |
| Answer» A. some ultimate borrower | |
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Explanation: Instruments (certificates) issued by the ultimate borrower are called primary securities. Instruments issued by intermediaries on behalf of the ultimate borrower are called indirect securities. The market for instruments (also called securities) issued for the first time, is called the primary market. Primary security is the asset created out of the credit facility extended to the borrower and / or which are directly associated with the business / project of the borrower for which the credit facility has been extended. |
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| 110. |
founded in the year 1886 by a pharmacist named John Pemberton, this product is the second most widely understood term in the world after "OK". What is its name? |
| A. | Aspirin |
| B. | ENO |
| C. | CocaCola |
| D. | Pepsi |
| Answer» C. CocaCola | |
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Explanation: Coca-Cola is the second most widely understood term in the world after "Ok". It was originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton. Coca Cola is the world's largest soft drinks company. It is rated as the most recognized trade mark and third most valuable brand in the world. |
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| 111. |
Which of the following is done at a Stock Exchange? |
| A. | Commodities are bought and sold at wholesale price |
| B. | Commodities are bought and sold at retail price |
| C. | Securities are bought and sold |
| D. | None of these |
| Answer» C. Securities are bought and sold | |
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Explanation: A stock exchange or bourse is an exchange where stock brokers and traders can buy and/or sell stocks (also called shares), bonds, and other securities. Stock exchanges may also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. |
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| 112. |
Indirect tax means : |
| A. | there is not direct relationship between the tax payer and the government. |
| B. | direct relationship between tax payer and the government. |
| C. | tax base is income |
| D. | the incidence and impact are on the same person on whom tax is imposed. |
| Answer» A. there is not direct relationship between the tax payer and the government. | |
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Explanation: The term indirect tax has more than one meaning. In the colloquial sense, an indirect tax (such as sales tax, a specific tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed. |
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| 113. |
A short-term government security paper is called - |
| A. | Share |
| B. | Debenture |
| C. | Mutual fund |
| D. | Treasury bill |
| Answer» D. Treasury bill | |
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Explanation: Treasury bills are instrument of short-term borrowing by the Government of India, issued as promissory notes under discount. The interest received on them is the discount which is the difference between the price at which they are issued and their redemption value. They have assured yield and negligible risk of default. |
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| 114. |
The existence of a parallel economy or Black Money - |
| A. | makes the economy more competitive |
| B. | makes the monetary policies less effective |
| C. | ensures a better distribution of income and wealth |
| D. | ensures increasing productive investment |
| Answer» B. makes the monetary policies less effective | |
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Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the accuracy of economic forecasts. Inflation is both a cause as well as a consequence of the black money in our economy. Black money results in the social injustice and fallacy in the economy. The rich gets richer and the poor gets poorer. So the existence of black money erodes the very rationale of growth behind monetary policies. |
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| 115. |
he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are - |
| A. | Explicit costs |
| B. | Original costs |
| C. | Implicit costs |
| D. | Replacement costs |
| Answer» C. Implicit costs | |
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Explanation: In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. It is the opposite of an explicit cost, which is borne directly. In other words, an implicit cost is any cost that results from using an asset instead of renting, selling or lending it. These are costs a business incurs without actually spending money. |
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| 116. |
Which of the following subjects does not figure in the Concurrent List of our Constitution? |
| A. | Stock Exchanges and futures markets |
| B. | Protection of wild animals and birds |
| C. | Forests |
| D. | Trade unions |
| Answer» A. Stock Exchanges and futures markets | |
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Explanation: The Concurrent List or List-Ill is a list of 47 items given in Part XI of the Constitution of India, concerned with relations between the Union and States. Stock exchanges and futures markets come under the Union List. |
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| 117. |
The method of calculating the national income by the product method is otherwise known as : |
| A. | Income method |
| B. | Value added method |
| C. | Expenditure method |
| D. | Net output method |
| Answer» D. Net output method | |
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Explanation: Primarily there are three methods of measuring national income. Which method is to be employed depends on the availability of data and purpose. The methods are product method, income method and expenditure method. According to product method, the total value of final goods and services produced in a country during a year is calculated at market prices. According to this method only the final goods and services are included and the intermediary goods and services are not taken into account. In this method, National Output = National Expenditure (Aggregate Demand) = National Income. |
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| 118. |
The best measure to assess a country's economic growth is - |
| A. | per capita income at constant prices |
| B. | per capita income at current prices , |
| C. | gross domestic product at current prices |
| D. | gross national product at current prices |
| Answer» A. per capita income at constant prices | |
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Explanation: Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. 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. |
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| 119. |
Rate of interest is determined by - |
| A. | The rate of return on the capital invested |
| B. | Central Government |
| C. | Liquidity preference |
| D. | Commercial Banks |
| Answer» D. Commercial Banks | |
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Explanation: Bank Rate is determined by the Reserve Bank of India. The rate of interest is determined by the commercial banks in India. As per RBI notification, banks are free todetermine rates of interest subject to BPLR and spread guidelines. |
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| 120. |
The total value of goods and services produced in a country during a given period is - |
| A. | Disposable income |
| B. | National income |
| C. | Per capita income |
| D. | Net national income |
| Answer» B. National income | |
