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 Indian Economy Questions

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Q:

Which of the following do economists consider to be capital?

A) a construction crane B) a savings account
C) a share of IBM stock D) a pair of stockings
 
Answer & Explanation Answer: A) a construction crane

Explanation:

In economics, there are four factors of production. They are :

1. Land

2. Labour

3. Capital

4. Organization

 

Here in the given options, a construction crane acts like capital.

 

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Q:

Which among the following is the difference in valuebetween a countrys imports and exports?

A) Balance of Trade B) Balance of Payment
C) Balance of power D) Credit Balance
 
Answer & Explanation Answer: A) Balance of Trade

Explanation:
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Q:

Which of the following rate is charged by banks to their most credit worthy customers?

A) Prime Lending Rate B) Statutory Liquidity Rate
C) Bank Rate D) Repo Rate
 
Answer & Explanation Answer: A) Prime Lending Rate

Explanation:
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Q:

If demand curve for radial car tyres is D = 230000 ­ 19P and supply curve is S = 180000 + 6P, find the equilibrium Quantity?

A) 19200 units B) 291000 units
C) 29100 units D) 192000 units
 
Answer & Explanation Answer: D) 192000 units

Explanation:
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Q:

Stagflation is a period of _______.

A) Persistent high inflation combined with high unemployment B) Persistent high inflation combined with low unemployment
C) Persistent low inflation combined with high unemployment D) Persistent low inflation combined with low unemployment
 
Answer & Explanation Answer: A) Persistent high inflation combined with high unemployment

Explanation:
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Exam Prep: CAT

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Q:

A recurring theme in economics is that people:

A) Can increase resources by limiting their economic wants B) Have unlimited resources, but limited economic wants
C) Have unlimited economic wants, but limited resources D) Have limited economic wants and limited resources
 
Answer & Explanation Answer: C) Have unlimited economic wants, but limited resources

Explanation:
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Q:

Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand is called

A) Structural unemployment B) Frictional unemployment
C) Seasonal unemployment D) Cyclical unemployment
 
Answer & Explanation Answer: A) Structural unemployment

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Q:

National Income refers to ___________

A) money value of goods and services produced in a country during a year  B) money value of stocks and shares of a country during a year
C) money value of capital goods produced by a country during a year D) money value of consumer goods and services produced in a country during a year 
 
Answer & Explanation Answer: A) money value of goods and services produced in a country during a year 

Explanation:
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