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

Last Update on : October 11, 2026

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

View Telangana SET Economics 2026 Exam Page

To boost your performance in TS SET Economics exam, practice each question regularly and with focus. Every question tests your subject understanding, so solve them one at a time. Taking a quiz improves your speed and accuracy. Practicing topic-wise MCQs. Students benefit greatly from reviewing questions with answer keys, which help clarify concepts and strengthen Questions knowledge for success in TS SET Economics exams.

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

Subjects : Economics

Question Bank TS 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 :
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 :
    Q 12 :
    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
    Q 13 :
    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
    Q 14 :
    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
    Q 15 :
    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 =Ï•, then X-Y ≠X
    Q 16 :
    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
    Q 17 :
    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      
    Q 18 :
    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
    Q 19 :
    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
    Q 20 :
    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
    Q 21 :
    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
    Q 22 :
    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
    Q 23 :
    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
    Q 24 :
    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
    Q 25 :
    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}
      Q 26 :
      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 27 :
      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 28 :
      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 29 :
      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 30 :
      Budget line shifts outward when?
      1. A.Price of goods increases
      2. B.Demand decreases
      3. C.Utility increases
      4. D.Income increases
      Q 31 :
      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 32 :
      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 33 :
      Indifference curve cannot?
      1. A.Be downward sloping
      2. B.Be smooth
      3. C.Be convex
      4. D.Intersect each other
      Q 34 :
      Perfect substitutes have indifference curves that are?
      1. A.L-shaped
      2. B.Straight lines
      3. C.Convex
      4. D.Circular
      Q 35 :
      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 36 :
      Consumer surplus is defined as?
      1. A.Difference between income and expenditure
      2. B.Total utility minus marginal utility
      3. C.Difference between willingness to pay and actual price
      4. D.Price minus cost
      Q 37 :
      Engel curve shows relationship between?
      1. A.Income and quantity demanded
      2. B.Price and demand
      3. C.Supply and price
      4. D.Utility and cost
      Q 38 :
      When income increases demand for inferior goods?
      1. A.Increases
      2. B.Decreases
      3. C.Remains constant
      4. D.Becomes zero
      Q 39 :
      Substitution effect always leads to?
      1. A.Decrease in demand
      2. B.Fall in price only
      3. C.Increase in demand
      4. D.No change in demand
      Q 40 :
      Income effect measures change in demand due to?
      1. A.Price change only
      2. B.Taste change
      3. C.Income change only
      4. D.Substitution effect
      Q 41 :
      Slutsky equation decomposes price effect into?
      1. A.Income and demand effect
      2. B.Supply and demand effect
      3. C.Income and substitution effect
      4. D.Cost and revenue effect
      Q 42 :
      A higher indifference curve indicates?
      1. A.Lower utility
      2. B.Same utility
      3. C.Higher utility
      4. D.Zero utility
      Q 43 :
      The slope of budget line depends on?
      1. A.Income only
      2. B.Preferences
      3. C.Utility
      4. D.Price ratio
      Q 44 :
      If price of X falls, budget line?
      1. A.Shifts inward
      2. B.Rotates outward
      3. C.Becomes steeper
      4. D.Disappears
      Q 45 :
      Utility is best defined as?
      1. A.Money value
      2. B.Satisfaction from consumption
      3. C.Cost of production
      4. D.Market price
      Q 46 :
      Cardinal utility approach assumes utility is?
      1. A.Ordinal only
      2. B.Constant
      3. C.Non-comparable
      4. D.Measurable numerically
      Q 47 :
      Ordinal utility approach uses?
      1. A.Ranking of preferences
      2. B.Exact numbers
      3. C.Money value
      4. D.Cost values
      Q 48 :
      Marginal utility becomes zero when?
      1. A.Consumption starts
      2. B.Demand falls
      3. C.Price increases
      4. D.Total utility is maximum
      Q 49 :
      Demand curve derived from price consumption curve shows?
      1. A.Price-demand relationship
      2. B.Income effect
      3. C.Supply relation
      4. D.Cost relation
      Q 50 :
      Inferior goods are those for which income elasticity is?
      1. A.Positive
      2. B.Zero
      3. C.Infinite
      4. D.Negative

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