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Objective Questions

Latest GSET Economics Exam Question (Objective Questions), MCQ in English

Subjects : Economics

Question Bank GSET Economics (Paper-II) Exam - English
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Economics

Question 1Single Answer
In case of indifference curve of two goods X and Y, as consumption of X increases :
  1. A
    MRSXY increases
  2. B
    MRSXY decreases
  3. C
    MRSXY remains the same
  4. D
    MRSXY increases but later on MRSXY decreases
Question 2Single Answer
General Economic equilibrium is NOT related to which one of the following problems ?
  1. A
    Uniqueness problem
  2. B
    Existence problem
  3. C
    Stability problem
  4. D
    Moral hazard problem
Question 3Single Answer
In the shoft-run production function, which on eof the following is CORRECT ?
  1. A
    Technology is assumed to change as labour input changes
  2. B
    Technology is assumed to change as capital stock changes
  3. C
    Technology is assumed to change positively until diminishing returns set in
  4. D
    Technology is assumedto be constant for a given production function relationship
Question 4Single Answer
As output expands, LAC curve falls. This is due to :
  1. A
    Law of variable proportions
  2. B
    Law of diminishing returns
  3. C
    Economies of scale
  4. D
    Diseconomies of scale
Question 5Single Answer
In a situtation of decision under uncertainty, if a consumer faces equal expected income from two alternatives, then she will take decision on the basis of :
  1. A
    Expected utility of both the alternatives
  2. B
    Probability of risk attached with each alternatives
  3. C
    Variation of risk attached with each alternatives
  4. D
    Mean of risk of each alternatives
Question 6Single Answer
What type of relationship the Phillips curve postulates between the rae of unemployment and the rate of increase of money wages ?
  1. A
    Inverse
  2. B
    Direct
  3. C
    Direct and proportional
  4. D
    Inverse and proportional
Question 7Single Answer
The concept of 'money illusion' was first given by whom ?
  1. A
    Milton Friedman
  2. B
    Irving Fisher
  3. C
    Robertson
  4. D
    J. M. Keynes
Question 8Single Answer
Which one of the following correctly describes the concept of 'Super Multiplier' ?
  1. A
    Investment multiplier
  2. B
    Money multiplier
  3. C
    Interaction between multiplier and accelerator
  4. D
    Employment multiplier
Question 9Single Answer
Given
I = 50 + 0.2Y
S = –150 + 0.4Y
G = 50
Where, I = Investment, S = Savings
G = Government Expenditure
Y = National Income
What is the equilibrium level of national income
  1. A
    2500
  2. B
    1250
  3. C
    250
  4. D
    1500
Question 10Single Answer
The independence of real variables from changes in money supply and nominal variables is called :
  1. A
    Keynesian dichotomy
  2. B
    Classical dichotomy
  3. C
    Money illusion
  4. D
    Money multiplier
Question 11Single Answer
Assuming the probability of a male birth as 0.5, find the chances that a family of 3 children will have two boys and one girl :
  1. A
  2. B
  3. C
  4. D
Question 12Single Answer
Which one of the following measures of central tendency will be the most appropriate to use if the data relates to rates, proportions and ratios ?
  1. A
    Arithmetic mean
  2. B
    M edian
  3. C
    Harmonic Mean
  4. D
    Geometric mean
Question 13Single Answer
The sampling distribution of mean based on a sample of 13 units selected without replacement shows a variance of 5 units. If the population consists of 49 units, estimate the variance of the population
  1. A
    80.67
  2. B
    84.87
  3. C
    86.67
  4. D
    86.87
Question 14Single Answer
In the classical linear regression model, Xi and Ui are assumed to be :
  1. A
    highly correlated
  2. B
    not correlated
  3. C
    positively correlated
  4. D
    negatively correlated
Question 15Single Answer
Identify which one of the following statements is INCORRECT ?
