Indian Economy Questions

Q:

The law of supply indicates that, other things equal

A) sellers will offer more of a product at low prices than at high prices. B) buyers will purchase less of a good at high prices than at low prices.
C) Sellers will offer more of a product at high prices than at low prices. D) the product supply curve is downward sloping.
 
Answer & Explanation Answer: C) Sellers will offer more of a product at high prices than at low prices.

Explanation:
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Q:

A decrease in the price level will

A) result in a movement downward along the aggregate demand curve B) shift the aggregate demand curve to the right
C) result in a movement upward along the aggregate demand curve D) shift the aggregate demand curve to the left
 
Answer & Explanation Answer: A) result in a movement downward along the aggregate demand curve

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Q:

Disguised unemployment generally means___________.

A) Large number of people remain unemployed B) alternative employment is NOT available
C) marginal productivity of labour is zero D) productivity of workers is low
 
Answer & Explanation Answer: C) marginal productivity of labour is zero

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Q:

The real wage will rise if the nominal wage

A) increases more rapidly than the general price level. B) increases at the same rate as labor productivity.
C) falls more rapidly than the general price level. D) falls at the same rate as the general price level.
 
Answer & Explanation Answer: A) increases more rapidly than the general price level.

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Q:

Which of the following is classified as working capital?

A) currents assets B) current liabilities
C) Both A & B D) current assets - current liabities
 
Answer & Explanation Answer: D) current assets - current liabities

Explanation:

Working capital, also known as net working capital, is the difference between a company’s current assets, like cash, accounts receivable and inventories of raw materials and finished goods, and its current liabilities, like accounts payable.

 

Working Capital = Current Assets - Current Liabilities

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Q:

Which taxes are included in GST?

A) Taxes on lottery B) Sales/VAT tax
C) Both A & B D) None of the above
 
Answer & Explanation Answer: C) Both A & B

Explanation:
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Q:

An increase in demand means that

A) the demand curve shifts to the right B) consumers desire a greater quantity
C) Both A & B D) None of the above
 
Answer & Explanation Answer: C) Both A & B

Explanation:

An increase in demand means that the demand curve shifts to the right, and hence quantity demanded will be high at each price.

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Q:

What happens to demand when price increases?

A) increases B) decreases
C) remains same D) Can't be determined
 
Answer & Explanation Answer: B) decreases

Explanation:

The Law of Demand tells that, if the price of a product increases then the demand will go down i.e, decreases iff all other things equal.

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