{"id":12100,"date":"2025-08-19T10:26:26","date_gmt":"2025-08-19T09:26:26","guid":{"rendered":"https:\/\/mcqsadda.com\/?p=12100"},"modified":"2025-10-24T05:31:50","modified_gmt":"2025-10-24T04:31:50","slug":"basics-of-economics-top-100-mcqs-with-answer-and-explanation","status":"publish","type":"post","link":"https:\/\/mcqsadda.com\/index.php\/2025\/08\/19\/basics-of-economics-top-100-mcqs-with-answer-and-explanation\/","title":{"rendered":"Basics of Economics Top 100 MCQs With Answer and Explanation"},"content":{"rendered":"\n

1. The term “Economics” is derived from which language?<\/mark><\/strong>
A) Latin
B) Greek
C) French
D) Sanskrit
Answer: <\/strong>B) Greek
Explanation:<\/strong> The word “Economics” comes from the Greek word Oikonomia, meaning “management of household.”<\/p>\n\n\n\n

2. Who is regarded as the “Father of Economics”?<\/mark><\/strong>
A) Karl Marx
B) Adam Smith
C) David Ricardo
D) Alfred Marshall
Answer<\/strong>: B) Adam Smith
Explanation:<\/strong> Adam Smith, through his book \u201cThe Wealth of Nations\u201d (1776), laid the foundation of modern economics.<\/p>\n\n\n\n

3. “Wealth of Nations” was written in which year?<\/mark><\/strong>
A) 1756
B) 1776
C) 1789
D) 1800
Answer: <\/strong>B) 1776
Explanation:<\/strong> Adam Smith\u2019s An Inquiry into the Nature and Causes of the Wealth of Nations was published in 1776.<\/p>\n\n\n\n

4. Who defined Economics as \u201cScience of Wealth\u201d?<\/mark><\/strong>
A) Lionel Robbins
B) Adam Smith
C) Marshall
D) Keynes
Answer: <\/strong>B) Adam Smith
Explanation:<\/strong> Adam Smith\u2019s definition focused on wealth creation as the primary concern of economics.<\/p>\n\n\n\n

5. Who defined Economics as the \u201cScience of Scarcity\u201d?<\/mark><\/strong>
A) Karl Marx
B) Robbins
C) Keynes
D) Pigou
Answer: <\/strong>B) Robbins
Explanation:<\/strong> Lionel Robbins defined economics as the science which studies human behavior as a relationship between ends and scarce means.<\/p>\n\n\n\n

6. Microeconomics deals with:<\/mark><\/strong>
A) Economy as a whole
B) Individual units of economy
C) International trade only
D) Government budget
Answer<\/strong>: B) Individual units of economy
Explanation:<\/strong> Microeconomics studies individual economic units such as households, firms, and industries.<\/p>\n\n\n\n

7. Macroeconomics deals with:<\/mark><\/strong>
A) Demand and Supply of a commodity
B) Individual firm pricing
C) Economy as a whole
D) Cost analysis
Answer<\/strong>: C) Economy as a whole
Explanation:<\/strong> Macroeconomics focuses on aggregates like national income, inflation, employment, etc.<\/p>\n\n\n\n

8. “Invisible Hand” theory was propounded by:<\/mark><\/strong>
A) Ricardo
B) Keynes
C) Adam Smith
D) Samuelson
Answer<\/strong>: C) Adam Smith
Explanation:<\/strong> Adam Smith\u2019s concept of the \u201cinvisible hand\u201d explained how self-interest leads to economic prosperity.<\/p>\n\n\n\n

9. The basic economic problem is:<\/mark><\/strong>
A) Population growth
B) Unemployment
C) Scarcity of resources
D) Inflation
Answer: <\/strong>C) Scarcity of resources
Explanation:<\/strong> Scarcity arises because human wants are unlimited, but resources are limited.<\/p>\n\n\n\n

10. Which of the following is a normative statement?<\/mark><\/strong>
A) Inflation rate is 6%
B) India\u2019s GDP is growing at 7%
C) Government should reduce poverty
D) Demand equals supply at equilibrium
Answer: <\/strong>C) Government should reduce poverty
Explanation:<\/strong> Normative economics deals with value judgments, i.e., what ought to be.<\/p>\n\n\n\n

11. The concept of “Opportunity Cost” means:<\/mark><\/strong>
A) Cost of producing goods
B) Cost of foregone alternatives
C) Production cost only
D) Total money spent
Answer: <\/strong>B) Cost of foregone alternatives
Explanation:<\/strong> Opportunity cost is the value of the next best alternative forgone.<\/p>\n\n\n\n

12. Which of the following is NOT a factor of production?<\/mark><\/strong>
A) Land
B) Labor
C) Capital
D) Money
Answer: <\/strong>D) Money
Explanation:<\/strong> Money is not a direct factor of production; the main factors are land, labor, capital, and entrepreneurship.<\/p>\n\n\n\n

13. The term “Mixed Economy” means:<\/mark><\/strong>
A) Private sector only
B) Public sector only
C) Both private and public sectors coexist
D) Centralized planning only
Answer: <\/strong>C) Both private and public sectors coexist
Explanation:<\/strong> In a mixed economy, both private enterprises and government control operate.<\/p>\n\n\n\n

