Indian Economy Questions

Q:

What does 'C' stands for 'CAGR', a business specific term for the geometric progression ratio that provides a constant rate over the specific time period?

A) Control B) Compound
C) Credit D) Call
 
Answer & Explanation Answer: B) Compound

Explanation:

CAGR stands for Compound Annual Growth Rate. So, C stands for Compound. Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period.

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Q:

If a perfectly competitive firm can increase its profits by increasing its output, then that firm's product's _____.

A) price exceeds its marginal costs B) price exceeds its average total costs
C) average variable costs exceed its average total costs D) fixed costs are zero
 
Answer & Explanation Answer: A) price exceeds its marginal costs

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Q:

Economics assumes that

A) people have unlimited desires but limited resources B) people have limited desires but unlimited resources
C) allocation of resources if not centrally planned will cause inefficiency D) people are emotional and make irrational decisions
 
Answer & Explanation Answer: A) people have unlimited desires but limited resources

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Q:

Which of the following gulf countries has announced to form new economic and partnership group named 'Joint Cooperation Committee' inDecember 2017?

A) UAE and Saudi Arabia B) Qatar and UAE
C) Bahrain and Kuwait D) Oman and Saudi Arabia
 
Answer & Explanation Answer: A) UAE and Saudi Arabia

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Q:

7 workers work in a printing press. Each gets paid Rs 450 per day. The 8th worker demands Rs 500 per day. If this worker is hired then all other workers must be paid Rs 500. The marginal resource (labour) cost of the 8th worker is _______.

A) Rs 50 B) Rs 850
C) Rs 400 D) Rs 100
 
Answer & Explanation Answer: B) Rs 850

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Q:

The demand curve facing a perfectly competitive firm is

A) downward sloping B) perfectly inelastic
C) a concave curve D) perfectly elastic
 
Answer & Explanation Answer: D) perfectly elastic

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Q:

A price floor is _____.

A) a maximum legal price B) a minimum legal price
C) the price where demand equals supply D) the price where elasticity of demand equals elasticity of supply
 
Answer & Explanation Answer: B) a minimum legal price

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Q:

The unemployment created at certain times of the year, when the demand for goods and services are lower than normal, is _____.

A) Cyclical unemployment B) Frictional unemployment
C) Seasonal unemployment D) Structural unemployment
 
Answer & Explanation Answer: C) Seasonal unemployment

Explanation:
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