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 Indian Economy Questions

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Q:

Capital structure decisions refer to the

A) capital gains available on the firm's stock. B) dividend yield of the firm's stock.
C) maturity date for the firm's securities D) blend of equity and debt used by the firm.
 
Answer & Explanation Answer: D) blend of equity and debt used by the firm.

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Q:

India's population growth is characterized by

A)  An increase in rate of death B)  An increase in the ratio of females
C) An increase in the birth rate and declining death rate D)  Increasing number of old people
 
Answer & Explanation Answer: C) An increase in the birth rate and declining death rate

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Q:

Goods which are consumed together are called?

A) Inferior goods B) Normal goods
C) Complementary goods D) Substitute goods
 
Answer & Explanation Answer: C) Complementary goods

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Q:

According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to 

A) improve B) diminish
C) remain constant D) first diminish and then improve
 
Answer & Explanation Answer: B) diminish

Explanation:

Economists use the concept of marginal utility to measure happiness and pleasure and how that affects consumer decision making. They have also identified the law of diminishing marginal utility, which means that the first unit of consumption of a good or service has more utility than the next units of consumption.Hence, the marginal utility of the good diminishes as the amount of good consumed increases.

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Q:

Which of the following rate is charged by banks to their most credit worthy customers?

A) Prime Lending Rate B) Statutory Liquidity Rate
C) Bank Rate D) Repo Rate
 
Answer & Explanation Answer: A) Prime Lending Rate

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Q:

The word development in economics pertains to

A) democratic countries B) third world countries
C) advanced countries D) undeveloped countries
 
Answer & Explanation Answer: B) third world countries

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Q:

What was the debt-to-GDP ratio for the Financial Year 2016-17?

A) 60.40% B) 49.40%
C) 50.40% D) 55.40%
 
Answer & Explanation Answer: B) 49.40%

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Q:

When there is only one buyer and one seller of product, it is called _____ situation.

A) Public monopoly B) Bilateral monopoly
C) Franchised monopoly D) Monopsony
 
Answer & Explanation Answer: B) Bilateral monopoly

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