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Explanation: National income is the total value a country's final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics. |
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| 121. |
Income and consumption are : |
| A. | inversely related |
| B. | directly related |
| C. | partially related |
| D. | unrelated. |
| Answer» B. directly related | |
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Explanation: Consumption and income arc directly or positively related. An increase in income is associated with an increase in income; a decrease in consumption accompanies a decrease in income. |
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| 122. |
Which of the following is deducted from GNP to arrive at NNP? |
| A. | Depreciation |
| B. | Interest |
| C. | Tax |
| D. | Subsidy |
| Answer» A. Depreciation | |
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Explanation: If we subtract the depreciation charges from the gross national product, we get net national product at market price. Net national product at market price=Gross national product at market priceDepreciation. |
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| 123. |
Regarding money supply situation in India it can be said that the : |
| A. | Currency with the public is inconvertible only. |
| B. | Currency with the public is less than the deposits with the banks. |
| C. | Currency with the public is more than the deposits with the banks. |
| D. | Currency with the public is almost equal to the deposits with banks. |
| Answer» B. Currency with the public is less than the deposits with the banks. | |
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Explanation: Money supply in India includes the following: (i) Currency with the public: (ii) Demand deposits and time deposits with banks: (iii) Deposits with reserve Bank of India: and (iv) Deposits in Post Office. The currency with public is less than the total currency issued by RBI. This is because of cash reserves with banks, i.e., a part of currency issued remains with banks. As far as deposits are concerned, during the last four decades, the proportion of demand deposits, time deposits and other with banks in relation to total supply of money has been increasing with reciprocal diminution in currency held by the public. |
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| 124. |
The equilibrium price of a commodity will definitely rise if there is a/an: |
| A. | increase in supply combined with a decrease in demand. |
| B. | increase in both demand and supply. |
| C. | decrease in both demand and supply. |
| D. | increase in demand accompanied by a decrease in supply. |
| Answer» D. increase in demand accompanied by a decrease in supply. | |
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Explanation: Price of a commodity is always determined by the forces of demand and supply in the market. The price at which the amount demanded and amount supplied are equal is known as 'equilibrium price.' The equilibrium price definitely increases when there is an in- crease in demand combined with the decrease in supply. |
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| 125. |
Short term contractions and expansions in economic activity are called |
| A. | Expansions |
| B. | Recession |
| C. | Deficits |
| D. | The business cycle |
| Answer» D. The business cycle | |
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Explanation: The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. It is basicallydefined in terms of periods of expansion or recession. During expansions, the economy grows in real terms (i.e. excluding inflation), as evidenced by increases in indicators like employment, industrial production, sales and personal incomes. During recessions, the economy contracts, as measured by decreases in the above indicators. |
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| 126. |
The concept of joint sector implies cooperation between - |
| A. | Public sector and private sector industries |
| B. | State Government and Central Government |
| C. | Domestic and. Foreign Companies |
| D. | None of these |
| Answer» A. Public sector and private sector industries | |
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Explanation: Joint sector industries are owned jointly by the government and private individuals who have contributed to the capital. In joint sector, both public sector and private sector join hands to establish new enterprise. The joint sector is an extension of the concept of mixed economy. |
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| 127. |
When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will - |
| A. | decrease |
| B. | increase |
| C. | remain the same |
| D. | contract |
| Answer» B. increase | |
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Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. The shift of a demand curve takes place when there is a change in any non-price determinant of demand, resulting in a new demand curve. There is movement along a demand curve when a change in price causes the quantity demanded to change. |
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| 128. |
The income elasticity of demand being greater than one, the commodity must be - |
| A. | a necessity |
| B. | a luxury |
| C. | an inferior good |
| D. | None of these |
| Answer» B. a luxury | |
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Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good, ceteris paribus. It is calculated as the ratio of the percentage change in demand to the percentage change in income. For example, if, in response to a 10% increase in income, the demand for a good increased by 20%. the income elasticity of demand would be 20%/10% = 2. A positive income elasticity of demand is associated with normal goods: an increase in income will lead to a rise in demand. If income elasticity of demand of a commodity is less than 1, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good. |
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| 129. |
The main determinant of real wage is - |
| A. | extra earning |
| B. | nature of work |
| C. | promotion prospect |
| D. | purchasing power money |
| Answer» D. purchasing power money | |
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Explanation: The term real wages refers to wages that have been adjusted for inflation. This term is used in contrast to nominal wages or unadjusted wages. Real wages provide a clearer representation of an individual's wages. The real purchasing power of income or money is the key determinant of real wage. It an indication of an individual's actual purchasing power. Real wages arc a useful economic measure, as opposed to nominal wages, which simply show the monetary value of wages in that year. |
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| 130. |
A refrigerator operating in a chemist's shop is an example of - |
| A. | free good |
| B. | final good |
| C. | producers good |
| D. | consumer's good |
| Answer» B. final good | |
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Explanation: Final goods are goods that are ultimately consumed rather than used in the production of another good. For example, a car sold to a consumer is a final good; the components such as tires sold to the carmanufacturer are not; they are intermediate goods used to make the final good. |
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| 131. |
The situation in which total revenue is equal to total cost, is known as - |
| A. | monopolistic competition |
| B. | equilibrium level of output |
