Indian Economy Questions

Q:

The _________ balance is equal to capital flows from the rest of the world, minus capital flows to the rest of the world.

A) Current Account B) Savings Account
C) Capital Account D) Asset Account
 
Answer & Explanation Answer: C) Capital Account

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Q:

Goods whose demand is proportional to price are called

A) inferior goods B) Veblen goods
C) normal goods D) exclusive goods
 
Answer & Explanation Answer: B) Veblen goods

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Q:

If a country devalues its currency, its _______________

A) Exports become cheaper and imports become costlier B) Exports become costlier and imports become cheaper.
C) Exports value is equivalent to imports value D) No effect on exports and imports
 
Answer & Explanation Answer: A) Exports become cheaper and imports become costlier

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Q:

Why are the Indian workers less skilled than the workers of western countries?

A) Low level of wages B) Inferior quality of capital provided to labourers  
C) High level of illiteracy   D) Strong trade unions
 
Answer & Explanation Answer: C) High level of illiteracy  

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Q:

Goods which are consumed together are called?

A) Inferior goods B) Normal goods
C) Complementary goods D) Substitute goods
 
Answer & Explanation Answer: C) Complementary goods

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Q:

If demand curve for trekking boots is D = 67500 - 18P and supply curve is S = 22500 + 12P, find the equilibrium Price?

A) 1500 B) 750
C) 2250 D) 500
 
Answer & Explanation Answer: A) 1500

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Q:

A binding price ceiling is designed to

A) keep prices low B) increase efficiency
C) increase the quality of the good D) prevent shortages
 
Answer & Explanation Answer: A) keep prices low

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Q:

Saving is that portion of money income that is .....

A) spent for development of Industries B) not spent on consumption
C) spent on health and education D) spent for consumer durables
 
Answer & Explanation Answer: B) not spent on consumption

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