Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. "Functional Finance" is associated with :
a. Adolph Wogner
b. Adam Smith
c. Adams
d. Abba 'V Lerner
Q. Multiplier process in economic theory is conventionally taken to mean:
a. the manner in which prices increase
b. the manner in which banks create credit
c. income of an economy grows on account of an initial investment
d. the manner in which government expenditure increases
Q. Personal disposable income is :
a. always equal to personal income.
b. always more than personal income.
c. equal to personal income minus direct taxes paid by household.
d. equal to personal income minus indirect taxes.
Q. Which one of the following is not a method of measurement of National Income?
a. Value Added Method
b. Income Method
c. Investment Method
d. Expenditure Method
Q. Which one of the following would not constitute an economic activity?
a. A teacher teaching students in his class
b. A teacher teaching students under Sarva Shiksha Abhiyan
c. A teacher teaching his own daughter at home
d. A teacher providing consultancy services from his residence
Q. Transfer payments include :
a. Gifts received from a friend
b. rent free accommodation by the employer
c. net factor income from abroad
d. Employee's contribution to social security
Q. Capacity utilization -
a. is usually near 100 percent.
b. represents the percent of the labour force that is employed.
c. is a measure of the proportional of the existing capital stock used for current production.
d. rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production.
Q. Apart from the availability of raw material location of an industry is also dependent on the availability of:
a. enviornmental protection and vegetation
b. man power and energy source
c. transport and bio energy
d. water and inputs
Q. What happens when there is a demand deficiency in an economy?
a. Poverty
b. Stagnation
c. Recession
d. Inflation
Q. The term utility means -
a. usefulness of a commodity
b. the satisfaction which a commodity yields
c. the service which a commodity is capable of rendering
d. None of these
Q. The degree of monopoly power is to be measured in terms of the firm's-
a. normal profit
b. supernormal profit
c. both normal and supernormal profit
d. selling price
Q. Who propounded the Innovation theory of profits?
a. J.A. Schumpeter
b. P.A. Samuelson
c. Alfred Marshall
d. David Ricardo.
Q. The principle of maximum social advantage is the basic principle of -
a. Micro Economics
b. Macro Economics
c. Fiscal Economics
d. Environmental Economics
Q. Diamonds are priced higher than water because :
a. they are sold by selected firms with monopolistic powers.
b. their marginal utility to buyers is higher than that of water.
c. their total utility to buyers is higher than that of water.
d. consumers do not buy them at lower prices.