14. Which is the best example of a centrally planned economy?<\/mark><\/strong>
A) USA
B) India
C) North Korea
D) UK
Answer: <\/strong>C) North Korea
Explanation:<\/strong> North Korea has a command economy with central planning.<\/p>\n\n\n\n

15. In capitalism, the means of production are:<\/mark><\/strong>
A) Owned by government
B) Owned by individuals
C) Jointly owned
D) Absent
Answer:<\/strong> B) Owned by individuals
Explanation:<\/strong> Capitalism is characterized by private ownership and profit motive.<\/p>\n\n\n\n

16. In socialism, the means of production are:<\/mark><\/strong>
A) Privately owned
B) Owned by government
C) Absent
D) Free from control
Answer:<\/strong> B) Owned by government
Explanation:<\/strong> In socialism, production resources are controlled by the state for welfare.<\/p>\n\n\n\n

17. The law of demand shows the relation between:<\/mark><\/strong>
A) Price and supply
B) Price and demand
C) Demand and income
D) Supply and cost
Answer: <\/strong>B) Price and demand
Explanation:<\/strong> Law of demand states that when price falls, demand rises, other factors constant.<\/p>\n\n\n\n

18. Demand curve is generally:<\/mark><\/strong>
A) Upward sloping
B) Downward sloping
C) Vertical
D) Horizontal
Answer: <\/strong>B) Downward sloping
Explanation:<\/strong> Due to inverse relation between price and demand, demand curve slopes downward.<\/p>\n\n\n\n

19. Giffen goods violate which law?<\/mark><\/strong>
A) Law of supply
B) Law of demand
C) Law of diminishing returns
D) Law of utility
Answer: <\/strong>B) Law of demand
Explanation:<\/strong> For Giffen goods (inferior goods), demand increases with price.<\/p>\n\n\n\n

20. Supply curve is generally:<\/mark><\/strong>
A) Downward sloping
B) Vertical
C) Upward sloping
D) Horizontal
Answer: <\/strong>C) Upward sloping
Explanation:<\/strong> Higher prices encourage producers to supply more, hence upward sloping supply curve.<\/p>\n\n\n\n

21. Which is NOT an economic activity?<\/mark><\/strong>
A) Teaching in school for salary
B) Doctor treating patients for fees
C) A farmer growing crops to sell
D) Cooking food for family
Answer: <\/strong>D) Cooking food for family
Explanation:<\/strong> Economic activities are done for earning income, while personal activities are non-economic.<\/p>\n\n\n\n

22. The term \u201cUtility\u201d in economics refers to:<\/mark><\/strong>
A) Usefulness of a product
B) Satisfaction derived from a product
C) Market value of a product
D) Production cost
Answer: <\/strong>B) Satisfaction derived from a product
Explanation:<\/strong> Utility is the power of a good to satisfy human wants.<\/p>\n\n\n\n

23. The “Law of Diminishing Marginal Utility” was given by:<\/mark><\/strong>
A) Adam Smith
B) Alfred Marshall
C) Gossen
D) Keynes
Answer: <\/strong>C) Gossen
Explanation:<\/strong> Gossen\u2019s first law states that marginal utility declines as consumption increases.<\/p>\n\n\n\n

24. Who introduced the concept of Consumer Surplus?<\/mark><\/strong>
A) Alfred Marshall
B) Adam Smith
C) Karl Marx
D) Pigou
Answer: <\/strong>A) Alfred Marshall
Explanation:<\/strong> Marshall introduced consumer surplus as the difference between willingness to pay and actual price paid.<\/p>\n\n\n\n

25. National Income means:<\/mark><\/strong>
A) Total money in circulation
B) Total goods produced
C) Total value of goods and services produced in a country
D) Total savings
Answer: <\/strong>C) Total value of goods and services produced in a country
Explanation:<\/strong> National income measures the monetary value of all final goods and services produced within a country.<\/p>\n\n\n\n

26. GDP stands for:<\/mark><\/strong>
A) Gross Domestic Product
B) General Development Plan
C) Gross Demand Production
D) Government Development Policy
Answer<\/strong>: A) Gross Domestic Product
Explanation:<\/strong> GDP is the monetary value of all final goods and services produced within a country\u2019s borders in a given period.<\/p>\n\n\n\n

27. GNP is obtained by:<\/mark><\/strong>
A) GDP + Exports \u2013 Imports
B) GDP + Net factor income from abroad
C) GDP \u2013 Depreciation
D) GDP + Subsidies
Answer:<\/strong> B) GDP + Net factor income from abroad
Explanation:<\/strong> Gross National Product (GNP) includes GDP plus income earned by residents abroad minus income earned by foreigners in the country.<\/p>\n\n\n\n

28. Net National Product (NNP) is equal to:<\/mark><\/strong>
A) GNP \u2013 Depreciation
B) GDP \u2013 Taxes
C) GNP + Subsidies
D) GDP \u2013 Imports
Answer: <\/strong>A) GNP \u2013 Depreciation
Explanation:<\/strong> NNP = GNP \u2013 Depreciation (wear and tear of capital goods).<\/p>\n\n\n\n

