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Question for JK SET Economics - Quiz / Questions / MCQ in English

Last Update on : October 12, 2026

Duration: 120 · Questions: 100 · Max Marks: 200

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

Subjects : Economics

Question Bank JK SET Economics (Paper 2) Exam - English

Economics

Q 1 :
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
Q 2 :
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
Q 3 :
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
Q 4 :
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
Q 5 :
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
Q 6 :
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
Q 7 :
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
Q 8 :
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
Q 9 :
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
Q 10 :
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
Q 11 :
Utility maximization under budget constraint is achieved when?
  1. A.MUx + MUy is maximum
  2. B.Px + Py = Income
  3. C.MUx/Px = MUy/Py
  4. D.MUx × MUy = 0
Q 12 :
Indifference curve is convex to origin because of?
  1. A.Diminishing marginal rate of substitution
  2. B.Increasing marginal utility
  3. C.Law of demand
  4. D.Perfect substitution
Q 13 :
Marginal Rate of Substitution (MRS) is defined as?
  1. A.Amount of Y sacrificed for one more unit of X
  2. B.Slope of budget line
  3. C.Ratio of prices
  4. D.Total utility ratio
Q 14 :
A Giffen good violates the?
  1. A.Law of diminishing utility
  2. B.Law of demand
  3. C.Law of supply
  4. D.Law of substitution
Q 15 :
Budget line shifts outward when?
  1. A.Price of goods increases
  2. B.Demand decreases
  3. C.Utility increases
  4. D.Income increases
Q 16 :
A consumer is in equilibrium when?
  1. A.Total utility is zero
  2. B.Marginal utility is maximum
  3. C.Price is zero
  4. D.Budget is exhausted with highest satisfaction
Q 17 :
Law of diminishing marginal utility states that?
  1. A.Total utility falls immediately
  2. B.Marginal utility increases continuously
  3. C.Marginal utility declines with consumption
  4. D.Utility remains constant
Q 18 :
Indifference curve cannot?
  1. A.Be downward sloping
  2. B.Be smooth
  3. C.Be convex
  4. D.Intersect each other
Q 19 :
Perfect substitutes have indifference curves that are?
  1. A.L-shaped
  2. B.Straight lines
  3. C.Convex
  4. D.Circular
Q 20 :
Perfect complements are represented by?
  1. A.Straight lines
  2. B.Parallel lines
  3. C.Upward sloping curves
  4. D.Right angle indifference curves
Q 21 :
According to the completeness axiom of consumer preferences, a consumer must be able to?
  1. A.Purchase every affordable bundle
  2. B.Rank any two consumption bundles
  3. C.Obtain positive utility from every good
  4. D.Consume all available goods
Q 22 :
Transitivity of preferences implies that if bundle X is preferred to Y and Y is preferred to Z, then?
  1. A.Z must be preferred to X
  2. B.X must be preferred to Z
  3. C.X and Z must be indifferent
  4. D.Y must be preferred to X
Q 23 :
Strictly convex preferences imply that the consumer generally prefers?
  1. A.Extreme bundles to averages
  2. B.Goods in fixed proportions
  3. C.Only corner solutions
  4. D.Weighted averages to extreme bundles
Q 24 :
If a utility function is subjected to a strictly increasing transformation, the consumer's?
  1. A.Demand necessarily changes
  2. B.Preference ordering remains unchanged
  3. C.Budget constraint shifts
  4. D.Marginal utility remains numerically unchanged
Q 25 :
At an interior consumer equilibrium with differentiable preferences, which condition generally holds?
  1. A.MRS = ratio of prices
  2. B.MRS = income
  3. C.MRS = total expenditure
  4. D.Marginal utility equals zero
Q 26 :
Hicksian demand minimizes?
  1. A.Utility for given income
  2. B.Expenditure for a given utility level
  3. C.Income for given prices
  4. D.Prices for a given consumption bundle
Q 27 :
Marshallian demand is obtained from the problem of?
  1. A.Expenditure minimization
  2. B.Profit maximization
  3. C.Utility maximization subject to a budget constraint
  4. D.Cost minimization by firms
Q 28 :
