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 Indian Economy Questions

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Q:

Fiscal policy is connected with

A) Public revenue & expenditure B) Exports and imports
C) Issue of currency D) Taxes
 
Answer & Explanation Answer: A) Public revenue & expenditure

Explanation:

Fiscal policy is connected with public revenue and expenditures. This policy is the use of government revenue collection to monitor the nation's economy.

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Q:

Mutual Funds are regulated in India by

A) SEBI B) RBI
C) RBI & SEBI both D) Stock Exchanges
 
Answer & Explanation Answer: A) SEBI

Explanation:

Mutual Funds are regulated in India by SEBI (Securities and Exchange Board of India). It was founded in 1992. In 1996, SEBI formulated the Mutual Fund Regulation.

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Q:

Value added can be determined by

Answer

Value added is determined by the difference between the price of product or service and the cost of producing it.


 


Added Value = Price that the product or service is sold at - cost of producing the product.

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Q:

The law of supply indicates that other things equal

A) producers will offer more of a product at high prices than at low prices B) the quantity supplied of the good rises
C) the quantity supplied of the good rises D) producers will offer more of a product at high prices than at low prices
 
Answer & Explanation Answer: A) producers will offer more of a product at high prices than at low prices

Explanation:
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Q:

Economics is the study of how society manages its

A) Limited resources & limited wants B) Unlimited wants & unlimited resources
C) Limited wants & unlimited resources D) Limited resources & unlimited wants
 
Answer & Explanation Answer: C) Limited wants & unlimited resources

Explanation:

Economics is the study of how society manages its scarce resources i.e, Limited wants & unlimited resources.

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Q:

The foreign purchases effect

A) shifts the aggregate demand curve leftward B) moves the economy along a fixed aggregate demand curve
C) shifts the aggregate demand curve rightward D) shifts the aggregate supply curve rightward
 
Answer & Explanation Answer: B) moves the economy along a fixed aggregate demand curve

Explanation:
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Q:

The study of economics is primarily concerned with

A) choices that are made in seeking to use scarce resources efficiently B) keeping private businesses from losing money
C) demonstrating that capitalistic economies are superior to socialistic economies D) None of the above
 
Answer & Explanation Answer: A) choices that are made in seeking to use scarce resources efficiently

Explanation:
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Q:

Most electric, gas, and water companies are examples of

A) restricted-input monopolies B) sunk-cost monopolies
C) natural monopolies D) unregulated monopolies
 
Answer & Explanation Answer: C) natural monopolies

Explanation:

Most electric, gas, and water companies are examples of natural monopolies. Utilities like water, electricity and gas are essential services that play a vital role in economic and social development.

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