| C. | break-even point |
| D. | perfect competition |
| Answer» C. break-even point | |
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Explanation: In economics and cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been "paid", and capital has received the risk- adjusted, expected return. |
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| 132. |
The relationship between price of a commodity and the demand for it - |
| A. | is a positive relationship |
| B. | is an inverse relationship |
| C. | They are independent of each other |
| D. | They do not have any relationship |
| Answer» B. is an inverse relationship | |
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Explanation: According to the Law of demand, consumers buy more of a good when its price is lower and less when its price is higher. It states that the quantity demanded and the prices of a commodity are inversely related, other things remaining constant. |
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| 133. |
Consumer's sovereignty means: |
| A. | consumers are free to spend their income as they like. |
| B. | consumers have the power to manage the economy. |
| C. | consumer's expenditures influence the allocation of resources. |
| D. | consumer goods are free from government control, |
| Answer» A. consumers are free to spend their income as they like. | |
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Explanation: Consumer sovereignty means that buyers ultimately determine which goods and services remain in production. In unrestricted markets, those with income orwealth are able to use their purchasing power to motivate producers. So ultimately it means how the consumers want to spend their incomes. |
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| 134. |
The situation in which total Revenues equals total cost, is known as : |
| A. | Monopolistic competition |
| B. | Equilibrium level of output. |
| C. | Break even point |
| D. | Perfect competition |
| Answer» C. Break even point | |
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Explanation: In economics and cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even." |
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| 135. |
A market in which there are a few number of large firms is called as |
| A. | Duopoly |
| B. | Competition |
| C. | Oligopoly |
| D. | Monopoly |
| Answer» C. Oligopoly | |
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Explanation: Duopoly means a market in which two producers of the same good are predominantly powerful. In some theries, the term is used specifically to denote the existence of only two suppliers of a good. |
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| 136. |
Number of sellers in the monopoly market structure is - |
| A. | few |
| B. | large |
| C. | one |
| D. | two |
| Answer» C. one | |
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Explanation: Monopoly refers to a market in which there is only one supplier and no other firms are able to enter. |
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| 137. |
When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be - |
| A. | Highly elastic |
| B. | Inelastic |
| C. | Relatively elastic |
| D. | Perfectly inelastic |
| Answer» B. Inelastic | |
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Explanation: When the percentage change in quantity demanded is less than the percentage change in price, then the demand for the commodity is said to be inelastic. Price elasticity of demand refers to the degree of responsiveness of quantity demanded to change in price. |
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| 138. |
Production function is the relationship between - |
| A. | Production and Profit |
| B. | Production and Prices |
| C. | Production and Production factors |
| D. | Production and Income |
| Answer» C. Production and Production factors | |
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Explanation: In economics, a production function relates physical output of a production process to physical inputs or factors of production. The primary purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors. |
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| 139. |
Any factor of production can earn economic-rent, when its supply will be - |
| A. | Perfectly elastic |
| B. | Perfectly inelastic |
| C. | Elastic in nature |
| D. | All of the above |
| Answer» B. Perfectly inelastic | |
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Explanation: Economic rent is the revenue that can be earned from the land or other natural resource for which there is a fixed supply — as economists like to say, the supply is perfectly inelastic. Because the supply is perfectly inelastic, the amount of its supply does not depend on any income that the resource can produce. |
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| 140. |
The father of Economics is - |
| A. | Marshall |
| B. | Adam Smith |
| C. | J.M. Keynes |
| D. | Karl Marx |
| Answer» B. Adam Smith | |
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Explanation: Adam Smith is known as 'Father of Modern Economics,' He is best known for two classic works: The Theory of Moral Sentiments (1759), and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). |
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| 141. |
The sale of branded articles is common in a situation of - |
| A. | excess capacity |
| B. | monopolistic competition |
| C. | monopoly |
| D. | pure competition |
| Answer» B. monopolistic competition | |
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Explanation: Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. |
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| 142. |
Who propounded Dynamic Theory of profit? |
| A. | Clark |
| B. | Schumpeter |
| C. | Knight |
| D. | Hawly |
| Answer» A. Clark | |
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Explanation: Dynamic Theory of Profit is associated with the name of an American Economist J. B. Clark. In the world of reality, according to J. B. Clark profit arises only in a dynamic economy. |
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| 143. |
Demand curve of a firm under perfect competition is : |
| A. | horizontal to ox-axis |
| B. | negatively sloped |
| C. | positively sloped |
| D. | U - shaped |
| Answer» A. horizontal to ox-axis | |
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Explanation: Under Perfect Competition, the firm faces a horizontal demand curve. It can sell any quantity desired at the market price, but cannot sell anything above the market price. |
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| 144. |
The marginal revenue of a monopolist is: |
| A. | more than price |
| B. | equal to price |
| C. | less than price |
| D. | less than marginal cost |
| Answer» C. less than price | |
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Explanation: A monopolist's marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit of output. It is the difference between total revenue - price times quantity - at the new level of output and total revenue at the previous output (one unit less). |
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| 145. |
Payment of water charges by the farmers to the government represents - |
| A. | intermediate consumption |
| B. | final consumption |
| C. | fixed investment |
| D. | inventory investment |
| Answer» A. intermediate consumption | |
