Economics MCQ Questions and Answers
Economics MCQ Questions with Answers are essential for candidates preparing for competitive exams like UPSC, SSC CGL, and RBI Grade B. These aptitude questions cover vital economic concepts including demand-supply, national income, fiscal policy, inflation, and international trade. Each question tests both theoretical understanding and practical application, ensuring candidates are ready for objective-type exams. Practicing aptitude questions with answers and explanations helps in revising economic fundamentals quickly. Whether you are a student, job aspirant, or exam enthusiast, this comprehensive economics MCQ set is perfect for self-assessment. Strengthen your general awareness and problem-solving ability by practicing free economics tests or downloading the solutions PDF.
Economics MCQ
111. Deficit financing increases-
- Rate of money inflation
- Rate of money deflation
- Rate of devaluation
- All of the above
112. Which is not a monetary measure to control inflation ?
- Soft loan policy
- Hard credit policy
- Tight the regulation of money issue
- To reduce the quantity of money
113. Which is the monetary measure to control inflation ?
- Increase in taxation
- Decrease in taxation
- Soft credit policy
- Hard credit policy
114. Selling of securities in the open market by the central bank creates-
- Inflation
- Deflation
- Both of above
- None of the above
115. To control inflation the central bank should do-
- To sell government securities and to decrease bank rate
- To sell government securities and to increase bank rate
- To purchase government securities and to increase bank rate
- To purchase government securities and to decrease bank rate
116. Which of the following is not a direct tax ?
- Income tax
- Property tax
- Sales tax
- House tax
117. Ultimate burden of tax is known as-
- Impact
- Incidence
- Shifting of tax
- None of the above
118. When elasticity of demand and elasticity of supply are equal, the burden of tax ?
- Lies more on buyer
- Lies more on seller
- Lies equally on buyer and seller
- All of the above are false
119. Which of the following economists suggested tax on expenditure ?
- Dalton
- Musgrave
- Kaldor
- Van Philips
120. If interest payment is deducted from the fiscal deficit, then the balance is-
- Primary deficit
- Budgetary deficit
- Revenue deficit
- Monetary deficit