29. Which of the following is an example of a “Public Good”?<\/mark><\/strong>
A) Clothes
B) Food grains
C) National defense
D) Mobile phone
Answer:<\/strong> C) National defense
Explanation:<\/strong> Public goods are non-rival and non-excludable; defense is a classic example.<\/p>\n\n\n\n

30. The study of “Welfare Economics” was pioneered by:<\/mark><\/strong>
A) Adam Smith
B) Pigou
C) Keynes
D) Robbins
Answer:<\/strong> B) Pigou
Explanation:<\/strong> A.C. Pigou is known for his work on welfare economics, emphasizing economic welfare through government intervention.<\/p>\n\n\n\n

31. Inflation refers to:<\/mark><\/strong>
A) Rise in employment
B) Increase in production
C) Rise in general price level
D) Fall in price of goods
Answer:<\/strong> C) Rise in general price level
Explanation:<\/strong> Inflation is a sustained rise in the general level of prices in an economy.<\/p>\n\n\n\n

32. Deflation means:<\/mark><\/strong>
A) Continuous rise in prices
B) Fall in general price level
C) Increase in wages
D) Shortage of goods
Answer: <\/strong>B) Fall in general price level
Explanation:<\/strong> Deflation is a persistent decline in prices, often linked with reduced demand.<\/p>\n\n\n\n

33. Which index is commonly used to measure Inflation in India?<\/mark><\/strong>
A) GDP Deflator
B) CPI (Consumer Price Index)
C) IIP (Index of Industrial Production)
D) WPI (Wholesale Price Index)
Answer: <\/strong>D) WPI (Wholesale Price Index)
Explanation:<\/strong> Traditionally, India used WPI; however, CPI is also widely used now for policy decisions.<\/p>\n\n\n\n

34. Stagflation is a situation of:<\/mark><\/strong>
A) High growth with low inflation
B) Low growth with high inflation
C) High employment with deflation
D) High savings with low investment
Answer: <\/strong>B) Low growth with high inflation
Explanation:<\/strong> Stagflation combines stagnation (low growth) and inflation (rising prices).<\/p>\n\n\n\n

35. Which of the following is a direct tax?<\/mark><\/strong>
A) GST
B) Excise duty
C) Income tax
D) Customs duty
Answer:<\/strong> C) Income tax
Explanation:<\/strong> Direct taxes are levied directly on income or wealth (e.g., income tax), while GST, excise, customs are indirect taxes.<\/p>\n\n\n\n

36. Which of the following is an indirect tax?<\/mark><\/strong>
A) Corporate tax
B) Personal income tax
C) Goods and Services Tax (GST)
D) Wealth tax
Answer<\/strong>: C) Goods and Services Tax (GST)
Explanation:<\/strong> GST is collected indirectly when consumers purchase goods and services.<\/p>\n\n\n\n

37. Fiscal Policy is concerned with:<\/mark><\/strong>
A) Money supply
B) Government revenue and expenditure
C) Controlling inflation through RBI
D) Monetary transactions
Answer: <\/strong>B) Government revenue and expenditure
Explanation:<\/strong> Fiscal policy involves taxation and government spending to influence the economy.<\/p>\n\n\n\n

38. Monetary Policy is formulated by:<\/mark><\/strong>
A) Parliament
B) Supreme Court
C) Reserve Bank of India
D) Ministry of Finance
Answer: <\/strong>C) Reserve Bank of India
Explanation:<\/strong> In India, RBI regulates monetary policy to control money supply, credit, and inflation.<\/p>\n\n\n\n

39. Which is NOT an instrument of Monetary Policy?<\/mark><\/strong>
A) Repo Rate
B) Cash Reserve Ratio
C) Government spending
D) Reverse Repo Rate
Answer:<\/strong> C) Government spending
Explanation:<\/strong> Government spending belongs to fiscal policy, not monetary policy.<\/p>\n\n\n\n

40. The “Repo Rate” is:<\/mark><\/strong>
A) Rate at which RBI lends to commercial banks
B) Rate at which banks lend to RBI
C) Interest on savings accounts
D) Lending rate to customers
Answer:<\/strong> A) Rate at which RBI lends to commercial banks
Explanation:<\/strong> Repo rate is used by RBI to regulate short-term borrowing by banks.<\/p>\n\n\n\n

41. The “Reverse Repo Rate” is:<\/mark><\/strong>
A) Rate at which RBI lends to banks
B) Rate at which RBI borrows from banks
C) Lending rate to customers
D) Bank\u2019s lending to industry
Answer:<\/strong> B) Rate at which RBI borrows from banks
Explanation:<\/strong> Reverse repo absorbs liquidity from the banking system.<\/p>\n\n\n\n

42. CRR stands for:<\/mark><\/strong>
A) Cash Reserve Ratio
B) Credit Rate Ratio
C) Current Reserve Regulation
D) Capital Return Ratio
Answer: <\/strong>A) Cash Reserve Ratio
Explanation:<\/strong> CRR is the proportion of deposits that commercial banks must keep with RBI as reserves.<\/p>\n\n\n\n

