If Receipts and Expenditures of the Central Government as per Budget 2016-17 are as given below
1. Revenue Receipts - 1374203
2. Tax Revenue - 1101372
3. Non-Tax Revenue - 272831
4. Capital Receipts - 600991
5. Recovery of Loans - 17630
6. Other Receipts - 47743
7. Borrowings and Other Liabilitites - 535618
8. Expenditure On Revenue Account of which - 1690584
9. Interest Payments - 480714
10. Grants in Aid for creation of capital assets - 165733
11. Expenditure On Capital Account - 284610
Find
1. Total Receipts
a. 1374203
b. 1690584
c. 1975194
d. 2075416
2. Total Expenditure
a. 1374203
b. 1690584
c. 1975194
d. 2075416
3. Revenue Deficit
a. 54904
b. 150648
c. 316381
d. 535618
4. Effective Revenue Deficit
a. 54904
b. 150648
c. 316381
d. 535618
5. Fiscal deficit
a. 54904
b. 150648
c. 316381
d. 535618
6. Primary Deficit
a. 54904
b. 150648
c. 316381
d. 535618
Solution
1. c
Total Receipts = Revenue Receipts + Capital Receipts
= 1374203 + 600991
= 1975194
2. c
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 1690584 + 284610
= 1975194
3. c
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 1690584 - 1374203
= 316381
4. b
Effective Revenue Deficit = Revenue Deficit - Grants in Aid for creation of capital assets
= 316381 - 165733
= 150648
5. d
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings and other liabilities (Revenue Receipts + Recovery of Loans + Other Receipts)
= 1975194 - (1374203 + 17630 + 47743)
= 535618
6. a
Primary Deficit = Fiscal deficit - Interest payments
= 535618 - 480714
= 54904
The formula for average fixed costs is ......
a. TFC/Q
b. DQ/DFC
c. Q/TFC
d. TFC - Q
Implicit costs are ......
a. equal to total fixed costs
b. comprised entirely of variable costs
c. payments for self employed resources
d. always greater in the short run than in the long run
Forecasts are usually classified by time horizon into three categories they are ......
a. short range, medium range and long range
b. finance/accounting, marketing and operations
c. strategic, tactical and operational
d. exponential smoothing, regression and time series
The short run is a time period in which ......
a. all resources are fixed
b. the level of output is fixed
c. the size of the production plant is variable
d. some resources are fixed and others are variable
When the total product curve is falling, ......
a. marginal product curve is zero
b. marginal product curve is negative
c. average product is increasing
d. average product is negative
Variable costs are ......
a. Sunk costs
b. Multiplied by fixed cost
c. Cost that change with the level of production
d. the change in total cost resulting from the production of an additional unit of output
Money paid to an unskilled labour is called ......
a. Wages
b. Salary
c. Royalty
d. None
Marginal cost curve cuts the average cost curve ......
a. at the left of its lowest point
b. at its lowest point
c. at the right of its lowest point
d. at its highest point
What are homogenous products?
a. Undifferentiated products
b. Differentiated products
c. Both (a) and (b)
d. None
If firms can neither enter nor leave an industry, the relevant time period is the ......
a. Short run
b. Intermediate run
c. Long run
d. Immediate run
RBI regulates the money supply, availability of money and also cost of money i.e. rate of interest.
RBI makes use of a no. of tools for this purpose that include Repo Rate, Bank Rate, Reverse Repo Rate, MSF Rate, Statutory Liquidity Ratio, Cash Reserve Ratio, Market Stabilization Scheme. Answer the following questions based on the above information.
1. Which of the following is not used in the process of neutralizing the effect of liquidity generated by foreign exchange flows in India? (i) Repo and Reverse repo, (ii) CRR/SLR, (iii) Market Stablization Scheme
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.........................................
2. Change in which of the following need not reduce the funds available with banks for lending purpose? (i) Cash reserve Ratio, (ii) Bank rate, (iii) Repo rate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.........................................
3. Which of the following do not ensure the solvency of commercial banks? (i) SLR, (ii) CRR, (iii) Repo and Reverse repo
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - c
.........................................
4. For rediscounting of commercial instruments from banks, RBI does not use the ...... (i) Cash reserve Ratio, (ii) Bank rate, (iii) Repo rate
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
.........................................
