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 Indian Economy Questions

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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:

In economics secondary effects refer to the

A)  best alternative that must be forgone as the result of a choice. B) immediate and visible intended consequences of a change.
C) impact of the scarcity of resources on the scarcity of the goods that are produced with those resources. D) unintended consequences of a change that are not immediately identifiable but are felt only with time.
 
Answer & Explanation Answer: B) immediate and visible intended consequences of a change.

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Q:

Open Market Operations refer to __________

A) Borrowings by Scheduled banks from RBI B) Lending by Commercial banks to industry
C) Purchase and sale of Government securities by RBI D) Deposit mobilisation
 
Answer & Explanation Answer: C) Purchase and sale of Government securities by RBI

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Q:

The SLR is determined by the RBI. SLR stands for

A) States Leverage Return B) Savings Lease Rate
C) Statutory Liquidity Ratio D) Safe Legal Range
 
Answer & Explanation Answer: C) Statutory Liquidity Ratio

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Q:

Which law states that bad money drives good money out of circulation?

A) Wagner's law B) Grimm's law
C) Gresham's law D) Keynes' law
 
Answer & Explanation Answer: C) Gresham's law

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Q:

If quantity of good X demanded increases from 2300 to 2700 when price of good Y increases from Rs. 45 to Rs. 55, find Arc Cross elasticity of demand?

A) 4 B) 1.25
C) 0.25 D) 0.8
 
Answer & Explanation Answer: D) 0.8

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Q:

What is an octroi ?

A) Tax B) Tax collection centre
C) Tax processing centre D) Tax information centre
 
Answer & Explanation Answer: A) Tax

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Q:

From which of the following, is the GDP of a country not derived from?

A) Agricultural sector B) Industrial sector
C) International sector D) Service sector
 
Answer & Explanation Answer: C) International sector

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