Indian Economy Questions

Q:

The market structure called monopoly exists where there is exactly ______ seller in any market.

A) One B) Two
C) Five D) Ten
 
Answer & Explanation Answer: A) One

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Q:

The latest information about agriculture markets is collected and published by the ___________.

A) Food Corporation of India B) Directorate of Economics and Statistics
C) National Council of Applied Economic Research D) Indian Statistical Institute
 
Answer & Explanation Answer: B) Directorate of Economics and Statistics

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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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Q:

The __________ exchange rate is the relative price of foreign goods in terms of domestic goods.

A) Artificial B) Nominal
C) Fixed D) Real
 
Answer & Explanation Answer: D) Real

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Q:

Ad Valorem tax is levied on?

A) Value B) Volume
C) Production D) Export
 
Answer & Explanation Answer: A) Value

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Q:

The change in the optimal quantity of a good when its price changes and the consumer’s income is adjusted so that she can just buy the bundle that she was buying before the price change is called?

A) Law of demand B) Substitution effect
C) Problem of choice D) Optimal choice
 
Answer & Explanation Answer: B) Substitution effect

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Q:

Which of the following rate is charged by banks to their most credit worthy customers?

A) Prime Lending Rate B) Statutory Liquidity Rate
C) Bank Rate D) Repo Rate
 
Answer & Explanation Answer: A) Prime Lending Rate

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Q:

Match the characteristics with their market structure:
(a) Expand out put until MC = MR
(b) Elasticity of demand depends on pricing policies of rivals

A) (a) Pure competition, (b) Pure Monopoly B) (a) Pure Monopoly, (b) Monopolistic competition
C) (a) Pure competition, (b) Oligopoly D) (a) Monopolistic competition, (b) Oligopoly
 
Answer & Explanation Answer: D) (a) Monopolistic competition, (b) Oligopoly

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