Economics MCQ Questions with Answer
Q31. The four factors of production are-
(a) Land, labor, capital, organization
(b) Land, electricity, water labor
(c)Labor, capital, land rainfall
(d)Labor, climate, land, rainfall
Q32. Consider the following actions by the Government:
1. Cutting the tax rates.
2. Increasing the government spending.
3. Abolishing the subsidies. In the context of economic recession,
Which of the above actions can be considered a part of the ‘fiscal stimulus package?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Q33. If the Sales tax on a commodity is raised, but the revenue earned through its sale decrease sharply, which one of the following statements about the nature of this commodity would be correct?
(a) Price elasticity of demand for it is unity
(b) It must be essential goods
(c) Price elasticity of demand for it is high
(d) Price elasticity of demand for it is low
Q34. Which one of the following is true regarding the Jawahar Rozgar Yojana (JRY)?
(a) It was launched during the Prime Ministership of Indira Gandhi
(b) It aims at creating one million jobs annually
(c) The target group of JRY is the urban poor living below the poverty line
(d) Under the scheme 30% of the employment generated is reserved for women
Q35. The largest source of financing the public sector outlay of the Eighth Five Year Plan comes from:
(a) Balance from current revenue
(b) Contribution of public enterprises
(c) Government borrowings
(d) Deficit financing
Q36. Assertion (A): India’s software exports increased at an average growth rate of 50% since 1995-96.
Reason (R): Indian software companies were cost-effective and maintained international quality.
(a) Both A and R are individually true and R is the correct explanation of A
(b) Both A and R are individually true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Q37. Depreciation is equal to
(a) GNP – NNP
(b) NNP – GNP
(c) GNP – Personal Income
(d) Personal Income – Personal Taxes
Q38. .Which of the following Tax is levied by Union and collected and appropriated by States?
(b)Passenger and Goods Tax
(d)Taxes on Newspapers
Q39. Investment is equal to-
(a) Gross total of all types of physical capital assets
(b) A Gross total of all capital assets minus wear and tear
(c) Stock of plants, machines
(d) None of the above
Q40. Extension or contraction of quantity demanded of a commodity is a result of a change in the-
(a) Unit price of the commodity
(b) Income of the consumer
(c) Tastes of the consumer
(d) Climate of the region