Indian Economy Questions

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:

A binding price ceiling is designed to

A) keep prices low B) increase efficiency
C) increase the quality of the good D) prevent shortages
 
Answer & Explanation Answer: A) keep prices low

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Q:

The latest information about agriculture markets is collected and published by the ___________.

A) Food Corporation of India B) Directorate of Economics and Statistics
C) National Council of Applied Economic Research D) Indian Statistical Institute
 
Answer & Explanation Answer: B) Directorate of Economics and Statistics

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Q:

Match the characteristics with their market structure:
(a) Expand out put until MC = MR
(b) Elasticity of demand depends on pricing policies of rivals

A) (a) Pure competition, (b) Pure Monopoly B) (a) Pure Monopoly, (b) Monopolistic competition
C) (a) Pure competition, (b) Oligopoly D) (a) Monopolistic competition, (b) Oligopoly
 
Answer & Explanation Answer: D) (a) Monopolistic competition, (b) Oligopoly

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Q:

Why are the Indian workers less skilled than the workers of western countries?

A) Low level of wages B) Inferior quality of capital provided to labourers  
C) High level of illiteracy   D) Strong trade unions
 
Answer & Explanation Answer: C) High level of illiteracy  

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Q:

Which Indian stock exchange is planning to launch its own Initial Public Offering (IPO)?

A) Saurashtra Kutch Stock Exchange (SKSE) B) National Stock Exchange (NSE)
C) Cochin Stock Exchange (CoSE) D) Bombay Stock Exchange (BSE)
 
Answer & Explanation Answer: B) National Stock Exchange (NSE)

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Q:

The _________ balance is equal to capital flows from the rest of the world, minus capital flows to the rest of the world.

A) Current Account B) Savings Account
C) Capital Account D) Asset Account
 
Answer & Explanation Answer: C) Capital Account

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Q:

Goods whose demand is proportional to price are called

A) inferior goods B) Veblen goods
C) normal goods D) exclusive goods
 
Answer & Explanation Answer: B) Veblen goods

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