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 Indian Economy Questions

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Q:

Deindustrialisation means

A) uprooting of people from agriculture and planting them in industries B) uprooting of people from agriculture and planting them in industries
C) a deliberate effort to compel the existing industries to shut down D) a deliberate effort to promote the new industries
 
Answer & Explanation Answer: B) uprooting of people from agriculture and planting them in industries

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Q:

Financial reports are used by

A) Investors B) Creditors
C) Market Analysts D) All of the above
 
Answer & Explanation Answer: D) All of the above

Explanation:

Financial reports are used for monitoring and controlling the movement of cash into and out of a business. They are used to communicate relevant, reliable and understandable information about the business that can be used by managers, analysts, investors to make decisions. 

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Q:

The major objective of monetary policy is to

A) increase government's tax revenue B) revamp the Public Distribution System
C) Promote economic growth with price stability D) weed out corruption in the economy
 
Answer & Explanation Answer: C) Promote economic growth with price stability

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Q:

In October 2017, Insolvency and Bankruptcy Board of India (IBBI) relaxed norms for information utilities. Listed Indian companies can now hold ______ of the paid-up equity share capital or total voting power rights in such firms.

 

A) 80% B) 90%
C) 100% D) 50%
 
Answer & Explanation Answer: C) 100%

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Q:

The consumption and saving schedules reveal that the:

A) MPC and APC are equal at the point where the consumption schedule intersects the 45-degree line. B) MPC is equal to or greater than one at all income levels.
C) MPC is greater than zero, but less than one. D) APS is positive at all income levels.
 
Answer & Explanation Answer: C) MPC is greater than zero, but less than one.

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Q:

Which of the following best defines disposable income?

A) Income received by householdsless personal taxes. B) The before-tax income received by households.
C) All income earned by resource suppliers for their current contributions to production. D) The market value of the annual output net of consumption of fixed capital.
 
Answer & Explanation Answer: A) Income received by householdsless personal taxes.

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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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Q:

Which of the following increases labor productivity?

A) an increase in the aggregate hours of work B) decreases in the availability of computers and factory buildings
C) inventories of new machinery, equipment, or software D) a decline in the health of the population
 
Answer & Explanation Answer: C) inventories of new machinery, equipment, or software

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