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Explanation: Intermediate consumption is an accounting concept which measures the value of the goods and services consumed as inputs by a process of production. It excludes fixed assets whose consumption is recorded as consumption of fixed capital. The goods and services may be either transformed or used up by the production process. Intermediate goods or services used in production can be either changed in form (e.g. bulk sugar) or completely used up (e.g. electric power, water, etc). |
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| 146. |
The problem of Economics arises from |
| A. | Plenty |
| B. | Scarcity of goods |
| C. | More wants and less goods |
| D. | All of the above |
| Answer» C. More wants and less goods | |
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Explanation: The theory of Economic problem states that there is scarcity, or that the finite resources available are insufficient to satisfy all human wants and needs. The problem then becomes how to determine what is to be produced and how the factors of production(such as capital and labor) are to be allocated. In short, the economic problem is the choice one must make, arising out of limited means and unlimited wants. |
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| 147. |
When average cost production (AC) falls, marginal cost of production must be - |
| A. | rising |
| B. | Falling |
| C. | Greater than the average cost |
| D. | Less than the average cost |
| Answer» D. Less than the average cost | |
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Explanation: Average cost is the total cost per unit of output. Marginal cost, on the other hand, is the addition to the total cost by producing one more units of output. Economies of scale are said to exist if an additional unit of output can he produced for less than the average of all previous units—that is, if long-run marginal cost is below long-run average cost, so the latter is falling. Conversely, there may be levels of production where marginal cost is higher than average cost, and average cost is an increasing function of output. |
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| 148. |
Production function expresses - |
| A. | technological relationship between physical inputs and output |
| B. | financial relationship between physical inputs and output |
| C. | relationship between finance and technology |
| D. | relationship between factors of production |
| Answer» A. technological relationship between physical inputs and output | |
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Explanation: Production involves transformation of inputs into outputs. The output is a function of input. The functional relationship between physical inputs and physical output of a firm is called production function. The word 'function' in mathematics means the precise relationship that exists between one dependent variable and a number (or one) of independent variables. The production function states the maximum quantity of output that can be produced from any given quantities of various inputs during a given period of time. |
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| 149. |
When there is one buyer and many sellers then that situation is called - |
| A. | Monopoly |
| B. | Single buyer right |
| C. | Down right |
| D. | Double buyers right |
| Answer» B. Single buyer right | |
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Explanation: In economics, a monopsony (mono: single) is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers. As the only purchaser of a good or service, the monopsonist may dictate terms to its suppliers in the same manner that a monopolist controls the market for its buyers. It is also known as Single buyer Right. A single-payer universal health care system, in which the government is the only "buyer" of health care services, is an example of a monopsony. Another possible monopsony could develop in the exchange between the food industry and farmers. |
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| 150. |
The measure of a worker's real wage is |
| A. | The change in his productivity over a given time |
| B. | His earnings after deduction at source |
| C. | His daily earnings |
| D. | The purchasing power of his earnings |
| Answer» D. The purchasing power of his earnings | |
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Explanation: A real wage rate is a nominal wage rate divided by the price of a good and is a transparent measure of how much of the good an hour of work buys. It provides an important indicator of the living standards of workers, and also of the productivity of workers. While differences in earnings or incomes may be misleading indicators of worker welfare, real wage rates are comparable across time and location. Nominal wages are not sufficient to tell us if workers gain since, even if wages rise, the price of one of the goods also rises when moving to free trade. The real wage represents the purchasing power of wages—that is, the quantity of goods the wages will purchase. |
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| 151. |
Bull and bear are related to which commercial activity? |
| A. | Banking |
| B. | Ecommerce |
| C. | International trade |
| D. | Stock market |
| Answer» D. Stock market | |
|
Explanation: Both the terms are related to stock market. Investors who take a bull approach purchase securities under the assumption that they can be sold later at a higher price. A "bear" is considered to be the opposite of a bull. Bear investors believe that the value of a specific security or an industry is likely to decline in the future |
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| 152. |
The share broker who sells shares in the apprehension of falling prices of shares is called |
| A. | Bull |
| B. | Dog |
| C. | Bear |
| D. | Stag |
| Answer» C. Bear | |
|
Explanation: A bear market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Bear investors believe that the value of a specific security or an industry is likely to decline in the future. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market. |
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| 153. |
"Bad money will drive out good money from circulation." This is known as : |
| A. | Engle's Law |
| B. | Gresham's Law |
| C. | Say' Law |
| D. | Wagner's Law |
| Answer» B. Gresham's Law | |
|
Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the under-valued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation." It is commonly stated as: "Bad money drives out good." |
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| 154. |
If he Central Bank wants to encourage an increase in the supply of money and decrease in the cost of borrowing money, it should - |
| A. | lower cash reserve ratio |
| B. | raise discount rates |
| C. | sell government securities |
| D. | All of the above |
| Answer» A. lower cash reserve ratio | |
|
Explanation: When the Central Bank of a country intends to increase money supply, it should lower the Cash Reserve Ratio. A decrease in CRR helps the commercial banks to hold a lesser proportion of their deposits in the form of deposits with the RBI. This increases the amount of Bank deposits and they will lend more as they have more amount as their reserve. |
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| 155. |
On the administered price of which of the following articles no subsidy is given? |
| A. | DAP |
| B. | ATF |
| C. | LPG |
| D. | Kerosene oil |
| Answer» B. ATF | |
|
