Agriculture economics most important questions for competitive exams

Agriculture economics most important questions for competitive exams – Part 1

  1. In principle of increasing risk, the non equity capital used will be

(a) At increasing rate

(b) At decreasing rate

(c) At constant rate

(d) None

  1. Choose the best measure to find worthiness of investment

(a) Pay back period

(b) B-C ratio

(c) NPV

(d) IRR

  1. Principle of substitution is used in

(a) Product min.

(b) Selection of enterprise

(c) Selection of practice

(d) None of these

  1. Least cost principle is used in

(a) What to produce

(b) How much to produce

(c) How to produce

(d) When to produce

  1. Demand for agricultural products is relatively

(a) Less elastic

(b) More elastic

(c) More inelastic

(d) Less inelastic

  1. When total product remains constant, the marginal product will be

(a) Zero

(b) Negative

(c) Positive

(d) Constant

  1. When AP < MP, AP is

(a) Remains constant

(b) At maximum

(c) Increasing

(d) Decreasing

  1. A production function with unitary elasticity indicates

(a) Increasing returns

(b) Decreasing returns

(c) Nothing

(d) Constant returns

  1. In the rational region of production function, choice of indicator is

(a) Factor – factor price ratio

(b) Factor – product prices

(c) Product – product price ratio

(d) Factor – product quantity

  1. The relationship between TP and TC is

(a) Directly proportional

(b) No relationship

(c). Inversely related

(d) None

  1. When MC is at lowest, MP will be

(a) Decreasing

(b) Maximum

(c) Increasing

(d) Minimum

  1. In rational zone

(a) MC = AC

(b) MC > AC

(c) MC < AC

(d) None

  1. If Px. x > PX2 X2

(a) x, should be replaced by x2

(b) x, should be replaced by x1

(c) Used same quantity

(d) None

  1. On the ridge lines, MPP of input, will be

(a) Constant

(b) Positive

(c) Negative

(d) Zero

  1. If MRS between 2 products is negative, then 2 goods are

(a) Substituting

(b) Complementing

(c) Supplementing

(d) No relationship

  1. The optimum product combination at given level of resources will be where

(a) Ay₁/Ay₂ Py/Py₂

(b) Ay₂/Ay₁ Py₁/Pyz

(c) Ax,/Ax2 = Px₁/Px2

(d) Ax₂/Ax, = Px₁/Px2

  1. In case of diminishing rate of substitution the curve will be

(a) Convex to origin

(b) Straight line

(c) Concave to origin

(d) Vertical or horizontal

  1. Optimum choices of enterprises or combination of enterprises is made based on

(a) Principle of least cost

(b) Principle of variable proportions

(c) Principle of opportunity cost

(d) Principle of cost

  1. In LP, the availability and input-output coefficients as well as prices are known with certainity then assumption is

(a) Linearity

(b) Additivity

(c) Finiteness

(d) Single value expectations

  1. In maximizing returns interaction, the out going column will be located with the help of

(a) Highest positive value

(b) Lowest positive value

(c) Lowest negative value

(d) Highest negative value

  1. List of all the physical property of a business along with their values at a specified date is

(a) Farm inventory records

(b) Farm income record

(c) Farm business analysis

(d) Farm financial account

  1. Which method(s) is employed for calculating depreciation of tractors and livestock ?

(a) Annual revaluation and reducing fraction

(b) Diminishing balance and straight line

(c) Straight line and annual revaluation

(d) Diminishing balance and reducing fraction

  1. Marketable surplus is given by (a) MS = P+C

(b) MS P+C/2

(c) MS = P-C

(d) MS = C-P

  1. DMI headquarter is located at

(a) Hyderabad

(b) Faisalabad

(c) Ghaziabad

(d) Faridabad

  1. The first regulated market Karanjia cotton market established in

(a) 1806

(b) 1826

(c) 1876

(d) 1886

  1. World Standard Day is celebrated on

