Indian Economy Questions

Q:

An indifference curve measures ______________ level of satisfaction derived from different combinations of commodity X and Y.

A) same B) higher
C) lower D) minimum
 
Answer & Explanation Answer: A) same

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Q:

Which of the following best defines disposable income?

A) income received by households less personal taxes B) the before-tax income received by households
C) all income earned by resource suppliers for their current contributions to production D) the market value of the annual output net of consumption of fixed capital
 
Answer & Explanation Answer: A) income received by households less personal taxes

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Q:

A growing country is one with ___________ there.

A) rising GNP at constant prices B) rising GNP at current prices
C) constant GNP at constant prices D) No option is correct
 
Answer & Explanation Answer: A) rising GNP at constant prices

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Q:

If the average total cost are Rs 2400, average variable cost is Rs 1700 and quantity produced is 75 units, find the total fixed costs of the firm?

A) Rs 52500 B) Rs 127500
C) Rs 180000 D) Rs 60000
 
Answer & Explanation Answer: A) Rs 52500

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Q:

Rate of the growth of an economy is measured in terms of

A) National income B) Monthly family income
C) Number of people who have been lifted above the poverty line D) Industrial Development
 
Answer & Explanation Answer: A) National income

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Q:

The __________ exchange rate is the price of one unit of foreign currency in terms of domestic currency.

A) Artificial B) Nominal
C) Fixed D) Real
 
Answer & Explanation Answer: B) Nominal

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Q:

__________ says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output (i.e., marginal product of that input) will start falling.

A) Law of diminishing marginal product B) Law of variable proportions
C) The Short Run D) The Long Run
 
Answer & Explanation Answer: A) Law of diminishing marginal product

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Q:

For a price taking firm, average revenue is ______ market price.

A) half of B) equal to
C) double of D) less than
 
Answer & Explanation Answer: B) equal to

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