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 Indian Economy Questions

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Q:

Buying and Selling products are examples of

A) investing activities. B) operating activities.
C) delivering activities. D) financing activities.
 
Answer & Explanation Answer: B) operating activities.

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Q:

Capital deepening refers to 

A) going for more fixed capital per worker B) emphasis on social overhead capital
C) constant capital-output ratio D) increasing capital-output ratio
 
Answer & Explanation Answer: A) going for more fixed capital per worker

Explanation:

Capital deepening is a situation where the capital per worker is increasing in the economy. This is also referred to as increase in the capital intensity. Capital deepening is often measured by the rate of change in capital stock per labour hour.

 

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Q:

Which of the following taxes is levied by the State Government only?

A) Wealth tax B) Entertainment tax
C) Income tax D) Gift tax
 
Answer & Explanation Answer: B) Entertainment tax

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Q:

When the demand for a good increases with an increase in income, such a good is called_______

A) Superior good B) Giffin good
C) Inferior good D) Normal good
 
Answer & Explanation Answer: A) Superior good

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Q:

A ___________ deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

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

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Q:

__________ is defined as the output per unit of variable input

A) Marginal product B) Production function
C) Total product D) Average product
 
Answer & Explanation Answer: D) Average product

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Q:

Macro economics deals with

A) the circular flow of income B) the decision making of a single economic variable like demand
C) resource allocation at firm level D) equilibrium prices and quantities
 
Answer & Explanation Answer: A) the circular flow of income

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Q:

Increase in the demand for a good will cause the equilibrium price of the good to ________ and the equilibrium quantity to _________.

A) increase; increase B) decrease; decrease
C) increase; decrease D) decrease; increase
 
Answer & Explanation Answer: A) increase; increase

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