Indian Economy Questions

Q:

Which of the following increases labor productivity?

A) an increase in the aggregate hours of work B) decreases in the availability of computers and factory buildings
C) inventories of new machinery, equipment, or software D) a decline in the health of the population
 
Answer & Explanation Answer: C) inventories of new machinery, equipment, or software

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Q:

The major objective of monetary policy is to

A) increase government's tax revenue B) revamp the Public Distribution System
C) Promote economic growth with price stability D) weed out corruption in the economy
 
Answer & Explanation Answer: C) Promote economic growth with price stability

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Q:

In October 2017, Insolvency and Bankruptcy Board of India (IBBI) relaxed norms for information utilities. Listed Indian companies can now hold ______ of the paid-up equity share capital or total voting power rights in such firms.

 

A) 80% B) 90%
C) 100% D) 50%
 
Answer & Explanation Answer: C) 100%

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Q:

Recession is ___________.

A) reduction in production and employment for want of sufficient demand for goods B) rise in the cost of production, especially because of wage increase
C) increase in money supply without a matching increase in production D) No option is correct
 
Answer & Explanation Answer: A) reduction in production and employment for want of sufficient demand for goods

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Q:

If hiring an extra worker increases a brick making unit's output from 2000 to 2250 units per day, but the factory has to reduce the price of its brick from Rs 15 to Rs 14 per brick to sell the additional output, the marginal revenue product of the last worker is

A) Rs 1500 B) Rs 250
C) Rs 3000 D) Rs 100
 
Answer & Explanation Answer: A) Rs 1500

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Q:

The production possibilities curve illustrates the basic principle that

A) an economy's capacity to produce increases in proportion to its population size. B) the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
C) an economy will automatically seek that level of output at which all of its resources are employed. D) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
 
Answer & Explanation Answer: D) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.

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Q:

Globalization of the economy has

A) decreased regional specialization of production B) decreased investment in less developed countries
C) heightened economic differences among places D) leveled economic differences between places
 
Answer & Explanation Answer: C) heightened economic differences among places

Explanation:

Economic globalization is the increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital.

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Q:

Monetary policy refers to the actions the Federal Reserve takes to manage

A) income tax rates and interest rates to pursue its economic objectives. B) government spending and income tax rates to pursue its economic objectives.
C) the money supply and income tax rates to pursue its economic objectives. D) the money supply and interest rates to pursue its economic objectives.
 
Answer & Explanation Answer: D) the money supply and interest rates to pursue its economic objectives.

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