Indian Economy Questions

Q:

Under GST regime, in ‘Composition Scheme’, taxpayers have to fill returns ______.

A) Monthly B) Half-yearly
C) Quarterly D) Bi-Monthly
 
Answer & Explanation Answer: C) Quarterly

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Q:

If for the year a country's GDP was $990 million, consumer spending was $630 million, investment by businesses was $110 million, exports were $55 million and imports were $45 million, calculate government spending?

A) $260 million B) $240 million
C) $480 million D) $460 million
 
Answer & Explanation Answer: B) $240 million

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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

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Q:

At the equilibrium price

A) quantity demanded is equal to quantity supplied B) quantity demanded is greater than quantity supplied
C) price elasticity of demand is unity D) elasticity of demand equals elasticity of supply
 
Answer & Explanation Answer: A) quantity demanded is equal to quantity supplied

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Q:

If saving exceeds investment, the national income will ___________.

A) fall B) fluctuate
C) remain constant D) rise  
 
Answer & Explanation Answer: C) remain constant

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Q:

Demand is said to be elastic when the

A) change in quantity demanded is less than the change in price B) change in quantity demanded is greater than the change in price
C) percentage change in quantity demanded is greater than the percentage change in price D) percentage change in quantity demanded is less than the percentage change in price
 
Answer & Explanation Answer: B) change in quantity demanded is greater than the change in price

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Q:

When the productive capacity of the economic system of state is inadequate to create sufficient number of jobs, it is called _______

A) seasonal unemployment B) structural unemployment  
C) disguised unemployment   D) cyclical unemployment
 
Answer & Explanation Answer: D) cyclical unemployment

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Q:

Stagflation exists when _____

A) price indices and output both decrease. B) price indices increase but output decreases.
C) price indices and output both increase. D) price indices decrease but output increases.
 
Answer & Explanation Answer: B) price indices increase but output decreases.

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