Indian Economy Questions

Q:

Working capital is a measure of

A) liquidity B) consistency
C) profitability D) solvency
 
Answer & Explanation Answer: A) liquidity

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Q:

For each perfectly competitive firm in the long run

A) price = marginal costs = average variable costs B) price = average profit
C) price = marginal costs = minimum average total costs D) price = minimum average variable costs
 
Answer & Explanation Answer: C) price = marginal costs = minimum average total costs

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Q:

Which of the following is NOT included in general methodology while assessing the national income?

A) Pension B) Investment Expenditure
C) Value added D) Consumption Expenditure
 
Answer & Explanation Answer: A) Pension

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Q:

What is income available with a person after deducting for taxes called?

A) Disposable Income B) Cash Income
C) Salary D) General Income
 
Answer & Explanation Answer: A) Disposable Income

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Q:

__________ is defined as the output per unit of variable input

A) Marginal product B) Production function
C) Total product D) Average product
 
Answer & Explanation Answer: D) Average product

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Q:

If for the year a country's GDP was $ 1315 million, consumer spending was $900 million, investment by businesses was $180 million, exports were $85 million and imports were $100 million, calculate government spending?

A) $220 million B) $250 million
C) $580 million D) $610 million
 
Answer & Explanation Answer: B) $250 million

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Q:

Goods for which demand move in the opposite direction of the income of the consumer are called?

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

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Q:

An increase in the growth rate of the nominal money supply results in

A) Lower rate of inflation B) Higher rate of inflation
C) Lower interest rates D) Currency appreciation
 
Answer & Explanation Answer: B) Higher rate of inflation

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