Indian Economy Questions

Q:

If the break­even quantity for a factory whose variable cost of manufacturing a cell is Rs. 15 and selling price is Rs. 24 is 2,400 units, find the fixed cost of the factory?

A) Rs. 21600 B) Rs. 36000
C) Rs. 57600 D) Rs. 14400
 
Answer & Explanation Answer: A) Rs. 21600

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Q:

Depreciation is loss in value of ________

A) Final goods B) Machinery
C) Capital stock D) Stock of inventory
 
Answer & Explanation Answer: B) Machinery

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Q:

The best solution for overcoming the evil effects of small and uneconomic holdings is: ___________.

A) urbanization of rural population B) using capital intensive technology
C) co-operative farming D) rapid industrialization
 
Answer & Explanation Answer: C) co-operative farming

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Q:

Find arc elasticity of demand, if quantity demanded falls from 4600 to 4200 when price of the item is increased from Rs 960 to Rs 1000?

A) -2.23 B) -­2.09
C) 2.23 D) 2.09
 
Answer & Explanation Answer: A) -2.23

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Q:

Calculate a country's GDP if for the year, consumer spending is $900 million, government spending is $250 million, investment by businesses is $180 million, exports are $85 million and imports are $100 million.

A) $1345 million B) $1315 million
C) $955 million D) $815 million
 
Answer & Explanation Answer: B) $1315 million

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Q:

What will you call a system of taxation under which the poorer sections are taxed at higher rates than the richer sections?

A) Progressive tax B)  Proportional tax
C) Regressive tax D)  Degressive tax
 
Answer & Explanation Answer: C) Regressive tax

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Q:

The closest example of a centrally planned economy is the __________ for the major part of the 20th Century.

A) USA B) India
C) Soviet Union D) Japan
 
Answer & Explanation Answer: C) Soviet Union

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Q:

Stagflation is defined as

A) low inflation, low growth, low unemployment B) high inflation, low growth, high unemployment
C) high inflation, high growth, high unemployment D) low inflation, high growth, low unemployment
 
Answer & Explanation Answer: B) high inflation, low growth, high unemployment

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