Indian Economy MCQ Set-3

Most Important Economic Terms MCQ for competitive examinations in India such as UPSC CSE, State PSC, IBPS PO, SBI PO, IBPS SO, IBPS RRB, IBPS Clerk and various government & public sector undertaking jobs in India.

Q.1 Net Domestic Product(NDP) at market price is?

A. Net national product + net factor income from abroad

B. Gross domestic product – net factor income from abroad

C. Net national product – net factor income from abroad

D. None of these

Answer: C. Net national product – net factor income from abroad

Note: Net Domestic Product at market price is also is gross domestic product (GDP) minus the consumption of fixed capital (CFC).

Q.2 Which one is correct about Gross National Product(GNP) at market price?

A. GDP+ Net income earned from abroad

B. GDP – Net income earned from abroad

C. PPP + Net income earned from abroad

D. None of these

Answer: A. GDP+ Net income earned from abroad

Q.3 Net National Product at market price(mp) is?

A. GNPmp+depreciation

B. GDPmp-depreciation

C. GNPmp-depreciation

D. None of these

Answer: C. GNPmp-depreciation

Q.4 Net Domestic Product at market price(mp) is?

A. GDPmp+depreciation

B. GDPmp-depreciation

C. GDPmp-depreciation

D. None of these

Answer: B. GDPmp-depreciation 

Q.5 Which is a feature of pure competition in a market?

A. Low cost of product or services

B. Higher sales in a market

C. Higher number of buyers and sellers

D. None of these

Answer: C. Higher number of buyers and sellers

Note: A perfectly competitive market is characterized by many buyers and sellers, undifferentiated products, no transaction costs, no barriers to entry and exit, and perfect information about the price of a good. The total revenue for a firm in a perfectly competitive market is the product of price and quantity (Total Revenue = Price of Product * Quantity).

Q.6 Which of the following is not a type of market system?

A. Monopoly

B. Secondary

C. Oligopoly

D. Monopsony

Answer: B. Secondary

Note: The five major market system types are Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition and Monopsony.

Q.7 Which of the following is NOT a type of goods in economy?

A. Public goods

B. Private goods

C. Club goods

D. Free goods

Answer: D. Free goods

Note: There are four different types of goods in economics, which can be classified based on excludability and rivalrousness: private goods, public goods, common resources, and club goods.

Q.8 Direct demand is:

A. Demand for tax return made by final consumers to satisfy their needs.

B. Demand for govt services made by final consumers to buy new things

C. Demand for goods and services made by final consumers to satisfy their needs

D. None of these

Answer: C. Demand for goods and services made by final consumers to satisfy their needs

Note: Direct demand refers to the demand for a commodity for direct consumption purposes. Indirect demand refers to the demand for a commodity to be used in the production of dome other commodities.

Q.9 What does capitalism refers to:

A. Private ownership of real estate

B. Government ownership of capital market

C. Private ownership of capital goods

D. None of these

Answer: C. Private ownership of capital goods

Note: Capitalism is an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.

Q.10 In which of the following case, competitive demand occurs?

A. When there are large number of buyers in a market

B. When there are shortfall of goods in a market

C. When there are alternative services or products a customer can choose from

D. When seller offers same services or product at different prices

Answer: C. When there are alternative services or products a customer can choose from

 

List of Indian Economy MCQ sets from GKLead.com

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