Agriculture economics most important questions for competitive exams – Part 2

Agriculture economics most important questions for competitive exams – Part 2

  1. Keynes is related to which inflation theory

(a) Cost push

(b) Demand pull

(c) Structural theory

(d) Not at all related

  1. Stagflation is referred to

(a) High unemployment and high growth

(b) High employment and high growth

(c) High unemployment and low growth

(d) None

  1. Investment is not a function of income in case

(a) Pigon’s

(b) Keyne’s

(c) Classical’s

(d) None

  1. If C = 200 + 0.84, I = 600, what is national income?

(a) 40

(b) 400

(c) 4000

(d) 40000

  1. Average propensity to save varies with income

(a) Proportional

(c) Constant

(b) Inversely

(d) No relation

  1. When income of individuals falls, their consumption expenditure does not fall much. This is

(a) Demonstration effect

(b) Keynes effect

(c) Ratchet effect

(d) Pigons effect

  1. In relative income theory of consumption, APC will

(a) Decreases

(b) Increases

(c) Constant

(d) None

  1. If liberal monetary policy is undertaken, then

(a) LM curve shifts right

(b) LM curve shifts left

(c) IS curve shifts right

(d) IS curve shifts left

  1. Aggregate supply of labour in case of classical is

(a) Horizontal line

(b) Vertical line

(c) Both horizontal and vertical

(d) Intermediate

  1. The difference between national income and domestic product is accounted by

(a) Net factor income from abroad

(b) Budgetary surplus/deficit

(c) Export surplus/deficit

(d) Inflow of capital

  1. Predominant source of net domestic product in India over the years is

(a) Industry

(b) Agriculture

(c) Service sector

(d) None

  1. GNP deflator is

(a) Nominal GNP/Nominal GDP

(b) Nominal GNP/Real GNP

(c) Nominal GNP/Real GDP

(d) Real GNP/Nominal GDP

  1. National income generated by agriculture is calculated by using

(a) Income method

(b) Out put method

(c) Both (a) and (b)

(d) Expenditure method

  1. Which one of the following is not a source of aggregate demand?

(a) Consumption

(b) Export – imports

(c) Government expenditure

(d) Savings

  1. The demand for capital in essence is a

(a) Direct demand

(b) Derived demand

(c) Reciprocal demand

(d) Complementary demand

  1. Capital formation in agriculture years over the

(a) Decreasing

(b) Increasing

(c) Both (a) & (b)

