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Economic MCQ Questions with answers

Here Important Economic MCQ questions are added which are frequently asked in almost all the examinations. You can check the correct answer of any question on clicking the show answer button or on option itself. The Correct answer will be displayed below. You can share any question with your friends on whatsapp by tapping whatsapp button.

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Learn Economic MCQs [Page 5 of Department 6]

41) ‘Golden Handshake Scheme’ is associated with

(A) Voluntary retirement
(B) Inviting foreign companies
(C) Establishing joint enterprises
(D) Private investment in public enterprises
Correct Answer - Option (A)

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42) According to modern thinking the law of diminishing returns applies to

(A) Mining
(B) Industry
(C) Agriculture
(D) All fields of production
Correct Answer - Option (D)

No Explanation found. Add Explanation and get +2 points.

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43) If the tax rate increase with the higher level of income , it shall be called

(A) Regressive tax
(B) Lump sum tax
(C) Progressive tax
(D) Proportional tax
Correct Answer - Option (C)

No Explanation found. Add Explanation and get +2 points.

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44) Which of the following is the classification of Industries on the basis of raw-materials?

(A) Basics and Consumer
(B) Primary and Secondary
(C) Small Scale – Large scale
(D) Agro-based and Mineral based
Correct Answer - Option (D)

No Explanation found. Add Explanation and get +2 points.

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45) Which is the most essential function of an entrepreneur?

(A) Risk bearing
(B) Marketing
(C) Management
(D) Supervision
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

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46) Excise duty on a commodity is payable with reference to its

(A) Production
(B) Production and sale
(C) Production and transportation
(D) Production, transportation and sale
Correct Answer - Option (A)

No Explanation found. Add Explanation and get +2 points.

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47) Purchasing Power Parity theory is related with

(A) Wage rate
(B) Bank rate
(C) Exchange rate
(D) Interest rate
Correct Answer - Option (C)

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48) Which of the following taxes is not collected by the Central Government?

(A) Excise duty
(B) Professional tax
(C) Income tax
(D) Customs duty
Correct Answer - Option (B)

No Explanation found. Add Explanation and get +2 points.

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49) Which one of the following is a developmental expenditure?

(A) Grant-in-aid
(B) Debt services
(C) Civil administration
(D) Irrigation expenditure
Correct Answer - Option (D)

No Explanation found. Add Explanation and get +2 points.

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50)  “Interest is a reward for parting with liquidity” is according to

(A) Marshall
(B) Keynes
(C) Ohlin
(D) Haberler
Correct Answer - Option (B)

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