Q:

An increase in the growth rate of the nominal money supply results in

A) Lower rate of inflation	B) Higher rate of inflation
C) Lower interest rates	D) Currency appreciation

Answer & Explanation Answer: B) Higher rate of inflation

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Q:

If for the year a country's GDP was $990 million, consumer spending was $630 million, investment by businesses was $110 million, exports were $55 million and imports were $45 million, calculate government spending?

A) $260 million	B) $240 million
C) $480 million	D) $460 million

Answer & Explanation Answer: B) $240 million

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Q:

Liabilities are generally classified on a balance sheet as

A) small liabilities and large liabilities	B) present liabilities and future liabilities
C) tangible liabilities and intagible liabilities	D) current liabilities and long-term liabilities

Answer & Explanation Answer: D) current liabilities and long-term liabilities

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Q:

Long run growth in GDP is determined by

A) Capital stocks	B) Labour force
C) Both 1 & 2	D) None

Answer & Explanation Answer: C) Both 1 & 2

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Q:

If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.

A) Perfect Competition	B) Monopoly
C) Oligopoly	D) Monopolistic Competition

Answer & Explanation Answer: B) Monopoly

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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:

Grand Anicut Canal system, is located in which state?

A) Tamil Nadu	B) Madhya Pradesh
C) Telangana	D) Andhra Pradesh

Answer & Explanation Answer: A) Tamil Nadu

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Q:

Which of the following is not the properties of an ionic compound?

A) Soluble in water and insoluble in petrol	B) High melting and boiling points
C) Low melting and boiling points	D) Solid and hard

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