Indian Economy Questions

Q:

Business fluctuations refer to

A) the ups and downs in overall business B) expansion is rapid
C) contraction is severe D) None of the above
 
Answer & Explanation Answer: A) the ups and downs in overall business

Explanation:

Business fluctuations refer to the ups and downs in overall business activity measured by changes in national​ income, employment and the price level.

Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

2 1866
Q:

Unemployment would cause an economy to

A) produce outside its production possibilities frontier B) produce inside it's production possibilities frontier
C) produce on it's production possibilites frontier D) All of the above
 
Answer & Explanation Answer: B) produce inside it's production possibilities frontier

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

1 1857
Q:

The MPC for an economy is

A) the slope of the savings schedule or line. B) 1 divided by the slope of the savings schedule or line.
C) the slope of the consumption schedule or line. D) 1 divided by the slope of the consumption schedule or line.
 
Answer & Explanation Answer: D) 1 divided by the slope of the consumption schedule or line.

Explanation:

Marginal propensity to consume (MPC) in economics is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers).

Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 1857
Q:

Economics involves marginal analysis because

A) marginal benefits always exceed marginal costs B) much economic behavior is irrational
C) most decisions involve changes from the present situation D) marginal costs always exceed marginal benefits
 
Answer & Explanation Answer: C) most decisions involve changes from the present situation

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

3 1843
Q:

When some goods or productive factors are completely fixed in amount, regardless of price, the supply curve is

A) horizontal B) downward sloping to the right
C) vertical D) upward sloping to the right
 
Answer & Explanation Answer: D) upward sloping to the right

Explanation:

Although demand curves are typically downward sloping to reflect that consumers’ utility for a good diminishes with increased consumption, firm supply curves are generally upward sloping.The upward sloping character reflects that firms will be willing to increase production in response to a higher market price because the higher price may make additional production profitable.

 

Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: Bank Exams

2 1827
Q:

Economics is the study of how society manages its

A) Limited resources & limited wants B) Unlimited wants & unlimited resources
C) Limited wants & unlimited resources D) Limited resources & unlimited wants
 
Answer & Explanation Answer: C) Limited wants & unlimited resources

Explanation:

Economics is the study of how society manages its scarce resources i.e, Limited wants & unlimited resources.

Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

3 1815
Q:

Economic growth is measured by

A) % of GDP B) % of NDP
C) % of expenditure D) % of percapita income
 
Answer & Explanation Answer: A) % of GDP

Explanation:

Economic growth is measured by the percentage of gross domestic product. GDP refers to the total value of goods and services produced in the country.

Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

3 1800
Q:

The goal of a command economy is to

A) create equality within a society B) mixed-market
C) Both A & B D) None of the above
 
Answer & Explanation Answer: A) create equality within a society

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

3 1786