Indian Economy Questions

Q:

For the first time in Gujarat, who implemented Jizya tax?

A) Ahmed Shah I B) Mahmud Begda
C) Mujaffarshah I D) Mujaffarshah II
 
Answer & Explanation Answer: A) Ahmed Shah I

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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:

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:

­ Inflation exists when

A) there is general increase in the prices over time. B) there are periodic decreases in the price level.
C) there are continuous increases in the output level over time. D) there is rise in the purchasing value of money.
 
Answer & Explanation Answer: A) there is general increase in the prices over time.

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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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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:

On January 3, 2018, RBI initiated ‘PCA’ against the Allahabad Bank. How many public sector banks have been covered under ‘PCA’?

 

A) 18 B) 17
C) 11 D) 15
 
Answer & Explanation Answer: C) 11

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Q:

Working capital is a measure of

A) liquidity B) consistency
C) profitability D) solvency
 
Answer & Explanation Answer: A) liquidity

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