Questions

Q:

If a consumer's demand for a good moves in the same direction as the consumer's income, the consumer's demand for that good must be inversely related to the price of the good is called __________.

A) Law of demand B) Law of supply
C) Law of substitution D) Law of optimal choice
 
Answer & Explanation Answer: A) Law of demand

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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

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Q:

The demand for a inferior good increases with ________ in the consumer's income.

A) increase B) decrease
C) constant D) double
 
Answer & Explanation Answer: B) decrease

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Q:

The existence of a parallel economy (black money) ___________.

A) makes economy more competitive B) makes the monetary policies less effective
C) ensures a better distribution of income and wealth D) ensures increasing productive investment
 
Answer & Explanation Answer: B) makes the monetary policies less effective

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Q:

Which would most likely increase aggregate supply?

A) A decrease in net exports B) A decrease in business subsidies
C) An increase in productivity D) An increase in the prices of imported products
 
Answer & Explanation Answer: D) An increase in the prices of imported products

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Q:

Look at the underlined part of each sentence. Below each sentence are given three possible substitutions for the underlined part. If one of them (a), (b) or (c) is better than the underlined part, indicate your response on the Answer Sheet against the corresponding letter. If none of the substitutions imporves the sentence, indicate (d) as your response on the Answer Sheet.

I was living in Chennai for ten years when I was a child.

A) had lived B) lived
C) had been living D) No improvement
 
Answer & Explanation Answer: A) had lived

Explanation:

The event of living in Chennai is over long back, hence the sentence is in past perfect tense. ‘had lived’ will be the correct expression.

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Q:

Osteoporosis is the disease related to

A) Spinal cord B) Heart
C) Kidneys D) Lungs
 
Answer & Explanation Answer: A) Spinal cord

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Q:

Which of the following organ does NOT belong to human excretory system?

A) Kidneys B) Ureters
C) Uterus D) Urethra
 
Answer & Explanation Answer: C) Uterus

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