Economics MCQ Quiz Hub

1. Which of the following is closest to the concept of economic production?
Sale of goods and services for profit
Manufacture of goods
Addition to the value of commodities
Addition to the stock of goods and services for future use

2. Which of the following is a characteristic feature of a modern economy?
Predominance of agriculture
Self-sufficient village economy
Diversity in production of commodities
Static technology

3. Identify economic stock from among the following:
Depreciation of machinery
Production of food grains during the Kharif season
Purchase of food grains by a household
Bank deposit of a household

4. Which of the following is an economic flow?
National capital
Demand for machinery
Current account of a household in a bank
Population of a country

5. A closed economy is one which:
Does not trade with other countries
Does not possess any means of international transport
Does not have a coastal line
Is not a member of the United Nations Organisation

6. The traditional economy is characterised by:
Division of labour and specialisation
Organisation of production for self-consumption
Capital-intensive process of production
Increasing state intervention

7. Who among the following is a non-resident of India?
A person of Indian origin working at the World Bank Washington DC
A person of Indian origin employed in the UNO office at New Delhi
The Indian manager of the Punjab National Bank branch office in London
An Indian tourist in Europe

8. Purchase of a ceiling fan by a household is treted in national income accounting as a part of:
Capital formation
Consumption over a long period of time
Consumption at the time of its purchase
Intermediate consumption

9. Corporate enterprises refer to:
Business houses maintaining a separate profit and loss account
Business houses that obtain loans from a bank
Business houses that obtain loans from the public
Business houses that are independent of their owners

10. Which of the following is not a corporate enterprise?
Food Corporation of India
Municipal Corporation of Delhi
Tata Iron and Steel Company
Life Insurance Corporation of India

11. Departmental enterprises are a part of the:
General government
Corporate sector
Non-profit public institutions
Non-profit institutions serving households

12. Which of the following is a departmental enterprise of the Government of India?
Reserve Bank of India
Indian Oil Corporation
Indian Railways
Food Corporation of India

13. In which of the following sectors does production for self-consumption generally take place?
Government administrative enterprises
Private corporate sector
Non-departmental public enterprises
House-holds

14. Subsistence production refers to:
Production for self-consumption only
Production of necessities of life
Exports equaling imports
Low levels of production

15. Collective wants include:
Sum total of all goods and services wanted by individuals
Goods like refrigerators shared by members of a family
Newspapers
Defence of a country

16. Which of the following are durable use producer-goods?
Fertilisers
Tractors
Diesel oil
Fodder for cattle

17. Demand for intermediate consumption arises in:
Consumer households
Government enterprises only
Corporate enterprises only
All producing sectors of the economy

18. Expenditure on the purchase of new replacement parts of machinery installed by a firm is part of:
Fixed capital formation
Consumption of capital
Intermediate consumption
Final consumption

19. Which of the following is an expenditure on intermediate consumption?
Purchase of coal by a steel factory
Purchase of coal by a dealer in coal
Purchase of coal by a household
All of the above

20. Demand for final consumption arises in:
Household sector only
Government sector only
Both (a) & (b)
All sectors

21. Which of the following activities of a farmer is an example of intermediate consumption?
Purchase of tractor
Payment of interest to a co-operative bank
Electricity charges for operating a pump
Wages paid to workers at harvesting time

22. Imputed rental value of owner occupied dwellings is a part of:
Intermediate consumption
Capital formation
Final consumption
Expenditure on consumer durably

23. Sale of old newspapers by a household is a part of:
Net final consumption expenditure of the household
Value added by the household sector
Capital formation
Transfer payments

24. Which of the following constitutes a part of domestic fixed capital formation?
Net purchase of second-hand assets by corporate enterprises
Net purchase of second-hand physical assets from abroad
Expenditure on new parts of physical assets
Accumulation of stocks of fertilisers

25. Purchases made by the US Embassy in India are part of:
Net factor earnings from abroad
Transfer payments
Domestic consumption expenditure
Exports from India to the USA

