MCQs
Total Questions : 112
| Page 5 of 12 pages
Answer: Option D. -> Exports and imports of goods and services as a percentage of GDP
Answer: (d)Openness is measured as, Exports + Imports of goods and services of a country as a percentage of its GDP. So, (d) is correctTrade balance means Exports – Imports. So, statement (c) is incorrect.
Answer: (d)Openness is measured as, Exports + Imports of goods and services of a country as a percentage of its GDP. So, (d) is correctTrade balance means Exports – Imports. So, statement (c) is incorrect.
Question 42. What is/are the recent policy initiative(s) of government of India to promote the growth of manufacturing sector?
- Setting up of National Investment and manufacturing Zones.
- Providing the benefits of ‘single window clearance’.
- Establishing the technology acquisition and development fund.
Answer: Option C. -> 1, 2 and 3
Answer: (c)
Answer: (c)
Question 43. Micro-finance is the provision services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are
- Credit-facilities
- Saving facilities
- Insurance facilities
- Fund transfer facilities
Answer: Option C. -> 1, 2, 3 and 4
Answer: (c)
Answer: (c)
Question 44. Consider the following statements regarding Incremental Capital Output Ratio (ICOR):
Select the correct answer using the code given below:
- It shows how efficiently capital is being used to produce output
- It is the extra unit of capital required to produce one additional unit of output
- It is the extra unit of output produced from one additional unit of capital
- It is the ratio of change in capital to change in output
Select the correct answer using the code given below:
Answer: Option A. -> (i), (ii) & (iv) only
Answer: (a)
Incremental Capital Output Ratio (ICOR) is defined as:-
ICOR = $\text"change in capital"/\text"change in output" = \text"(change in capital/output)"/\text"(change in output/output)" = \text"investment % in GDP"/ {% \text"change in GDP"}$
ICOR represents how much extra unit of capital is required to produce one additional unit of output. It basically represents the (inverse of) efficiency of the new capital. Hence, statement (iii) is false. “Basically, capital/output ratio represents (average) productivity and ICOR represents (marginal) productivity.”
So, if ICOR of India = 5 or (5/1), then India requires Rs. 5 of additional capital goods to produce Rs. 1 of extra output.
If our ICOR is 5 and we want a growth of 8% in GDP then we will have to do 40% investment.
Answer: (a)
Incremental Capital Output Ratio (ICOR) is defined as:-
ICOR = $\text"change in capital"/\text"change in output" = \text"(change in capital/output)"/\text"(change in output/output)" = \text"investment % in GDP"/ {% \text"change in GDP"}$
ICOR represents how much extra unit of capital is required to produce one additional unit of output. It basically represents the (inverse of) efficiency of the new capital. Hence, statement (iii) is false. “Basically, capital/output ratio represents (average) productivity and ICOR represents (marginal) productivity.”
So, if ICOR of India = 5 or (5/1), then India requires Rs. 5 of additional capital goods to produce Rs. 1 of extra output.
If our ICOR is 5 and we want a growth of 8% in GDP then we will have to do 40% investment.
Question 45. Consider the following statement with reference to ‘Income Elasticity of Demand’:
Which of the statements given above is/are correct?
- It measures the responsiveness of demand for a particular good to changes in consumer income.
- Using this concept, it is possible to tell if a particular good represents a necessity or a luxury.
Which of the statements given above is/are correct?
Answer: Option A. -> Both (i) & (ii)
Answer: (a)
Income elasticity of demand is calculated as the ratio of the percentage change in quantity demanded to the percentage change in income. It measures the responsiveness of the quantity demanded a good or service to a change in income.
If the income elasticity of demand of a commodity is less than 1 that means that with a change in income, demand is not changing much, which means, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.
Answer: (a)
Income elasticity of demand is calculated as the ratio of the percentage change in quantity demanded to the percentage change in income. It measures the responsiveness of the quantity demanded a good or service to a change in income.
If the income elasticity of demand of a commodity is less than 1 that means that with a change in income, demand is not changing much, which means, it is a necessity good. If the elasticity of demand is greater than 1, it is a luxury good or a superior good.
Answer: Option D. -> 1999-2000
Answer: (d)
Answer: (d)
Answer: Option D. -> Pisciculture
Answer: (d)
Answer: (d)
Answer: Option D. -> All of the above
Answer: (d)
When a country goes through industrialization, it uses more capital and less labour comparatively or we can say labours are replaced by capital (machinery). That means ratio of capital to labour increases sharply. So, statement (a) is true.
Industrialization also leads to an increase in production of goods and services (with the same amount of labour or maybe less labour). So, production per labour also increases which means an increase in labour productivity. So, statement (b) is also true.
Total factor productivity means the productivity of all factors of production i.e. labour, capital, land etc. During industrialization, since overall production increases, production per unit of inputs i.e. labour, capital, land etc also increases. So, statement (c) is also true. Productivity of labour = $\text"Output"/\text"Labour"$
Productivity of land = $\text"Output"/\text"Land"$
We all know that because of industrialization output increased. Now if output increased (with the same land and labour), then as per the above formula, productivity of land and productivity of labour, both will increase.
So, in case of industrialization, productivity of all the factors of production increases.
Answer: (d)
When a country goes through industrialization, it uses more capital and less labour comparatively or we can say labours are replaced by capital (machinery). That means ratio of capital to labour increases sharply. So, statement (a) is true.
Industrialization also leads to an increase in production of goods and services (with the same amount of labour or maybe less labour). So, production per labour also increases which means an increase in labour productivity. So, statement (b) is also true.
Total factor productivity means the productivity of all factors of production i.e. labour, capital, land etc. During industrialization, since overall production increases, production per unit of inputs i.e. labour, capital, land etc also increases. So, statement (c) is also true. Productivity of labour = $\text"Output"/\text"Labour"$
Productivity of land = $\text"Output"/\text"Land"$
We all know that because of industrialization output increased. Now if output increased (with the same land and labour), then as per the above formula, productivity of land and productivity of labour, both will increase.
So, in case of industrialization, productivity of all the factors of production increases.
Answer: Option D. -> Star Trading Houses
Answer: (d)
Answer: (d)
Answer: Option A. -> NABARD Institution
Answer: (a)
Answer: (a)
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