Explanation: In India, no subsidy is given to Aviation Turbine Fuel (ATF). Indian Oil Aviation Service is a leading aviation fuel solution provider in India and the most-preferred supplier of jet fuel to major international and domestic airlines. Jet fuel is a colorless, combustible, straight-run petroleum distillate liquid. The highly punitive fiscal regime in India is the primary problem for the aviation sector. The cost of Aviation Turbine Fuel in India is almost 60% higher than international benchmarks. Combined with a high base price, fuel now represents 45-55% of a carrier's operating costs. |
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| 156. |
Which among the following has the least possibility of globalization? |
| A. | selection of labour force |
| B. | location of capital works |
| C. | to manage resources for investment |
| D. | increase in infrastructure |
| Answer» B. location of capital works | |
|
Explanation: Globalization can affect the labor market by increasing capacity of developing countries to create new opportunities for work and production following the alleviation of price distortions with respect to both labor and capital. Globalization on business management is interconnection of international markets and managing businesses in a global industry. This includes management of resources for foreign investments whereby a company expands its business and invests in foreign countries. Globalization means inter-linkage among the countries of the globe. This can only happen when infrastructure is in proper shape. A well- developed infrastructure is an indispensable condition for faster globalization. |
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| 157. |
What was the objective of Command Area Development Programme? |
| A. | To ensure that land is given to the tillers |
| B. | To ensure better utilization of irrigation potential |
| C. | To develop I he areas under the command of Army |
| D. | Poverty alleviation in selected areas |
| Answer» B. To ensure better utilization of irrigation potential | |
|
Explanation: The Command Area Development Programme was launched in the year 1974-75 under Centrally Sponsored Scheme, with the objective of fast utilization of created irrigation potential and optimum agriculture product ion from irrigable land. It aimed at: reclamation of water logged areas; construction of field irrigation channels; construction of field drains; all round development of areas pertaining to agriculture, etc. |
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| 158. |
Distribution of food rains operates under a two her system with the introduction of - |
| A. | Targetted Public Distribution System |
| B. | The Consumers Cooperatives |
| C. | The Cooperative Marketing Societies |
| D. | The Service Cooperatives |
| Answer» A. Targetted Public Distribution System | |
|
Explanation: The Targeted Public Distribution System (TPDS) replaced the erstwhile PDS from June 1997. Under the new system a two tier subsidized pricing system was introduced to benefit the poor. |
|
| 159. |
A favorable Balance of Trade of a country implies that - |
| A. | Imports are greater than Exports |
| B. | Exports are greater than Imports |
| C. | Both Imports and Exports are equal |
| D. | Rising Imports and Falling Exports |
| Answer» B. Exports are greater than Imports | |
|
Explanation: Favorable balance of trade is an imbalance in a nation's balance of trade in which the payments for merchandise exports received by the country exceed payments for merchandise imports paid by the country. This is also termed a balance of trade surplus. It's considered favorable because more goods are exported out of the country than are imported in, meaning that foreign production is replaced with domestic production, which then increases domestic employment and income. A balance of tradesurplus is often the source of a balance of payments surplus. |
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| 160. |
'Quota' is - |
| A. | tax levied on imports |
| B. | imports of capital goods |
| C. | limit on the quantity of imports |
| D. | limit on the quantity of exports |
| Answer» C. limit on the quantity of imports | |
|
Explanation: An import quota is a limit on the quantity of a good that can be produced abroad and sold domestically. It is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can he imported into a country in a given period of time. The primary goal of import quotas is to reduce imports and increase domestic production of a good, service, or activity, thus "protect" domestic production by restricting foreign competition. |
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| 161. |
A tax is characterized by horizontal equity if its liability is - |
| A. | proportional to the income of tax payers |
| B. | similar for tax payers in similar circumstances |
| C. | proportional to the expenditure of tax payers |
| D. | the same for every tax payer |
| Answer» A. proportional to the income of tax payers | |
|
Explanation: The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual's ability-to-pay. The idea of the ability-to-pay principle considers whether or not it is fair to tax someone higher just because that person has the ability and resources to pay. If it is decided that they should be required to pay more, the question of how much more arises. These questions can be analyzed through horizontal and vertical equity which are subsets of the ability-to-pay principle. Horizontal equity suggests it is fair for people of equal ability to pay the same amount in taxes. |
|
| 162. |
What does a Leasing Company provide? |
| A. | Machinery and capital equipment on hire |
| B. | Legal guidance in establishing an enterprise |
| C. | Office accommodation on hire |
| D. | Technical consultancy and experts for a fee |
| Answer» A. Machinery and capital equipment on hire | |
|
Explanation: Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. Equipment leasing is a financing alternative for businesses to acquire needed machinery while saving precious operating capital. Leasing provides opportunities to use available money to operate assets that can make more money over time. |
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| 163. |
The government set up a committee headed by the Chairman, Central Board of Direct Taxes some time back to go into - |
| A. | codification of tax laws |
| B. | the entire structure of tax laws including the question of imposition of bank tax |
| C. | the concerns of the foreign investors in India with regard to taxation matters |
| D. | aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system |
| Answer» D. aspects of generation of black money, its transfer abroad and bringing back such money into India's legitimate financial system | |
|
Explanation: The Central Board of Direct Taxes (CBDT) panel on black money recently suggested enactment of new laws, strengthening of existing legislation and introduction of deterrent penalties for tax offences to deal with the menace. In its 66-page report on measures to tackle black money in India and abroad, the CBDT committee also recommended steps to prevent generation of illicit funds through transactions in property, bullion and equity market. |
|
| 164. |
What is dual pricing? |
| A. | Wholesale price and Retail pricing |
| B. | Pricing by agents and Pricing by retailers |
| C. | Price fixed by Government and Price in open market |
| D. | Daily prices and Weekly prices |
| Answer» C. Price fixed by Government and Price in open market | |
|
Explanation: Dual pricing is the practice of setting prices at different levels depending on the currency used to make the purchase. It may be used to accomplish a variety of goals, such as to gain entry into a foreign market by offering unusually low prices to buyers - using the foreign currency, or as a method of price discrimination. In the context of commerce, however, dual pricing refers to the sale of the same product at different prices, depending on the market. This is also known as two-tier pricing and is common in many developing nations |
