2
Q:

In which area is the public sector most dominant in India?

 

A) Organised term lending financial instistutions B) Transport
C) Commerical banking D) Steel production

Answer:   C) Commerical banking



Explanation:
Subject: Indian Economy
Exam Prep: Bank Exams
Q:

If quantity of good X demanded increases from 2300 to 2700 when price of good Y increases from Rs. 45 to Rs. 55, find Arc Cross elasticity of demand?

A) 4 B) 1.25
C) 0.25 D) 0.8
 
Answer & Explanation Answer: D) 0.8

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0 768
Q:

An increase of 1% per annum in the rate of growth of the money supply will increase inflation in the long run by _______.

A) Zero percent B) One percent
C) 0.5 percent D) More than one percent
 
Answer & Explanation Answer: B) One percent

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0 632
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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0 665
Q:

Which of the following will cause an increase in demand for a good?

A) an increase in income if the good is an inferior goods B) a decrease in the price of the goods
C) a decrease in income if the good is a normal goods D) an increase in the price of its substitute goods
 
Answer & Explanation Answer: D) an increase in the price of its substitute goods

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2 552
Q:

If for a perfectly competitive firm, price is Rs. 60, output is 300 units, average variable costs are Rs. 18, and average total costs are Rs. 36. The firm's profits are equal to

A) Rs. 5400 B) Rs. 3600
C) Rs. 7200 D) Rs. 1800
 
Answer & Explanation Answer: C) Rs. 7200

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1 1140
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:

If one more baker is hired the output of a bakery will increase from 1250 breads to 1400 breads per day, but then the bakery will have to reduce the price of the bread from Rs 15 to Rs 14 per unit to sell the additional output, the marginal revenue product of the last baker is _______.

A) Rs 850 B) Rs 150
C) Rs 1960 D) Rs 1875
 
Answer & Explanation Answer: A) Rs 850

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0 1026
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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