760+ Indian Economy Quiz Questions and Answers with Explanation

Q:

Capital deepening refers to

A) going for more fixed capital per worker	B) emphasis on social overhead capital
C) constant capital-output ratio	D) increasing capital-output ratio

Answer & Explanation Answer: A) going for more fixed capital per worker

Explanation:

Capital deepening is a situation where the capital per worker is increasing in the economy. This is also referred to as increase in the capital intensity. Capital deepening is often measured by the rate of change in capital stock per labour hour.

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Q:

Open Market Operations refer to __________

A) Borrowings by Scheduled banks from RBI	B) Lending by Commercial banks to industry
C) Purchase and sale of Government securities by RBI	D) Deposit mobilisation

Answer & Explanation Answer: C) Purchase and sale of Government securities by RBI

Explanation:

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Q:

The closest example of a centrally planned economy is the __________ for the major part of the 20th Century.

A) USA	B) India
C) Soviet Union	D) Japan

Answer & Explanation Answer: C) Soviet Union

Explanation:

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Q:

Lorenz curve shows

A) Inflation	B) Unemployment
C) Income distribution	D) Poverty

Answer & Explanation Answer: C) Income distribution

Explanation:

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Q:

Which one of the following statements is not correct?

A) When total utility is maximum, marginal utility is zero	B) When total utility is decreasing, marginal utility is negative
C) When total utility is increasing, marginal utility is positive	D) When total utility is maximum,marginal and average utility are equal to each other.

Answer & Explanation Answer: D) When total utility is maximum,marginal and average utility are equal to each other.

Explanation:

Total utility -It is total psychological satisfaction which a consumer derives from the consumption of a commodity is known as total utility

Marginal utility -It is anaddition made in total utility by consuming and additional unit of a commodity is known as marginal utility.

•When marginal utility is positive,total utility increases

•When marginal utility is zero,total utility is at maximum

•When marginal utility is negative,total utility decreases

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Q:

In a cut motion, when the amount of demand is reduced by Rs 100/ , it is known as

A) Disapproval of policy cut	B) Economy cut
C) Vote on Account	D) Token cut

Answer & Explanation Answer: D) Token cut

Explanation:

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Q:

The number of days' sales uncollected is calculated by

A) Dividing accounts receivable by net sales and multiplying by 365.	B) Dividing net sales by accounts receivable and multiplying by 365.
C) Dividing accounts receivable by net sales.	D) Dividing net sales by accounts receivable.

Answer & Explanation Answer: A) Dividing accounts receivable by net sales and multiplying by 365.

Explanation:

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Q:

For the first time in Gujarat, who implemented Jizya tax?

A) Ahmed Shah I	B) Mahmud Begda
C) Mujaffarshah I	D) Mujaffarshah II

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