100 Best Economics Multiple Choice Questions and Answers

6. AGMARK is a guarantee of the standard?

A. Quality

B. Weight

C. Size

D. Quantity

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Correct Answer is A

7. The basic object of all production is –

A. satisfy human wants

B. provide employment

C. make profits

D. increase basic output

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Correct Answer is A

According to Adam Smith, consumption is the sole end and purpose of all production. The goal is to satisfy human desire.

8. The supply of labor in the economy depends on?

A. Population

B. National Income

C. Per Capita Income

D. Natural Resources

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Correct Answer is A

Supply Curve for labor depends upon population, wage rates, etc.

9. To control credit, Reserve Bank of India should –

A. Increase CRR and decrease Bank rate

B. Decrease CRR and reduce Bank rate

C. Increase CRR and increase Bank rate

D. Reduce CRR and increase Bank rate

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Correct Answer is C

10. Which among the following is a function of the Reserve Bank of India?

A. Bank issues the letters of credit to their customers certifying their creditability

B. Collecting and compilation of statistical information relating to banking & other financial sectors

C. Banks underwrite the securities issued by public or private organizations

D. Accepting deposits from the public

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Correct Answer is B

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Economics: Multiple Choice Questions with Answers