(d) Constant

  1. Private investment is to public investment in agriculture

(a) Less than

(b) More than

(c) Equal

(d) Can’t say

  1. In which year cooperation become state subject ?

(a) 1912

(b) 1919

(c) 1920

(d) 1924

  1. Deflated gross returns are used to know

(a) Common sense of farmer

(b) Repayment capacity

(c) Returns from investment

(d) Risk bearing ability

  1. Which of repayment plan is used for high income variability of farms ?

(a) Straight end repayment

(b) Reserve repayment plan

(c) Amortized plan

(d) Variable repayment

  1. Which one you consider most important phase of product cycle ?

(a) Preparation

(b) Appraisal

(c) Implementation

(d) Evaluation

  1. Project planning and budgeting are used to know

(a) Commercial aspect

(b) Financial aspects

(c) Economic aspects

(d) Technical aspects of project

  1. Sensitivity analysis is used in

(a) Preparation of project

(b) Appraisal

(c) Implementation

(d) Forecasting/evaluation

  1. Mahalwari system was introduced by.

(a) William Bentinck

(b) Lord Curzon

(c) Thomas Munro

(d) Dalhousie

  1. ‘Economica’ is written by

(a) Marshall

(b) Aristotle

(c) Smith

(d) Mill

  1. Nature of economic laws is

(a) Normative

(b) Destructive

(c) Exactness

(d) Positive

  1. Price of sugar is

(a) Issue price

(b) Levy price

(c) MSP

(d) Ceiling price

  1. Law of substitution is given by

(a) Marshall

(c) Gossen

(b) Smith

(d) Pigon

  1. Increase in the price of a commodity leads to

(a) Movement on same curve from right to left

(b) Movement on same curve from left to right

(c) Shift of demand curve to upward

(d) Shift in demand to left/downward

  1. Monopoly receives entire consumer surplus

(a) First degree

(c) Third degree

(b) Second degree

(d) Fourth degree

  1. Concept of ‘crystallized labour’ given by

(a) Marshall

(b) Keynes

(d) Karl Marx

(c) Mill

  1. Qd=170-20 P and P = 4, at equilibrium

(a) Qs = 150

(b) Qs = 50

(c) Qs = 900

(d) Qs = 90

  1. When MPP is zero

(a) MC is maximum

(b) MC become vertical

(c) MC is minimum

(d) MC becomes horizontal

  1. If the demand is elastic, for monopoly

(a) Higher prices, more profit

(b) Lower price, more profits

(c) Higher price, lower profit

(d) Lower price, lower profit

  1. When the demand curve is relatively flatter, then demand is

(a) Relatively inelastic.

(b) Relatively elastic

(c) Unitary elastic

(d) All

  1. The ‘Drain theory’ about poverty in India is associated with

(a) Baldeo Ram Mirdha

(b) VKRV Rao

(c) Dada Bhai Naoroji

(d) C Bose

  1. The production function Y = LK is

(a) Homogenous of degree 1

(b) Homogenous of degree 2

(c) Homogenous of degree 0

(d) Heterogenous

  1. If two factors are perfect substitutes, isoquants will be

(a) A straight line

(b) A parabola

(c) A rectangular hyperbola

(d) L shaped curve

  1. 0.8 y = 20 i 1200 is a

(a) Investment function

(b) Consumption function

(c) LM function

(d) IS function

  1. Rent theory of profit was given by

(a) Hawley

(b) Tanssig

(c) CP Blacker

(d) FA Walker

  1. Demographic transition theory of population was proposed by

(a) JA Schumpter

(b) Malthus

(c) FA Walker

(d) C Blacker

  1. Money is ‘anything which is widely acceptable in discharge of obligations’ given by

(a) AC Pigon

(b) Joan Robinson

(c) Lord Robinson

(d) Robertson

  1. Keynes is associated with

(a) Structural unemployment

(b) Seasonal unemployment

(c) Frictional unemployment

(d) Cyclical unemployment

  1. Full employed is noticed in

(a) Recession

(b) Depression

(c) Both (a) & (b)

(d) None

  1. What are regrettable costs?

(a) Zero

(c) Negative

(b) Positive

(d) Infinity

  1. Income elasticity, for normal goods
    is

(a) Transfer payment

(b) Depreciation payment

(c) Interest payment

(d) Defence, police and law payment

  1. MC MR, used in

(a) Price discrimination

(b) Cartel

(c) Monopoly

(d) Monopolistic competition Speculative demand, depends

  1. Average propensity to consume will be constant in

(a) Keynes theory

(b) Modigliani

(c) JS Duesenberry

(d) None

  1. B-C ratio is used to evaluate

(a) Social project

(b) Public project

(c) Both (a) & (b)

(d) None

  1. If the new variable improves R2, then it is

(a) Useful

(b) Superfluous

(c) Detrimental

(d) All

  1. In multicollinearity, ‘F’ test is used for

(a) Presence and severity

(b) Pattern

(c) Location

(d) No usage

  1. If E(u) = 0, the estimated line lies on

(a) Below true line

(b) Above true line

(c) Both (a) and (b)