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| 165. |
A tax is said to be regressive when its burden falls - |
| 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 |
| Answer» B. more heavily on the poor than on the rich | |
|
Explanation: In terms of individual income and wealth, a regressive tax imposes a greater burden on the poor than on the rich. There is an inverse relationship between the tax rate and the taxpayer's ability to pay, as measured by assets, consumption, or income. These taxes tend to reduce the tax burden of the well-todo, as they shift the burden disproportionately to the needy. |
|
| 166. |
Mixed Economy means : |
| A. | Promoting both agriculture and industries in the economy |
| B. | Co-existence of public and private sectors |
| C. | Co-existence of rich and poor |
| D. | Co-existence of small and large industries |
| Answer» B. Co-existence of public and private sectors | |
|
Explanation: A mixed economy is variously defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism. All modern economies are mixed where the means of production are shared between the private and public sectors. |
|
| 167. |
When aggregate supply exceeds aggregate demand - |
| A. | unemployment falls |
| B. | prices rise |
| C. | inventories accumulate |
| D. | unemployment develops |
| Answer» C. inventories accumulate | |
|
Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to producers either to cut prices (to stimulate an increase in demand) or to reduce output so as to reduce the buildup of excess stocks. Either way -there is a tendency for output to move closer to the current level of demand. |
|
| 168. |
Investment is equal to - |
| A. | gross total of all types of physical capital assets |
| B. | gross total of all capital assets minus wear and tear |
| C. | stock of plants, machines and equipments |
| D. | None of these |
| Answer» B. gross total of all capital assets minus wear and tear | |
|
Explanation: Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets. In economic statistics and accounts, capital formation can be valued gross, i.e., before deduction of consumption of fixed capital (or "depreciation"), or net, i.e. after deduction of "depreciation" write-offs. The net valuation method views "depreciation" as the compensation for the cost of replacing fixed equipment used up or worn out, which must be deducted from the total investment volume to obtain a measure of the "real" value of investments: the depreciation write-off compensates and cancels out the loss in capital value of assets used due to wear & tear, obsolescence, etc. |
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| 169. |
Which one of the following items is included in the national income account? |
| A. | Services of housewives |
| B. | Income of smugglers |
| C. | Services of Sadhus |
| D. | Services of night-watchmen |
| Answer» D. Services of night-watchmen | |
|
Explanation: National income is the total value a country's final output of all new goods and services produced in one year. Services provided by housewives, income of smugglers and services of sadhus can be categorized as non- economic services and thus cannot be accounted. |
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| 170. |
An Increase in national income because of an increase in price is called- |
| A. | an increase in national income in real terms |
| B. | an increase in national income at constant prices |
| C. | an increase in money national income |
| D. | an increase in national income at base year prices |
| Answer» D. an increase in national income at base year prices | |
|
Explanation: To find the real value of changes in output under inflationary conditions, the effects of any general price increase (price inflation) must be taken into account. This is done by holding prices constant from a starting measure, called the base year. It holds prices constant in terms of the prices existing in the base year. |
|
| 171. |
A-Transfer Income' is an - |
| A. | Income which is not produced by any production process |
| B. | Income taken away from one person and given over to another |
| C. | Unearned income |
| D. | Earned income |
| Answer» A. Income which is not produced by any production process | |
|
Explanation: Income which is not produced by any production process is called Transfer Income. |
|
| 172. |
National Income is also called as : |
| A. | GNP at Factor Cost |
| B. | GNP at Market Price |
| C. | (3) NNP at Factor Cost |
| D. | (4) NNP at Market Price |
| Answer» A. GNP at Factor Cost | |
|
Explanation: National Income is the total value of all goods and services produced in the economy during a particular period of time. |
|
| 173. |
One of the following is 'Labour' in Economics. |
| A. | A Musician performing for a benefit fund |
| B. | A Painter working for his own pleasure |
| C. | Reading a book as a hobby |
| D. | A Mother teaching her own son |
| Answer» A. A Musician performing for a benefit fund | |
|
Explanation: Labour includes both physical and mental work undertaken for some monetary reward. In this way, workers working in factories, services of doctors, advocates, ministers, officers and teachers are all included in labour. Any physical or mental work which is not undertaken for getting income, but simply to attain pleasure or happiness, is not labour. |
|
| 174. |
Excise duty is levied on - |
| A. | sale of goods |
| B. | production of goods |
| C. | import of goods |
| D. | export of goods |
| Answer» B. production of goods | |
|
Explanation: Excise duty is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty. The Excise duty on rest of goods is called "Central Excise" duty. |
|
| 175. |
Average Revenue means - |
| A. | the revenue per unit of commodity sold |
| B. | the revenue from all commodities sold |
| C. | the profit realised from the marginal unit sold |
| D. | the profit realised by sale of all commodities |
| Answer» A. the revenue per unit of commodity sold | |
|
Explanation: Average revenue is the revenue per unit of the commodity sold. It can be obtained by dividing the TR by the number of units sold. Then, AR = TR/Q AR. In other words, it means price. Since the demand curve shows the relationship between price and the quantity demanded, it also represents the aver- age revenue or price at which the various amounts of a commodity are sold, because the price offered by the buyer is the revenue from seller's point of view. Therefore, averagerevenue curve of the firm is the same as demand curve of the consumer. |
|
| 176. |
Economic rent refers to - |
| A. | Payment made for the use of labour |
| B. | Payment made for the use of capital |
| C. | Payment made for the use of organisation |
| D. | Payment made for the use of land |
| Answer» D. Payment made for the use of land | |
|
Explanation: Rent refers to that part of payment by a tenant which is made only for the use of land, i.e., free gift of nature. The payment made by an agriculturist tenant to the landlord is not necessarily equals to the economic rent. A part of this payment may consist of interest on capital invested in the land by the land-lord in the form of buildings, fences, tube wells, etc. The term 'economic rent' refers to that part of payment which is made for the use of land only, and the total payment made by a tenant to the landlord is called 'contract rent'. Economic rent is also called surplus because it emerges without any effort on the part of a landlord. |
|
| 177. |