Solution
1. c
Total Receipts = Revenue Receipts + Capital Receipts
= 1725738 + 716475
= 2442213
2. d
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 2141772 + 300441
= 2442213
3. a
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 2141772 - 1725738
= 416034
4. b
Effective Revenue Deficit = Revenue Deficit - Grants in Aid for creation of capital assets
= 416034 - 195345
= 220689
5. c
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings (Revenue Receipts + Recovery of Loans + Other Receipts)
= 2442213 - (1725738 + 12199 + 80000)
= 624276
6. d
Primary Deficit = Fiscal deficit - Interest payments
= 624276 - 575795
= 48481
The supply of a product does not depend on ......
a. labour costs
b. the number of sellers in the market
c. consumers tastes
d. existing technology
Ans - c
Passive factor of production is ......
a. only land
b. only capital
c. both land and capital
d. neither land nor capital
Ans - c
Reasons for increasing return in stage I of law of variable proportion is ......
a. Indivisibility
b. Specialisation
c. both a and b
d. none of the above
Ans - c
Positive Science concern with economics analysis ......
a. Cause relationship
b. Effect Relationship
c. Cause and Effect relationship
d. None of the above
Ans - c
The supply of a product does not depend on ......
a. labour costs
b. the number of sellers in the market
c. consumers tastes
d. existing technology
Ans - c
...... is the remuneration for organisation
a. rent
b. wages
c. interest
d. profit
Ans - d
Given,
Currency with public - Rs. 345000 Crores
Demand deposit with banking system - Rs. 380000 Crores
Time deposits with banking system - Rs. 425000 Crores
Other deposit with RBI - Rs. 465000 Crores
Savings deposit of post office savings banks - Rs. 160000 Crores
All deposit with post office savings bank excluding NSCs - Rs. 110000 Crores
Calculate M1.
a. Rs. 1125000 Crores
b. Rs. 1190000 Crores
c. Rs. 1350000 Crores
d. Rs. 1615000 Crores
Ans - b
.............................................
Calculate M2.
a. Rs. 1125000 Crores
b. Rs. 1190000 Crores
c. Rs. 1350000 Crores
d. Rs. 1615000 Crores
Ans - c
.............................................
Calculate broad money M3.
a. Rs. 1125000 Crores
b. Rs. 1190000 Crores
c. Rs. 1350000 Crores
d. Rs. 1615000 Crores
Ans - d
.............................................
Solution :
M1 = currency with public + demand deposit with the banking system + other deposits with RBI
M1 = 345000 + 380000 + 465000
M1 = 1190000
M2 = M1 + Savings deposit of post office savings banks
So,
M2 = 1190000 + 160000
M2 = 1350000 Crores
M3 = M1 + Time deposit with banking system
So,
M3 = 1190000 + 425000
M3 = 1615000 Crores
Anandrao Gaikwad:
ABM
According to Marshall, the basis of consumer surplus is—
a. Law of diminishing marginal utility.
b. Law of equi-marginal utility
c. Law of proportions
d. All of the above
Ans. a
ABM
Under law of demand—
a. Price of commodity is an independent variable
b. Quantity demanded is a dependent variable
c. Reciprocal relationship is found between price and quantity demanded
d. All of the above.
Ans . D
ABM
An increase in the Bank Rate generally indicates that the
a.market rate of interest is likely to fall
b.Central Bank is no longer making loans to commercial banks
c.Central Bank is following an easy money policy
d.Central Bank is following a tight money policy.
Ans.d
ABM
Monetary policy affects
a.inflation only
b.output only
c.both inflation and output.
d.neither inflation nor output
And.c
ABM
National Income estimates in India is prepared by
a. RBI
b. Central Statical Organization.
c. Finance Ministry
d. Planning Commission
And.b
ABM
The rate of interest is 8% and compounding is semi-annual, what will be effective interest rate:
a: 8%
b: 8.16%
c: 8.25%.
