Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. 'Gresham's Law' in Economics relates to
a. supply and demand
b. circulation of currency
c. consumption of supply
d. distribution of goods and services
Q. Which one of the following is an example of optional money?
a. Currency note
b. Coins
c. Cheque
d. Bond
Q. 'Money' is an example of -
a. Sunk capital
b. Floating capital
c. Concrete capital
d. Social capital
Q. The existence of a Parallel Economy or Black Money -
a. makes the economy more competitive
b. makes the monetary policies less effective
c. ensures a better distribution of income and wealth
d. ensures increasing productive investment
Q. An economy is in equilibrium when -
a. planned consumption exceeds planned saving
b. planned consumption exceeds planned investment
c. intended saving equals intended investment
d. intended investment exceeds intended savings
Q. The 'Canons of Taxation' were propounded by -
a. Edwin Canon
b. Adam Smith
c. J.M. Keynes
d. Dalton
Q. Beyond a certain point deficit financing will certainly lead to -
a. inflation
b. deflation
c. recession
d. economic stagnation
Q. VAT is imposed:
a. Directly on Consumer
b. On first stage of production
c. On final stage of production
d. On all stages between production and sale
Q. The aim of Differentiated Interest Scheme was to provide concessional loans to -
a. weaker section of the society
b. Public Sector Industries
c. Public Limited Companies
d. big exports
Q. Investment and savings are kept equal through a change in the level of -
a. Consumption
b. Investment
c. Government expenditure
d. Income
Q. Which of the following is not required while computing Gross National Product (GNP)?
a. Net foreign investment
b. Private investment
c. Per capita income of citizens
d. Purchase of goods by government
Q. In a highly developed country the relative contribution of agriculture to GDP is
a. relatively high
b. relatively low
c. the same as that of other sectors
d. zero
Q. The demand for money, according to Keynes, is for -
a. speculative motive
b. transaction motive
c. precautionary motive
d. All the above motives
Q. Economic progress of a country is determined by -
a. Increase in per capita income of people of country
b. Increase in the price of produced capital goods during the year
c. Increased numbers of Trade Unions
d. Fall in the general price level of a country
Q. What is "book-building"?
a. Preparing the income and expenditure ledgers of a company (book-keeping)
b. Manipulating the profit and loss statements of a company
c. A process of inviting subscriptions to a public offer of securities, essentially through a tendering process
d. Publishers' activity