Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. Effective demand depends on -
a. capital-output ratio
b. output-capital ratio
c. total expenditure
d. supply price
Q. The basic problem studied in Macro - Economics is -
a. production of income
b. usage of income
c. flow of income
d. distribution of income
Q. Prof Miltion Fridman was leader of -
a. Ohio school
b. Chicago school
c. Cambridge school
d. London school
Q. Who is called the 'Father of Economics'?
a. Max Muller
b. Karl Marx
c. Adam Smith
d. Alfred Marshall
Q. Identify the one which is not related to the Agricultural Price Policy.
a. Buffer stock
b. Imports
c. Support price
d. Licensing
Q. Steel sheets used in the production of furnitures is an example of
a. an intermediate good
b. a final good
c. an investment good
d. a consumption good
Q. The main source of long-term credit for a business unit is -
a. sale of stocks and bonds to the public
b. borrowing from banks
c. loans from the Government
d. deposits from the public and financial institutions
Q. Devaluation of money means :
a. decrease in the internal value of money
b. decrease in the external value of money
c. decrease in both internal and external value of money
d. the government takes back currency notes of any denominations
Q. Under flexible exchange rate system, the exchange rate is determined by -
a. the Central Bank of the country
b. the forces of demand and supply in the foreign exchange market
c. the price of gold
d. the purchasing power of currencies
Q. Bank rate is the rate of interest -
a. at which public borrows money from Commercial Bank
b. at which public borrows money from RBI
c. at which Commercial Banks borrow money from RBI
d. at which Commercial Banks borrow money from public
Q. Open Market Operations refer to
a. Borrowings by Scheduled banks from RBI
b. Lending by Commercial banks to industry
c. Purchase and sale of Government securities by RBI
d. Deposit mobilization
Q. Which of the following is the classification of Industries on the basis of raw-materials?
a. Small Scale — Large scale
b. Primary and Secondary
c. Basic and Consumer
d. Agro-based and Mineral based
Q. Which one of the following items is not included in the current account of India's Balance of Payments?
a. Short-term commercial borrowings
b. Non-monetary gold movements
c. Investment income
d. Transfer payments