43. The function of SEBI in India is to regulate:<\/mark><\/strong>
A) Banking
B) Insurance
C) Stock market
D) Agriculture
Answer: <\/strong>C) Stock market
Explanation:<\/strong> SEBI (Securities and Exchange Board of India) regulates capital markets, protecting investors.<\/p>\n\n\n\n

44. Which is called the “Lender of Last Resort”?<\/mark><\/strong>
A) IMF
B) RBI
C) SBI
D) World Bank
Answer: <\/strong>B) RBI
Explanation:<\/strong> RBI provides emergency financial assistance to banks, hence known as lender of last resort.<\/p>\n\n\n\n

45. The largest contributor to India\u2019s GDP is:<\/mark><\/strong>
A) Agriculture
B) Industry
C) Services
D) Mining
Answer: <\/strong>C) Services
Explanation:<\/strong> Services sector contributes the maximum share to India\u2019s GDP (IT, finance, trade, etc.).<\/p>\n\n\n\n

46. The primary sector of the economy includes:<\/mark><\/strong>
A) Manufacturing
B) Banking
C) Agriculture
D) Software
Answer: <\/strong>C) Agriculture
Explanation:<\/strong> Primary sector covers agriculture, forestry, fishing, and mining.<\/p>\n\n\n\n

47. The secondary sector of the economy refers to:<\/mark><\/strong>
A) Farming
B) Manufacturing
C) Trade and commerce
D) Transport
Answer: <\/strong>B) Manufacturing
Explanation:<\/strong> Secondary sector transforms raw materials into finished goods.<\/p>\n\n\n\n

48. The tertiary sector includes:<\/mark><\/strong>
A) Banking and trade
B) Mining
C) Agriculture
D) Manufacturing
Answer: <\/strong>A) Banking and trade
Explanation:<\/strong> Tertiary sector provides services such as banking, transport, communication, and IT.<\/p>\n\n\n\n

49. India is the ____ largest economy in the world (Nominal GDP, 2023).<\/mark><\/strong>
A) 3rd
B) 5th
C) 7th
D) 10th
Answer: <\/strong>B) 5th
Explanation:<\/strong> According to IMF & World Bank, India is the world\u2019s 5th largest economy by nominal GDP.<\/p>\n\n\n\n

50. “Human Development Index (HDI)” is published by:<\/mark><\/strong>
A) World Bank
B) UNDP
C) IMF
D) WTO
Answer<\/strong>: B) UNDP
Explanation:<\/strong> United Nations Development Programme publishes HDI to measure development beyond GDP (education, health, income).<\/p>\n\n\n\n

51. Who introduced the concept of \u201cGross National Happiness (GNH)\u201d?<\/mark><\/strong>
A) India
B) Bhutan
C) Nepal
D) Sri Lanka
Answer: <\/strong>B) Bhutan
Explanation:<\/strong> Bhutan uses GNH instead of GDP to measure development, focusing on well-being and sustainability.<\/p>\n\n\n\n

52. The “Law of Supply” shows the relationship between:<\/mark><\/strong>
A) Price and demand
B) Price and supply
C) Demand and income
D) Supply and cost
Answer: <\/strong>B) Price and supply
Explanation:<\/strong> Law of supply states that quantity supplied increases with rise in price, other things being constant.<\/p>\n\n\n\n

53. Which of the following is a feature of a Monopoly market?<\/mark><\/strong>
A) Many buyers, many sellers
B) Only one seller
C) Price determined by market
D) Free entry and exit
Answer<\/strong>: B) Only one seller
Explanation:<\/strong> Monopoly exists when a single seller dominates the market with no close substitutes.<\/p>\n\n\n\n

54. In perfect competition, firms are:<\/mark><\/strong>
A) Price makers
B) Price takers
C) Monopolists
D) Colluders
Answer: <\/strong>B) Price takers
Explanation:<\/strong> In perfect competition, firms cannot influence price; they accept the market price.<\/p>\n\n\n\n

55. Oligopoly market is characterized by:<\/mark><\/strong>
A) One seller
B) Few sellers
C) Many buyers and sellers
D) Only one buyer
Answer: <\/strong>B) Few sellers
Explanation:<\/strong> Oligopoly is a market with a small number of large firms dominating the industry.<\/p>\n\n\n\n

56. Cartel formation is commonly found in which type of market?<\/mark><\/strong>
A) Perfect competition
B) Monopoly
C) Oligopoly
D) Monopolistic competition
Answer:<\/strong> C) Oligopoly
Explanation:<\/strong> In oligopoly, firms sometimes collude to form cartels to control prices and output.<\/p>\n\n\n\n

57. Price discrimination is a feature of:<\/mark><\/strong>
A) Monopoly
B) Perfect competition
C) Monopolistic competition
D) Oligopoly
Answer:<\/strong> A) Monopoly
Explanation:<\/strong> A monopolist may charge different prices for the same product in different markets.<\/p>\n\n\n\n