d: 8.32%
Ans- b
Solution
Effective int rate=(1+r/n)^n-1
ROI =08/2=4
here quarterly (1.04/2)^2-1*100
=1.0816-1*100
=0.0816*100
=8.16%
Murugan:
If Receipts and Expenditures of the Central Government, 2017-18 (As per cent of GDP) are as given below
1. Revenue Receipts (a+b) - 8.7
(a) Tax revenue (net of states share) - 7.3
(b) Non-tax revenue - 1.4
2. Revenue Expenditure of which - 12.3
(a) Interest payments - 3.1
(b) Major subsidies - 2.4
(c) Defence expenditure - 1.1
3. Capital Receipts (a+b+c) of which - 5.2
(a) Recovery of loans - 0.2
(b) Other receipts (mainly PSU disinvestment) - 0.3
(c) Borrowings and other liabilities - 4.7
4. Capital Expenditure - 1.6
Find
1. Total Receipts
a. 4.7
b. 5.2
c. 8.7
d. 13.9
2. Total Expenditure
a. 1.6
b. 5.5
c. 12.3
d. 13.9
3. Revenue Deficit
a. 1.6
b. 3.6
c. 4.7
d. 8.7
4. Fiscal deficit
a. 1.6
b. 3.6
c. 4.7
d. 8.7
5. Primary Deficit
a. 1.6
b. 3.6
c. 4.7
d. 8.7
Solution
1. d
Total Receipts = Revenue Receipts + Capital Receipts
= 8.7 + 5.2
= 13.9
2. d
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 12.3 + 1.6
= 13.9
3. b
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 12.3 - 8.7
= 3.6
4. c
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings and other liabilities
= 13.9 - (8.7 + 0.2 + 0.3)
= 13.9 - 9.2
= 4.7
5. a
Primary Deficit = Fiscal deficit - Interest payments
= 4.7 - 3.1
= 1.6
.............................................
...... input factor is divided as skilled, semiskilled, unskilled
a. land
b. capital
c. Technology
d. labour
Ans - d
In the Law of variable proportion when TP is maximum then the MP = ......
a. MP = 1
b. MP < 0
c. MP = 0
d. MP > 1
Ans - c
Cobb Douglas production function mainly studies ......
a. capital and labour
b. labour and expenditure
c. land and labour
d. land and capital
Ans - a
Marginal cost is defined as ......
a. change in total cost due to change in output
b. total cost divided by output
c. change in output due to a change in an input
d. total product divided by the quantity of input
Ans - a
Which of the following is not correct?
a. TC = TFC+TVC
b. TFC=TC-TVC
c. TVC=TC-TFC
d. None of the above
Ans - d
The existence of both public and private sector enterprises constitutes ......
a. capitalist economy
b. Mixed economy
c. Socialist economy
d. None of the above
The existence of both public and private sector enterprises constitutes ......
a. capitalist economy
b. Mixed economy
c. Socialist economy
d. None of the above
Ans - b
Sales Maximisation is suitable for ...... market
a. oligopoly
b. duopoly
c. Monopoly
d. Monopsony
Ans - a
When we know the quality of a product that buyers wish to purchase at each possible price, we know ......
a. Demand
b. Supply
c. Excess demand
d. Excess supply
Ans - a
For inferior commodities income effect is ......
a. zero
b. negative
c. infinite
d. positive
Ans - b
While releasing the data relating to inflation increased by the Govt, it is observed that
1) The consumer price index based inflation increased to 11% and
2) Whole sale price index based inflation increased to 8%
3) The govt. claims that due to implementation of Banks Bi-partite Settlement, there is increase in demand of goods and services leading to increase in consumer prices.
4) Further due to increased wages and salaries, there is increase in cost of inputs leading to increase in whole-sale price index.
Answer the following questions, based on the above information.
1. The inflation caused by the the information given at point no.3 in the question, is not called as ...... (i) Core inflation, (ii) Demand Pull inflation (iii) Cost-push inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
2. The inflation rate of 8%, represented by the whole sale price, is called:
a. Core inflation
b. Headline inflation
c. Demand Pull inflation
d. Cost-push inflation
Ans - b
3. The inflation rate 11% represented by the consumer price, is called:
a. Core inflation
b. Headline inflation
c. Demand Pull inflation
d. Cost-push inflation
Ans - a
4. The inflation caused by the information given at point no.4 in the question, is not called as ...... (i) Core inflation, (ii) Demand Pull inflation (iii) Cost-push inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.........................................
Given,
Recoveries of loan and advance - Rs. 2500 Crores
Misc capital receipt - Rs. 400 Crores
Market loans - Rs. 500 Crores
Short term borrowings - Rs. 1000 Crores
External assistance (Net) - Rs. 600 Crores
State provident fund - Rs. 600 Crores
Other receipts (Net) - Rs. 1000 Crores
Securities issued against small savings - Rs. 500 Crores
Recoveries of short term loans and advances from states and loans to govt servants - Rs. 1000 Crores
Total Non Tax Revenue - Rs. 6000 Crores
Net Tax Revenue - Rs. 2500 Crores
Draw down cash balance - Rs. 4500 Crores
Calculate Debt Receipt ...
a. Rs 1900 Crores
b. Rs 4200 Crores
c. Rs 5400 Crores
d. Rs 6100 Crores
Ans - b
.............................................
