Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. The net factor income earned within the domestic territory of a country must be equal to
a. Net Domestic Product at factor cost
b. Net Domestic Product at market price
c. Net National Product at market price
d. Personal income.
Q. Ceteris paribus, an income tax
a. Increases the value of the expenditure multiplier and decreases the value of the net tax revenue multiplier
b. Decreases the value of the expenditure and net tax revenue multiplier
c. Decreases the value of the expenditure multiplier and increases the value of the net tax revenue multiplier
d. None of the above.
Q. On the basis of the Keynesian model of output determination, a multiplier of 3 implies that
a. An increase in consumption by `3 will result in an increase in investment by Re. 1
b. An increase in investment by Re. 1 will result in an increase in consumption by `3
c. An increase in investment by Re. 1 will result in an increase in consumption by `2
d. An increase in investment by Re. 1 will result in an increase in consumption by Re. 1
Q. Consumption demand does not depend upon the level of
a. Income
b. Propensity to consume
c. Consumer spending
d. Marginal efficiency of investment.
Q. The slope of the consumption curve connotes
a. Average propensity to save
b. Marginal Propensity to consume
c. Marginal propensity to save
d. Level of consumption in the economy.
Q. Financial interrelation ratio is equal to
a. Total issues / National income
b. Primary issues / Net capital formation
c. Total issues / Net capital formation
d. Total stock of financial assets/Stock of fiscal assets
Q. If the available workers are unaware of the jobs being offered and the employers are not aware of the available workers, such type on unemployment is called
a. Frictional unemployment
b. Structural unemployment
c. Disguised unemployment
d. Demand pull unemployment.
Q. Unemployment that arises when there is a general downturn in business activity is known as
a. Frictional unemployment
b. Structural unemployment
c. Cyclical unemployment
d. Disguised unemployment
Q. Full employment is the level at which there is
a. Zero unemployment
b. Normal rate of unemployment
c. Lease supply of labor
d. Demand for goods is less than supply.
Q. Natural rate of unemployment increases due to
a. General downturn in business activity
b. Changes in labor market
c. Structural changes in economy
d. Frequent changes of jobs by labor
Q. If the actual rate of unemployment exceeds to natural rate of unemployment then
a. Actual output of the economy will fall below its potential
b. Production will increase more than potential
c. Consumption of goods decreases
d. Both (a) and (c) above.
Q. Unemployment that arises due to regional occupational pattern of job vacancies, which does not match the pattern of workers availability and suitability, is known as
a. Frictional unemployment
b. Structural unemployment
c. Cyclical unemployment
d. Demand pull unemployment.
Q. Disguised unemployment means
a. Unemployment in agriculture
b. Unemployment due to recession
c. Unemployment due to downturn in business activity
d. Marginal Productivity of Labor (MPL) is zero.
Q. In which sector of Indian economy will we find a high rate of disguised unemployment?
a. Service sector.
b. Agriculture sector.
c. Manufacture sector.
d. Mining sector.
Q. Unemployment that is caused by a mismatch between the composition of the labor force (in terms of skills, occupation, industries, or geographic location) and the make-up of the demand for labor is called
a. Real wage unemployment
b. Deficient-demand unemployment
c. Frictional unemployment
d. Structural Unemployment