58. Dumping in international trade means:<\/mark><\/strong>
A) Selling goods at high prices abroad
B) Selling goods below cost price abroad
C) Banning imports
D) Export subsidies
Answer: <\/strong>B) Selling goods below cost price abroad
Explanation:<\/strong> Dumping is when a country exports goods at a price lower than domestic price to capture foreign markets.<\/p>\n\n\n\n

59. Balance of Payments (BoP) includes:<\/mark><\/strong>
A) Only exports and imports
B) Only visible trade
C) All economic transactions with rest of the world
D) Only capital account
Answer:<\/strong> C) All economic transactions with rest of the world
Explanation:<\/strong> BoP records trade in goods, services, capital flows, and transfers between a country and the world.<\/p>\n\n\n\n

60. Trade surplus occurs when:<\/mark><\/strong>
A) Exports > Imports
B) Imports > Exports
C) Exports = Imports
D) No trade takes place
Answer:<\/strong> A) Exports > Imports
Explanation:<\/strong> A positive balance of trade (exports greater than imports) is called trade surplus.<\/p>\n\n\n\n

61. Devaluation of currency means:<\/mark><\/strong>
A) Increase in value of currency
B) Decrease in value of currency against foreign currency
C) Printing more notes
D) Increase in purchasing power
Answer: <\/strong>B) Decrease in value of currency against foreign currency
Explanation:<\/strong> Devaluation is a deliberate downward adjustment in the value of a country\u2019s currency.<\/p>\n\n\n\n

62. Appreciation of currency means:<\/mark><\/strong>
A) Increase in value of currency
B) Decrease in value of currency
C) Government fixing the exchange rate
D) Printing more currency
Answer: <\/strong>A) Increase in value of currency
Explanation:<\/strong> Appreciation makes domestic currency stronger relative to foreign currency.<\/p>\n\n\n\n

63. Which institution is called the “World Bank”?<\/mark><\/strong>
A) IMF
B) IBRD
C) WTO
D) UNDP
Answer: <\/strong>B) IBRD
Explanation:<\/strong> The International Bank for Reconstruction and Development (IBRD) is known as the World Bank.<\/p>\n\n\n\n

64. The main function of IMF is:<\/mark><\/strong>
A) Provide long-term loans
B) Provide short-term balance of payment support
C) Regulate trade agreements
D) Publish HDI
Answer: <\/strong>B) Provide short-term balance of payment support
Explanation:<\/strong> IMF provides financial support to countries facing BoP crises.<\/p>\n\n\n\n

65. WTO was established in:<\/mark><\/strong>
A) 1945
B) 1980
C) 1995
D) 2001
Answer: <\/strong>C) 1995
Explanation:<\/strong> The World Trade Organization (WTO) replaced GATT in 1995 to regulate global trade.<\/p>\n\n\n\n

66. The headquarters of WTO is in:<\/mark><\/strong>
A) Washington DC
B) Geneva
C) Paris
D) New York
Answer: <\/strong>B) Geneva
Explanation:<\/strong> WTO headquarters are located in Geneva, Switzerland.<\/p>\n\n\n\n

67. Which among the following is NOT part of the World Bank Group?<\/mark><\/strong>
A) IBRD
B) IDA
C) IMF
D) IFC
Answer: <\/strong>C) IMF
Explanation:<\/strong> IMF is a separate institution; World Bank Group includes IBRD, IDA, IFC, MIGA, and ICSID.<\/p>\n\n\n\n

68. The Phillips Curve shows the relationship between:<\/mark><\/strong>
A) Inflation and unemployment
B) Inflation and GDP
C) Savings and investment
D) Imports and exports
Answer:<\/strong> A) Inflation and unemployment
Explanation:<\/strong> Phillips Curve illustrates an inverse relationship between inflation and unemployment.<\/p>\n\n\n\n

69. “Trickle-down theory” is related to:<\/mark><\/strong>
A) Socialism
B) Capitalism
C) Mixed economy
D) Public sector
Answer<\/strong>: B) Capitalism
Explanation:<\/strong> Trickle-down theory suggests that benefits to the rich eventually benefit society as a whole.<\/p>\n\n\n\n

70. Keynesian economics emphasizes on:<\/mark><\/strong>
A) Supply-side factors
B) Demand-side factors
C) Only monetary policy
D) Only trade
Answer<\/strong>: B) Demand-side factors
Explanation:<\/strong> Keynes stressed government spending to boost aggregate demand during recessions.<\/p>\n\n\n\n

71. “General Theory of Employment, Interest and Money” was written by:<\/mark><\/strong>
A) Adam Smith
B) J.M. Keynes
C) David Ricardo
D) Alfred Marshall
Answer: <\/strong>B) J.M. Keynes
Explanation:<\/strong> Published in 1936, this book laid the foundation of modern macroeconomics.<\/p>\n\n\n\n

72. The concept of “Invisible Hand” is associated with:<\/mark><\/strong>
A) Keynes
B) Adam Smith
C) Ricardo
D) Pigou
Answer: <\/strong>B) Adam Smith
Explanation:<\/strong> The invisible hand explains how self-interest leads to economic welfare.<\/p>\n\n\n\n

