Indian Economy Questions

Q:

What situation would result if Government expenditure exceeds the Government revenue on Current Account?

A) Deficit budgeting B) Zero­based budgeting
C) Performance­based budgeting D) Surplus budgeting
 
Answer & Explanation Answer: A) Deficit budgeting

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Q:

Which answer figure will complete the pattern?

A) X B) W
C) V D) U
 
Answer & Explanation Answer: D) U

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Q:

In India all of the following are sources for government revenue, except?

A) Agricultural income tax B) Anti dumping duty
C) Perquisite tax D) Toll tax
 
Answer & Explanation Answer: A) Agricultural income tax

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Q:

The market for sugar is in equilibrium. If the supply of sugar increases, the equilibrium price of sugar will ________ and the equilibrium quantity will _________.

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

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Q:

If demand curve for racing cycles is D = 80200 ­ 13P and supply curve is S = 6200 + 12P, What is the equilibrium Quantity?

A) 2960 units B) 31220 units
C) 8750 units D) 41720 units
 
Answer & Explanation Answer: D) 41720 units

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Q:

In which of the following case, law of demand fails?

A) Giffen goods B) Normal goods
C) Inferior goods D) Both Giffen and Inferior goods
 
Answer & Explanation Answer: A) Giffen goods

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Q:

If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the average revenue is zero.

A) Perfect Competition B) Monopoly
C) Oligopoly D) Monopolistic Competition
 
Answer & Explanation Answer: A) Perfect Competition

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Q:

Stagflation is a period of _______.

A) Persistent high inflation combined with high unemployment B) Persistent high inflation combined with low unemployment
C) Persistent low inflation combined with high unemployment D) Persistent low inflation combined with low unemployment
 
Answer & Explanation Answer: A) Persistent high inflation combined with high unemployment

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