Economics - AimCLAT

1.

1 point

Which three groups/units participate in the economic circular flow?

legislative, executive, judicial branches

labor, land, capital

proprietorships, partnerships, corporations

individuals, businesses, government

2.

1 point

Which of the following would most likely cause an increase in demand for microwave ovens?

a lowering of production costs or cheaper resource prices

an anticipated price fall for microwave ovens

a rise in household disposable income

none of the above

3.

1 point

In India which of the following taxes is levied by the state governments?

Customs tax

Capital gains tax

corporation tax

Excise duty on liquor

4.

1 point

What do you mean by the price elasticity of demand?

percentage change in quantity demanded divided by the percentage change in quantity supplied

ruppee change in quantity demanded divided by the ruppee change in price

percentage change in price divided by the percentage change in quantity demanded

percentage change in quantity demanded divided by the percentage change in price

5.

1 point

An effective minimum price imposed by the government, called price floor in economics, is usually expected to result in what?

Increased demand

Shortage

Surplus

Decreased supply

6.

1 point

Growth of which of the following is referred to as "Hindu Rate of growth”?

Population

Per capita income

Food grains

GDP

7.

1 point

All of the following are parts of the business cycle except?

boom

slump

recovery

acceleration

8.

1 point

What, amongst the following would cause a supply shift?

Change in consumer tastes or preferences

Better technology

Increase in indirect taxes

None of the above

9.

1 point

What does the word "Capitalism" refer to?

private ownership of capital goods

government ownership of capital goods

the use of market forces to determine policy

private ownership of homes & cars

10.

1 point

Why is Transfer Payments excluded from calculation of GDP?

They are negligible in size and scope

They do not generate wealth

They only measure the government's impact on GDP

They are too large and would skew data

11.

1 point

If my income is Rs. 1,00,000, I paid Rs. 10,000 in taxes. When my income became Rs. 2,00,000, I paid Rs. 40,000 in taxes. Thus the taxing system is?

regressive

progressive

None of the above

proportional

12.

1 point

The philosophy of ‘Laissez-faire’ is associated with which type of State?:

Welfare State

Industrial State

Gandhian State

Socialist State

13.

1 point

Who is the Ex-officio Secretary of National Development Council?

Secretary of Planning Commission

Secretary of Finance Ministry

General Secretary of Lok Sabha

Vice-Chairman of Planning Commission

14.

1 point

Which of the following is a primary characteristic that helps to determine the type of economy a country has?

Voter participation levels

The amount of government involvement in decision making.

How educated the citizens are in that country

How many consumers and producers are in the marketplace

15.

1 point

The retail price index is used to for which of the following?

measure changes in the cost of living

none of the above

construct price lists

compare shop prices

16.

1 point

Who made the first attempt to measure India’s national and per capita income?

Mahalanobis

Dr. D.R. Gadgil

Dr. V.K.R.V. Rao

Dadabhai Naoroji

17.

1 point

Which of these economic terms does not denote restriction of international trade, i.e. the free flow of goods between nations?

Import tariffs

Export Substitution

Trade quotas

none of the above

18.

1 point

You have Rs. 500. You cant buy books because you went for a movie. Which economic idea is this?

Unlimited wants concept

Cost- benefit analysis

Opportunity cost

Private benefit theory

19.

1 point

In a competitive industry each buyer and seller _______ ?

Believes that can influence price

Is a price taker

Prevents the entry of competitors

Produce different products

20.

1 point

Which of the following is NOT an example of consumption?

Rohit buys and wears new sneakers

Shreya drinks coffee at the local coffee shop

Hrithik sells cookies at a bake sale

Megha pays a plumber to fix her drain