Mock Test

Exam: AFCAT Subject: General Awareness Topic: Economics

Total Questions: 20

Q1. Which of the following is a non-tariff trade barrier?

Import quotas Export subsidies Free trade agreement Currency devaluation
Q2. Which of the following is a measure of the responsiveness of quantity supplied to a change in the price of a related good?

Price elasticity of demand Income elasticity of demand Cross elasticity of demand Price elasticity of supply
Q3. Which of the following is not a type of market in the stock market?

Primary Market Secondary Market Tertiary Market Derivatives Market
Q4. Which of the following measures the total income earned by a country's residents, regardless of where the income was earned?

GDP GNP NNP NI
Q5. What is the exchange of goods and services between countries called?

Globalization International Trade Domestic Trade Barter
Q6. Which of the following is a measure of the responsiveness of quantity demanded to changes in income?

Income elasticity Price elasticity of demand Price elasticity of supply Cross elasticity
Q7. Which of the following is not a characteristic of an oligopoly market structure?

Few sellers Interdependence Homogeneous products Entry barriers
Q8. What is the role of government in environmental economics?

To promote unsustainable resource use To ignore market failures To regulate externalities To discourage innovation
Q9. Which of the following is not a type of infrastructure?

Roads Hospitals Software Schools
Q10. Which tax is levied on the value of goods and services provided by foreign companies in a country?

Income Tax Excise Duty Service Tax Import Tax
Q11. Which of the following is a measure of the average price level of a basket of consumer goods and services?

CPI GDP GNI GNP
Q12. FII refers to investment made by ________ in the financial markets of a country.

Foreign Individuals Foreign Institutions Foreign Governments Foreign Entities
Q13. Which committee recommended the establishment of RBI?

Hunter Committee Rangarajan Committee Narasimham Committee Ferguson Committee
Q14. What is the term used to describe the total value of all goods and services produced within a country's borders in a given period of time?

GDP GNI GNP CPI
Q15. What is the impact of minimum wage laws on unemployment?

Increases unemployment by reducing job opportunities Decreases unemployment by ensuring fair wages Has no impact on unemployment Reduces the need for job training programs
Q16. What is the primary objective of liberalization in economic policy?

Promote competition Increase government control Promote monopolies Reduce economic growth
Q17. Which of the following is a measure to combat cost-push inflation?

Reducing production costs Increasing wages Decreasing demand Increasing interest rates
Q18. What is the full form of LPG in the context of economic reforms?

Liquefied Petroleum Gas Liberalization, Privatization, Globalization Low Price Guarantee Limited Partnership Group
Q19. Which of the following is not a part of the expenditure method of calculating national income?

Government spending Private consumption Imports Exports
Q20. Who is considered the father of neoclassical economics?

Adam Smith John Maynard Keynes Alfred Marshall Karl Marx

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