"Interest is a reward for parting with liquidity" is according to - |
| A. | Keynes |
| B. | Marshall |
| C. | Haberler |
| D. | Ohlin |
| Answer» A. Keynes | |
|
Explanation: In macroeconomic theory, liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936) to explain determination of the interest rate by the supply and demand for money. The demand for money as an asset was theorized to depend on the interest foregone by not holding bonds. Interest rates, he argues, cannot be a reward for saving as such because, if a person hoards his savings in cash, keeping it under his mattress say, he will receive no interest, although he has nevertheless refrained from consuming all his current income. Instead of a reward for saving, interest in theKeynesian analysis is a reward for parting with liquidity. |
|
| 178. |
Extension or contraction of quantity demanded of a commodity is a result of a change in the - |
| A. | unit price of the commodity |
| B. | income of the consutner |
| C. | tastes of the consumer |
| D. | climate of the region |
| Answer» A. unit price of the commodity | |
|
Explanation: Demand for a commodity refers to the quantity of the commodity that people are willing to purchase at a specific price per unit of time, other factors (such as price of related goods, income, tastes and preferences, advertising, etc) being constant. Demand includes the desire to buy the commodity accompanied by the willingness to buy it and sufficient purchasing power to purchase it. So changes in the unit price of a commodity leads to either extension or contraction in demand. The law of demand states that there is an inverse relationship between quantity demanded of a commodity and its price, other factors being constant. In other words, higher the price, lower the demand and vice versa, other things remaining constant. |
|
| 179. |
Why is rent earned by land even in the long run? |
| A. | Land has original and indestructible power |
| B. | Land is a man made factor |
| C. | Its supply is inelastic in the short run |
| D. | Its supply is inelastic in the long run |
| Answer» D. Its supply is inelastic in the long run | |
|
Explanation: Rent accrues to land which is fixed in supply even in the longer run. It is permanent. In contrast to it is a quasi rent, introduced by Marshall, which is inelastic in the short run, but elastic in the longer run. |
|
| 180. |
Who is called the Father of Economics? |
| A. | J.M. Keynes |
| B. | Malthus |
| C. | Ricardo |
| D. | Adam Smith |
| Answer» D. Adam Smith | |
|
Explanation: Adam Smith is best known for two classic works: The Theory of Moral Sentiments (1759), and An Ingully into the Nature and Causes of the Wealth of Nations (1776). The latter, usually abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work of economics. Smith is cited as the father of modern economics and is still among the most influential thinkers in the field of economics today. |
|
| 181. |
A horizontal demand curve is - |
| A. | relatively elastic |
| B. | perfectly inelastic |
| C. | perfectly elastic |
| D. | of unitary elasticity |
| Answer» C. perfectly elastic | |
|
Explanation: The demand curve facing a perfectly competitive firm is flat or horizontal. This is because all firms in perfect competition are by definition selling an identical (homogeneous) product. A horizontal demand curve is a flat curve with a slope of zero. It is a perfectly elastic demand curve. Because the slope of the curve is zero, it is impossible for the price to change in the market. |
|
| 182. |
The theory of monopolistic competition has been formulated in the United States of America by - |
| A. | Joan Robinson |
| B. | Edward Chamberlin |
| C. | John Bates Clark |
| D. | Joseph Schumpeter |
| Answer» B. Edward Chamberlin | |
|
Explanation: In treatments of monopolistic competition, Edward Chamberlin and Joan Robinson are usually credited with simultaneously and independently developing the theory of monopolistic or imperfect competition. Chamberlin published his book 'The Theory of Monopolistic Competition' in 1933, the same year that Joan Robinson published her book on the same topic: The Economics of Imperfect Competition,' so these two economists can be regarded as the parents of the modern study of imperfect competition. |
|
| 183. |
The remuneration of the entrepreneur in production is - |
| A. | Pure profit |
| B. | Gross profit |
| C. | Net profit |
| D. | Super-normal profit |
| Answer» C. Net profit | |
|
Explanation: Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit. His profit is in the form of Net Profit which is achieved by deducting other elements (such as planning the production, producing the commodities on the basis of demand, looking after efficient distribution) from the gross profit. |
|
| 184. |
Elasticity (e) expressed by the formula 1 > e > 0 is - |
| A. | Perfectly elastic |
| B. | Relatively elastic |
| C. | Perfectly inelastic |
| D. | Relatively inelastic |
| Answer» D. Relatively inelastic | |
|
Explanation: Elasticity (e) expressed by the formula 1 > e > 0 is relatively inelastic. Elasticity is responsiveness of one variable to a change in |
|
| 185. |
In the case of an inferior good, the income elasticity of demand is : |
| A. | Zero |
| B. | Negative |
| C. | Infinite |
| D. | Positive |
| Answer» B. Negative | |
|
Explanation: A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious substitutes. A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand. |
|
| 186. |
Production Function relates to: |
| A. | costs to outputs |
| B. | costs to inputs |
| C. | inputs to outputs |
| D. | wage level to profits |
| Answer» C. inputs to outputs | |
|
Explanation: In microeconomics and macroeconomics, a production function is a function that specifies the out-put of a firm, an industry, or an entire economy for all combinations of inputs. The primary purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors. |
|
| 187. |
The term "market" in Economics means - |
| A. | A central place |
| B. | Presence of competition |
| C. | Place where goods are stored |
| D. | Shops and super bazars |
| Answer» A. A central place | |
|
Explanation: The most important defining characteristic of a market in economics is that it allows buyers and sellers to exchange any type of goods, services and information. According to Walter Christaller's 'Central Place Theory,' a central place is a market center for the exchange of goods and services by people attracted from the surrounding area. The central place is so called because it is centrally located to maximize accessibility from the surrounding region. |
|
| 188. |
Division of labour is limited by - |
| A. | the number of workers |
| B. | hours of work |
| C. | extent of the market |
| D. | working space |
| Answer» C. extent of the market | |
|
Explanation: Division of labour is a process whereby the production process is broken clown into a sequence of stages and workers are assigned to particular stages. As it is the power of exchanging that gives occasion to the division of labour, so the extent of this division mils (always be limited by the extent of that power, or, other words, by the extent of the market. |
|
| 189. |
Cross elasticity of demand between petrol and car is - |
| A. | infinite |
| B. | positive |
| C. | zero |
| D. | negative |
| Answer» D. negative | |
|
Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of anal her good. It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in price of the second good. For example, if, in response to a 10% increase in the price of fuel, the demand of new cars that are (110 inefficient decreased by 20%, the cross elasticity of demand would be -2. A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products |
