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 Indian Economy Questions

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Q:

A government subsidy to the producers of a product

A) reduces product demand B) increases product supply
C) reduces product supply D) increases product demand
 
Answer & Explanation Answer: B) increases product supply

Explanation:
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1 1860
Q:

Capital budgeting decisions are generally based on:

 

A) Tentative predictions of future outcomes. B) Perfect predictions of future outcomes.
C) Speculation of interest rates and economic performance only. D) Results from past outcomes only.
 
Answer & Explanation Answer: A) Tentative predictions of future outcomes.

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Q:

The annual percentage rate on a credit card determines

 

A) The amount of money you still owe to the credit card company B) Money you withdrawn from the credit card
C) Total transactions done throughout the year D) The amount of interest you are charged on credit card purchases
 
Answer & Explanation Answer: D) The amount of interest you are charged on credit card purchases

Explanation:

The annual percentage rate (APR) on a credit card determines the amount of interest you are charged on credit card purchases.

 

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0 1842
Q:

A command economy tends to exist under a

A) Representative government that provides no regulation. B) Socialist government that provides a lot of regulation.
C) Communist government that provides little regulation. D) Democratic government that provides some regulation.
 
Answer & Explanation Answer: B) Socialist government that provides a lot of regulation.

Explanation:

A command economy types of government decide which goods would be produced without any interference of the public.


Command economy ran in Germany during the rule of Adolf Hitler. 

 

A command economy tends to exist under a socialist government that provides a lot of regulation.

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0 1817
Q:

In which area is the public sector most dominant in India?

 

A) Organised term lending financial instistutions B) Transport
C) Commerical banking D) Steel production
 
Answer & Explanation Answer: C) Commerical banking

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0 1811
Q:

Graphically, the market demand curve is

A) greater than the sum of the individual demand curves B) the horizontal sum of individual demand curves
C) steeper than any individual demand curve that is part of it D) the vertical sum of individual demand curves
 
Answer & Explanation Answer: B) the horizontal sum of individual demand curves

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0 1800
Q:

Economic resources are also called

Answer

Economic resources include land, labour, capital and entrepreneurship. 


Entrepreneurship is also considered an economic resource because individuals are responsible for creating businesses and moving economic resources in the business environment.


 


These economic resources are also called as Factors of production.


 

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2 1778
Q:

Income taxes are allocated to

A) discontinued operations B) prior period adjustments
C) extraordinary items D) All the above
 
Answer & Explanation Answer: D) All the above

Explanation:

Income taxes are allocated to extraordinary items, discontinued operations and prior period adjustments.

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