(d) On true line

  1. Select the odd one from the following

(a) Spearman test

(b) Goldfeld and Quandt test

(c) Glejser test

(d) Von Neumann test

  1. Omitted explanatory variables will cause

(a) Auto correlation

(b) Multicollinearity

(c) Heteroscedacity

(d) Quasi autocorrelation

  1. In following formula which one indicates the least cost combination point

(a) MR = Me

(b) Ay/Ax

(c) Ay₁/Ay2

(d) Ax2/Ax1 Px₁/Px2

  1. Price discrimination means

(a) High price of goods

(b) Low price of goods

(c) Charging different prices from different customers of a similar commodity

(d) Different prices at a time for same goods

  1. ‘Giffen’ goods refer to

(a) Stock of goods

(b) Lack of goods

(c) Inferior goods

(d) Superior goods

  1. Y = f (a + bx) refers to

(a) A cost curve

(b) A supply curve

(c) A demand curve

(d) A production function

  1. According to law of diminishing return the optimum profit will be at the point where

(a) MP > AP

(c) MP= AP

(b) AP > MP

(d) MC MP =

  1. Perfect elasticity is shown by

(a) Vertical straight line

(b) Horizontal straight line

(c) Slopping curve from left to right

(d) Slopping curve from right to left

  1. Production is a function of

(a) Profit

(b) Factors

(c) Price

(d) Cost

  1. Level of optimum production is available in

(a) I stage of production

(b) II stage of production

(c) III stage of production

(d) None of these

  1. The elasticity of production (EP) at the starting point of stage II in law of diminishing return would be

(a) > 1.0

(b) <1.0

(c) 1.0

(d) 0.0

  1. The marginal cost curve intersects the average cost curve when the average cost is

(a) Maximum

(b) Minimum

(c) Rising

(d) Falling

  1. Price theory is a part of

(a) Micro economics

(b) Macro economics

(c) Farm management

(d) Marketing

  1. The cost of production of the crop can be minimized by using economic principle

(a) Cost principle

(b) Law of opportunity cost

(c) Law of diminishing

(d) Principle of least cost combination

  1. The overhead cost is also known as

(a) Variable cost

(b) Total cost

(c) Marginal cost

(d) Fixed cost

  1. The vertical demand curve for a commodity shows that this commodity is

(a) Highly elastic

(b) Perfectly inelastic

(c) Unit elastic

(d) Perfectly elastic

  1. In pure competitive market the demand curve is

(a) Downward slopping

(b) Upward slopping

(c) Straight slopping to X-axis

(d) Straight parallel to Y-axis

  1. The gap between the average total cost and average variable cost goes along with the increasing in unit of production

(a) Decreasing

(b) Increasing

(c) Constant

(d) Initially increasing then decreasing

  1. The cost of tractor decreases 10% 30%, the elasticity of demand will be and the demand of the tractor increases by

(a) Inelastic

(b) Constant elastic

(c) Highly elastic

(d) Perfectly inelastic

  1. The ultimate aim of farm management is to

(a) Increase gross income

(b) Reduce total cost

(c) Optimize factor utilization

(d) None of the above

  1. Which one is considered as a ‘gift of nature’ ?

(a) Land

(b) Labour

(c) Capital

(d) None

  1. The chief function of money is

(a) Medium of exchange

(b) Reserve base of credit expansion

(c) Providing liquidity

(d) All the above

  1. What is “support price” for an agriculture commodity?

(a) Subsidy paid by the government over the price already available in the market

