Economics MCQs and Answers: Economics are very important for OPSC, OSSC, OSSSC & Other State Exams. Aspirants who are willing to apply for the various Government exams in 2022 must go through the topics of Economics for competitive exams, as Economics is a key part of the syllabus.
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Q1. Atal BhujalYojana (ABY) is related to______
(a) Ground water
(b) Climate change
(c) Organic farming
(d) Employment
S1. Ans.(a)
Sol.Atal BhujalYojana is a groundwater management scheme launched by Prime Minister Narendra Modi on the 95th birth anniversary of former Prime Minister Atal Bihari Vajpayee, on 25 December 2019.
Q2. The basis of determining dearness allowance to employees in india is?
(a) national income.
(b) consumer price index,
(c) standard of living.
(d)Inflation rate.
S2. (d)
Sol.
- Dearness allowance is certain percentage of salary to mitigate the impact of inflation calculated as a percentage of salary.
Q3. Which of the following amendment is related to the formation of cooperative societies?
(a) 97th Amendment Act, 2011
(b) 42nd Amendment Act, 1976
(c) 44th Amendment Act, 1974
(d) 86th Amendment Act, 2002
S3. Ans.(a)
Sol. The 97th Constitutional Amendment Act of 2011 gave constitutional status and protection to co-operative societies.
Q4.For a goods negative income elasticity and positive price elasticity of demand , then the good is?
(a) An inferior goods.
(b) Normal goods.
(c) superior goods.
(d)Giffen goods.
S4. (d)
Sol.
- Giffen goods are those goods whose consumption increases as the price rises.
Q5. The world wide great depression took place in?
(a) 1936.
(b) 1929.
(c) 1928.
(d)1930.
S5. (b)
Sol.
- Great depression was depression in economic activities all around the world.
- It is originated in United States with severe fall in price of stock later it spread all over the world.
- It occurred in 1929.
Q6.When there is a change in demand leading to a shift of the demand curve to the right at the same price as before, the quantity demanded will?
(a)Decreases.
(b)increases.
(c) Remain the same.
(d) contract.
S6. (b)
Sol.
- When there is change in demand leading to shifting of demand curve to right keeping price at same , quantity demanded will increase.
Q7.The capital of IMF is made up by the contribution of?
(a) Credit.
(b)Deficit financing.
(c) member Nations.
(d) Borrowings.
S7. (C)
Sol.
- IMF’S capital is formed by the contribution of member Nations.
- At present IMF has 189 member countries.
Q8.The views of eminent economist Robert malthus on population is?
(a) Pessimistic.
(b)optimistic.
(c) Both a and b.
(d)None of the above.
S8. (a)
Sol.
- The population theory of malthus has pessimistic views.
- According to his theory human population grows exponentially while food product grows with arithmetic rate.
Q9. If the change in demand for a commodity is at a Faster rate than change in the price of the commodity, the demand is?
(a) Perfectly inelastic.
(b)Elastic.
(c) Perfectly elastic.
(d)Â Inelastic.
S9. (b)
Sol.
- Elasticity is responsiveness to the change in demand of commodity due to change in it’s price.
Q10. The law of diminishing returns applies to?
(a) All sectors.
(b) Industrial sector.
(c) Agriculture sector.
(d) service sector.
S10. (a)
Sol.
- Law of diminishing returns State that in all the process of production adding one more unit’s of factors of production will at some point yield lower per unit returns.
Q11. Insure payment of minimum wages for tea leave pickers?
(a) will improve quality of tea.
(b) will reduce unemployment of tea leave pickers.
(c) Decreases unemployment.
(d)will increase picking cost for all tea companies.
S11. (d)
Sol.
insuring minimum floor wage directly impacts current wages usually by increase in wages.
Q12. Taxes on professions can be levied by?
(a)State government only.
(b)Both by State government and union government.
(c)By panchayats only.
(d)union government only.
S12. (a)
Sol.
- Professional tax is tax levied by State government on all persons who practice any profession.
Q13. Quasi rent is a phenomenon?
(a) Medium.
(b) Long term.
(c) short term.
(d)No time.
S13. (C)
Sol.
- Quasi rent is a term in Economic’s that describes certain types of returns to firm. It is a temporary phenomenon.
Q14.In the short run , when the output of a firm increases , it’s average fixed cost?
(a) Remains constant.
(b) Decreases.
(c)Increases.
(d)First decreases and the rises.
S14. (a)
Sol.
- When the output increases, being fixed cost constant average fixed cost decreases.
Q15. Which one of the following pairs of goods is an example for joint supply?
(a)coffee and tea.
(b)ink and pen.
(c)tooth brush and paste.
(d)wool and mutton.
S15. (d)
Sol.
- Joint supply is when a product that yield more than one output. Best suitable example for this is livestock industry like sheep giving meat as well as wool.
