Economics MCQ Questions and Answers for UPSC / SSC and All competitive exams

Economics MCQ Questions and Answers for UPSC / SSC and All competitive exams  Topics Covered Below in Online Test Quiz

Macro Economics Basic, National Income, Tax, Bank, Planning, Budget, Balance of Payment, Inflation, Share market, Micro Economics and Demand Supply, Production, Cost, Revenue, Utility, Market

1.  Which three year is said as 'Planning Holiday' for our country?
a
  1968-71
b
 1969-72
c
 1965-68
d
 1966-69
Answer & Explanation
Answer : Option D
2.  According to socialism who is the greatest enemy of society.
a
  Cost
b
 Personal Property
c
 Religion
d
 Capitalist Class
Answer & Explanation
Answer : Option B
3.  Under Perfect Competition who is Price Taker.
a
  Firm.
b
 Buyer
c
 Government
d
 Business
Answer & Explanation
Answer : Option A
4.  The practice of selling goods in a foreign country at a price below their domestic selling price is called.
a
  Dumping
b
 Diplomacy
c
 Discriminator
d
 Double pricing
Answer & Explanation
Answer : Option A
5.  Those payments which the firms make to outsiders for their goods and services are called-
a
  Implicit costs
b
 Explicit costs
c
 Economic costs
d
 Real costs
Answer & Explanation
Answer : Option B
6.  Which of the following cost curve is never 'U' shaped?
a
  Marginal cost curve
b
 Average fixed cost curve
c
 Average variable cost curve
d
 Average cost curve
Answer & Explanation
Answer : Option B
7.  The best example of a capital intensive industry in India is-
a
  Sports goods industry
b
 Tourism industry
c
 Textile industry
d
 Steel industry
Answer & Explanation
Answer : Option D
8.  The expenses on advertising is called-
a
  Surplus cost
b
 Implicit cost
c
 Selling cost
d
 Fixed cost
Answer & Explanation
Answer : Option C
9.  Cost of production of the producer is given by-
a
  Sum of wages and interest paid on capital
b
 Sum of wages paid to labourers
c
 Sum of wages, interest, rent and normal profit
d
 Sum of wages, interest, rent and supernormal profit
Answer & Explanation
Answer : Option C
10.  Core industries are-
a
  Consumer Goods Industries
b
 Government Industries
c
 Capital Goods Industries
d
 Basic Industries
Answer & Explanation
Answer : Option D
11.  Verghese Kurien is related to -
a
  Yellow Revolution
b
 Green Revolution
c
 Blue Revolution
d
 White Revolution
Answer & Explanation
Answer : Option D
12.  Marginal Cost equals-
a
  total cost minus total benefit for the last unit produced
b
 total cost divided by quantity
c
 the change in total cost divided by the change in quantity
d
 total cost divided by total benefit for the last unitproduced
Answer & Explanation
Answer : Option C
13.  Disinvestment in Public Sector is called-
a
  Globalization
b
 Industrialization
c
 Privatization
d
 Liberalization
Answer & Explanation
Answer : Option C
14.  Under the rules of the IMF, each member is required todeclare the par value of its legal tender money in terms of US Dollars and -
a
  Diamond
b
 Gold
c
 Pound, sterling
d
 Silver
Answer & Explanation
Answer : Option C
15.  Which is not the objective of public procurement and distribution system followed by Indian Government?
a
  Reduce personal and regional inequality in the distribution
b
 Maintain price stability through creation of buffer stocks
c
 Control the production of food grains
d
 Protect the interests of both consumers and poor farmers
Answer & Explanation
Answer : Option C
16.  Which of the following is deducted from NNP to arrive at NI?
a
  Indirect tax
b
 Interest
c
 Subsidy
d
 Capital consumption allowance
Answer & Explanation
Answer : Option A
17.  Which of the following is not a industrial finance institution?
a
  NABARD
b
 ICICI
c
 SFC
d
 UTI
Answer & Explanation
Answer : Option A
18.  The demand curve for a Giffen good is-
a
  Upward rising
b
 Parallel to the price axis
c
 Parallel to the quantity axis
d
 Downward falling
Answer & Explanation
Answer : Option A
19.  What is known as the open market operation of the RBI?
a
  Buying and selling of stocks
b
 Trading in securities
c
 Auctioning of foreign exchange
d
 Transactions in gold
Answer & Explanation
Answer : Option B
20.  Goods which are meant either for consumption or for investment are called-
a
  Final goods
b
 Giffen goods
c
 Intermediate goods
d
 Inferior goods
Answer & Explanation
Answer : Option A
21.  Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states?
a
  Additional duties of excise in lieu of sales tax
b
 Expenditure Tax and Gift Tax
c
 Taxes on Advertisement
d
 Stamps and Registration
Answer & Explanation
Answer : Option C
22.  Indirect taxes by nature are-
a
  Regressive
b
 Proportional
c
 Progressive
d
 Degressive
Answer & Explanation
Answer : Option A
23.  A rising per Capita Income will indicate a better welfare if it is accompanied by -
a
  Changed Income distribution in favour of Industrial Labour.
b
 Unchanged Income distribution overall.
c
 Changed Income distribution in favour of poor.
d
 Changed Income distribution in favour of rich.
Answer & Explanation
Answer : Option C
24.  Which cost has relation with lowest cost?
a
  Sunk cost
b
 Opportunity cost
c
 Fined cost
d
 Variable cost
Answer & Explanation
Answer : Option D
25.  Which of the following does not determine supply of labour?
a
  Marginal productivity of labour
b
 Work-leisure ratio
c
 Size and age-structure of population
d
 Nature of work
Answer & Explanation
Answer : Option A
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