(b) The floor price below which it can not be sold

(c) The minimum price at which the government is prepared to buy it

(d) Money paid to agriculturists for case of drought damaging their crops

  1. Government of India signed WT agreement in

(a) 1981

(b) 1994

(c) 1995

(d) 1996

  1. Low productivity in agriculture in India is the result of

(a) Lack of advanced agricultural technology

(b) Financial weakness of farmers

(c) Uneconomical size of holdings

(d) All of these

  1. The causes of inflation is

(a) Increase in money supply

(b) Fall in production

(c) Increase in money supply and fall in production

(d) Decrease in money supply and fall in production

  1. Which one of the following is a competitive market?

(a) Perfect market

(b) Primary market

(c) Capital market

(d) Wholesale market

  1. Line passing through the least cost points in the isoquants map is called

(a) Isocline

(b) Ridge line

(c) Expansion path

(d) Isoquant curve

  1. The price which necessarily covers the variable cost and also the fixed price is

(a) The long run price

(b) The short run price

(c) The market price

(d) The equilibrium price

  1. The Central Agmark Lab is locate at

(a) Mumbai

(b) Nagpur

(c) Bangalore

(d) Kolkata

  1. MPP (marginal physical products) of a variable input is negative

(a) Only in 1st stage

(b) Only in 2nd stage

(c) Only in 3rd stage

(d) In 2nd and 3rd stage

  1. IBRD is synonymous to

(a) World Bank

(b) Asian Development Bank

(c) International Monetary Fund

(d) WTO

  1. With reference to the principle of economics as applied to agriculture, when marginal product increases, average product

(a) Increases

(b) Increases initially and then decreases

(c) Decreases

(d) Remain constant

  1. The law of variable proportion is generally referred to as the

(a) Law of absolute advantage

(b) Law of equimarginal returns

(c) Law of diminishing returns

(d) Law of comparative advantage

  1. With reference to farm planning and optimum resource use, consider the following:

(1) Monopolistic competition

(2) Oligopoly

(3) Perfect competition

(4) Monopoly

What is the correct arrangement of these markets as per the number of sellers in ascending order ?

(a) 4, 2, 1, 3

(b) 3, 1, 2, 4

(c) 1, 2, 3, 4

(d) 4, 1, 2, 3

  1. With reference to farm planning and optimum resource use efficiency, consider the following:

(1) ‘Cost of manures

(2) Rental value of owned land

(3) Interest on value of owned capital assets

(4) Imputed value of family labour

Which of these are included in working out cost B₂ ?

(b) 1, 2 and 3 (c) 2, 3 and 4 (d) 1, 2 and 4

(a) 1, 3 and 4

  1. In the second stage of the classical production function, the elasticity of production is

(a) Greater than one

(b) Equal to one

(c) Less than one but greater than zero

(d) Equal to zero

  1. The principal which dictates that the resources should be used not where they bring the highest average return but yield the highest marginal returns is called

(a) Principle of least cost combination

(b) Principle of substitution

(c) Principle of equimarginal return

(d) Principle of optimum combination

  1. Consider the following statements: of farm production helps the farmers in

(1) Stabilizing agricultural prices

(2) Stabilizing farm incomes

(3) Stabilizing agricultural production

Which of these statements are correct?

(a) 1 and 2

(b) 2 and 3

(c) 1 and 3

(d) 1, 2 and 3

  1. Consider the following statements : With limited amount of fertilizer, allocation of fertilizer to different crops to get maximum profit depends on

(1) Price of product

(2) Marginal physical products of crops

(3) Cost of fertilizer

(4) Average products of crops

Which of these statements are correct?

(a) 1 and 2

(b) 2 and 3

(c) 1 and 4

(d) 1 and 3

  1. Which of the following is not a system of farming?

(a) State farming

(b) Collective farming

(c) Rainfed farming

(d) Cooperative farming

  1. Which system of farming does not involve farmer ?

(a) Collective farming

(b) Dry farming

(c) State farming

(d) Diversified farming

  1. Livestock insurance is included in

(a) Variable cost

(c) Fixed cost

(b) Special cost

(d) Marginal cost

  1. Farm management is an

(a) Intra farm science

(b) Inter farm science

(c) Inter regional farm science

(d) International farm science

  1. Which one is not a management ?

(a) Farm planning

(b) Farm budgeting

(c) Farm book keeping

(d) Production and cost function

  1. One of the important fixed costs on a farm is

(a) Seed cost

(b) Land rent

(c) Irrigation cost

(d) Feed cost

  1. If the marginal product is more than marginal cost, then further investment in production is :

(a) Profitable

(c) No effect

(b) Harmful

(d) Equal

  1. If the substitution ratio is less than the price ratio, then the cost

(a) Remains the same

(b) Increases

(c) Decreases

(d) None of the above

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