We are providing the most important Indian Economics Previous year Questions for RRB NTPC 2019, RRB Group D 2019, SSC 2019 and all other competitive exams. These questions have very high chances to be asked in RRB NTPC 2019, RRB Group D 2019.
Set-7 Indian Economics Previous Year Questions
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1.Which among the following statements is not true when there is an increase in interest rate in an economy?
1. increase in saving
2. decrease in loan
3. increase in production cost
4. increase in capital return
2.Multiplier process in economic theory is conventionally taken to mean:
1. the manner in which prices increase
2. the manner in which banks create credit
3. income of an economy grows on account of an initial investment
4. the manner in which government expenditure increases
3.Who said ‘Supply creates its own demand’?
1. Adam Smith
2. J. B. Say
4.Say’s Law of Market holds that
1. supply is not equal to demand
2. supply creates its own demand
3. demand creates its own supply
4. supply is greater than demand
5.The standard of living in a country is represented by its:
1. poverty ratio
2. per capita income
3. national income
4. unemployment rate
6.The method of calculating the national income are-
1. Income method
2. Value added method
3. Expenditure method
4. All the above
7.Which of the following concepts are most closely associated with J. M. Keynes?
1. Control of money supply
2. Marginal utility theory
3. Indifference curve analysis
4. Marginal efficiency of capital
8.When aggregate supply exceeds aggregate demand
1. Unemployment falls
2. Prices rise
3. Inventories accumulate
4. Unemployment develops
9.In a business, raw materials, components, work in progress and finished goods are jointly regarded as
1. capital stock
4. Net worth
10.Investment and savings are kept equal through a change in the level of
3. Government expenditure
11.The sum total of incomes received for the services of labour, land or capital in a country is called:
1. Gross domestic product
2. National income
3. Gross domestic income
4. Gross national income
12.While determining income the expenditure on which of the following items is not considered as investment?
1. Construction of factory
3. Increase in the stock of unsold articles
4. Stock and share in joint stock company
13.In a Laissez-faire economy
1. The customers take all the decision regarding production of all the commodities
2. The Government does not interfere in the free functioning of demand and supply forces in the market
3. The private-sector takes all the decisions for price-determination of various commodities produced
4. The Government controls the allocation of all the factors of production
14.In calculating National Income which of the following is included?
1. Services of housewives
3. Income of smugglers
4. Income of watchmen
15.Who propounded the market law?
1. Adam Smith
2. J. B. Say
3. T. R. Malthus
4. David Recardo
16.In perfect competition a ﬁrm maximizes proﬁt by _____.
1. setting price such that price is equal to or greater than its marginal costs
2. setting output such that price equals average total costs
3. setting output such that marginal revenue is equals to marginal costs
4. setting price so that it is greater than marginal cost
17.A price floor is _____.
1. a maximum legal price
2. a minimum legal price
3. the price where demand equals supply
4. the price where elasticity of demand equals elasticity of supply
18.The unemployment created at certain times of the year, when the demand for goods and services are lower than normal, is _____.
1. Cyclical unemployment
2. Frictional unemployment
3. Seasonal unemployment
4. Structural unemployment
19.If goods A and B are substitutes, a decrease in the price of good B will –
1. decrease demand for good B
2. decrease demand for both the goods
3. increase demand for both the goods
4. decrease demand for good A
20.A manufacturer faces a -1.2 price elasticity of demand for its product. It is presently selling 7,500 units/day. If it wants to increase quantity sold by 9%, it must lower its price by –
1. 7.5 percent
2. 7.8 percent
3. 10.2 percent
4. 10 percent