Economic Questions

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on 28 May 2019, 10:30AM
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1Who is called the father of Economics?

a) Adam Smith
b) Ricardo
c) Malthus
d) J.M. Keynes

2 The four factors of production are

a) Land, labour, capital,

b) Land, Electricity, the water level
c) Labour, capital, land rainfall
d) Labour, climate, land, rainfall

3A ‘Market Economy’ is one which

a) Is controlled by the Government
b) Is free from the
Government control

c) In influenced by international market forces
d) All of these

4 ‘Hire and Fire’ is the policy of

a) Traditional economy
b) Mixed economy
c) Socialism
d) Capitalism

5 India is called a mixed economy because of the existence of

a) Public Sector
b) Private Sector
c) Joint Sector
d) Only A & B

6 Demand in Economics means

a) Individual demand
b) Demand backed by
purchasing power

c) Market demand
d) Aggregate demand

7 The demand for a factor of production in

a) Derived
b) Direct
c) Neutral
d) Discretion of the producer

8 Perfectly inelastic demand is equal to-

a) Infinite
b) Zero
c) One
d) Greater than one

9Who said ‘Supply creates its own demand”?

a) Adam Smith
b) J.B. Say
c) Marshall
d) Ricardo

10Which among the following are close substitutes?

a) Coffee and Biscuits
b) Milk and Sugar
c) Sugar and Tea
d) Tea and Coffee

11 A fall in demand or rise in the supply of a commodity

a) Increases the price of that commodity
b) Decreases the price of that commodity
c) Neutralizes the changes in the price
d) Determines the price elasticity

13 Who gave the ‘General Equilibrium Theory’?

a) J.M. Keynes
b) Leon Walras
c) David Ricardo
d) Adam Smith

14 Income and consumption are:

a) Inversely related
b) Directly related
c) Partially related
d) Unrelated

15 Perfect competition means

a) A large number of buyers and fewer sellers
b) A large number of buyers
and sellers

c) A large number of sellers and fewer buyers
d) None of these

16 Monopoly means-

a) Many sellers
b) Single seller
c) Single buyer
d) Many buyers

17Inflation is caused by-

a) A decrease in the money supply
b) Increase in money supply
c) Increase in cash with the government
d) Increase in supply of goods

Most important

18 ‘Galloping Inflation’ is also known as

a) Walking Inflation
b) Running Inflation
d) Creeping Inflation

19 The worldwide Great Depression took place in

a) 1928
b) 1936
c) 1929
d) 1930

20 The First Income Committee was established in

b) 1948
c) 1949
d) 1951

21The preparation of National Income Estimates is the responsibility of the

a) National Development Council
b) National Sample Survey Organisation
c) Central Statistical

d) Planning Commission

22Who had estimated National Income in India first?

a) R.C. Dutt
b) V.K.R.V Rao
c) Dadabhai Naoroji
d) D.R. Gadgil

23The largest component of National income in India is

a) Industrial Sector
b) Agriculture
c) Service Sector
d) Trade Sector

24National Income is the-

a) Net National Product at Market Price
b) National Product at
factor cost

c)The national product at cost
d) The national product at cost

25 IDBI was established on-

a)July 1962
b) July 1966
c) July 1964
d) July 1968

26 SBI was earlier known as

a) Syndicate Bank
b) Cooperative Bank of India
c) Imperial Bank of

d) Canara Bank

27 When were Fourteen Indian Banks nationalized in?

a) 1968
b) 1969
c) 1967
d) 1971

28 Whose signature is done on one rupee note?

a) Governor of RBI
b) Finance Secretary
c) Finance Minister
d) None of these

29 Bank rate is the rate of interest

a) At which public borrows money from RBI
b) At Which commercial Banks
borrow money from RBI

c) At which public borrow money from commercial Banks
d) At which commercial Banks borrows money from the public

30 Which among the following is Known as “Hot Money”?

a) FDI
b) FII
c) ADR
d) GDR

31 ‘Hard Currency’ is-

a) A currency which is easy to access
b) A currency not easy to access
c) A currency which is paid for gold
d) A currency which is paid for the loan

32 The Largest Commercial Bank of India is

a) Central Bank of India
b) SBI
c) Indian Overseas Bank
d) Bank of India

33 Which among of the following is an Example of optional money?

a) Coins
b) Cheques
c) Currency Notes
d) Bonds


34 The rate of interest is determined by

a) Reserve Bank of India
b) The rate of return on the capital inversed
c) Commercial Banks
d) Liquidity Preference

35 Cheap money means

a) Low level of saving
b) Low rates of interest
c) Low level of income
d) Low level of standard of living

36 Who is authorized to issue coins in India?

a)Ministry of Finance
b) Reserve Bank of India
c) State Bank of India
d) Indian Overseas Bank

36 Which is not correct?

a) Fourth Five Year

b) Third Five Year Plan 1961-66
c) Second Five Year Plan 1956-61
d) First Five Year plan 1951-56

37 Which five-year plan’s duration was only four year?

a) Fifth
b) Fourth
c) Third
d) Seventh

38 The second five-year plan was based on-

b) Wkil and Brahmanand Model
c) Herald-Domar Growth model
d) Salo growth model

39 “The Social Forestry scheme” was started in

a) Sixth five-year plan
b) Fifth five-year plan
c) Second five-year plan
d) Eight five-year plan

41The Planning Commission of India was constituted in the year

a) 1942
b) 1967
c) 1950
d) 1955

42 Which of the following plans has an actual growth rate higher than the targeted growth rate?

a) Fourth Five Year Plan
b) Eight Five Year Plan
c) Fifth Five Year Plan
d) Seventh Five Year Plan

43 During which Five Year Plan India lay down objective the need to ensure environmental sustainability of the development strategy?

a) Sixth Five Year Plan
b) Ninth Five Year Plan
c) Seventh Five Year Plan
d) Eighth Five Year Plan

44 India’s First Five Year Plan gave priority to

a) Industry
b) Agriculture
c) Trade
d) Transportation

45 The highest body which approves the Five year Plan in India is the-

a) Union Cabinet
b) Finance Ministry
c) Planning Commission
d) National Development Council

46 Mahalanobis Model has been associated with which five-year plan?

a) First Five-year
b) Second Five-year Plan
c) Third Five-Year Plan
d) Fourth Five-Year Plan

47 The five-year year plan of the Government of India was based on

a) Leontief input-output model
b) Harrod-Domar model
c) Mahalanobis two-sector model
d) Mahalanobis four-sector model

48 The slogan ‘Garibi Hatao’ was included in the

a) First plan
b) Fifth plan
c) Second Plan
d) Fourth Plan

49 The duration of the Twelfth five-year plan is

a) 1 January 2012 to 31 December 2017
b) 1 April, 2012 to 31
marches, 2017

c) 1 April 2011 to 31 March 2016
d) 1 January. 2011 to 31 December 2016

50 What was the main motive of the Third Five Year Plan in India?

a) Rural development
b) Agriculture
c) Financial inclusion
d) Economic reform

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