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 Indian Economy Questions

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Q:

Poverty level in india is estimated on the basis of

A) Household consumer expenditure B) Slum population in the country
C) Per capita income in different States D) Household average income
 
Answer & Explanation Answer: A) Household consumer expenditure

Explanation:
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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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Q:

SEBI is evaluating whether ICO (Initial Coin Offerings) can be brought under its purview. ICO is related to ______.

 

A) Dollars B) Pounds
C) Rupees D) Cyptocurrency
 
Answer & Explanation Answer: D) Cyptocurrency

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Q:

If the production possibilities curve was a straight line, this would imply that

A) Economic resources are perfectly substitutable, in the production of the two products B) Equal quantities of both products are produced at each possible point on the curve
C) The two products will sell at the same market price D) The two products are equally important to consumers
 
Answer & Explanation Answer: C) The two products will sell at the same market price

Explanation:

A production–possibility frontier (PPF) or production possibility curve (PPC) is the possible tradeoff of producing combinations of goods with constant technology and resources per unit time.

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Q:

Which property would be classified as expendable?

A) Food given to Army B) Cement
C) Paint D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

Expendable properties are those properties that are consume in use or that lose their identity in use. It also include those properties that become an integral part of other property when put to use and those properties which have an expected service life of less than one year.

 

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Q:

Which of the following represents a positive economic statement?

A) The government should extend unemployment benefits. B) The unemployment rate is too high.
C) Taxes should not be increased since that will lower spending. D) The unemployment rate is 4.8 percent.
 
Answer & Explanation Answer: D) The unemployment rate is 4.8 percent.

Explanation:
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Q:

What was the strength of Indus economy?

A) Trading B) Agriculture
C) Electricity D) Mining
 
Answer & Explanation Answer: B) Agriculture

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Q:

The law of demand states that other things equal

A) as the price increases, the quantity demanded will decrease. B) as the price increases, the quantity demanded will increase.
C) as the price decreases, the demand curve will shift to the right. D) as the price increases, the demand will decrease.
 
Answer & Explanation Answer: A) as the price increases, the quantity demanded will decrease.

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