26. Direct purchases abroad made by the government on current account are a part of:
Final consumption
Investments
Net factor payments abroad
Current transfers from the rest of the world

27. Which of the following is not a part of net investment in an economy?
Purchase of old shares
Purchase of a wall-clock by a factory
Purchase of wall-clock by a household
Increasing the storage of raw materials

28. Which of the following is included in the consumption of fixed capital?
Fall in the price of machinery and other stocks
Expenditure on repairs and maintenance
Destruction of buildings in an earthquake
Normal wear and tear machinery while in use

29. Gross domestic fixed-capital formation does not include:
Net purchase of second hand machinery by private corporate sector from Government
Net imports of second-hand machinery from abroad
Own account production of news assets
Construction of new roads and bridges

30. Value of output differs from the value added by the amount of:
Indirect taxes
Wages and Salaries
Intermediate consumption
Gifts received from abroad

31. The gross fixed investment in an economy during a year is Rs. 200 Crore. The economy possessed Rs 1200 Crore worth of fixed capital at the beginning of the year and the rate of depreciation is 10% per annum. What is the net value of fixed capital stock held at the end of the year?
Rs 1600 crore
Rs 920 crore
Rs 1280 crore
Rs 1200 crore

32. In consumption of capital is equal to gross fixed investment then:
Net investment is zero
Net investment is negative
Net investment is positive
National income is constant

33. Which of the following constitutes an investment by a household?
Purchasing a washing machine
Painting a house
Purchasing a new house
Purchasing a new car

34. Net value added is equal to:
Payments accruing to factors of production
Compensation of employees
Wages plus rent plus interest
Value of output minus depreciation

35. Addition to the stocks of food grains by the Food Corporation of India is a part of:
Net fixed investment
Net revenue of the Government sector
Gross capital formation
Final consumption

36. Mixed income of the self-employed means:
Gross profits received by a proprietorship
Rent interest and profit of an enterprise
Combined factor payments which are not distinguishable
Wages due to family workers

37. Operating surplus implies:
Gross value added minus profits
Net income from property and entrepreneurship
Net profits of public enterprises
Part of profits which are reinvested

38. Operating surplus arises in:
Government sector only
Household sector only
Public enterprises only
All producing enterprises in the corporate sector

39. Operating surplus differs from net value added by the amount of:
Compensation of employees
Net indirect taxes
Consumption of fixed capital
Dividends

40. dentify the item which is not a factor payment:
Free uniforms to defence personnel
Salaries and allowance to the members of Parliament
Imputed rent of an owner-occupied building
Scholarships given to scheduled caste students

41. Which of the following is an example of factor-income from abroad?
Interest earned by a non-resident Indian on his bank account in India
Export of handicrafts from India to the UK
Money sent by an engineer employed in London to his family in Delhi
Profits earned by a branch of the State Bank of India in London

42. Transfer payments refer to payments which are made:
Without any exchange of goods and services
To workers on transfer from one job to another
As compensation of employees
None of the above

43. Personal disposable income is:
Always equal to personal income
Always more than personal income
Equal to personal income minus direct taxes paid by household
Equal to personal income minus indirect taxes

44. If during a year the national income at constant prices goes up by 5% while prices also rise by 5% and population registers a growth of 2% then the real per capita income will:
Remain constant
Rise by 2%
Decrease by 3%
Increase by 3%

45. National income estimates of India are published both at current and constant prices. What is the base year for constant price estimates published at present?
1960-61
1970-71
1980-81
1985-86

46. The national income accojnts direct personal taxes are recorded as:
Receipts of the government sector and payments of the corporate sector
Receipts of the government sector and payments of the household sector
Transfer from the household sector to the government sector
Disbursements of the government sector

47. For which of the following sectors is the income method used for estimation of national income of Pakistan?
Agriculture and allied activities
Pushing
Forestry
Banking and insurance

48. Identify the sector in respect of which the expenditure method is used for estimating national income in India:
Registered manufacturing
Construction
Public administration and defence
Real estate ownership of dwellings and business services