Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. Inflationary conditions may co-exist with which of the following situation
a. Increase in factor cost
b. Increase in employment opportunities
c. Growth in GDP and imports
d. All the three
Q. Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on
a. Increase in GDP
b. Inflationary pressure
c. Greater employment opportunity
d. More equitable distribution of income and wealth
Q. Supply of money refers to
a. Total money held by the public
b. Total money held by RBI
c. Total money with all the commercial banks and RBI
d. Total money in Government account
Q. Given a reserve ratio of 20% in initial deposit of `1000 in a banking system would create secondarydeposit of `…………..
a. `3,000
b. `5,000
c. `4,000
d. `6,000
Q. Given a reserve ratio of 20% for an initial deposit of `1000 create total supply of money
a. `4,000
b. `5,000
c. `800
d. `160
Q. Which of these is not the function of IMF?
a. It provides mechanism for orderly adjustment of exchange rate
b. It provides mechanism for international consultation
c. It provides forum for settlement of international trade disputes
d. It is a reservoir of the currencies of all the member countries
Q. Which of these is not the function of World Bank?
a. To arbitrate on international trade disputes.
b. To help the member countries in the reconstruction and development of their countries.
c. To encourage private foreign investment and credit by guaranteeing repayment.
d. To promote long term balanced growth of international trade.
Q. Which of the following is not the function of World Trade Organization?
a. To settle border disputes of member countries.
b. To handle trade disputes.
c. To provide technical assistance and training to developing countries.
d. To provide forum for trade negotiation between the member countries.
Q. At a given time and in a given marketplace, the entire market demand curve indicates the
a. quantity of a good consumers would be willing and able to purchase at a given price.
b. quantity of a good consumers would be able to purchase at a series of prices.
c. quantity of a good consumers want to purchase at a given price
d. quantity of a good consumers have purchased at a series of prices over the year.
Q. Assume Samantha likes hot dogs and hamburgers equally, and the price of hamburgers (a normalgood) declines. She will most likely purchase more hamburgers; this is
a. a reflection of the income effect
b. a reflection the substitution effect
c. a reflection of the income and substitution effects
d. None of above
Q. Which of the following would not be considered a normal good?
a. Steaks
b. flour
c. . oranges
d. meals at restaurants
Q. A typical demand curve will normally have a
a. positive slope
b. horizontal slope
c. vertical slope
d. negative slope
Q. Which of the following would not be considered compliments?
a. shoes and socks
b. tennis racquet and tennis balls
c. Coke and Pepsi
d. automobiles and gasoline
Q. Which of the following would not be considered substitutes?
a. butter and margarine
b. Coke and Pepsi
c. Fords and Chevrolets
d. Hamburgers and french fries
Q. The price of Ford automobiles increases and the price of Chevrolets remains constant, the demand for Chevrolets will
a. increase
b. decrease
c. decrease then increase
d. increase then decrease