APPSC GROUP-2 INDIAN ECONOMY QUESTIONS

1. When the given values of x form geometric series and values of y form arithmetic series, the relationship between The variables is given by
(A) Lemon function
(B) Lemon homogeneous function
(C) Binomial function
(D) Exponential function

2. Statistical distrusts are due to?
(A) Nature of statistics
( B)Limited scope of statistics
(C) insufficient tools of statistics
(D) Misuse of statistics

3. Circular test is satisfied by the following index
(A) Laspeyre’s index
(B) Pasche’s index
(C) Fisher’s index
(D) Kelly’s index

4.Which of the following is the largest component of India’s external debt?
(A) Commercial borrowings
(B) NRI deposits
(C) Multilateral debt
(D) Bilateral debt
5. Tobin tax is related with?
(A) Black money transactions
(B) Commodity transactions
(C) Service transactions
(D) Foreign exchange transactions

6. The terms Static’ and Dynamic’ in economics were first used by?
(A)Malthus
(B) Mill
(C)Marshall
(D) Walras

7. A metropolitan city is one which has a population size of more than?
(A)10 lakh
(B)15 lakh
(C) 20 lakh
(D) 25 lakh

8.According to fifth economic census, the highest number of industrial units in the country are
located in the State of?
(A) Maharashtra
(B) Gujarat
(C) Andhra Pradesh
(D) Tamil Nadu

9. Under perfect competition, the entrepreneur’s power of control over the price of the commodity
Is?
(A)Total
(B) Considerable
(C)Some
(D) None
10.Who has regarded the concept of ‘ideal output’ as an indicator of economic welfare?
(A)Hicks
(B) Pareto
(C)Pigou
(D) Kaldor

11. The technique of presenting data by pictogram was developed by?
(A) Croxton and Cowden
(B) Johnson and Jackson
(C) Otto Neurth
(D) Horace Secrist

12 The monetization of economy is measured by?
(A)M⁰/GDP
(B) M¹/GDP
(C) M²/GDP
(D) M³/GDP

13. The shape of average selling cost curve is?
(A) Hyperbola shaped
(B) Rectangular Hyperbola shaped
(C) L-shaped
(D) U-shaped

14.The National Institute of Training for Standardization (NITS) is located at?
(A)Hyderabad
(B) Nagpur
(C)Chandigarh
(D) Noida
15. NABARD is a?
(A) Commercial Bank
(B) Lead Bank
(C) Refinance Bank
(D) Cooperative Bank
16. Cost-plus principle is related with?
(A)Production theory
(B) Value theory
(C) Marginal uti theory
(D) Distribution theory

17. Which one of the following is not a feature of Stagflation?
(A) High input cost
(B) Excess in aggregate demand
(C) High price level
(D) High unemployment level

18.. The Hayek theory of trade cycle is related with?
(A) Over-investment
(B) Price fluctuation
(C) Interaction of multiplier and accelerator
(D) Interaction of saving and investment

19. Which one of the following is a two-dimensional diagram?
(A) Pictogram
(B) Histogram
(C) Bar diagram
(D) Line diagram

20. A firm’s learning curve shows the following relationship between average cost of production and total output over time
(A) Decline in average cost with increase in total output
(B) Decline in average cost with decline in total output
(C) Increase in average cost with decline in total output
(D) Increase in average cost with increase in total output

21. Select the correct statement regarding Harrod’s accelerator and Domar’s accelerator and decide which one is true
(A) Harrod’s accelerator is psychological and Domar’s accelerator is technological
(B) Harrod’s accelerator is technological arid Domar’s accelerator is psychological
(C) Harrod’s accelerator is psychological and Domar’s accelerator is also psychological
(D) 1-larrod’s accelerator is technological and Domar’s accelerator is also technological

22. The transfer payment multiplier in the Keynesian system will be equal to?
(A) MPC/MPS
(B)MPS/MPC
(C)MPS/(1-MPC)
(D)MPC/(1—MPS)

23. The difference between Natural rate’ and ‘Market rate’ of interest has been done by?
(A)Robertson
(B) Keynes
(C)Fisher
(D) Wicksell

24. The quartile deviation for a normal distribution is always equal to?
(A) (2/3)σ
(B) (3/4)σ
(C) (4/5)σ
(D) (5/6)σ

25. Which of the following is not a ’shift factor of demand’?
(A)Income
(B) Price
(C)Fashion
(D) Taste

Answers:

1	D
2	D
3	D
4	A
5	A
6	B
7	A
8	D
9	D
10	C
11	C
12	B
13	D
14	B
15	C
16	D
17	B
18	A
19	B
20	A
21	D
22	A
23	D
24	A
25	B