Economics Quiz Questions
Q1. Which one of the following is correct for a normal distribution
(a) Standard deviation is maximum
(b) Quartire deviation is maximum
(c) Mean deviation is maximum
(d) Quartile deviation, standard deviation and mean deviation are equal
Answer: (a) Standard deviation is maximum
Q2. Which of the following is not a central problem of an economy
(a) What to produce
(b) How to produce
(c) For whom to produce
(d) Where to produce
Answer: (d) Where to produce
Q3. Who is known as the father of modern economics
(a) Thomas Robert Malthus
(b) Francois Quesnay
(c) Adam Smith
(d) David Ricardo
Answer: (c) Adam Smith
Q4. The critical minimum effort theory is associated with the name
(a) W A Lewis
(b) D Ricardo
(c) H Leibenstein
(d) A D Hirschman
Answer: (c) H Leibenstein
Q5. The "Absorption Approach" analysing the effects of devaluation has been developed by
(a) C P Kindleberger
(b) B Soderston
(c) T M Rybezynski
(d) Sidney Alexander
Answer: (d) Sidney Alexander
Q6. The Physical Quality of Life Index was calculated for the first time by
(a) A Lewis
(b) P Samuelson
(c) Morris D Morris
(d) E E Hagen
Answer: (c) Morris D Morris
Q7. If nominal GDP is equal to real GDP, then
(a) The GDP deflator is equal to zero
(b) The GDP deflator is equal to one
(c) The GDP deflator is less than one
(d) None of the above
Answer: (b) The GDP deflator is equal to one
Q8. The National Income is equal to
(a) Net National Product + Taxes
(b) Net National Product – Indirect Taxes + Subsidies
(c) Net National Product – Direct Taxes + Subsidies
(d) Gross National Product — Subsidies + Taxes
Answer: (b) Net National Product – Indirect Taxes + Subsidies
Q9. The difference between gross domestic product and net domestic product equals
(a) Transfer payments
(b) Indirect taxes
(c) Subsidies
(d) Depreciation cost
Answer: (d) Depreciation cost
Q10. In macroeconomics disposable income refers to
(a) Income after taxes and transfers
(b) After - tax income
(c) Income spend on consumer durable items
(d) Income over and above cost of necessities
Answer: (b) After - tax income
Q11. An emprical study on relationship between the rate of money wage rate increase and rate of unemployment in the economy was given by
(a) A. W. Philips
(b) J. M. Keynes
(c) Adam Smith
(d) Karl Marx
Answer: (a) A. W. Philips
Q12. If the total expenditure on a commodity increases after a price increase the elasticity of demand is
(a) Greater than one
(b) Equal to one
(c) Less than one
(d) Infinite
Answer: (c) Less than one
Q13. In the Cobb-Douglas production function the elasticity of substitution between factors is
(a) Zero
(b) Equal to one
(c) Greater than one
(d) Less than one
Answer: (b) Equal to one
Q14. In economic theory the term "ceteris paribus" is used to indicate
(a) Demand and supply are equal
(b) MR = MC
(c) Price are increasing
(d) Other things being equal
Answer: (d) Other things being equal
Q15. Rational Expectation Theory is associated with
(a) Hicks
(b) Romer
(c) Lucas
(d) None of the above
Answer: (c) Lucas
Practice Test Exam