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 Indian Economy Questions

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Q:

The ________ balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.

A) Current Account B) Savings Account
C) Capital Account D) Asset Account
 
Answer & Explanation Answer: A) Current Account

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Q:

Macroeconomics can best be described as the

A) analysis of how a consumer tries to spend income. B) analysis of how firms attempt to maximize their profits.
C) study of how supply and demand determine prices in individual markets. D) study of the large aggregates of the economy or the economy as a whole.
 
Answer & Explanation Answer: D) study of the large aggregates of the economy or the economy as a whole.

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Q:

The short run average cost curve is ____ shaped.

A) U B) V
C) X D) W
 
Answer & Explanation Answer: A) U

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Q:

Which among the following is not an instrument of fiscal policy?

A) Taxation B) Public expenditure
C) Public debt D) Credit Rationing
 
Answer & Explanation Answer: D) Credit Rationing

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Q:

A motion that seeks to reduce the amount of demand presented by government to Rs. 1/- is known as

A) Disapproval of policy Cut B) Token cut
C) Economy cut D) Vote on account
 
Answer & Explanation Answer: A) Disapproval of policy Cut

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Q:

Find arc elasticity of demand, if quantity demanded falls from 4600 to 4200 when price of the item is increased from Rs 960 to Rs 1000?

A) -2.23 B) -­2.09
C) 2.23 D) 2.09
 
Answer & Explanation Answer: A) -2.23

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Q:

"Betting and gambling" is listed in the __________ list given in the Seventh Schedule in the Constitution of India.

A) Union B) State
C) Global D) Concurrent
 
Answer & Explanation Answer: B) State

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Q:

If demand curve for trekking boots is D = 67500 - 18P and supply curve is S = 22500 + 12P, find the equilibrium Price?

A) 1500 B) 750
C) 2250 D) 500
 
Answer & Explanation Answer: A) 1500

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