Calculate Non Debt Receipt ...
a. Rs 1600 Crores
b. Rs 1900 Crores
c. Rs 4200 Crores
d. Rs 6100 Crores
Ans - b
.............................................
Calculate Capital Receipt ...
a. Rs 1900 Crores
b. Rs 2500 Crores
c. Rs 4200 Crores
d. Rs 6100 Crores
Ans - d
.............................................
Solution :
1. Debt Receipt = Market Loans + Short Term Borrowings + External assistance(NET) + Securities issued against Small savings + State provident fund + other Receipts(Net)
= 500 + 1000 + 600 + 500 + 600 + 1000
= 4200 Crores
2. Non Debt Receipt = Recoveries of loan & advances (deduct recoveries of short term loans & advance from state and loans to govt sarvants) + Misc Capital receipts
= (2500-1000)+400
= 1900 Crores
3. Capital Receipt = Debt Receipt + Non Debt Receipt
= 4200 + 1900
= 6100 Crores
When prediction about future is based on the asssumption that the firm does not change the course of its action is ...... forecast
a. Passive
b. Active
c. Short run
d. Long run
Ans - a
Which is not a determinant of demand?
a. income
b. the cost of inputs in production
c. the prices of related goods
d. future price expectations
Ans - b
The price elasticity of demand is the ......
a. percentage change in the price of one will decrease the demand for the other
b. an increase in the price of one will increase the demand for the other
c. a decrease in the price of one will increase the demand for the other
d. a decrease in the price of one will have no effect on the demand for the other
Ans - b
A market is said to be efficient ......
a. if quantity demanded and the quantity supplied are the same
b. if both consumer surplus and the producer surplus are maximised
c. if the sum of the producer surplus and the consumer surplus is maximised
d. both a and c
Ans - d
Business cycle also known as ......
a. trade cycle
b. contraction
c. expansion
d. upper tuning point
Ans - a
Which of the following best defines price discrimination?
a. Charging different prices on the basis of race.
b. charging different prices for goods with different cost of production
c. charging different prices based on cost of service difference
d. selling a certain product of given quality and cost per unit at different prices to different buyers
Ans - d
Which one is not collusive oligopoly ......
a. price leadership
b. market sharing cartel
c. price discrimination
d. price fixing cartel
Ans - b
In an oligopolistic market, there are ......
a. a large number of sellers and few buyers
b. few sellers and few buyers
c. few sellers and large number of buyers
d. only one seller
Ans - c
The contract notes that ate issued by Foreign Institutional Investors (FIIs) to their clients (notregistered with SEBI), investing in Indian stock market ......
a. Depository receipt
b. Derivative
c. Option
d. Participatory notes
When demand is elastic ......
a. a fall in price more than offset by an increase in quantity demanded, so that total revenur rises
b. the goods is probably a necessity, so price has little effect on quantity demanded
c. a rise in price will increase total revenue even though less is sold
d. buyers are not much influenced by prices of competing precedes
Ans - c
An increase in consumer income will increase demand for a ...... but decrease demand for a ......
a. substitute goods, inferior goods
b. normal goods, inferior goods
c. inferior goods, normal goods
d. normal goods, complementary goods
Ans - b
The demand for a good is highly inelastic if ......
a. theprice elasticity of the goods is close to zero
b. the income elasticity of the goods is close to one
c. if it is a necessity
d. both a and c
Ans - d
Calculate Inflation, if Price index in current year is 12 and price index in base year is 10.
a. 20
b. 25
c. 30
d. 35
Ans - a
solutions :
Inflation = (price index in current year-price index in base year)/(price index in base year)*100
= (12-10)/10*100
= 2/10*100
= 20
When chicken prices rise 30%, the quantity of KFC fried chicken supplied rises by 15%. Calculate the price elasticity of supply.
a. 0.50
b. 0.65
c. 0.75
d. 0.85
Ans - a
Solution :
B is the right ans.
