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 Indian Economy Questions

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Q:

If a person's income increases from Rs. 10 lakhs per year to Rs. 11 lakhs per year and tax increases from Rs. 80,000 to Rs. 92,500 the marginal tax rate is

A) 12.50% B) 8%
C) 10% D) 15%
 
Answer & Explanation Answer: A) 12.50%

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Q:

Open Market Operations refer to __________

A) Borrowings by Scheduled banks from RBI B) Lending by Commercial banks to industry
C) Purchase and sale of Government securities by RBI D) Deposit mobilisation
 
Answer & Explanation Answer: C) Purchase and sale of Government securities by RBI

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Q:

In economic equilibrium _____

A) supply is equal to the demand. B) the surplus is larger than the shortage.
C) elasticity of demand equals elasticity of supply D) price elasticity of demand is unity
 
Answer & Explanation Answer: A) supply is equal to the demand.

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Q:

"Residex Index" is associated with which of these?

A) Share Prices B) Mutual Fund Prices
C) Price Inflation Index D) Housing Prices
 
Answer & Explanation Answer: D) Housing Prices

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Q:

The innovation theory of profit was proposed by

A) Marshall B) Clark
C) Schumpeter D) Joan Robbinson
 
Answer & Explanation Answer: C) Schumpeter

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Q:

In which market form, a market or an industry is dominated by a single seller?

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

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Q:

The law of demand states that

A) if the price of a good increases, the demand for that good decreases. B) if the price of a good increases, the the demand for that good increases.
C) if the price of a good increases, the quantity demanded of that good decreases. D) if the price of a good increases, the quantity demanded of that good increases.
 
Answer & Explanation Answer: C) if the price of a good increases, the quantity demanded of that good decreases.

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Q:

In economics secondary effects refer to the

A)  best alternative that must be forgone as the result of a choice. B) immediate and visible intended consequences of a change.
C) impact of the scarcity of resources on the scarcity of the goods that are produced with those resources. D) unintended consequences of a change that are not immediately identifiable but are felt only with time.
 
Answer & Explanation Answer: B) immediate and visible intended consequences of a change.

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