Economics MCQ Questions with Answer
Q51. The marginal propensity to consume lies between
(a) 0 to 1
(b) 0 to ∞
(c) 1 to ∞
(d) ∞ to ∞
Q52. Inflation is caused by
(a) Increase in supply of goods
(b) Increase in cash with the government
(c) Decrease in the money supply
(d) Increase in the money supply
Q53. Given below are two statements, one labeled as Assertion (A) and the other labeled as Reason (R).
Assertion (A): An important policy instrument of economic liberalization is a reduction in import duties on capital goods.
Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.
In the context of the above two statements, which one of the following is correct?
(a) Both A and R are true and R is the correct explanation
(b) Both A and R are true R is not a correct explanation
(c) A is true but R is false
(d) A is false but R is true
Q54. Which of the following relationship always holds true?
(a) Income = Consumption + Investment
(b) Income = Consumption + Saving
(c) Saving = Investment
(d) Income = Consumption + Saving + Investment
Q55. The correct sequence in decreasing order of the four sugarcane producing States in India is:
(a) Maharashtra, U . P, Tamil Nadu, Andhra Pradesh
(b) U. P., Maharashtra, Tamil Nadu, Andhra Pradesh
(c) Maharashtra, U. P., Andhra Pradesh, Tamil Nadu
(d) U. P., Maharashtra, Andhra Pradesh, Tamil Nadu
Q56. Which one of the following does not implement the Self – Help Groups (SHGs) – Bank Linkage program?
(b) Commercial Banks
(d) Co-operative Banks
Q57. Which of the areas given below is/are mainly funded by the International Development Agency in the developing countries?
III. Environment-friendly projects
IV. Health care
Select the correct answer using the codes given below—
(a) I, II and IV
(b) I, II and III
(c) I, II and IV
(d) All of these
Q58. The entire capital of the ECGC is contributed by—
(b) Government of India
(c) EXIM Bank
(d) Insurance Companies
Q59. The Eighth Five Year Plan is different from the earliest ones.
The critical difference lies in the fact that:
(a) It has a considerably larger outlay compared to the earlier plans
(b) It has a major thrust on agricultural and rural development
(c) Considerable emphasis is placed on infrastructure growth
(d) Industrial licensing has been abolished
Q60. Consider the following statements regarding Indian Planning:
- The Second Five-Year Plan emphasized the establishment of heavy industries.
- The Third Five-Year Plan introduced the concept of import substitution as a strategy for industrialization.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2