GK QUESTIONS ON ECONOMICS - 2

27. During periods of inflations, tax rates should

  1. Increase
  2. Decrease
  3. Remain constant
  4. Fluctuate

28. Which is the biggest tax paying sector in India?

  1. Agricultural sector
  2. Industrial sector
  3. Transport sector
  4. Banking Sector

29. Economics is what it ought to be. This statement refers to

  1. Normative Economics
  2. Positive Economics
  3. Monetary Economics
  4. Fiscal Economics

30. The excess of price a person is to pay rather than forego the consumption of the commodity is called

  1. Price
  2. Profit
  3. Producer Surplus
  4. Consumer Surplus

31. A want becomes a demand only when it is backed by the

  1. Ability to purchase
  2. Necessity to buy
  3. Desire to buy
  4. Utility of the product

32. The 'break-even' point is where

  1. marginal revenue equals marginal cost
  2. average revenue equals average cost
  3. total revenue equals total cost
  4. none of the above

33. Rate of interest is determined by

  1. The rate of return on the capital invested
  2. Central Government
  3. Liquidity preference
  4. Commercial Banks

34. The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called?

  1. FDI
  2. Portfolio Investment
  3. NRI Investment
  4. Foreign Indirect Investment

35. An individual’s actual standard of living can be assessed by

  1. Gross National Income
  2. Net National Income
  3. Per Capita Income
  4. Disposable Personal Income

36. When there is an official change in the exchange rate of domestic currency, then it is called

  1. Appreciation
  2. Depreciation
  3. Revaluation
  4. Deflation

37. Inflation redistributes income and wealth in favour of

  1. Pensioners
  2. Poor
  3. Middle class
  4. Rich

38. The fringe benefit tax was introduced in the budget of

  1. 2003-04
  2. 2004-05
  3. 2005-06
  4. 2006-07

39. Excise Duty is a tax levied on :

  1. Commodities that are exported
  2. Commodities that are imported
  3. Both the exported and imported commodities
  4. Commodities that are produced and consumed within the country

40. Who coined the term "Hindu rate of growth for Indian economy"?

  1. A.K. Sen
  2. Kirit S. Parikh
  3. Raj Krishna
  4. Montek Singh Ahluwalia

41. Which one of the following is NOT an example of indirect tax?

  1. Sales tax
  2. Excise duty
  3. Customs duty
  4. Expenditure tax

42. The major aim of devaluation is to -

  1. Encourage imports
  2. Encourage exports
  3. Encourage both exports and imports
  4. Discourage both exports and imports

43. Interest on public debt is a part of -

  1. Transfer payments by the enterprises
  2. Transfer payments by the govt.
  3. National income
  4. Interest payments by house-holds

44. Structural unemployment arises due to -

  1. Deflationary conditions
  2. Heavy industry bias
  3. Shortage of raw materials
  4. Inadequate productive capacity

45. Which of the following is not a necessary condition for the development of India?

  1. Capital accumulation
  2. Resource discovery
  3. Population growth
  4. Technological development

46. Personal disposable income is -

  1. Always equal to personal income
  2. Always more than personal income
  3. Equal to personal income minus direct taxes paid by household
  4. Equal to personal income minus indirect taxes

47. Which of the following most closely approximates our definition of oligopoly?

  1. The cigarette industry
  2. The barber shops
  3. The gasoline stations
  4. Wheat farmers

48. Who said ‘Supply creates its own demand’?

  1. Adam Smith
  2. J. B. Say
  3. Marshall
  4. Ricardo

49. The Indian economy can be most appropriately described as a -

  1. Capitalist economy
  2. Socialist economy
  3. Traditional economy
  4. Mixed economy

50. Indirect tax means -

  1. There is no direct relationship between the tax payer and the government
  2. Direct relationship between tax payer and the government
  3. Tax base is income
  4. The incidence and impact are on the same person on whom tax is imposed

51. One of the essential conditions of perfect competition is -

  1. Product differentiation
  2. Multiplicity of prices for identical products at any one time
  3. Many sellers and a few buyers
  4. Only one price for identical goods at any one time

52. An essential attribute of Inflation is :

  1. the absence of the black-market
  2. the presence of black-market
  3. increase in prices
  4. fall in production

53. National income of a country is based on :

  1. the taxes earned by the state
  2. the sum of all factor incomes
  3. personal incomes of all the citizens
  4. surplus of exports over imports

54. Liquidity Preference Theory of Interest was propounded by

  1. Adam Smith
  2. J.M. Keynes
  3. Alfred Marshall
  4. David Ricardo

Also see G.K. Questions on Banking

Also see G.K. Questions on Marketing