Price Elasticity of Supply = (% change in quantity supplied) / (% change in price)
= 15/30 = 0.5
When the price of a commodity falls from Rs. 40 per unit to Rs. 32 per unit, the quantity supplied falls by 30%. Calculate the price elasticity of supply.
a. 1
b. 1.5
c. 2
d. 2.5
Ans - b
Solution :
Price Elasticity of Supply = (% change in quantity supplied) / (% change in price)
= 30/(40-32)*100/40
= 30/8*100/40
= 30/20
= 1.5
If Receipts and Expenditures of the Central Government as per Budget 2017-18 are as given below
1. Revenue Receipts - 1515771
2. Tax Revenue - 1227014
3. Non-Tax Revenue - 288757
4. Capital Receipts - 630964
5. Recovery of Loans - 11933
6. Other Receipts - 72500
7. Borrowings and Other Liabilitites - 546531
8. Expenditure On Revenue Account of which - 1836934
9. Interest Payments - 523078
10. Grants in Aid for creation of capital assets - 195350
11. Expenditure On Capital Account - 309801
Find
1. Total Receipts
a. 2075416
b. 2146735
c. 2345425
d. 2536289
2. Total Expenditure
a. 2075416
b. 2146735
c. 2345425
d. 2536289
3. Revenue Deficit
a. 546531
b. 321163
c. 125813
d. 23453
4. Effective Revenue Deficit
a. 546531
b. 321163
c. 125813
d. 23453
5. Fiscal deficit
a. 546531
b. 321163
c. 125813
d. 23453
6. Primary Deficit
a. 546531
b. 321163
c. 125813
d. 23453
Solution
1. b
Total Receipts = Revenue Receipts + Capital Receipts
= 1515771 + 630964
= 2146735
2. b
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 1836934 + 309801
= 2146735
3. b
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 1836934 - 1515771
= 321163
4. c
Effective Revenue Deficit = Revenue Deficit - Grants in Aid for creation of capital assets
= 321163 - 195350
= 125813
5. a
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings and other liabilities (Revenue Receipts + Recovery of Loans + Other Receipts)
= 2146735 - (1515771 + 11933 + 72500)
= 546531
6. d
Primary Deficit = Fiscal deficit - Interest payments
= 546531 - 523078
= 23453
A perfectly inelastic demand curve ......
a. is a vertical line parallel to Y axis
b. is a vertical line parallel to X axis
c. indicates a good with no close substitutes
d. a and c
Ans - d
Forecasts used for new product planning, capital expenditure, facility location or expansion and R&D typically utilize a ......
a. short range time horizon
b. medium range time horizon
c. long range time horizon
d. naive method, because there is no data history
Ans - c
Which of the following uses three types of participants: decision makers, staff personnel and respondents?
a. executive opinions
b. sales force composites
c. the Delphi method
d. consumer surveys
Ans - d
Forecasts used for new product planning, capital expenditure, facility location or expansion and R&D typically utilize a ......
a. short range time horizon
b. medium range time horizon
c. long range time horizon
d. naive method, because there is no data history
Ans - c
Which of the following uses three types of participants: decision makers, staff personnel and respondents?
a. executive opinions
b. sales force composites
c. the Delphi method
d. consumer surveys
Ans - d
The forecasting model that the opinions of a group of experts or managers is known as ......
a. sales force composition model
b. multiple regression
c. jury of executive model
d. consumer market survey model
Ans - c
Which of the following techniques uses variables such as price and promotional expenditures, which are related to the product demand, to prredict demand?
a. Associative models
b. exponential smoothing
c. weighted moving average
d. simple moving average
Ans - b
A positive cross elasticity of demand coefficient indicates that ......
a. a product is an inferior good
b. a product is a normal goods
c. two products are substitutes
d. two products are complementary
Ans - c
By using the monetary policy, RBI regulates the money supply, availability of money and also cost of money i.e.rate of interest. For this purpose, RBI makes use of no. of tools that include Repo Rate, Bank Rate, Reverse Repo Rate, MSF Rate, SLR, CRR, Market Stabilization scheme.
Based on this information answer the following question:
1. Which of the following ensures the solvency of commercial banks ?
a. Statutory Liquidity Ratio
b. Market Stablization Scheme
c. Cash Reverse Ratio
d. Repo and Reverse repo transaction
Ans - a
2. Change in which of the following reduce the funds available with banks for lending purpose ?
a. Repo rate
b. Bank rate
c. Cash reverse Ratio
d. All the above
Ans - c
3. The rate of discount which is used by RBI for rediscounting of commercial instruments from banks is represented by ......
a. Repo rate
b. Bank rate
c. MSF rate
d. Reverse Repo rate
Ans - b
4. Which of the following is used in the process of neutralizing the effect generated by foreign exchange flows in india ?
a. Statutory Liquidity Ratio
b. Market Stablization Scheme
c. Cash Reverse Ratio
d. Repo and Reverse repo transaction
Ans - b
........................................
