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Economics General Knowledge Questions

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Q :  

National Insurance Awareness Day was observed on which day?

(A) 26 June

(B) 27 June

(C) 28 June

(D) 29 June

Correct Answer : C

Q :  

What is the number of sellers in a monopolistic market structure?

(A) very few

(B) very much

(C) one

(D) two

Correct Answer : C
Explanation :

In monopolistic competition, you can find two and more sellers that compete with each other, whereas in a monopoly, there is only one seller.


Q :  

What is a market with a small number of large firms called?

(A) Dual rights

(B) Competition

(C) Oligopoly

(D) Monopoly

Correct Answer : C
Explanation :

An oligopoly refers to a market structure that consists of a small number of firms, who together have substantial influence over a certain industry or market. While the group holds a great deal of market power, no one company within the group has enough sway to undermine the others or steal market share.


Q :  

Who developed the innovative theory of profit?

(A) Walker

(B) Clarke

(C) Knight

(D) Schumpeter

Correct Answer : D
Explanation :

The 'Innovation Theory of Profit' was proposed by Joseph. A. Schumpeter who believed that an entrepreneur can earn economic profits by introducing successful innovations.


Q :  

What else is micro economics called?

(A) Income theory

(B) Principle of investment

(C) Theory of price

(D) Principle of Expenditure

Correct Answer : C
Explanation :

Micro economics is also known as Price theory because it takes into account the demand and supply of individual units and thus aims to determine the price of a product using the factors of production.


Q :  

Camera_object is in the hands of a professional photographer.

(A) Free

(B) Intermediate

(C) Consumer

(D) Capital

Correct Answer : D
Explanation :

Camera, in photography, a device for recording an image of an object on a light-sensitive surface; It is essentially a light-tight box with a hole to admit light that is focused onto a sensitive film or plate. 35 mm single-lens reflex (SLR) camera.


Q :  

Who was the proponent of the dynamic theory of profit?

(A) Clarke

(B) Schumpeter

(C) Knight

(D) Halli

Correct Answer : A
Explanation :

Dynamic theory of profit was advocated by J.B Clark. He stated that profits rise in that of type of economy where the things change. No profits will be generated n the static economy, where everything remains constant.


Q :  

Which of the following may be called a fiscal deficit?

(A) Revenue expenditure − Revenue receipts

(B) Capital expenditure – Capital receipts

(C) Total expenditure – Total receipts other than borrowings

(D) Revenue expenditure + Capital expenditure − Revenue receipts

Correct Answer : C
Explanation :

Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure. It occurs when the government's expenditure exceeds its income.


Q :  

In which of the following market structures, there is a variable demand curve?

(A) Perfect competition

(B) Monopoly

(C) Oligpoly

(D) Monopolistic competition

Correct Answer : C
Explanation :

There is freedom of entry and exit. Sellers have perfect knowledge about the market conditions. They are price taker. Price Elasticity of Demand of a firm is Infinite which means demand curve for Perfect competition is a Perfectly Elastic.


Q :  

The foreign exchange reserves in India crossed the landmark of ___________ in June 2021.

(A) US$ 900 trillion

(B) US$ 600 trillion

(C) US$ 600 billion

(D) US$ 900 billion

Correct Answer : C
Explanation :

Correct answer is US$ 600 billion. In June 2021, India crossed the 600 Billion USD mark for the first time. India has large foreign-exchange reserves; holdings of cash, bank deposits, bonds, and other financial assets denominated in currencies other than India's national currency, the Indian rupee.


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