Questions

Q:

The demand for a normal good increases with ________ in the consumer's income.

A) increase B) decrease
C) constant D) double
 
Answer & Explanation Answer: A) increase

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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:

In economic equilibrium _____

A) supply is equal to the demand. B) the surplus is larger than the shortage.
C) elasticity of demand equals elasticity of supply D) price elasticity of demand is unity
 
Answer & Explanation Answer: A) supply is equal to the demand.

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Q:

If a person's income increases from Rs 20 lakhs per year to Rs 24 lakhs per year and tax increases from Rs 3,50,000 to Rs 4,00,000 the marginal tax rate is

A) 8 percent B) 12.5 percent
C) 10 percent D) 15 percent
 
Answer & Explanation Answer: B) 12.5 percent

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Q:

"Residex Index" is associated with which of these?

A) Share Prices B) Mutual Fund Prices
C) Price Inflation Index D) Housing Prices
 
Answer & Explanation Answer: D) Housing Prices

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Q:

In the following question, some part of the sentence may have errors. Find out which part of the sentence has an error and select the appropriate option. If a sentence is free from error, select 'No Error'.
If it would (1)/ rain, they will (2)/not come. (3)/ No Error (4)

A) 1 B) 2
C) 3 D) 4
 
Answer & Explanation Answer: A) 1

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Q:

In the following question, some part of the sentence may have errors. Find out which part of the sentence has an error and select the appropriate option. If a sentence is free from error, select 'No Error'.

I was taken by surprise (A)/when I came(B)/face to face with my school friend.(C)/No error(D)

A) A B) B
C) C D) D
 
Answer & Explanation Answer: D) D

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Q:

An object weighing 20 kg is raised through a height of 2 m. What will be the work done by the force of gravity in this process?

A) 400 J B) 50 J
C) 40 J D) 100 J
 
Answer & Explanation Answer: A) 400 J

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