Tea and coffee are ...... goods
a. substitutes
b. complementary
c. producers
d. none of the above
Ans - a
In cross elasticity of demand, for unrelated goods the demand curve will be ......
a. Horizontal straight line
b. rectangular hyperbola
c. vertical line
d. none of the above
Ans - c
Deflation means ......
a. More money less value
b. less money high value
c. more money more value
d. less money less value
Ans - b
When the rise in price is very slow like that of a creeper it is called ......
a. Walking inflation
b. Creeping Inflation
c. Running Inflation
d. True Inflation
Ans - b
The instruments of monetary policy are ......
a. Qualitative
b. Quantitative
c. Qualitative and Quantitative
d. None
Ans - c
At Rs. 30 demand for sugar is 500 Kg. When the price falls to Rs. 24, the demand increases to 600 Kg. The price elasticity of demand of sugar is ......
a. 2
b. 2.5
c. 1
d. 1.5
Ans - c
Solution :
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
% Change in Quantity Demanded = 100/500*100 = 20
% Change in Price = 6/30*100 = 20
Price Elasticity of Demand = 20/20 = 1
When chicken prices rise 40%, the quantity of KFC fried chicken supplied rises by 20%. Calculate the price elasticity of supply.
a. 0.25
b. 0.50
c. 0.75
d. 0.85
Ans - b
Solution :
Price Elasticity of Supply = (% change in quantity supplied) / (% change in price)
= 20/40 = 0.5
Demand for a product at Rs. 10 per unit is 400. If the price elasticity of demand is 1, how much the demand will be at Rs. 16 per unit?
a. 240
b. 200
c. 160
d. 120
Ans - c
Solution :
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
% Change in Quantity Demanded = 400-x/400*100 = (400-x)/4
% Change in Price = 6/10*100 = 60
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
1 = ((400-x)/4)/60
60 = (400-x)/4
240 = 400-x
x = 400-240
x = 160
A graph showing all the combination of capital and labour available for a given total cost is the ......
a. isoquant
b. budget constraint
c. isocost line
d. expenditure set
Ans - a
...... costs are business costs which do not involve any cash payments but for them a provision is made in accounts
a. private cost
b. social cost
c. accounting cost
d. book cost
Ans - d
If Receipts and Expenditures of the Central Government as per Budget 2018-19 are as given below
1. Revenue Receipts - 1725738
2. Tax Revenue - 1480649
3. Non-Tax Revenue - 245089
4. Capital Receipts - 716475
5. Recovery of Loans - 12199
6. Other Receipts - 80000
7. Borrowings and Other Liabilitites - 624276
8. Expenditure On Revenue Account of which - 2141772
9. Interest Payments - 575795
10. Grants in Aid for creation of capital assets - 195345
11. Expenditure On Capital Account - 300441
Find
1. Total Receipts
a. 2075416
b. 2146735
c. 2442213
d. 2536289
2. Total Expenditure
a. 2075416
b. 2146735
c. 2345425
d. 2442213
3. Revenue Deficit
a. 416034
b. 220689
c. 624276
d. 48481
4. Effective Revenue Deficit
a. 416034
b. 220689
c. 624276
d. 48481
5. Fiscal deficit
a. 416034
b. 220689
c. 624276
d. 48481
6. Primary Deficit
a. 416034
b. 220689
c. 624276
d. 48481
Solution
1. c
Total Receipts = Revenue Receipts + Capital Receipts
= 1725738 + 716475
= 2442213
2. d
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 2141772 + 300441
= 2442213
3. a
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 2141772 - 1725738
= 416034
4. b
Effective Revenue Deficit = Revenue Deficit - Grants in Aid for creation of capital assets
= 416034 - 195345
= 220689
5. c
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings (Revenue Receipts + Recovery of Loans + Other Receipts)
= 2442213 - (1725738 + 12199 + 80000)
= 624276
6. d
Primary Deficit = Fiscal deficit - Interest payments
= 624276 - 575795
= 48481
Solution
1. c
Total Receipts = Revenue Receipts + Capital Receipts
= 1725738 + 716475
= 2442213
2. d
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 2141772 + 300441
= 2442213
3. a
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 2141772 - 1725738
= 416034
4. b
Effective Revenue Deficit = Revenue Deficit - Grants in Aid for creation of capital assets
= 416034 - 195345
= 220689
5. c
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings (Revenue Receipts + Recovery of Loans + Other Receipts)
= 2442213 - (1725738 + 12199 + 80000)
= 624276
6. d
Primary Deficit = Fiscal deficit - Interest payments
= 624276 - 575795
= 48481
The supply of a product does not depend on ......