73. Which of the following is NOT a type of unemployment?<\/mark><\/strong>
A) Structural
B) Frictional
C) Seasonal
D) Commercial
Answer:<\/strong> D) Commercial
Explanation:<\/strong> Types of unemployment include structural, frictional, seasonal, and cyclical, but not \u201ccommercial.\u201d<\/p>\n\n\n\n

74. Disguised unemployment is mostly found in:<\/mark><\/strong>
A) Agriculture
B) Industry
C) Services
D) Transport
Answer: <\/strong>A) Agriculture
Explanation:<\/strong> In agriculture, more workers are engaged than needed, leading to disguised unemployment.<\/p>\n\n\n\n

75. Which of the following is an example of seasonal unemployment?<\/mark><\/strong>
A) Construction workers in monsoon
B) IT professionals
C) Bank employees
D) Teachers in schools
Answer: <\/strong>A) Construction workers in monsoon
Explanation:<\/strong> Seasonal unemployment occurs when people are jobless at certain times of the year, e.g., agriculture and construction.<\/p>\n\n\n\n

76. Which type of unemployment occurs during an economic recession?<\/mark><\/strong>
A) Frictional unemployment
B) Seasonal unemployment
C) Cyclical unemployment
D) Structural unemployment
Answer: <\/strong>C) Cyclical unemployment
Explanation:<\/strong> Cyclical unemployment arises due to downturns in the business cycle (recessions).<\/p>\n\n\n\n

77. Which of the following is NOT a characteristic of underdeveloped economies?<\/mark><\/strong>
A) Low per capita income
B) High capital formation
C) High population growth
D) Dependence on agriculture
Answer:<\/strong> B) High capital formation
Explanation:<\/strong> Underdeveloped economies usually suffer from low capital formation, not high.<\/p>\n\n\n\n

78. Which is NOT included in National Income?<\/mark><\/strong>
A) Wages of employees
B) Profits of firms
C) Transfer payments
D) Rent of land
Answer<\/strong>: C) Transfer payments
Explanation:<\/strong> Transfer payments (like pensions, subsidies) are not part of production and hence excluded.<\/p>\n\n\n\n

79. Which is the largest source of revenue for the Government of India?<\/mark><\/strong>
A) Income tax
B) GST
C) Customs duty
D) Corporate tax
Answer<\/strong>: B) GST
Explanation:<\/strong> Goods and Services Tax is currently the biggest source of government revenue.<\/p>\n\n\n\n

80. Public expenditure on health and education is an example of:<\/mark><\/strong>
A) Revenue expenditure
B) Productive expenditure
C) Transfer expenditure
D) Wasteful expenditure
Answer: <\/strong>B) Productive expenditure
Explanation:<\/strong> Such spending improves human capital and contributes to economic growth.<\/p>\n\n\n\n

81. Which is the largest item of expenditure in the Indian Union Budget?<\/mark><\/strong>
A) Education
B) Defense
C) Interest payments
D) Subsidies
Answer:<\/strong> C) Interest payments
Explanation:<\/strong> A major part of India\u2019s expenditure is on repayment of debt and interest payments.<\/p>\n\n\n\n

82. “Tax as a compulsory payment” is defined by:<\/mark><\/strong>
A) Keynes
B) Dalton
C) Marshall
D) Pigou
Answer:<\/strong> B) Dalton
Explanation:<\/strong> Dalton defined taxes as compulsory contributions from individuals to the government.<\/p>\n\n\n\n

83. Which of the following is a progressive tax?<\/mark><\/strong>
A) GST
B) Excise duty
C) Income tax
D) Customs duty
Answer: <\/strong>C) Income tax
Explanation:<\/strong> Progressive taxes increase with income, reducing income inequality.<\/p>\n\n\n\n

84. Which of the following is a regressive tax?<\/mark><\/strong>
A) Income tax
B) Wealth tax
C) GST
D) Corporate tax
Answer:<\/strong> C) GST
Explanation:<\/strong> Indirect taxes like GST are regressive because poor people spend a larger share of income on them.<\/p>\n\n\n\n

85. Which type of budget shows equal revenue and expenditure?<\/mark><\/strong>
A) Surplus budget
B) Balanced budget
C) Deficit budget
D) Zero-based budget
Answer<\/strong>: B) Balanced budget
Explanation:<\/strong> When government revenue equals expenditure, it is a balanced budget.<\/p>\n\n\n\n

86. Zero-based budgeting was first introduced in:<\/mark><\/strong>
A) USA
B) India
C) UK
D) Japan
Answer: <\/strong>A) USA
Explanation:<\/strong> Zero-based budgeting was introduced in the USA in the 1960s, later adopted by India in 1983.<\/p>\n\n\n\n

87. Which sector is known as the “Primary sector”?<\/mark><\/strong>
A) Manufacturing
B) Agriculture
C) Services
D) Trade
Answer: <\/strong>B) Agriculture
Explanation:<\/strong> Agriculture and allied activities form the base of the primary sector.<\/p>\n\n\n\n

88. Which sector is called the “Engine of Growth” in India?<\/mark><\/strong>
A) Industry
B) Services
C) Agriculture
D) Banking
Answer: <\/strong>B) Services
Explanation:<\/strong> The services sector has been the main driver of India\u2019s economic growth in recent decades.<\/p>\n\n\n\n