(a) 14th January

(b) 14th November

(c) 14th October

(d) 14th December

  1. Property that is pledged to secure a loan is

(a) Mortgage

(b) Chattel loan

(c) Personal security

(d) Collateral security

  1. Cooperative Credit Societies Act was passed in

(a) 1902

(b) 1903

(d) 1912

(c) 1904

  1. First land Mortgage bank in 1920 established at

(a) Karnataka

(b) Bihar

(c) West Bengal

(d) Punjab

  1. Single window recommended by system was

(b) DR Gadgil

(a) Marashimhan

(c) Mohan Kanda

(d) Mohan Prakash

  1. Nationalization of banks was carried out on

(a) 19th June, 1969

(b) 19th July, 1969

(c) 19th August 1969

(d) 2nd October, 1969

  1. will encourage village industries, artesians, carpenters, etc. in rural areas

(a) PACS

(b) RRB

(c) FSS

(d) PLDB

  1. In case of amortized even repayment plan, the interest rate

(a) Increases

(b) Declines

(c) Remains constant

(d) Not related

  1. If liabilities > assets, then networth is placed at

(a) Liabilities side

(b) Assets side

(c) Income side

(d) Not clear

  1. Book value of durable assets refers to

(a) Market price of assets

(b) Purchase price of assets

(c) Production price of assets

(d) Value at cost

  1. Debt-equity ratio is

(a) Differed liabilities/Net worth

(b) Net worth/Differed liabilities

(c) Net worth/Total assets

(d) None of these

  1. Equity value of the firm is known/ derived from

(a) Balance sheet

(b) Income statement

(c) Cash flow statement

(d) Budgeting

  1. If farmer’s liquidity is less, then current ratio is

(a) More than 1

(b) Less than 1

(c) Equal to 1

(d) Cannot be determined

  1. When operating, fixed and gross ratios are less than one, then enterprise is under

(a) Loss

(c) Heavy loss

(b) Profit

(d) No change

  1. To assess the time at which funds are required for farming is known with the help of

(a) Income statement

(b) Cash flow

(c) Balance sheet

(d) Can not be assessed

  1. Break even analysis is carried out by

(a) BEP = P/F-V

(b) BEP = F/P-V

(c) BEP = T/F-V

(d) BEP = P-V/F

  1. Marginal value products of scarce resources is known by

(a) Linear programming

(b) Production function

(c) Budgeting

(d) Planning

(e) Both (a) and (b)

  1. The decision rule in linear programming is that the response use is to be continued whose

(a) MVP is negative

(b) MVP is zero

(c) MVP is positive

(d) None of these

  1. Tangible benefit of project is

(a) Income distribution

(b) Standard of living

(c) National prosperity

(d) Higher yield level

  1. Present value of future money is calculated by use of:

(b) (1+0)²

(a) (1+i)’

(c) P (1+i)

(d) P

  1. Shadow prices of resources are used in

(a) Economic analysis

(b) Financial analysis

(c) Econometric analysis

(d) Technical analysis

  1. B-C ratio is used to evaluate

(a) Construction of dam

(b) Construction of building

(c) Construction of house

(d) Construction of cattle shed

  1. What is bullet loan?

(a) Single repayment loan, having amortization

(b) Single repayment loan, having no amortization

(c) Multi repayment loan, having amortization

(d) Multi repayment loan, having no amortization

  1. For y = b+b,X, if supply is elastic then

(a) b is negative

(b) bo is zero

(c) b is positive

(d) None

  1. Elasticity can not be explained by

(a) Regression

(b) GLS

(c) OLS

(d) Correlation

  1. is considered as market lifeblood

(a) Buyers

(b) Sellers

(c) Market information

(d) Market organization

  1. ‘Economics is what economist do’ given by

(a) Alfred Marshall

(b) Lord Robbins

(c) JM Keynes

(d) Jacob Vineir

  1. With progress in technology, the PPC will shift

(a) Toward right

(b) Toward left

(c) Remains same

(d) None

  1. Marginal utility of money can not be

(a) Positive

(b) Negative

(c) Zero

(d) Both (c) and (b)

