10 Important Economic MCQs for Most of the competitive examinations
Que 1: What is the ratio of money held by the public in currency to that they held in deposit ?
(A) The currency deposit ratio
(B) The reserve deposit ratio
(C) Cash reserve ratio
(D) Cash deposit ratio
Correct Ans: A
Que 2: Economy is in the "Liquidity Trap" when –
(A) Rate of interest on bonds is minimum
(B) Rate of interest on bonds is maximum
(C) Transaction demand for money is maximum
(D) None of the above
Correct Ans: A
Que 3: 'Laffer Curve" shows the relationship between –
(A) Government Revenue and Government Expenditure.
(B) Tax Rates and Tax Revenue
(C) Direct Taxes and GDP.
(D) None of the above
Correct Ans: B
Que 4: Classification of an enterprise into public or private sector is based on
(A) number of employees in the enterprise
(B) ownership of assets of the enterprise
(C) employment conditions for workers in the enterprise
(D) nature of products manufactured by the enterprise
Correct Ans: B
Que 5: Which one among the following is not a source of tax revenue for the Central Government in India ?
(A) Income tax
(B) Customs duuties
(C) Service tax
(D) Motor Vehicle tax
Correct Ans: D
Que 6: Which of the following does not form part of current account of Balance of Payments?
(A) Export and import of goods
(B) Export and import of services
(C) Income receipts and payments
(D) Capital receipts and payments
Correct Ans: D
Que 7: The ‘Arthasastra’ is a treatise on which one of the following?
(A) Economics
(B) Environment
(C) Political Philosophy
(D) Religion in Administration
Correct Ans: C
Que 8: ..................... is an active factor of production
(A) Product
(B) Labour
(C) Wages
(D) Price
Correct Ans: B
Que 9: When total utility becomes maximum, then marginal utility will be
(A) Maximum
(B) Minimum
(C) Either maximum or minimum
(D) Zero
Correct Ans: D
Que 10: The opportunity cost of a factor of production is
(A) what it earns in its present use.
(B) what it can earn in the long period.
(C) what it can earn in some other use.
(D) the cost of production.
Correct Ans: C
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