  1. A
    Intersection of two disjoint sets is a null set
  2. B
    Complement of a Universal set is a null set
  3. C
    If X ∩ Y =ϕ, then X-Y ≠X
  4. D
Question 16Single Answer
Given Y = X³ – 12X² + 36X + 8, identify which one of the following is CORRECT :
  1. A
    Y is maximum at X = 6, and minimum at X = 2
  2. B
    Y is minimum at X= 6, and maximum at X = 2
  3. C
    Y has two inflexion points at X = 2 and X = 6
  4. D
    Point of optimality is indeterminate
Question 17Single Answer
Identify which one of the following statements is CORRECT :
  1. A
    A–1 is equal to Adj (A) if the value of the determinant A is unity
  2. B
    If two columns of a determinant are interchanged, the sign of the determinant does not alter
  3. C
    The value of a determinant changes if the rows and columns are interchanged
  4. D
    Law of division is allowed in matrix operations      
Question 18Single Answer
Identify which of the following statements with respect to Linear Programming Problem (LPP) is CORRECT ?
  1. A
    A solution is unbounded in an LPP if all the feasible solutions of the problem fall within the boundary created by its constraints
  2. B
    If A is primal problem and B its dual, then dual of B is Not A
  3. C
    The constraints of an LPP in standard form is always expressed in less than and equal to form
  4. D
    If an LPP has two optimum solutions, then it has also infinite number of optimum solutions
Question 19Single Answer
The Net Barter terms of trade refer to :
  1. A
    The excess of import expenditures over export earnings
  2. B
    Trade agreements
  3. C
    The ratio between export prices and import prices
  4. D
    The terms and conditions on which a country is offered a loan in the event of balance of payments difficulties
Question 20Single Answer
The items on the capital account of Balance of Payments are :
  1. A
    Flow variables
  2. B
    Stock variables
  3. C
    Changes in stock magnitudes
  4. D
    Both Stock and Flow variables
Question 21Single Answer
A sudden shift from import tariffs to free trade may induce short-term unemployment in :
  1. A
    Import competing industries
  2. B
    Industries that are only exporters
  3. C
    Industries that sell domestically as well as export
  4. D
    Industries that neither import or export
Question 22Single Answer
The optimum tariff means :
  1. A
    Most occur in the elastic range of the tariff imposing home country's offer curve
  2. B
    Takes account of the probability that the partner country will retaliate with protective measures of its own
  3. C
    Maximises total export sales of the imposing country
  4. D
    Must occur in the elastic range of the partner country's offer curve
Question 23Single Answer
The movement from old level of expenditure and taxation to a new and higher level is called :
  1. A
    Concentration effect
  2. B
    Inspection effect
  3. C
    Displacement effect
  4. D
    All of the above
Question 24Single Answer
Which method can help in obtaining a welfare improvement, if externalities exist ?
  1. A
    Pigovian taxes
  2. B
    Regulation
  3. C
    Assigning property righs and permitting bargaining
  4. D
    All of the above
Question 25Single Answer
The efficiency condition in the production of pure public good requires that the production be carried out up to a point when :
{where MBi, represents marginal Benefit of the 'ith' individual and MBj represents marginal Benefits that accrue to the 'jth' individual and MC is the marginal cost}
  1. A
  2. B
  3. C
  4. D
Question 26Single Answer
The incidence of which of the following will entirely be on the monopolist ?
  1. A
    Lump-sum tax
  2. B
    Specific tax
  3. C
    Regulated monopoly pricing
  4. D
    None of these
Question 27Single Answer
Which of the following is NOT a Commercial Bank ?
  1. A
    Public Sector Bank
  2. B
    Private Sector Bank
  3. C
    Regional Rural Bank
  4. D
    Co – operative Bank
Question 28Single Answer
Liquidity Adjusment Facility (LAF) was recommended by :
  1. A
    C. Rangarajan Committee
  2. B
    Raghuram Rajan Committee
  3. C
    Narasimhan Committe -II
  4. D
    Bimal Jalan Committee
Question 29Single Answer
Which of the following is TRUE for Bank Rate ?
