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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:

If quantity of good X demanded increases from 4000 units to 5000 units when price of good Y increases from Rs 75 to Rs 90, find Arc Cross elasticity of demand?

A) 0.55 B) 1.66
C) 0.25 D) 1.22
 
Answer & Explanation Answer: D) 1.22

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0 802
Q:

The consumption schedule is such that

A) the MPC and the APC must be equal at all levels of income. B) the APC is constant and the MPC declines as income rises.
C) both the APC and the MPC increase as income rises. D) the MPC is constant and the APC declines as income rises.
 
Answer & Explanation Answer: D) the MPC is constant and the APC declines as income rises.

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Q:

In 2015 the nominal rate of interest in country was 6%, and the inflation rate then was 1.5%. So real rate of interest in 2015 was

A) 7.50% B) 4.50%
C) 4% D) 0.25%
 
Answer & Explanation Answer: B) 4.50%

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0 801
Q:

What does 'C' stands for 'CAGR', a business specific term for the geometric progression ratio that provides a constant rate over the specific time period?

A) Control B) Compound
C) Credit D) Call
 
Answer & Explanation Answer: B) Compound

Explanation:

CAGR stands for Compound Annual Growth Rate. So, C stands for Compound. Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period.

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Q:

Which is the form of market where there is lack of competition?

A) Monopoly B) Oligopoly
C) Perfect competition D) Marketisation
 
Answer & Explanation Answer: A) Monopoly

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Q:

If price of an article decreases from Rs 40 to Rs 30, quantity demanded increases from Q1 units to 7500 units. If point elasticity of demand is -1 find Q1?

A) 9000 units B) 4500 units
C) 10500 units D) 6000 units
 
Answer & Explanation Answer: D) 6000 units

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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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