  1. In the SNOB effect, the demand curve shifts

(a) Left to original

(b) Right to original

(c) Remains same

(d) None

  1. Indifference curves substitutes will be

(a) Convex to origin

(b) Concave to origin

(c) Perpendicular to origin

(d) Straight line

  1. Consumers equilibrium is attained at for perfect

(a) Ax/Ay Px/Py

(b) MRSxyPx/Py

(c) Ay/Ax Py/Px

(d) MRS yx Px/Py

  1. If income consumption curve is bending towards Y axis then commodity X is

(a) Inferior

(c) Normal

(b) Luxury

(d) None

  1. Pick out the odd one
    Excise duty

(a) Death duty

(b) Wealth tax

(c) Income tax

(d)Income effect is stronger than

  1. substitution effect for

(a) Inferior goods

(b) Giffen goods

(c) Normal goods

(d) None

  1. For Giffen goods price consumption curve will be

(a) Backward sloping

(b) Horizontal

(c) Downward sloping

(d) Upward sloping

  1. Quantity purchased will vary inversely with price when income effect is for normal goods

(a) Zero

(c) Negative

(b) Positive

(d) None

  1. If income effect is positive for both X and Y goods, the ICC will be

(a) Slope upward to right

(b) Slope upward to left

(c) Slope downward to right

(d) Slope downward to left

  1. Consumer is neither worse off nor off than before in

(a) Hicks substitution effect

(b) Marshall substitution effect

(c) Shitsky substitution effect

(d) None of these

  1. When with a change in price the total outlay on commodity remains constant, it is a case of

(a) Perfect elasticity

(b) Unit elasticity

(c) Perfect inelasticity

(d) Zero elasticity

  1. Change in quantity demanded refers to

(a) Upward shift of demand

(b) Downward shift of demand

(c) Movement on same curve

(d) None

  1. When both the price of a substitute and price of a component of commodity X rise, demand for X

(a) Falls

(b) Rises

(d) All are possible

(c) No change

  1. Cross elasticity of demand between petrol and automobiles is

(a) Negative

(b) Zero

(c) High

(d) Infinite

  1. For inelastic goods, fall in the price leads to

(a) Increase in TE

(b) No change in TE

(c) Decrease in TE

(d) Not related

  1. The cross elasticity of demand between 2 products is infinite, it is case of

(a) Monopoly

(b) Oligopoly slope

(c) Monopolistic

(d) Perfect competition

  1. The Engel curve has ………….for all goods

(a) Positive slope

(b) Constant

(c) Negative slope

(d) All of these

  1. The differences between value in use and value in exchange is

(a) Consumer surplus

(b) Marketing surplus

(c) Farm production

(d) None of these

  1. MRS on the isoclines will be for CES

(a) Positive

(b) Zero

(c) Negative

(d) Constant

  1. Elasticity of substitution production function ranges from

(a) 0 to 1

(b) 0 to μ

(c) -1 to +1

(d) – μ to +μ

  1. Choose the correct one

(a) MR = AR e e+1

(b) AR = MR e e+

(c) MR AR 이요

(d) AR = MR

  1. Profit mark up price is calculated as

(a) MR P

(b) AR P

(c) AC – P

(d) MC – P

  1. Shut down point in short run for firm, even if it does not cover

(a) Marginal returns

(b) Average cost

(c) Variable cost

(d) Marginal cost

  1. In the long run, perfectly competeting firms, will have

(a) Zero economic profits

(b) Constant economic profits

(c) Positive economic profits

(d) Negative economic profits

  1. MC = MR = AC = AR shows the long run, equilibrium positive of the

(a) Monopolist firm

(b) Oligopolist firm

(c) Competitive firm

(d) None

  1. The concept of ‘reserve army of labour’ is due to

(a) David Richardo

(b) JS Mill

(c) Adam Smith

(d) Karl Marx

  1. PQLI of Moris D. Moriris does not include

(a) Infant mortality

(b) Life expectancy

(c) Literacy

(d) Standard of living

  1. HDI uses the scale of

(a) 0 to 10

(b) 0 to 1 +1

(c) 0 to 100

(d) -1 to

  1. ICOR is countries in less developed

(a) Low

(b) High

(c) Constant

(d) Zero

  1. ‘Choice of technique’ written by

(a) Amartya Sen

(b) AK Dasgupta

(c) DR Gadgil

(d) Manmohan Singh

  1. A constant capital labour ratio in neutral technical change is given by

(a) Hicks

(b) Solow

(c) Robinson

(d) Acharya

  1. Arrange the following demographic transition theory given by Blackur (in ascending order).

(1) Declining phase with low mortality, lower fertility

(2) Low stationary phases with low fertility and low mortality

(3) Early expanding phase marked by high fertility

(4) High stationary phase marked by high fertility and mortality

(a) 1, 2, 3, 4

(c) 3, 4, 2, 1

(b) 4, 3, 2, 1

(d) 1, 3, 2, 4

  1. Estimates of national income in India are annually prepared by

(a) RBI

(b) CSO

(c) National Income Committer

(d) Planning Commission

  1. Deficit financing means

(a) Relying on foreign aid

(b) Spending by borrowing

(c) Not spending for development

(d) Spending excess of

  1. revenue Objective of mercantilists was against to

(a) Free trade

(b) Restricting imports

(c) Stimulating exports

(d) Accumulation of gold by their natives

  1. Ricardo’s trade theoryassumed, production is subject to

(a) Increasing returns

(b) Decreasing returns

(c) Constant returns

(d) Any of the above

  1. If a nation gains from trade, its consumption point is

(a) On its PPF

(b) Inside its PPF

(c) Outside its PPF

(d) Any of them

  1. Decreasing cost will has the shape of

(a) Concave PP curve

(b) Convex PP curve

(c) Straight line PP curve

(d) None

  1. Which of the following are supply version ?

(1) Adam Smith’s

(3) H-C theory

(2) David Ricardo’s

(4) Mill’s theory

(a) 1 and 2

(c) 1 and 3

(b) 3 and 4

(d) 2 and 4

  1. Ricardo’s law of comparative advantage is based on

(a) Opportunity cost

(b) Labour theory of value

(c) Law of diminishing returns

(d) All of these

  1. Immaturing growth theory refers to a country

(a) Grows rapidly with trade

(b) Gains of growth are more than terms of trade

(c) Terms of trade improve with economic growth

(d) None

  1. Stolper-Samuelsoni theory for LDC’s suggests

(a) Export expansion

(b) Export substitution

(c) Import expansion

(d) Import substitution

  1. Effective rate of protection for domestic country is calculated by

(a) e = t-ar 1+ a

(b) e = 1+a t-ar

(c) e = t-ar 1-a

(d) e = 1-a t-ar

  1. Intangible transactions are recorded in

(a) Service account

(b) Goods account

(c) Unilateral transfers

(d) Tangible account

  1. Snake in the tunnel system is followed in

(a) USA

(b) SE Asia

(c) African nations

(d) European union

  1. SDR’s came into effect from

(a) 1950

(b) 1960

(c) 1970

(d) 1990

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