McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Economics (CBCS) .
Chapters
| 151. |
An increase in aggregate is more likely to lead to demand pull inflation if: |
| A. | Aggregate supply is perfectly elastic |
| B. | Aggregate supply is perfectly inelastic |
| C. | Aggregate supply is unit inelastic |
| D. | Aggregate supply is relatively inelastic |
| Answer» B. Aggregate supply is perfectly inelastic | |
| 152. |
In short-run, unemployment may fall below the natural rate of unemployment if: |
| A. | Nominal wages have risen less than inflation |
| B. | Nominal wages have risen at the same rate as inflation |
| C. | Nominal wages have risen more than inflation |
| D. | Nominal wages have risen less than unemployment |
| Answer» A. Nominal wages have risen less than inflation | |
| 153. |
The effects of inflation on the price competitiveness of a country’s products may be offset by |
| A. | An appreciation of the currency |
| B. | A revaluation of the currency |
| C. | A depreciation of the currency |
| D. | None of the above |
| Answer» C. A depreciation of the currency | |
| 154. |
Countries with the highest inflation rates are likely to have |
| A. | The highest rate of money growth |
| B. | Large budget deficits |
| C. | The lowest interest rates |
| D. | Both (a) and (b |
| Answer» D. Both (a) and (b | |
| 155. |
A one-time increase in the price level is |
| A. | rarely reported by the news media as inflation, but is nevertheless considered to be inflation by economists |
| B. | regularly reported by the news media as inflation, but is not considered to be inflation by economist. |
| C. | regularly reported by the news media as inflation because it is considered to be inflation by economists |
| D. | None of the above |
| Answer» B. regularly reported by the news media as inflation, but is not considered to be inflation by economist. | |
| 156. |
Which economist proposed that “ Inflation is always and everywhere a monetary phenomenon” |
| A. | JM Keynes |
| B. | J.R.Hicks |
| C. | Milton Friedman |
| D. | Franco Modigliani |
| Answer» C. Milton Friedman | |
| 157. |
According to monetarists, inflation is caused by |
| A. | Supply shocks |
| B. | Expansionary fiscal policies |
| C. | Expansionary monetary policies |
| D. | Rising prices |
| Answer» C. Expansionary monetary policies | |
| 158. |
Which of the following is generally regarded as the true index of economic growth? |
| A. | An increase in national income at constant prices during a year |
| B. | A sustained increase in real per capita income |
| C. | An increase in national income at current prices over time |
| D. | An increase in national income along with a corresponding increase in population |
| Answer» B. A sustained increase in real per capita income | |
| 159. |
The concept of economic growth is |
| A. | Identical with the concept of economic development |
| B. | Narrower than the concept of economic development |
| C. | Wider as compared to that of economic development |
| D. | Unrelated to the concept of economic development |
| Answer» B. Narrower than the concept of economic development | |
| 160. |
Economic growth is measured as a percentage change in |
| A. | Gross Domestic Product |
| B. | Gross National Product |
| C. | Both (a) and (b |
| D. | Government expenditure |
| Answer» C. Both (a) and (b | |
| 161. |
The concept of economic growth is more relevant for |
| A. | Developed countries |
| B. | Underdeveloped countries |
| C. | European countries |
| D. | All of the above |
| Answer» A. Developed countries | |
| 162. |
Which of the following is not an indicator of economic development? |
| A. | Increase in literacy level |
| B. | Low growth of population |
| C. | Low proportion of labour force in the primary section |
| D. | Decrease in inequality of income |
| Answer» C. Low proportion of labour force in the primary section | |
| 163. |
The rate of growth of the economy mainly depends upon |
| A. | The rate of growth of labour force |
| B. | The proportion of national income saved and invested |
| C. | The rate of technological improvements |
| D. | All of the above |
| Answer» D. All of the above | |
| 164. |
Among the following determinants of growth, which is a non-economic factor? |
| A. | Natural resources |