a. labour costs
b. the number of sellers in the market
c. consumers tastes
d. existing technology
Ans - c
Passive factor of production is ......
a. only land
b. only capital
c. both land and capital
d. neither land nor capital
Ans - c
Reasons for increasing return in stage I of law of variable proportion is ......
a. Indivisibility
b. Specialisation
c. both a and b
d. none of the above
Ans - c
...... Economics views on reducing the production costs
a. internal
b. inventory
c. pecuniary
d. External
Ans - d
Positive Science concern with economics analysis ......
a. Cause relationship
b. Effect Relationship
c. Cause and Effect relationship
d. None of the above
Ans - c
The supply of a product does not depend on ......
a. labour costs
b. the number of sellers in the market
c. consumers tastes
d. existing technology
Ans - c
...... is the remuneration for organisation
a. rent
b. wages
c. interest
d. profit
Ans - d
Given,
Currency with public - Rs. 345000 Crores
Demand deposit with banking system - Rs. 380000 Crores
Time deposits with banking system - Rs. 425000 Crores
Other deposit with RBI - Rs. 465000 Crores
Savings deposit of post office savings banks - Rs. 160000 Crores
All deposit with post office savings bank excluding NSCs - Rs. 110000 Crores
Calculate M1.
a. Rs. 1125000 Crores
b. Rs. 1190000 Crores
c. Rs. 1350000 Crores
d. Rs. 1615000 Crores
Ans - b
.............................................
Calculate M2.
a. Rs. 1125000 Crores
b. Rs. 1190000 Crores
c. Rs. 1350000 Crores
d. Rs. 1615000 Crores
Ans - c
.............................................
Calculate broad money M3.
a. Rs. 1125000 Crores
b. Rs. 1190000 Crores
c. Rs. 1350000 Crores
d. Rs. 1615000 Crores
Ans - d
.............................................
Solution :
M1 = currency with public + demand deposit with the banking system + other deposits with RBI
M1 = 345000 + 380000 + 465000
M1 = 1190000
M2 = M1 + Savings deposit of post office savings banks
So,
M2 = 1190000 + 160000
M2 = 1350000 Crores
M3 = M1 + Time deposit with banking system
So,
M3 = 1190000 + 425000
M3 = 1615000 Crores
Anandrao Gaikwad:
ABM
According to Marshall, the basis of consumer surplus is—
a. Law of diminishing marginal utility.
b. Law of equi-marginal utility
c. Law of proportions
d. All of the above
Ans. a
ABM
Under law of demand—
a. Price of commodity is an independent variable
b. Quantity demanded is a dependent variable
c. Reciprocal relationship is found between price and quantity demanded
d. All of the above.
Ans . D
ABM
Whose opinions have revolutionized the scope of macro economics ?
a. Adam Smith
b. J.B. Say
c. J.M. Keynes.
d. All of the above
Ans. D
ABM
Economics is the Science of Wealth” who gave this definition?
a. J. K. Mehta
b. Marshall
c. Adam Smith.
d. Robbins
Ans. C
ABM
“Economics is a science” the basis of this statement is—
a. Relation between cause and effect
b. Use of deductive method and inductive method for the formations of laws
c. Experiments
d. All of the above.
Ans. D
ABM
Who has given scarcity definition of economics ?
a. Adam Smith
b. Marshall
c. Robbins.
d. Robertson
ABM
Economic growth is usually coupled with
a. Stagflation.n
b. Inflation.
c. Stagflation
d. Hyperinflation
Ans. B
ABM
An increase in the Bank Rate generally indicates that the
a.market rate of interest is likely to fall
b.Central Bank is no longer making loans to commercial banks
c.Central Bank is following an easy money policy
d.Central Bank is following a tight money policy.
Ans.d
ABM
Monetary policy affects
a.inflation only
b.output only
c.both inflation and output.
d.neither inflation nor output
And.c
ABM
National Income estimates in India is prepared by
a. RBI
b. Central Statical Organization.
c. Finance Ministry
d. Planning Commission
And.b
ABM
The rate of interest is 8% and compounding is semi-annual, what will be effective interest rate:
a: 8%
b: 8.16%
c: 8.25%.