The expenditure function is homogeneous of degree one in?
  1. A.Utility
  2. B.Prices
  3. C.Income
  4. D.Quantities
Q 29 :
The indirect utility function is homogeneous of degree zero in?
  1. A.Prices alone
  2. B.Income alone
  3. C.Prices and income jointly
  4. D.Quantities and utility jointly
Q 30 :
Roy's identity derives Marshallian demand from the?
  1. A.Production function
  2. B.Social welfare function
  3. C.Expenditure function
  4. D.Indirect utility function
Q 31 :
Shephard's lemma applied to the expenditure function yields?
  1. A.Marshallian demand
  2. B.Hicksian demand
  3. C.Supply function
  4. D.Indirect utility
Q 32 :
The Slutsky equation decomposes the price effect into?
  1. A.Scale and substitution effects
  2. B.Wealth and production effects
  3. C.Output and income effects
  4. D.Income and substitution effects
Q 33 :
For a normal good, a fall in its price causes the substitution and income effects to?
  1. A.Work in opposite directions
  2. B.Both equal zero
  3. C.Work in the same direction
  4. D.Become indeterminate
Q 34 :
A Giffen good must necessarily be?
  1. A.Normal
  2. B.Inferior
  3. C.A luxury
  4. D.Perfectly complementary
Q 35 :
For a Giffen good, when its own price rises, quantity demanded?
  1. A.Falls
  2. B.Remains constant
  3. C.Rises
  4. D.First falls and then becomes zero
Q 36 :
The compensated law of demand states that compensated own-price demand generally has?
  1. A.A positive slope
  2. B.Infinite elasticity
  3. C.Unit elasticity
  4. D.A non-positive slope
Q 37 :
Engel curves describe the relationship between demand and?
  1. A.Own price
  2. B.Income
  3. C.Price of a substitute
  4. D.Marginal cost
Q 38 :
If the income elasticity of demand exceeds one, the good is generally classified as?
  1. A.Inferior
  2. B.Luxury
  3. C.Necessity
  4. D.Giffen good
Q 39 :
Perfect substitutes are represented by indifference curves that are?
  1. A.L-shaped
  2. B.Vertical lines only
  3. C.Strictly convex curves
  4. D.Straight lines
Q 40 :
Perfect complements generally have indifference curves that are?
  1. A.L-shaped
  2. B.Linear
  3. C.Concave
  4. D.Circular
Q 41 :
Quasilinear preferences are important because the income effect for the non-numeraire good is often?
  1. A.Positive and increasing
  2. B.Always negative
  3. C.Zero over an interior range
  4. D.Infinite
Q 42 :
The dual of the utility-maximization problem is the?
  1. A.Revenue-maximization problem
  2. B.Expenditure-minimization problem
  3. C.Profit-maximization problem
  4. D.Output-maximization problem
Q 43 :
Compensating variation following a price increase measures the money required to?
  1. A.Restore the original utility at new prices
  2. B.Reach the new utility at old prices
  3. C.Maximize producer surplus
  4. D.Keep nominal expenditure unchanged
Q 44 :
Equivalent variation for a price increase measures the amount of money that, at original prices, would cause?
  1. A.The consumer to save all income
  2. B.Zero substitution effect
  3. C.An increase in utility
  4. D.The same utility loss as the price increase
Q 45 :
Consumer surplus is an exact welfare measure particularly when preferences are?
  1. A.Leontief
  2. B.Quasilinear
  3. C.Lexicographic
  4. D.Non-convex
Q 46 :
The weak axiom of revealed preference rules out a situation in which?
  1. A.Every good is normal
  2. B.Income rises proportionately with prices
  3. C.Prices remain constant
  4. D.Direct revealed preference is contradicted by another choice
Q 47 :
The strong axiom of revealed preference extends consistency requirements to?
  1. A.Only two bundles
  2. B.Production possibilities
  3. C.Chains of revealed preferences
  4. D.Market supply
Q 48 :
Homothetic preferences imply that income expansion paths are generally?
  1. A.Parallel to the budget line
  2. B.Backward bending
  3. C.Horizontal
  4. D.Rays from the origin
Q 49 :
Under homothetic preferences, income elasticities of demands are generally?
  1. A.One
  2. B.Zero
  3. C.Negative
  4. D.Infinite
Q 50 :
A price-consumption curve traces optimal bundles as?
  1. A.One price varies
  2. B.Income varies
  3. C.Utility remains zero
  4. D.All prices vary proportionately

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