| B. | Population growth |
| C. | Favourablelegislation |
| D. | Capital accumulation |
| Answer» C. Favourablelegislation | |
| 165. |
Besides increase in output, economic development is concerned with |
| A. | Inputs and their efficiency |
| B. | Equitable distribution of income |
| C. | Life sustenance, self-esteem and freedom from want, ignorance and squalor |
| D. | All of the above |
| Answer» D. All of the above | |
| 166. |
The most simple and popular method of measuring economic development is to calculate the trend of Gross National Product (GNP) at |
| A. | Current prices |
| B. | Constant prices |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Constant prices | |
| 167. |
The most important factor in economic development is |
| A. | Quality of human resources |
| B. | Quality of natural resources |
| C. | Quality of governance |
| D. | Quality of banking system |
| Answer» A. Quality of human resources | |
| 168. |
When economic development takes place |
| A. | Share of services in GDP increases |
| B. | Share of agriculture in GDP increases |
| C. | Share of industry in GDP increases |
| D. | Both (a) and (c |
| Answer» D. Both (a) and (c | |
| 169. |
Which of the following is acting as an obstacle to economic development |
| A. | Shortage of money |
| B. | Urbanization |
| C. | Political instability |
| D. | Shortage of labour |
| Answer» C. Political instability | |
| 170. |
The Solow’s growth model assumes that the two factors of production labour and capital are paid according to |
| A. | their marginal physical productivities |
| B. | the skills of the labour |
| C. | the quality of the output |
| D. | None of the above |
| Answer» A. their marginal physical productivities | |
| 171. |
Neo-classical growth model considered two-factor production function with |
| A. | Technology and output |
| B. | Capital and labour |
| C. | Labour and technology |
| D. | Capital and technology |
| Answer» B. Capital and labour | |
| 172. |
Technological progress helps in |
| A. | Increase in overall productivity |
| B. | Economic growth |
| C. | Both of the above |
| D. | None of the above |
| Answer» C. Both of the above | |
| 173. |
The technique of production in which the amount of capital used per unit of labour is larger than that of labour is known as |
| A. | Capital-intensive technique |
| B. | Modern technique |
| C. | Scientific technique |
| D. | All of the above |
| Answer» A. Capital-intensive technique | |
| 174. |
Economic growth can be measured in terms of changes in |
| A. | GDP per head in agricultural sector |
| B. | GDP per head of working population |
| C. | Real national income per head |
| D. | All of the above |
| Answer» C. Real national income per head | |
| 175. |
Assuming that 3 units of capital are required to produce 1 unit of output, then capitaloutput ratio would be |
| A. | 3 ∶ 2 |
| B. | 3 ∶ 1 |
| C. | 3 ∶ 3 |
| D. | 3 ∶ 4 |
| Answer» B. 3 ∶ 1 | |
| 176. |
With economic growth, the proportion of labour-force engaged in agriculture |
| A. | Increases |
| B. | Decreases |
| C. | Remains unaffected |
| D. | Changes in uncertain manner |
| Answer» B. Decreases | |
| 177. |
A strategy of heavy industry is sometimes preferred for a developing economy because it can |
| A. | generate employment opportunities on a large scale |
| B. | provide a strong base for rapid industrialization |
| C. | contain inflationary measures |
| D. | both (a) and (b |
| Answer» D. both (a) and (b | |
| 178. |
The incremental capital-output ration (ICOR) refers to the |
| A. | Ratio of investment to change in output |
| B. | Ratio of capital stock to the total output |
| C. | Marginal productivity of capital |
| D. | Financed by the citizens of a country and the income enjoyed by them |
| Answer» A. Ratio of investment to change in output | |
| 179. |
Capital-output ratio is determined by |
| A. | Sectoral allocation of capital |
| B. | Level of economic activity |
| C. | Human and natural resources |
| D. | All of the above |
| Answer» D. All of the above | |
| 180. |
Which of the following is the indicators of economics growth |
| A. | National income |
| B. | Per capita income |
| C. | Per capita consumption |
| D. | All of the above |
| Answer» D. All of the above | |
| 181. |
