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 Indian Economy Questions

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Q:

What is poverty gap?

 

A) the difference between poverty line and actual income level of all those living below that line B) gap between developed and developing nations
C) gap between the rich and the poor D) gap between infrastructural facilities in developed and developing nations  
 
Answer & Explanation Answer: A) the difference between poverty line and actual income level of all those living below that line

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Q:

Which of the following is NOT a measure of Human Development Index?

 

A) Life expectancy B) Sex ratio
C) Literacy rate D) Gross enrolment
 
Answer & Explanation Answer: B) Sex ratio

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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 purpose of land reforms was to achieve ___________.

 

A) increase in production B) increase the purchasing power of the rural population
C) ensure distributive justice with economic growth D) All options are correct
 
Answer & Explanation Answer: D) All options are correct

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Q:

Leverage enables currency traders to do which of the following?

 

A) Reduce the risk of losing money   B) Force foreign governments to print more money
C) Make large currency trades using small amounts of money D)  Buy currencies before they are available to the public
 
Answer & Explanation Answer: C) Make large currency trades using small amounts of money

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Q:

‘KAPILA’ programme, which was making news recently, is associated with which sector?

 

A) MSME B) Intellectual Property Rights
C) Aviation D) Automobile
 
Answer & Explanation Answer: B) Intellectual Property Rights

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Q:

For an inferior good demand falls when _________.

 

A) Piece rise   B) Price falls  
C) Income rise   D) Income falls  
 
Answer & Explanation Answer: C) Income rise  

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Q:

The demand for labour is the same as the ___________.

 

A) marginal revenue product B) marginal physical product
C) marginal cost D) wage
 
Answer & Explanation Answer: A) marginal revenue product

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