|
| 190. |
The Law of Demand expresses - |
| A. | effect of change in price of a commodity on its demand |
| B. | effect of change in demand of a commodity on its price |
| C. | effect of change in demand of a commodity over the supply of its substitute |
| D. | (4) None of the above |
| Answer» A. effect of change in price of a commodity on its demand | |
|
Explanation: The law of demand states the inverse relation that comes to exist of between price in one hand and quantity demanded on the other. The law of demand portrays that demand is the function of price. Price is the key determinant of demand. Fluctuations in price leads to changes in the quantity demanded. In other words, the higher the price of a product, the lower the quantity demanded. |
|
| 191. |
The Marginal Utility Curve slopes downward from left to right indicating - |
| A. | A direct relationship between marginal utility and the stock of commodity |
| B. | A constant relationship between marginal utility and the stock of commodity |
| C. | A proportionate relation-ship between marginal utility and the stock of commodity |
| D. | An inverse relationship between marginal utility and the stock of commodity |
| Answer» D. An inverse relationship between marginal utility and the stock of commodity | |
|
Explanation: The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from consuming an additional unit of good and the quantity of the good consumed. The negative slope of the marginal utility curve reflects the law of diminishing marginal utility. The marginal utility curve also can be used to derive the demand curve. Marginal Utility is the utility derived from the last unit of a commodity purchased. One of the earliest explanations of the inverse relationship between price and quantity demanded is the law of diminishing marginal utility. This law suggests that as more of a product is consumed the marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less. |
|
| 192. |
The term 'Macro Economics' was used by . |
| A. | J.M. Keynes |
| B. | Ragner Frisch |
| C. | Ragner Nurkse |
| D. | Prof. Knight |
| Answer» B. Ragner Frisch | |
|
Explanation: Ragnar Frisch coined the widely- used term pair macroeconomics/ microeconomics in 1933. He was a Norwegian economist and the co-recipient of the first Nobel Memorial Prize in Economic Sciences in 1969. Fie is known for having founded the discipline of econometrics. |
|
| 193. |
Tax on inheritance is called - |
| A. | Excise duty |
| B. | Estate duty |
| C. | Gift tax |
| D. | Sales tax |
| Answer» B. Estate duty | |
|
Explanation: Estate duty is a tax on the total market value of a person's assets at the date of his or her death. The deceased person's assets, as a whole, are called an estate. Inheritance tax is levied on assets that legal heirs inherit, while estate duty is applicable on the assets of those who are dead. |
|
| 194. |
Which nationalized bank of India has a shining star as its emblem? |
| A. | Syndicate Bank |
| B. | Indian Bank |
| C. | Bank of India |
| D. | Bank of Baroda |
| Answer» C. Bank of India | |
|
Explanation: The new logo of the Bank of Baroda is a unique representation of a universal symbol. It comprises dual 'B' letterforms that hold the rays of the rising sun. It is known as the 'Baroda Sun' which is the single most powerful source of light and energy - its far reaching rays dispel darkness to illuminate everything they touch. With this logo, Bank of Baroda seeks to be the source that will help all its stakeholders realize their goals. To customers, the hank seeks to be a one-stop. reliable partner who will help them address different financial needs. To employees, the bank offers rewarding careers and to our investors and business partners, maximum return on their investment. |
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| 195. |
ISI mark is not given to which of the following products? |
| A. | Electrical goods |
| B. | Hosiery goods |
| C. | Biscuits |
| D. | Cloth |
| Answer» C. Biscuits | |
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Explanation: ISI mark is a certification mark for industrial products in India, which is mandatory for certain products to be sold in India, like most of the electrical appliances viz; switches, electric motors, wiring cables, heaters, kitchen appliances etc., and other products like portland cement, LPG valves, LPG cylinders, automotive tyres. |
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| 196. |
The duties levied on alcoholic liquors, narcotic drugs and opium come under— |
| A. | Central Excise Duty |
| B. | Land Revenue |
| C. | State Excise Duty |
| D. | General Sales Tax |
| Answer» C. State Excise Duty | |
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Explanation: An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is charged on many goods like cars. writing paper, printing paper and packing paper, drugs and pharmaceuticals, alcoholic liquor, water filtration and purification devices, pan masala, etc. |
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| 197. |
Theoretically trade between two countries lakes place on account of - |
| A. | differences In costs |
| B. | scarcity of goods |
| C. | comparative differences in costs |
| D. | need for exports |
| Answer» C. comparative differences in costs | |
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Explanation: Trade exists for man clue to specialization and division of labor, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production thus providing cost advantage of producing the same commodity. |
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| 198. |
Short term loans to correct Balance of Payments problems is given by |
| A. | I.M.F. |
| B. | I.B.R.D |
| C. | I.D.A |
| D. | A.D.B |
| Answer» A. I.M.F. | |
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Explanation: Upon Initial IMF formation, its two primary functions were: to oversee the fixed exchange rate arrangements between countries, thus helping national governments manage their exchange rates and allowing these governments to prioritize economic growth, and to provide short-term capital to aid balance-of-payments. |
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| 199. |
The outcome of 'devaluation of currency' is - |
| A. | increased export and improvement in balance of payment |
| B. | increased export and foreign reserve deficiency |
| C. | increased import and improvement in balance of payment |
| D. | increased export and import |
| Answer» A. increased export and improvement in balance of payment | |
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Explanation: Devaluation is a reduction in the exchange value of a country's monetary unit in terms of gold, silver, or foreign currency. By decreasing the price of the home country's exports abroad and increasing the price of imports in the home country, devaluationencourages the home country's export sales and discourages expenditures on imports, thus improving its balance of payments. |
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| 200. |
'Gresham's Law' in Economics relates to |
| A. | supply and demand |
| B. | circulation of currency |
| C. | consumption of supply |
| D. | distribution of goods and services |
| Answer» B. circulation of currency | |
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Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear, from circulation into hoards, while the over-valued money will flood into circulation." It is commonly stated as: "Bad money drives out good." |
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