Madhya Pradesh Assistant Professor Recruitment Exam 28-11-2025 - Economics Questions
Madhya Pradesh Assistant Professor Recruitment Exam – 28-11-2025
Subject: Economics
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What is the cause of inflation?
- A. Shortage of goods and services relative to money supply
- B. Shortage of imports relative to exports
- C. Excess money supply relative to goods and services
- D. None of the above
Answer: C. Excess money supply relative to goods and services
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Which of the following statements is incorrectly matched?
- A. Inflation is unjust, but monetary contraction is inappropriate – J.M. Keynes
- B. Money is a veil – A.C. Pigou
- C. Inflation can be compared to robbery – C.N. Vakil
- D. Money is what performs the function of money – Crowther
Answer: D. Money is what performs the function of money – Crowther
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Which of the following is NOT a rule of public expenditure?
- A. Rule of economy
- B. Rule of sanction
- C. Rule of surplus
- D. Rule of certainty
Answer: D. Rule of certainty
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In the context of direct taxes:
- A. Tax incidence and tax impact fall on the same person
- B. Disposable income increases
- C. Tax is forwarded
- D. Tax is backward shifted
Answer: A. Tax incidence and tax impact fall on the same person
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What is meant by zero-based budgeting?
- A. Determining allocations based on previous year's budget
- B. Ending programs that will not be completed in one year
- C. Justifying each allocation from scratch every time
- D. Determining allocations based on collective decision
Answer: C. Justifying each allocation from scratch every time