Economics Questions for Competitive Exams

1. Faster, More inclusive and sustainable growth are objectives of which plan of India?
1) 10th Five Year Plan
2) 11th Five Year Plan
3) 12th Five Year Plan
4) None of these

2. Which of the following is not related to Pradhan Mantri Jan-Dhan Yojana:
1) Interest on deposits
2) Overdraft facility upto Rs. 10,000.
3) Accident Insurance Cover
4) Life Insurance Cover

3. Choose the correct answer:
1) Poverty escalation leads to environmental degradation.
2) Environmental degradation leads to poverty escalation.
3) Both poverty escalation leads to environmental degradation and environmental degradation leads to poverty escalation are false.
4) Both poverty escalation leads to environmental degradation and environmental degradation leads to poverty escalation are true.

4. Rural housing, Electrification and Telephony are concerned with:
1) Bharat-Nirman.
2) National Rural Health Mission.
3) Pradhan Mantri Jan-Dhan Yojana.
4) None of these

5. Make in India‘ programme concerns:
1) 30 Industries/sectors.
2) 25 Industries/sectors.
3) 24 Industries/sectors.
4) 29 Industries/sectors.

6. Y.H. Malegam Committee is concerned with:
1) RRBs
2) Rural Cooperative Sector.
3) Micro finance Institutions.
4) SHGs.

7. Which of the following benefits proclaimed for India from WTO?
1) Expansion in textile exports.
2) Expansion in agricultural exports.
3) Expansion in trade.
4) All of these.

8. Assertion(A) : The WTO is by its very nature biased in favour of the rich and against the poor nations.
Reason(R) : WTO structure and agreements favour developed countries.
1) Both (A) and (R) are individually true and (R) is correct explanation of(A).
2) Both (A) and (R) are individually true but (R) is not the correct explanation of (A).
3) (A) is true but (R) is false.
4) (A) is false but (R) is true.

9. Which of the following are the serious concerns in WTO for developing nations including India for ‘AOA‘?
1) It does not address the food security issue in developing nations.
2) It legitimise various trade distorting practices of developed nations.
3) Both statements are true.
4) None of these.

10. Given the observations 73, 70, 87, 80, 90 and 85. The range coefficient is:
1) ¼
2) ½
3) 1/8
4) None of these

11. Which of the following are measured graphically by Lorenz Curve?
1) Dispersion
2) Standard deviation
3) Variance
4) All of these

12. The standard deviation for the first 10 natural numbers is:
1) 2.87
2) 2.0
3) 1.87
4) 0.87

13. Choose the correct answer:
1) Skewness is a pure number.
2) Skewness have some meaningful scale of measure.
3) Skewness is a pure number and skewness have some meaningful scale of measure both are true.
4) Skewness is a pure number and skewness have some meaningful scale of measure both are false.

14. In a frequency distribution, second, third and fourth moments about the mean are 3, 0 and 27, The frequency curve will be:
1) Normal
2) Lepto Kurtic
3) Platy Kurtic
4) None of these

15. Assertion(A) : Karl Pearson’s measure of skewness is called first measure of skewness. Reason(R) : Karl Pearson’s measure of skewness is based on Mean, Median and Mode.
1) Both (A) and (R) are correct and (R) is a correct explanation of(A).
2) Both (A) and (R) are correct but (R) is not a correct explanation of (A).
3) (A) is correct, but (R) is incorrect.
4) (R) is correct but (A) is incorrect.

16. Suppose ȣ is the correlation coefficient between
X and Y and ȣ = 0, then
1) X will be independent.
2) Y will be independent.
3) Both X and Y will be independent.
4) None of these.

17. The limits of rank correlation coefficient lies between:
1) 0 and 1
2) -∞ and +∞
3) -1 and +1
4) None of these.

18. Choose the correct answer for a straight line trend equation Y = a + bX :
1) a and b are constants.
2) X is the required trend value.
3) Y is a unit of time.
4) All of these.

19. If two events A and B are not mutually exclusive, then P(A or B) will be :
1) P(A) + P(B)
2) P(A) + P(B) – P(A and B)
3) P(A) + P(B) – P(A or B)
4) None of these.

20. The probability of event A, given event B is :
1) P(A / B) = P(A and B) / P(B)
2) P(A / B) = P(A or B) /P(B)
3) P(A / B) I P(A or B) / P(A)
4) None of these.

21. Binomial distribution is :
1) A probability distribution.
2) Also known as Bernouli distribution.
3) Both (A probability distribution) and (Also known as Bernauli distribution) are true.
4) Both (A probability distribution) and (Also known as Bernauli distribution) are false.

22. The mean of the Poisson distribution is 2.25. The value of Variance is
1) 2.25
2) 1.5
3) 22.5
4) None of these

23. Type II error is defined as :
1) Accept Ho when it is true.
2) Accept Ho when it is false.
3) Reject Ho when it is true.
4) Reject Ho when it is false.

24. Which of the following denotes the power of the test where α is probability of Type I error and β is probability of Type II error?
1) α
2) β
3) 1- α
4) 1- β

25. Which one of the following is not the property of t – distribution?
1) – 1 ≤ t ≤ 1
2) Mean = 0
3) t – distribution is symmetrical.
4) The Variance oft – distribution approaches to one as sample size increases

26. Which one of the method is not appropriate to measure cyclical variations?
1) Moving Averages Method.
2) Residual Analysis Method.
3) Harmonic Analysis.
4) Direct Analysis.