89. The Green Revolution in India was mainly related to:<\/mark><\/strong>
A) Industry
B) Services
C) Agriculture
D) Banking
Answer: <\/strong>C) Agriculture
Explanation:<\/strong> Green Revolution refers to agricultural growth through high-yielding seeds, fertilizers, and irrigation.<\/p>\n\n\n\n

90. Who is known as the \u201cFather of Green Revolution in India\u201d?<\/mark><\/strong>
A) M.S. Swaminathan
B) Norman Borlaug
C) Verghese Kurien
D) C. Subramaniam
Answer: <\/strong>A) M.S. Swaminathan
Explanation:<\/strong> Swaminathan introduced high-yielding varieties in India, revolutionizing agriculture.<\/p>\n\n\n\n

91. White Revolution in India is related to:<\/mark><\/strong>
A) Rice production
B) Milk production
C) Fish production
D) Cotton production
Answer:<\/strong> B) Milk production
Explanation:<\/strong> White Revolution led by Verghese Kurien made India the largest producer of milk.<\/p>\n\n\n\n

92. Which is called the “Sunrise Industry”?<\/mark><\/strong>
A) Textiles
B) Information Technology
C) Coal mining
D) Handicrafts
Answer:<\/strong> B) Information Technology
Explanation:<\/strong> IT is considered a sunrise industry due to its rapid growth and future potential.<\/p>\n\n\n\n

93. Which of the following is NOT a feature of developing economies?<\/mark><\/strong>
A) High per capita income
B) High population growth
C) Unemployment
D) Dependence on agriculture
Answer: <\/strong>A) High per capita income
Explanation:<\/strong> Developing economies generally have low per capita income.<\/p>\n\n\n\n

94. Human Capital refers to:<\/mark><\/strong>
A) Number of machines
B) Money available
C) Skills and abilities of people
D) Natural resources
Answer<\/strong>: C) Skills and abilities of people
Explanation:<\/strong> Human capital is the economic value of education, skills, and health of people.<\/p>\n\n\n\n

95. Which plan in India gave priority to agriculture?<\/mark><\/strong>
A) First Five Year Plan
B) Second Five Year Plan
C) Third Five Year Plan
D) Fifth Five Year Plan
Answer<\/strong>: A) First Five Year Plan
Explanation:<\/strong> The First Plan (1951\u201356) gave top priority to agriculture and irrigation.<\/p>\n\n\n\n

96. The Mahalanobis model was used in which Five Year Plan?<\/mark><\/strong>
A) First
B) Second
C) Third
D) Fourth
Answer: <\/strong>B) Second
Explanation:<\/strong> The Second Plan (1956\u201361) was based on the Mahalanobis model, emphasizing heavy industry.<\/p>\n\n\n\n

97. Which institution prepares the Human Development Index (HDI)?<\/mark><\/strong>
A) IMF
B) UNDP
C) World Bank
D) WTO
Answer:<\/strong> B) UNDP
Explanation:<\/strong> UNDP (United Nations Development Programme) prepares HDI annually.<\/p>\n\n\n\n

98. India\u2019s Planning Commission was replaced by:<\/mark><\/strong>
A) Finance Commission
B) NITI Aayog
C) RBI
D) SEBI
Answer<\/strong>: B) NITI Aayog
Explanation:<\/strong> In 2015, Planning Commission was replaced by NITI Aayog to promote cooperative federalism.<\/p>\n\n\n\n

99. The Chairman of NITI Aayog is:<\/mark><\/strong>
A) Finance Minister
B) Prime Minister
C) RBI Governor
D) Home Minister
Answer<\/strong>: B) Prime Minister
Explanation:<\/strong> The Prime Minister of India is the ex-officio Chairman of NITI Aayog.<\/p>\n\n\n\n

100. Sustainable development means:<\/mark><\/strong>
A) Development with unlimited use of resources
B) Development without considering environment
C) Development meeting present needs without harming future generations
D) Development with maximum consumption
Answer<\/strong>: C) Development meeting present needs without harming future generations
Explanation:<\/strong> Sustainable development balances economic growth with environmental protection and social equity.<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"

