Economics Topics
Undergraduate level — Economics
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Microeconomics
Macroeconomics
Indian Economy
Bihar Economy
Budget & Fiscal Policy
quiz Questions
Q181
Under the current institutional definitions used in the Reserve Bank of India’s liquidity management, what operational current handles the repo window where commercial banks borrow overnight funds against government securities?
Open Market Operations (OMO)
Liquidity Adjustment Facility (LAF)
Market Stabilization Scheme
Priority Sector Credit pool
Explanation
The Liquidity Adjustment Facility (LAF) is the primary RBI monetary operation channel that allows banks to borrow money through repo agreements or park excess funds via reverse repos.
Q182
Which specific framework outlines the allocation of resources inside a macro model when public sector outlays drive up the cost of capital, forcing a dollar-for-dollar contraction in private sector investment?
The accelerator process
The Crowding-Out Effect
The Multiplier effect
The Real Balance loop
Explanation
The Crowding-Out Effect happens when heavy government market borrowing pushes up equilibrium interest rates, increasing capital financing costs and directly reducing private investment.
Q183
What is the primary operational parameter of the 'Jeevika' project (Bihar Rural Livelihoods Project) in terms of rural micro-finance modeling inside Bihar?
To coordinate large heavy manufacturing industrial licenses
To mobilize rural women into Self-Help Groups (SHGs) and foster institutional credit-livelihood link maps
To nationalize the collection of primary sector export tariffs
To peg the price of agricultural wages to stock index movements
Explanation
Jeevika focuses on absolute poverty reduction by aggregating rural women into Self-Help Groups (SHGs) and establishing institutional credit linkages to create micro-enterprises and non-farm livelihoods.
Q184
Under the microeconomic classification of market forms, what model evaluates an industry where a few large sellers face a single all-powerful buyer?
Pure Duopoly
Oligopoly-Monopsony complex
Bilateral Monopoly
Perfect Competition
Explanation
A market characterized by the presence of a few sellers alongside a single dominant buyer establishes an oligopoly-monopsony intersection, often modeled as a type of bilateral oligopoly.
Q185
Which type of elasticity measurement assesses the exact degree of technical curvature across a firm’s isoquant production map, showing how easily capital machinery can replace labor inputs?
Cross-price demand responsiveness
Elasticity of Technical Substitution
Income elasticity of preference maps
Marginal propensity to transform index
Explanation
The Elasticity of Technical Substitution measures the percentage change in the capital-labor ratio divided by the percentage change in the Marginal Rate of Technical Substitution ($MRTS$), mapping production frontier curvature.
Q186
According to the permanent income hypothesis, what is the value of the short-run Marginal Propensity to Consume (MPC) out of purely temporary windfalls or transitory income fluctuations?
Exactly equal to one
Approaching or structurally close to zero
Infinitely positive along luxury indices
Exactly identical to the average propensity to save
Explanation
Friedman's model argues that consumption is driven by long-term expected permanent income. Consumers save the vast majority of short-term temporary windfalls, leaving the short-run MPC out of transitory income close to zero.
Q187
Which state enterprise model manages the storage, decentralized procurement, and localized pricing operations of grains inside the public distribution systems (PDS) of Bihar?
BIADA warehousing branch
Bihar State Food and Civil Supplies Corporation (BSFC)
COMPFED regulatory panel
Directorate of Agricultural Marketing
Explanation
The Bihar State Food and Civil Supplies Corporation (BSFC) operates the logistics, localized grain procurements, and distribution networks under state welfare rationing systems.
Q188
What is the structural implication of an 'Inverted Tariff Structure' inside the trade and industrial manufacturing configuration of the Indian Economy?
It accelerates domestic value addition addition
It diskincentivizes domestic manufacturing by making imported inputs costlier than finished goods
It completely balances the current account deficit
It drops the marginal efficiency of capital to zero
Explanation
An inverted duty structure occurs when import tariffs on raw materials or intermediate inputs exceed those on finished products, putting domestic manufacturers at a competitive disadvantage against foreign completed imports.
Q189
Which macro-fiscal metric evaluates the structural sustainability of a sovereign budget by tracking the ratio of total outstanding public debt stock to the nominal gross domestic product ($D/GDP$)?
Tax Buoyancy modulus
Debt-to-GDP Ratio
Lafer peak variance coefficient
Fiscal marksmanship variance
Explanation
The Debt-to-GDP Ratio is a standard macroeconomic sustainability indicator. A rising ratio warns that debt growth is outstripping national output expansion, creating potential default risks.
Q190
According to the classical microeconomic theory of distribution, what term defines the price paid for using a specialized production factor whose absolute natural supply is perfectly inelastic?
Quasi-rent
Economic Rent
Transfer earnings
Normal interest profit
Explanation
Economic Rent represents payments made to a factor of production (such as land) whose supply is completely fixed or perfectly inelastic, meaning price adjustments do not alter available supply.