Q1. When was the Indian Audit and Accounts Department created?
(a) 1850
(b) 1948
(c) 1950
(d) 1753
Q2. Identify the coefficient of price elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price:
(a) Equal to one.
(b) Greater than one.
(c) Smaller than one
(d) Zero.
Q3. If the price of Pepsi decreases relative to the price of Coke and 7-UP, the demand for:
(a) coke will decrease.
(b) 7-UP will decrease.
(c) coke and 7-UP will increase
(d) coke and 7-UP will decrease
Q4. ‘Closed Economy’ is that economy in which …………?
(a) Neither export nor import takes place
(b) Deficit financing takes place
(c) Only export takes place
(d) None of the above
Q5. The SDR was created by the IMF in ____________ as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system.
(a) 1945
(b) 1969
(c) 1980
(d) 1991
Q6. If a good is a luxury, its income elasticity of demand is:
(a) positive and less than 1.
(b) negative but greater than -1.
(c) positive and greater than 1.
(d) zero.
Q7. Consider the following two statements
1.The work of Which of the following corporations is fully audited by Comptroller and Auditor General of India (CAG) has more to do with auditing than being a comptroller, because many authorities and bodies can draw fund from the Consolidated Fund of India without having to require the permission of CAG
2. In Britain, the CAG has complete authority of that of a Comptroller as well, and all executive bodies require permission of CAG to draw money from the public fund.
Which of the above statements is/are true?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Q8. The price of hot dogs increases by 22% and the quantity of hot dogs demanded falls by 25%. This indicates that demand for hot dogs is:
(a) elastic.
(b) inelastic.
(c) unitarily elastic.
(d) perfectly elastic.
Q9. If the quantity demanded of mutton increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between mutton and chicken is
(a) -0.25
(b) 0.25
(c) -4
(d) 4
Q10. What is ‘Hawala’?
(a) Illegal transactions of foreign exchange
(b) Full details of a subject
(c) Illegal trading of shares
(d) Tax evasion
