Indian Economy Questions

Q:

In India, how much percent of GDP is the fiscal deficit target for the Financial Year 2017-18?

A) 4.20% B) 3.20%
C) 2.20% D) 4.00%
 
Answer & Explanation Answer: B) 3.20%

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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:

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:

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:

Stagflation exists when _____

A) price indices and output both decrease. B) price indices increase but output decreases.
C) price indices and output both increase. D) price indices decrease but output increases.
 
Answer & Explanation Answer: B) price indices increase but output decreases.

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Q:

What denotes offering several products for sale as one combined product?

A) Advertisement B) Product mix
C) Product bundling D) Differentiation
 
Answer & Explanation Answer: C) Product bundling

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Q:

If cash reserve ratio decreases, credit creation will _______.

A) increase B) decrease
C) does not change D) first decreases than increases
 
Answer & Explanation Answer: A) increase

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Q:

The study of individual markets of demand and supply in which the 'players', or the decision makers, were also individuals (buyers or sellers, even companies) who were seen as trying to maximize their profits (as producers or sellers) and their personal satisfaction or welfare levels (as consumers) is called?

A) Macroeconomics B) Econometrics
C) Microeconomics D) Heterodox Economics
 
Answer & Explanation Answer: C) Microeconomics

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