1. The term “Economics” is derived from which language?A) LatinB) GreekC) FrenchD) SanskritAnswer: B) GreekExplanation: The word “Economics” comes from the Greek word Oikonomia, meaning “management of household.” 2. Who is regarded as the “Father of Economics”?A) Karl MarxB) Adam SmithC) David RicardoD) Alfred MarshallAnswer: B) Adam SmithExplanation: Adam Smith, through his book \u201cThe Wealth<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"[]"},"categories":[15,1],"tags":[7760,7747,7701,7781,7768,7700,7748,7765,19269,7761,19242,19331,7691,19328,19319,19309,7746,19261,19323,19282,19289,7741,7720,19318,7705,7762,19315,7766,19295,7755,19258,19273,19293,19276,19334,19301,19308,19317,19333,19296,19320,19243,19262,19298,19327,19259,19239,19286,19335,19247,19307,19241,19245,19250,19253,19279,19278,19311,19310,19254,19265,7733,19299,7723,19291,19238,19274,7719,7707,19304,7730,19267,7791,19322,19287,7714,7737,7703,7749,7795,19264,19312,7727,7763,19305,19268,19246,19300,7756,19326,19297,19240,7693,19248,19284,19332,4029,5649,19244,7695,19257,19313,7726,19272,19303,19290,19285,19263,7712,7722,19288,7734,19255,19283,19252,19275,19314,19270,7744,19294,19292,19280,19249,7777,19271,19302,19316,19281,19306,19330,19251,7728,19256,7706,16658,7793,19266,7715,7736,7721,7739,7692,7794,7754,7699,7740,7785,7752,7745,7710,7790,7764,7704,7758,7738,7742,7724,7698,7716,7709,7751,19277,19321,7759,19329,19325,19260,19324,7767,7732,7757,7792,7750,7787,7713,7718,7773,7708,7778,7770,7725,7735,7702,7774,7779,7731,7772,7729,7776,7711,7789,7753,7788,7782,7783,7780,7771,7786,7694,7696,7743,7717,7784,7697,7769,7775],"class_list":{"0":"post-12100","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economics","7":"category-blog","8":"tag-general-theory-of-employment","9":"tag-human-development-index-hdi-is-published-by","10":"tag-invisible-hand-theory-was-propounded-by","11":"tag-tax-as-a-compulsory-payment-is-defined-by","12":"tag-trickle-down-theory-is-related-to","13":"tag-wealth-of-nations-was-written-in-which-year","14":"tag-7748","15":"tag-appreciation-of-currency-means","16":"tag-balance-of-payments","17":"tag-balance-of-payments-bop-includes","18":"tag-basics-of-economics","19":"tag-basics-of-economics-objective-questions","20":"tag-basics-of-economics-top-100-mcqs-with-answer-and-explanation","21":"tag-budget-and-taxation","22":"tag-business-cycles","23":"tag-capital-formation","24":"tag-cartel-formation-is-commonly-found-in-which-type-of-market","25":"tag-circular-flow-of-income","26":"tag-competitive-exam-economics","27":"tag-consumer-behavior","28":"tag-cost-of-production","29":"tag-crr-stands-for","30":"tag-deflation-means","31":"tag-deflation-measurement","32":"tag-demand-curve-is-generally","33":"tag-devaluation-of-currency-means","34":"tag-development-economics","35":"tag-disguised-unemployment-is-mostly-found-in","36":"tag-distribution-of-income","37":"tag-dumping-in-international-trade-means","38":"tag-economic-concepts","39":"tag-economic-development","40":"tag-economic-efficiency","41":"tag-economic-growth","42":"tag-economic-growth-measurement","43":"tag-economic-indicators","44":"tag-economic-institutions","45":"tag-economic-liberalization-in-india","46":"tag-economic-mcqs-with-answers","47":"tag-economic-planning","48":"tag-economic-planning-in-india","49":"tag-economic-principles","50":"tag-economic-problems","51":"tag-economic-reforms","52":"tag-economic-reforms-in-india","53":"tag-economic-resources","54":"tag-economic-systems","55":"tag-economic-welfare","56":"tag-economics-exam-preparation","57":"tag-economics-mcqs","58":"tag-economics-mcqs-with-explanation","59":"tag-economics-multiple-choice-questions","60":"tag-economics-objective-questions","61":"tag-economics-question-bank","62":"tag-economics-study-material","63":"tag-elasticity-of-demand","64":"tag-elasticity-of-supply","65":"tag-environmental-economics","66":"tag-externalities-in-economics","67":"tag-factors-of-production","68":"tag-financial-institutions","69":"tag-firms-are","70":"tag-fiscal-policy","71":"tag-fiscal-policy-is-concerned-with","72":"tag-five-year-plans","73":"tag-fundamentals-of-economics","74":"tag-gdp-and-gnp","75":"tag-gdp-stands-for","76":"tag-giffen-goods-violate-which-law","77":"tag-globalization","78":"tag-gnp-is-obtained-by","79":"tag-government-and-economy","80":"tag-human-capital-refers-to","81":"tag-human-development-index","82":"tag-imperfect-competition","83":"tag-in-capitalism","84":"tag-in-perfect-competition","85":"tag-in-socialism","86":"tag-india-is-the-____-largest-economy-in-the-world-nominal-gdp","87":"tag-indias-planning-commission-was-replaced-by","88":"tag-inflation-and-deflation","89":"tag-inflation-measurement","90":"tag-inflation-refers-to","91":"tag-interest-and-money-was-written-by","92":"tag-interest-rates","93":"tag-international-trade-basics","94":"tag-introduction-to-economics","95":"tag-investment-and-savings","96":"tag-keynesian-economics-emphasizes-on","97":"tag-labour-economics","98":"tag-liberalization","99":"tag-macroeconomics-basics","100":"tag-macroeconomics-deals-with","101":"tag-market-economy","102":"tag-market-equilibrium","103":"tag-market-structures","104":"tag-mcqs-adda","105":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-ka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