  1. A
    Increase in Bank rate by Central Bank would increase money supply keeping other factors constant
  2. B
    Bank rate is a qualitative instrument
  3. C
    Bank rate is the minimum rate at which the Central Bank provides credit to financial institutions against securities of the government
  4. D
    Bank rate is a direct instrument of credit control          
Question 30Single Answer
Human Development Index (HDI) currently, as published by the UNDP is calculated by using which of the following ?
  1. A
    Geometric mean
  2. B
    Arithmetic Mean
  3. C
    Harmonic Mean
  4. D
    Quadratic mean
Question 31Single Answer
Harrod-neutral technical progress is necessarily :
  1. A
    Growth augmenting
  2. B
    Laour augmenting
  3. C
    Capital augmenting
  4. D
    Resource augmenting
Question 32Single Answer
Which among the following is NOT part of the neoclassical theory of growth ?
  1. A
    Swan Model
  2. B
    Meade's Model
  3. C
    Pasinetti Model
  4. D
    Solow Model
Question 33Single Answer
If a production function admits both Harrod and Hicks neutral technical progress, the elasticity of subsitution should be :
  1. A
    equal to one
  2. B
    equal to zero
  3. C
    equal to infinity
  4. D
    equal to one divided by two
Question 34Single Answer
The total population of city 'X' in 2011 was 28 lakhs adn the total number of live births was 50 thousand. Find out crude birth rate per 1000 population ?
  1. A
    178.57
  2. B
    1.7857
  3. C
    17.857
  4. D
    0.17857
Question 35Single Answer
According to Ronald Coase, Which of the following statements is CORRECT for pollution control ?
  1. A
    Providing property rights to the state
  2. B
    Providing property rights to the legal institutions
  3. C
    Providing property rights to polluters and pollutees
  4. D
    Providing property rights to Trade Unions
Question 36Single Answer
According to Census 2011, which one of the following states has the highest share of rural population ?
  1. A
    Bihar
  2. B
    Odisha
  3. C
    Uttar Pradesh
  4. D
    Himachal Pradesh
Question 37Single Answer
At present, for the estimation of GDP in India at constant prices, which one of the following years is used as the base year ?
  1. A
    2011-12
  2. B
    2010-11
  3. C
    2014-15
  4. D
    2000-01
Question 38Single Answer
Which of the following statement is CORRECT for 'Atmanirbhar Bharat Rozgar Yojana' launched on November 12, 2020 ?
  1. A
    Establishments which make new hires will get a subsidy to cover retirement fund contribution by employees and employers for 2 years
  2. B
    Establishment will get a subsidy of Rs 10 crore for period of 5 years
  3. C
    Establishment will get tax profit continuously for a period of 3 years
  4. D
    Establishment will get tax subsidy for 5 years
Question 39Single Answer
The 15th Finance Commission (FC) has recommended that the States be given what per cent of the divisible tax pool of the Centre during the period 2021-2022 to 2025-26 ?
  1. A
    51
  2. B
    31
  3. C
    41
  4. D
    61
Question 40Single Answer
Which of the following sectors of the economy registered highest growth rate in the second quarter of 2020-21 as per estimate of NSO ?
  1. A
    Manufacturing
  2. B
    Electricity, Gas, Water supply and other Utilit services
  3. C
    Agriculture and Allied sectors
  4. D
    General Administration
Question 41Single Answer
Which of the following measures are used by a risk-averse person to minimize risk ?
(a) Diversification of resources
(b) Insurance of risk event
(c) Total cost of resources
(d) Value of information of risk event
Choose the correct answer from the options given below :
  1. A
    (a), (b) and (c) only
  2. B
    (a), (b) and (d) only
  3. C
    (b), (c) and (d) only
  4. D
    (a), (c) and (d) only
Question 42Single Answer
Which of the following statements are CORRECT for welfare economics ?
