Questions

Q:

According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to 

A) improve B) diminish
C) remain constant D) first diminish and then improve
 
Answer & Explanation Answer: B) diminish

Explanation:

Economists use the concept of marginal utility to measure happiness and pleasure and how that affects consumer decision making. They have also identified the law of diminishing marginal utility, which means that the first unit of consumption of a good or service has more utility than the next units of consumption.Hence, the marginal utility of the good diminishes as the amount of good consumed increases.

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Q:

"The General Equilibrium Analysis" was developed by

A) Marshall B) Ricardo
C) Walras D) Adam Smith
 
Answer & Explanation Answer: C) Walras

Explanation:
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Q:

In 2015, the nominal rate of interest in a country was 8% and the inflation rate then was 2.5%. So real rate of interest in 2015 was

A) 3.2 percent B) 10.5 percent
C) 8 percent D) 5.5 percent
 
Answer & Explanation Answer: D) 5.5 percent

Explanation:
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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.


The _____ of energy in India are met from both commercial and non commercial sources. The most _____ sources of energy today are coal and natural gas, hydro
electricity and nuclear power. On the other hand, firewood, cow-dung cakes and vegetable waste etc. _____ non commercial forms of energy. While non commercial
forms of energy _____ demand, coal is the _____ source of commercial energy in India.


While non commercial forms of energy _____ demand,

A) need B) meet
C) shed D) rests
 
Answer & Explanation Answer: B) meet

Explanation:
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Q:

In the following question, out of the four alternatives, select the word similar in meaning to the word given.
Abeyance

A) Commencement B) Perjure
C) Condone D) Suspension
 
Answer & Explanation Answer: D) Suspension

Explanation:
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Q:

What situation would result if Government expenditure exceeds the Government revenue on Current Account?

A) Deficit budgeting B) Zero­based budgeting
C) Performance­based budgeting D) Surplus budgeting
 
Answer & Explanation Answer: A) Deficit budgeting

Explanation:
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Q:

In the following question, a sentence has been given in Direct/Indirect speech. Out of the four alternatives suggested, select the one, which best express the same sentence in Indirect/Direct speech.

I said to my sister, "where were you this evening?"

 

A) I asked my sister where she was that evening. B) I asked my sister where she had been that evening.
C) I asked my sister where she was this evening. D) I asked my sister where she has been that evening.
 
Answer & Explanation Answer: B) I asked my sister where she had been that evening.

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Q:

In the following question, out of the four alternatives, select the alternative which best expresses the meaning of the idiom/phrase.

 

Catch red-handed

 

A) Apprehend someone in the course of wrongdoing. B) Successfully accomplish a difficult physical task.
C) Catch someone with colour on his hands. D) Be warned of imminent danger.
 
Answer & Explanation Answer: A) Apprehend someone in the course of wrongdoing.

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