Indian Economy MCQs

Indian Economy Multiple Choice Questions (MCQs) for SSC, State and all One Day Examinations of India. Objective Questions on Indian Economy for competitive examinations.

41. Which of the following is called the third state of the law of variable proportions?
[A] negative returns
[B] positive returns
[C] constant returns
[D] increasing returns

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42. When the demand for a commodity increases with increase in income, what is such a good called?
[A] Superior good
[B] Giffin good
[C] Inferior good
[D] Normal good

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43. A proposal which seeks to reduce the quantity of demand submitted by the government to Rs. 1/ Known as__
[A] Disapproval of policy Cut
[B] Token cut
[C] Economy cut
[D] Vote on account

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44. What can improve the competitive position of a company?
[A] increasing the selling price
[B] reducing the margin of profit
[C] ignoring competitors
[D] understanding and fulfilling customers needs

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45. Rent is a factor payment which is paid by which of the following?
[A] land
[B] restaurant
[C] building
[D] factory

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46. Expenses for increasing production capacity?
[A] Revenue expenditure
[B] Production expenditure
[C] Investment expenditure
[D] Capital expenditure

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47. What is Income and Expenditure Account?
[A] Property Account
[B] Personal Account
[C] Nominal Account
[D] Capital Account

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48. The government had some time back constituted a committee under the chairmanship of the chairman of the Central Board of Direct Taxes, what is to be known?
[A] codification of tax laws
[B] the entire structure of tax laws including the question of imposition of bank tax
[C] the concerns of the foreign investors in India with regard to taxation matters
[D] aspects of the generation of black money, its transfer abroad and bringing back such money into India’s legitimate financial system

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49. Who governs the money supply?
[A] Planning Commission

[B] Finance Commission

[C] Reserve Bank of India
[D] Commercial Banks

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50. Which is not a characteristic of capitalist economy?
[A] Right to private property
[B] Existence of competition
[C] Service motive
[D] Freedom of choice for consumers

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