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 Indian Economy Questions

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Q:

Find arc elasticity of demand, if quantity demanded falls from 4600 to 4200 when price of the item is increased from Rs 960 to Rs 1000?

A) -2.23 B) -­2.09
C) 2.23 D) 2.09
 
Answer & Explanation Answer: A) -2.23

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Q:

In 2015, the real rate of interest in a country was 6% and the inflation rate then was 3%. So the nominal rate of interest in 2015 was

A) 3% B) 6%
C) 9% D) 12%
 
Answer & Explanation Answer: C) 9%

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Q:

Capital structure decisions refer to the

A) capital gains available on the firm's stock. B) dividend yield of the firm's stock.
C) maturity date for the firm's securities D) blend of equity and debt used by the firm.
 
Answer & Explanation Answer: D) blend of equity and debt used by the firm.

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Q:

Who is the Chief Economic Advisor to the Government of India?

A) Raghu Ram Rajan B) Arvind Subramanian
C) Rajiv Mahirishi D) Arvind Pangariya
 
Answer & Explanation Answer: B) Arvind Subramanian

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Q:

Macroeconomics can best be described as the

A) analysis of how a consumer tries to spend income. B) analysis of how firms attempt to maximize their profits.
C) study of how supply and demand determine prices in individual markets. D) study of the large aggregates of the economy or the economy as a whole.
 
Answer & Explanation Answer: D) study of the large aggregates of the economy or the economy as a whole.

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Q:

Movement along the supply curve is known as ______

A) Contraction of supply B) Expansion of supply
C) Increase in supply D) Expansion and contraction of supply
 
Answer & Explanation Answer: D) Expansion and contraction of supply

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Q:

Ad Valorem tax is levied on?

A) Value B) Volume
C) Production D) Export
 
Answer & Explanation Answer: A) Value

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Q:

India's population growth is characterized by

A)  An increase in rate of death B)  An increase in the ratio of females
C) An increase in the birth rate and declining death rate D)  Increasing number of old people
 
Answer & Explanation Answer: C) An increase in the birth rate and declining death rate

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