Indian Economy Questions

Q:

If the average total cost are Rs 54, total fixed cost is Rs 45000 and quantity produced is 2500 units, find the average variable costs (in Rs) of the firm?

A) 24 B) 18
C) 36 D) 60
 
Answer & Explanation Answer: C) 36

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Q:

Which of the following is NOT included in general methodology while assessing the national income?

A) Pension B) Investment Expenditure
C) Value added D) Consumption Expenditure
 
Answer & Explanation Answer: A) Pension

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Q:

Which curve shows the inverse relationship between unemployment and inflation rates

A) Supply curve B) Indifference curve
C) IS curve D) Phillips curve
 
Answer & Explanation Answer: D) Phillips curve

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Q:

When the demand for a good increases with an increase in income, such a good is called_______

A) Superior good B) Giffin good
C) Inferior good D) Normal good
 
Answer & Explanation Answer: A) Superior good

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Q:

Which of the following taxes is levied by the State Government only?

A) Wealth tax B) Entertainment tax
C) Income tax D) Gift tax
 
Answer & Explanation Answer: B) Entertainment tax

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Q:

A ___________ deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

A) Current Account B) Savings Account
C) Capital Account D) Asset Account
 
Answer & Explanation Answer: A) Current Account

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Q:

__________ is defined as the output per unit of variable input

A) Marginal product B) Production function
C) Total product D) Average product
 
Answer & Explanation Answer: D) Average product

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Q:

Increase in the demand for a good will cause the equilibrium price of the good to ________ and the equilibrium quantity to _________.

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

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