Questions

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

Explanation:
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Q:

Read each sentence to find out whether there is any error in any underlined part and indicate your response in the Answer Sheet against the corresponding letter i.e., (a) or (b) or (c). If you find no error, your response should be indicated as (d).

A) The peon B) has not sweeped
C) the floor today. D) No error
 
Answer & Explanation Answer: D) No error

Explanation:

The given sentence is grammatically correct and there is no error.

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Q:

In the following passage some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.

Books are our ______ friends. They are our guides. We can learn everything from them. The books contain all the great ______ of the world's leaders and we can learn them by reading the books. The books help us find ______ to our questions. The books never fail us. We should read as ______ books as we can. But all books are not good. So we should ______ only good books.

the great ______ of our world.

A) feel B) thoughts
C) idle D) money
 
Answer & Explanation Answer: B) thoughts

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Q:

Which one of the following is not an assumption in the law of demand?

A) There are no changes in the taste and preferences of consumers B) Income of consumers remains constant
C) Consumers are affected by demonstration effect D) There are no changes in the price of substitute goods.
 
Answer & Explanation Answer: C) Consumers are affected by demonstration effect

Explanation:

There are certain assumptions underlying the law of demand, which are as follows:

i. Assumes that the consumer’s income remains same

ii. Assumes that the preferences of consumer remain same.

iii. Considers that the fashion does not show any changes, because if fashion changes, then people would not purchase the products that are out of fashion.

iv. Assumes that there would be no change in the age structure, size, and sex ratio of population. This is because if population size increases, then the number of buyers increases, which, in turn, affect the demand for a product directly.

v. Restricts the innovation and new varieties of products in the market, which can affect the demand for the existing product.

vi. Restricts changes in the distribution of income.

vii. Avoids any type of change fiscal policies of the government of a nation, which reduces the effect of taxation on the demand of product.

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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:

The relation between the consumer’s optimal choice of the quantity of a good and its price is very important and this relation is called the ________ function.

A) Price B) Substitution
C) Supply D) Demand
 
Answer & Explanation Answer: D) Demand

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Q:

Which of following is true if the Government monetized part of its deficit?

A) Money supply in the economy will increase. B) Interest rate will increase.
C) Government revenue will decrease. D) Government expenditure will increase.
 
Answer & Explanation Answer: A) Money supply in the economy will increase.

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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

Explanation:
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