(a) Any competitive equilibrium leads to a pareto efficient allocationof resources
(b) Competitive equilibrium does not lead to Pareto efficient allocation of resources
(c) Any efficient allocation can be attained by a competitive equilibrium given the market mechanism leading to redistribution
(d) There will be no Pareto efficient allocation of resources in the society
Choose the correct answer from the options given below :
  1. A
    (a), (b) and (c) only
  2. B
    (a) and (c) only
  3. C
    (b) and (c) only
  4. D
    (c) and (d) only
Question 43Single Answer
Which of the following conditions hold true for factor pricing when factor market is perfectly competitive and product market is monopolistic ?
(a) VMP > MRP
(b) Both VMP and MRP decreasing
(c) VMP < MRP
(d) MRPL = W
Choose the correct answer from the option given below :
  1. A
    1, 2 and 3 only
  2. B
    2, 3 and 4 only
  3. C
    1, 2 and 4 only
  4. D
    1, 3 and 4 only
Question 44Single Answer
Which of the following functions will result in an investment multiplier of value 4 ?
(a) C = 50 + .25 Y
(b) C = 50 + 0.75 Y
(c) S = – 50 + .25Y
(d) I = 50 + .75 Y
Choose the correct answer from the option given below :
  1. A
    (a) and (c) only
  2. B
    (c) and (d) only
  3. C
    (a) and (d) only
  4. D
    (b) and (c) only
Question 45Single Answer
Which of the following are CORRECT ?
(a) If observations are selected purposively, it is called a method of non-random sampling
(b) If observations are selected in an ad-hoc manner, it is called a method of non-random sampling
(c) If observations are selected in a systematic manner it is called a method of non-random sampling
(d) If observations are selected on the basis of judgment, it is called a method of non-random sampling
Choose the correct answer from the option given below :
  1. A
    (a), (b) and (c) only
  2. B
    (b), (c) and (d) only
  3. C
    (a), (c) and (d) only
  4. D
    (a), (b) and (d) only
Question 46Single Answer
Which are the following correct features of matrices ?
(a) An identity matrix is a square matrix
(b) An identity matrix when gets transposed remains an identity matrix
(c) (A.B)T = AT. BT where A and B are matrices
(d) (A–1)T = (AT)–1 where A is a matrix
Choose the correct answer from the option given below :
  1. A
    (a) and (b) only
  2. B
    (b) and (c) only
  3. C
    (a) and (c) only
  4. D
    (c) and (d) only
Question 47Single Answer
When the exchange rate changes from 1$ = Rs 72 to 1$ = Rs 68, then the :
(A) Rupee has depreciated
(B) Dollar has depreciated
(C) Rupee has appreciated
(D) Dollar has appreciated
Choose the correct answer from the option given below :
  1. A
    (a) and(d) only
  2. B
    (b) and (c) only
  3. C
    (c) and (d) only
  4. D
    (a) and (b) only
Question 48Single Answer
Which of the following are a source of market failure ?
(a) The existence of public goods
(b) The presence of externalities
(c) The fact that some goods are rivals in consumption
(d) The existence of monopolies
Choose the correct answer from the option given below :
  1. A
    (a), (b) and (d) only
  2. B
    (a), (b) and (c) only
  3. C
    (b), (c) and (d) only
  4. D
    (a), (c) and (d) only
Question 49Single Answer
Which of the following would reduce the credit creaton capacity of a commercial Bank ?
(a) Time and Demand deposits
(b) Loans
(c) Deposits with the Central Bank
(d) Cash in hands
Choose the correct answer from the option given below :
  1. A
    (a) and (b) only
  2. B
    (b) and (c) only
  3. C
    (c) and (d) only
  4. D
    (a) and (d) only
Question 50Single Answer
Which of the following measres would result in an increase in the money supply in the economy ?
(a) Purchase of goverment securities from the public by Central Bank
(b) Deposit of currency in Commercial Banks by the public
(c) Borrowing by the government from the Central Bank
(d) Sale of government securities to the public by the Central Bank
(e) Minting of more money by the Central Bank for circulation
Choose the correct answer from the options given below :
  1. A
    (a), (c) and (e) only
  2. B
    (b), (c) and (d) only
  3. C
    (a), (b) and (c) only
  4. D
    (b), (d) and (e) only
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