Economics Interview Questions

1. Rent will be produced at that time when ?
(A) Entire land is fertile
(B) Elasticity of supply of land is perfectly elastic
(C) Land is mobile
(D) None of the above
Ans : (D)

2. The Example of derived demand is—
(A) Demand for labour
(B) Demand for tea
(C) Demand for consumable commodity
(D) Income demand
Ans : (A)

3. Which of the following is an active factor of production ?
(A) Land
(B) Labour
(C) Capital
(D) Organisation
Ans : (B)


4. Who developed the innovation theory of profit ?
(A) Shumpeter
(B) Haley
(C) Prof. Knight
(D) Karl Marx
Ans : (A)

5. When the rate of money inflation increase then the prices of commodities ?
(A) Increase
(B) Decrease
(C) Remain constant
(D) Do not change
Ans : (A)

6. In common meaning, inflation is a condition in which—
(A) Price of commodity increases
(B) Value of money decreases
(C) Price of commodity and value of money both increase
(D) Price of commodity increases and value of money decreases
Ans : (D)

7. According to Keynes, real inflation takes place—
(A) Before the level of full employment
(B) On the level of full employment
(C) After the level of full employment
(D) All above are true
Ans : (C)

8. Which is the main reason of demand pull inflation ?
(A) Increase in money supply
(B) Increase in commercial expenditure
(C) Increase in foreign demand for goods
(D) All of the above
Ans : (D)

9. The reason for cost push inflation is—
(A) Increase in money wages
(B) Increase in rate of profit
(C) Both of above
(D) None of the above
Ans : (C)

10. What is necessary to control cost push inflation ?
(A) To impose control on wages of labour
(B) To remove market imperfections
(C) Both of the above
(D) None of the above
Ans : (C)

11. Deficit financing increases—
(A) Rate of money inflation
(B) Rate of money deflation
(C) Rate of devaluation
(D) All of the above
Ans : (A)

12. Which is not a monetary measure to control inflation ?
(A) Soft loan policy
(B) Hard credit policy
(C) Tight the regulation of money issue
(D) To reduce the quantity of money
Ans : (A)

13. Which is the monetary measure to control inflation ?
(A) Increase in taxation
(B) Decrease in taxation
(C) Soft credit policy
(D) Hard credit policy
Ans : (D)

14. Selling of securities in the open market by the central bank creates—
(A) Inflation
(B) Deflation
(C) Both of above
(D) None of the above
Ans : (B)

15. To control inflation the central bank should do—
(A) To sell government securities and to decrease bank rate
(B) To sell government securities and to increase bank rate
(C) To purchase government securities and to increase bank rate
(D) To purchase government securities and to decrease bank rate
Ans : (B)

16. To buy a book, from the market by giving money is called—
(A) Direct Exchange
(B) Indirect Exchange
(C) Direct and Indirect exchange
(D) This is not any type of exchange
Ans : (A)

17. Which of the following is not a direct tax ?
(A) Income tax
(B) Property tax
(C) Sales tax
(D) House tax
Ans : (C)

18. Ultimate burden of tax is known as—
(A) Impact
(B) Incidence
(C) Shifting of tax
(D) None of the above
Ans : (B)

19. When elasticity of demand and elasticity of supply are equal, the burden of tax ?
(A) Lies more on buyer
(B) Lies more on seller
(C) Lies equally on buyer and seller
(D) All of the above are false
Ans : (C)

20. Which of the following economists suggested tax on expenditure ?
(A) Dalton
(B) Musgrave
(C) Kaldor
(D) Van Philips
Ans : (A)