27. Analysis of Variance technique was developed by:
1) Karl Pearson
2) R.A. Fisher
3) W.S. Gosset
4) Galileo

28. Which of the following are correct assumptions for analysis of Variance?
1) Normality and Homogeneity.
2) Independence of error.
3) Both (Normality and Homogeneity) and (Independence of error).
4) None of these.

29. Properties of a good estimator are:
1) Unbiasedness and Efficiency.
2) Homogeniety.
3) Both (Unbiasedness and Efficiency) and (Homogeniety).
4) None of these.

30. Choose the correct answer:
1) Determinant is defined for square matrix.
2) Determinant is defined for Identity matrix.
3) Value of Identity determinant is Zero.
4) All of these.

31. Which one of the following is not correct for the linear programming problem?
1) Objective function is linear.
2) Variables are non-negative.
3) Prices are variable.
4) Linear relations in the problem.

32. Which of the following are correct for Input-Output Model?
1) Each Industry produces only one homogeneous output.
2) The determinant of the matrix must be non-negative.
3) All diagonal elements should be less than one.
4) All of these.

33. If supply function is P = 2x + 3, then what will he producer’s surplus at x=2?
1) 7
2) 4
3) 2
4) None of these

34. Which one of the following is not correct for merit goods?
1) The net Private benefit to the consumer is not fully recognized at the time of consumption
2) Consumption of Merit good generates an external benefit to others.
3) Healthcare and Education are merit goods.
4) The market of merit goods is an example of complete market.

35. Which of the following are characteristics of Public goods?
1) Non-rivalry
2) Non-excludability
3) Both (Non-rivalry) and (Non-excludability)
4) None of these

36. Which of the following is correct for Wagner’s Law:
1) There is a functional relationship between growth of the economy and government activities.
2) The law is related to rising public expenditure.
3) Both (There is a functional relationship between growth of the economy and government activities) and (The law is related to rising public expenditure) are true.
4) None of these.

37. Which one of the following is a Productive Public expenditure?
1) Defence Expenditure
2) Administration expenditure
3) Education expenditure
4) None of the above.

38. Which of the following is not related to the effect of Public expenditure on Production?
1) Ability to work.
2) Willingness to work.
3) Income Inequality.
4) Level and Pattern of the production.

39. Which one of the following is correct:
1) The impact and incidence of direct tax fall upon the person.
2) The impact and incidence of direct tax falls on the different persons.
3) The impact and incidence of indirect tax fall upon the same person.
4) Only (The impact and incidence of direct tax falls on the different persons) and (The impact and incidence of indirect tax fall upon the same person) are correct.

40. In which of the following conditions, the whole incidence of tax lies on the sellers?
1) Elasticity of demand = ∞ and Elasticity of supply = 0
2) Elasticity of demand = 0 and Elasticity of supply= ∞
3) Elasticity of supply > Elasticity of demand
4) Elasticity of demand > Elasticity of supply

41. The inverse relationship between tax revenue and tax rates is called:
1) Buoyancy of Tax
2) Elasticity of Tax
3) Laffer Curve
4) None of these.

42. As per the 14th Finance Commission Recommendation, the States’ share in the net proceeds of Union tax revenue is:
1) 40%
2) 32%
3) 38%
4) 42%

43. Arrange the following deficits as percentage of GDP in descending order:
A. Revenue deficit
B. Fiscal deficit
C. Primary deficit
1) B, C, A
2) B, A, C
3) C, B, A
4) A, B, C

44. Which one of the following combination of two deficits is most challenging for the Indian Economy?
1) Fiscal and Revenue deficits.
2) Revenue and Primary deficits.
3) Current account and Fiscal deficits.
4) Budget and Fiscal deficits.

45. Which one of the following is not relevant to Fiscal Policy?
1) Resource Mobilization.
2) Resource allocation
3) Equity
4) Exchange rate stability.

46. Factor Abundance is defined:
1) In terms of Physical Units.
2) In terms of Relative factor Prices.
3) Both (In terms of Physical Units) and ( In terms of Relative factor Prices) are wrong.
4) Both (In terms of Physical Units) and ( In terms of Relative factor Prices) are true.

47. Complete specialisation in Production refers :
1) Linear Production Possibility Frontier
2) Concave Production Possibility Frontier
3) Convex Production Possibility Frontier
4) None of these.

48. Autarky means:
1) The Absence of Trade.
2) Economic Isolation.
3) Both (The Absence of Trade) and (Economic Isolation) are wrong .
4) Both (The Absence of Trade) and (Economic Isolation) are true.

49. Which of the following statements are correct for comparative Advantage theory of International trade?
Statement A : Difference in tastes between two nations with identical production possibility curves leads mutually beneficial trade.
Statement B : Different production possibility curve with equal relative commodity prices in two nations lead no mutually beneficial trade.
1) Only Statement A is correct.
2) Only Statement B is correct.
3) Both Statements A and B are correct.
4) Neither statement A nor statement B are correct.

50. Which of the following is not the basis of trade in Heckscher-Ohlin theory of International trade?
1) Difference in relative factor endowments.
2) Difference in relative factor prices.
3) Difference in the economies of scale.
4) None of these.