Indian Economy Questions

Q:

For a certain shoe factory the fixed costs are Rs 200,000, selling price is Rs 2000 per pair of shoes and variable cost is Rs 1200 per pair, what is the breakeven quantity?

A) 100 B) 62.5
C) 167 D) 250
 
Answer & Explanation Answer: D) 250

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Q:

If price of an article decreases from Rs P1 to Rs 75, quantity demanded increases from 1000 units to 1200 units. If point elasticity of demand is ­3.2 findmP1?

A) Rs 85 B) Rs 80
C) D) Rs 95
 
Answer & Explanation Answer: B) Rs 80

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Q:

The marginal propensity to consume lies between ____________.

A) 0 to Infinity B) 0 to 1
C) 1 to Infinity D) 0 to 10
 
Answer & Explanation Answer: B) 0 to 1

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Q:

Goods whose demand is proportional to price are called

A) inferior goods B) Veblen goods
C) normal goods D) exclusive goods
 
Answer & Explanation Answer: B) Veblen goods

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Q:

"The General Equilibrium Analysis" was developed by

A) Marshall B) Ricardo
C) Walras D) Adam Smith
 
Answer & Explanation Answer: C) Walras

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Q:

The term 'Zero Based Budgeting' refers to __________.

A) A specified sum of money authorized by the Legislaturefor a specific period of time B) To ensure that every rupee spent is result oriented
C) A statutorily mandated form of reimbursement or up-front payment for state expenditures D) A cost item for which payment is made by one stateagency to another
 
Answer & Explanation Answer: B) To ensure that every rupee spent is result oriented

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Q:

"Forests" 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: D) Concurrent

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Q:

In 2015, the nominal rate of interest in a country was 8% and the inflation rate then was 2.5%. So real rate of interest in 2015 was

A) 3.2 percent B) 10.5 percent
C) 8 percent D) 5.5 percent
 
Answer & Explanation Answer: D) 5.5 percent

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