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 Indian Economy Questions

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Q:

Mutual Funds are regulated in India by

A) SEBI B) RBI
C) RBI & SEBI both D) Stock Exchanges
 
Answer & Explanation Answer: A) SEBI

Explanation:

Mutual Funds are regulated in India by SEBI (Securities and Exchange Board of India). It was founded in 1992. In 1996, SEBI formulated the Mutual Fund Regulation.

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Q:

A large underground economy results in an

A) Overstated GDP B) Understated GDP price index
C) Overstated GDP price index D) Understated GDP
 
Answer & Explanation Answer: D) Understated GDP

Explanation:
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Q:

In economics, the cost of something is

A) the dollar amount of obtaining it B) what you give up to get it
C) often impossible to quantify, even in principle D) always measured in units of time given up to get it
 
Answer & Explanation Answer: B) what you give up to get it

Explanation:

In economics, the cost of something is what you give up to get it.

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Q:

The largest expenditure component of GDP is

A) Consumption B) Net exports
C) Government spending D) Investments
 
Answer & Explanation Answer: A) Consumption

Explanation:
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Q:

Microeconomics is concerned with

A) The electronics industry B) The study of individual
C) The economy as a whole D) None of the above
 
Answer & Explanation Answer: B) The study of individual

Explanation:

Microeconomics is concerned with the study of individual firms, households, etc...

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Q:

The most important determinant of consumer spending is

A) consumer expectations B) the level of income
C) the level of household borrowing D) the stock of wealth
 
Answer & Explanation Answer: B) the level of income

Explanation:

The most important determinant of consumer spending is the level of income.

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Q:

If intermediate goods and services were included in GDP

A) the price level may change over time. B) the GDP would be overstated.
C) the price level rose by more than nominal GDP. D) All of the above
 
Answer & Explanation Answer: B) the GDP would be overstated.

Explanation:
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Q:

A negative supply shock in the short run causes

A) the aggregate supply curve to shift to the left B) unemployment to fall
C) the aggregate supply curve to shift to the right D) the price level to fall
 
Answer & Explanation Answer: A) the aggregate supply curve to shift to the left

Explanation:

A negative supply shock in the sho rt run causes the aggregate supply curve to shift to the left.

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