According to the neo-classical theory, economic development is |
| A. | Gradual |
| B. | Harmonious |
| C. | Cumulative |
| D. | All of the above |
| Answer» D. All of the above | |
| 182. |
Which growth model inspired the use of capital-output ratio for development planning? |
| A. | Harrod-Domar model |
| B. | Solow model |
| C. | Kaldor model |
| D. | Feldman model |
| Answer» A. Harrod-Domar model | |
| 183. |
Harrod-Domar model of economic growth is based on |
| A. | Underveloped economy |
| B. | Advanced capitalist economy |
| C. | Developing economy |
| D. | All of the above |
| Answer» B. Advanced capitalist economy | |
| 184. |
Harrod-Domar model operates in a |
| A. | Closed economy |
| B. | Open economy |
| C. | Both open and closed economy |
| D. | None of the above |
| Answer» A. Closed economy | |
| 185. |
Harrod- Domar model is based on |
| A. | Two distinct rates of growth |
| B. | Three distinct rates of growth |
| C. | Four distinct rates of growth |
| D. | Five distinct rates of growth |
| Answer» B. Three distinct rates of growth | |
| 186. |
Solow’s model of long-run growth is an improvement over that of |
| A. | J.E. Meade |
| B. | Harrod-Domar |
| C. | J. Robinson |
| D. | A.K.Sen |
| Answer» B. Harrod-Domar | |
| 187. |
The major difference between Harrod-Domar and Solow models of growth lies in |
| A. | Returns to scale |
| B. | Returns to variable factors |
| C. | Substitutability between labour and capital |
| D. | Growth of income |
| Answer» C. Substitutability between labour and capital | |
| 188. |
Which growth model analyses the contribution of technological progress to the overall growth rate |
| A. | Solow model |
| B. | Kaldor model |
| C. | Harrod model |
| D. | All of the above |
| Answer» A. Solow model | |
| 189. |
The saving ratio in Solow’s model is |
| A. | Constant |
| B. | Negative |
| C. | Flexible |
| D. | None of the above |
| Answer» A. Constant | |
| 190. |
Which of the following models formed the basis of India’s First Five Year Plan |
| A. | Malanobis model |
| B. | Feldman model |
| C. | Harrod-Domar model |
| D. | Leontief model |
| Answer» C. Harrod-Domar model | |
| 191. |
Which of the following models uses three distinct concepts of growth? |
| A. | Ramsey model |
| B. | Harrod-Domar model |
| C. | Solow model |
| D. | Lewis model |
| Answer» B. Harrod-Domar model | |
| 192. |
The sequence of the three growth rates in Harod-Domar model is |
| A. | actual, warranted and natural growth rates |
| B. | natural,warranted and actual growth rates |
| C. | warranted, actual and natural growth rates |
| D. | natural,actual and warranted growth rates |
| Answer» A. actual, warranted and natural growth rates | |
| 193. |
Which of the following models makes the assumption of constantsaving-income ratio? |
| A. | Kaldor model |
| B. | Leontief model |
| C. | Hoarrod-Domar model |
| D. | Joan Robinson model |
| Answer» C. Hoarrod-Domar model | |
| 194. |
For neo-classical theorists, economic under- development is the product of which of the following |
| A. | Inappropriate economic policies and too much state interference in the economy |
| B. | Barriers against free trade |
| C. | Low prices for raw-materials |
| D. | Both (a) and (b |
| Answer» D. Both (a) and (b | |
| 195. |
In Harrod-Domar model, the actual growth rate represented by G, is determined by |
| A. | Aggregate demand and aggregate supply |
| B. | Saving ratio and the capital-output ratio |
| C. | Increase in productive capacity |
| D. | Net autonomous investment |
| Answer» B. Saving ratio and the capital-output ratio | |
| 196. |
According to Harrod-Domar model, once the steady growth is interrupted and the economy falls into disequilibrium, cumulative forces tend to perpetuate divergence thereby leading to |
| A. | inflation in the economy |
| B. | either secular deflation or secular inflation |
| C. | Low economic growth rates |
| D. | All of the above |
| Answer» B. either secular deflation or secular inflation | |
| 197. |
In Solow’s model of economic growth, production takes places under |
| A. | Increasing returns to scale |
| B. | Constant returns to scale |
| C. | decreasing returns to scale |
| D. | None of the above |
| Answer» B. Constant returns to scale | |
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