d: 8.32%
Ans- b
Solution
Effective int rate=(1+r/n)^n-1
ROI =08/2=4
here quarterly (1.04/2)^2-1*100
=1.0816-1*100
=0.0816*100
=8.16%
Murugan:
If Receipts and Expenditures of the Central Government, 2017-18 (As per cent of GDP) are as given below
1. Revenue Receipts (a+b) - 8.7
(a) Tax revenue (net of states share) - 7.3
(b) Non-tax revenue - 1.4
2. Revenue Expenditure of which - 12.3
(a) Interest payments - 3.1
(b) Major subsidies - 2.4
(c) Defence expenditure - 1.1
3. Capital Receipts (a+b+c) of which - 5.2
(a) Recovery of loans - 0.2
(b) Other receipts (mainly PSU disinvestment) - 0.3
(c) Borrowings and other liabilities - 4.7
4. Capital Expenditure - 1.6
Find
1. Total Receipts
a. 4.7
b. 5.2
c. 8.7
d. 13.9
2. Total Expenditure
a. 1.6
b. 5.5
c. 12.3
d. 13.9
3. Revenue Deficit
a. 1.6
b. 3.6
c. 4.7
d. 8.7
4. Fiscal deficit
a. 1.6
b. 3.6
c. 4.7
d. 8.7
5. Primary Deficit
a. 1.6
b. 3.6
c. 4.7
d. 8.7
Solution
1. d
Total Receipts = Revenue Receipts + Capital Receipts
= 8.7 + 5.2
= 13.9
2. d
Total Expenditure = Revenue Expenditure + Capital Expenditure
= 12.3 + 1.6
= 13.9
3. b
Revenue Deficit = Revenue Expenditure - Revenue Receipts
= 12.3 - 8.7
= 3.6
4. c
Fiscal deficit = Total Expenditure - Total Receipts net of Borrowings and other liabilities
= 13.9 - (8.7 + 0.2 + 0.3)
= 13.9 - 9.2
= 4.7
5. a
Primary Deficit = Fiscal deficit - Interest payments
= 4.7 - 3.1
= 1.6
.............................................
...... input factor is divided as skilled, semiskilled, unskilled
a. land
b. capital
c. Technology
d. labour
Ans - d
In the Law of variable proportion when TP is maximum then the MP = ......
a. MP = 1
b. MP < 0
c. MP = 0
d. MP > 1
Ans - c
Cobb Douglas production function mainly studies ......
a. capital and labour
b. labour and expenditure
c. land and labour
d. land and capital
Ans - a
Marginal cost is defined as ......
a. change in total cost due to change in output
b. total cost divided by output
c. change in output due to a change in an input
d. total product divided by the quantity of input
Ans - a
Which of the following is not correct?
a. TC = TFC+TVC
b. TFC=TC-TVC
c. TVC=TC-TFC
d. None of the above
Ans - d
The existence of both public and private sector enterprises constitutes ......
a. capitalist economy
b. Mixed economy
c. Socialist economy
d. None of the above
The existence of both public and private sector enterprises constitutes ......
a. capitalist economy
b. Mixed economy
c. Socialist economy
d. None of the above
Ans - b
Sales Maximisation is suitable for ...... market
a. oligopoly
b. duopoly
c. Monopoly
d. Monopsony
Ans - a
When we know the quality of a product that buyers wish to purchase at each possible price, we know ......
a. Demand
b. Supply
c. Excess demand
d. Excess supply
Ans - a
For inferior commodities income effect is ......
a. zero
b. negative
c. infinite
d. positive
Ans - b
While releasing the data relating to inflation increased by the Govt, it is observed that
1) The consumer price index based inflation increased to 11% and
2) Whole sale price index based inflation increased to 8%
3) The govt. claims that due to implementation of Banks Bi-partite Settlement, there is increase in demand of goods and services leading to increase in consumer prices.
4) Further due to increased wages and salaries, there is increase in cost of inputs leading to increase in whole-sale price index.
Answer the following questions, based on the above information.
1. The inflation caused by the the information given at point no.3 in the question, is not called as ...... (i) Core inflation, (ii) Demand Pull inflation (iii) Cost-push inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - b
2. The inflation rate of 8%, represented by the whole sale price, is called:
a. Core inflation
b. Headline inflation
c. Demand Pull inflation
d. Cost-push inflation
Ans - b
3. The inflation rate 11% represented by the consumer price, is called:
a. Core inflation
b. Headline inflation
c. Demand Pull inflation
d. Cost-push inflation
Ans - a
4. The inflation caused by the information given at point no.4 in the question, is not called as ...... (i) Core inflation, (ii) Demand Pull inflation (iii) Cost-push inflation
a. Only (i) and (ii)
b. Only (i) and (iii)
c. Only (ii) and (iii)
d. (i), (ii) and (iii)
Ans - a
.........................................
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