8
Q:

# In India national, National Income is calculated by the method which is known as

 A) the combined method B) the income method C) the product method D) the expenditure method

Answer:   A) the combined method

Explanation:

In India, National Income is calculated by the combined method. It combines two methods i.e product or output method and the income method. This is done to overcome the problem of deficiency of statistics. The product method endeavours to find out the net contribution to national income of all producing units. The income method adds up income and payments accruing of factors of production. This method is used in the tertiary  sector like government services banking etc and also in the commoity sector if output data is not available.

Subject: Indian Economy
Q:

What is true about economic resources?

 A) Economic resources are limited. B) Economic resources are always controlled by the government. C) Economic resources include only money. D) Economic resources exist only at the individual level.

Answer & Explanation Answer: A) Economic resources are limited.

Explanation:

Economic resources are those goods and services that can be converted into valuable products for individual and business purposes.

There are four major types of economic resources:

1. land,

2. labor,

3. capital and

4. entrepreneurship.

Land and labor are natural and human resources, while capital means physical resources or money.

Entrepreneurship converts these resources into usable goods.

However, resources have finite values, and proper utilization depends on economic systems and economic decisions.

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1 16
Q:

The law of demand states that other things equal

 A) as the price increases, the quantity demanded will decrease. B) as the price increases, the quantity demanded will increase. C) as the price decreases, the demand curve will shift to the right. D) as the price increases, the demand will decrease.

Answer & Explanation Answer: A) as the price increases, the quantity demanded will decrease.

Explanation:
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0 36
Q:

An increase in the quantity demanded means that

 A) The demand curve shifted to right B) Price of the product has declined C) Increase in consumer income D) All the above

Answer & Explanation Answer: D) All the above

Explanation:
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0 35
Q:

Which ministry has started the exercise to revise base year to 2017 - 2018 for computation of wholesale inflation?

 A) Ministry of Commerce and Industry B) Ministry of Finance C) Ministry of Corporate Affairs D) All the above

Answer & Explanation Answer: A) Ministry of Commerce and Industry

Explanation:

The India's commerce and industry ministry has started the exercise to revise base year to 2017-18 for computation of wholesale inflation with a view to present more realistic picture of the price situation

In May last year, the government revised the base year for WPI-based inflation to 2011-12 to give a better indication of changes in prices of commodities.

The new index, with 2017-18, is expected to have new items, which would provide a more realistic picture of price rise and its impact on people.

Most of the additions could be in the manufactured products category. Currently, the index has a total of 697 items, including primary articles, fuel and power and manufactured products.

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0 64
Q:

Income taxes are allocated to

 A) discontinued operations B) prior period adjustments C) extraordinary items D) All the above

Answer & Explanation Answer: D) All the above

Explanation:

Income taxes are allocated to extraordinary items, discontinued operations and prior period adjustments.

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0 65
Q:

The Budget proposals also seek to provide relief to salaried tax payers by allowing a standard deduction of what amount in place of the present exemption allowed for transport allowance and reimbursement of miscellaneous medical expenses?

 A) Rs. 20,000 B) Rs. 40,000 C) Rs. 50,000 D) Rs. 80,000

Answer & Explanation Answer: B) Rs. 40,000

Explanation:

The standard deduction of Rs. 40,000 is seek to provide relief to salaried tax payers in the Budget proposals in place of the present exemption allowed for transport allowance and reimbursement of miscellaneous medical expenses.

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0 189
Q:

Which of the following is an example of representative money?

 A) Salt B) A tract of land C) Gold D) A check

Answer & Explanation Answer: D) A check

Explanation:

Representative money is an item such as a token or piece of paper that has no intrinsic value but can be exchanged on demand for a commodity that does have intrinsic value, such as gold, silver, copper,...

Hence, a Check is an example of representative money.

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9 211
Q:

Which of the following represents a positive economic statement?

 A) The government should extend unemployment benefits. B) The unemployment rate is too high. C) Taxes should not be increased since that will lower spending. D) The unemployment rate is 4.8 percent.

Answer & Explanation Answer: D) The unemployment rate is 4.8 percent.

Explanation:
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