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 Indian Economy Questions

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Q:

The APC can be defined as the fraction of a:

A) change in income that is not spent. B) change in income that is spent.
C) specific level of total income that is not consumed. D) specific level of total income that is consumed.
 
Answer & Explanation Answer: D) specific level of total income that is consumed.

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Q:

Fixed Foreign Exchange Rate can be changed by

A) RBI B) SEBI
C) Ministry of Finance D) FIPB
 
Answer & Explanation Answer: A) RBI

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Q:

The demand of a commodity is a direct demand but the demand of a factor of production is called a

A) Crossed demand B) Joint demand
C) Derived demand D) Independent demand
 
Answer & Explanation Answer: C) Derived demand

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Q:

In which of the following market forms a firm does not exercise control over price?

A) Mixed Competition B) Monopoly
C) Oligopoly D) Perfect Competition
 
Answer & Explanation Answer: D) Perfect Competition

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Q:

If demand curve for roller skates is D = 23000 - 19P and supply curve is S = 18000 + 6P, find the equilibrium Price?

A) Rs 100 B) Rs 400
C) Rs 50 D) Rs 200
 
Answer & Explanation Answer: D) Rs 200

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Q:

Which formula correctly describes productivity?

A) Output/Input B) (Output - Input)/Output
C) Input/Output D) (Input - Output)/Input
 
Answer & Explanation Answer: A) Output/Input

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Q:

The best solution for overcoming the evil effects of small and uneconomic holdings is: ___________.

A) urbanization of rural population B) using capital intensive technology
C) co-operative farming D) rapid industrialization
 
Answer & Explanation Answer: C) co-operative farming

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Q:

Which among the following is not an account under Balance of Payment?

A) Current Account B) Capital Account
C) Official Reserves Account D) Unilateral Payments Account
 
Answer & Explanation Answer: C) Official Reserves Account

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