Indian Economy Questions

Q:

For each perfectly competitive firm in the long run

A) price = marginal costs = average variable costs B) price = average profit
C) price = marginal costs = minimum average total costs D) price = minimum average variable costs
 
Answer & Explanation Answer: C) price = marginal costs = minimum average total costs

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Q:

Rate of the growth of an economy is measured in terms of

A) National income B) Monthly family income
C) Number of people who have been lifted above the poverty line D) Industrial Development
 
Answer & Explanation Answer: A) National income

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Q:

If a country devalues its currency, its _______________

A) Exports become cheaper and imports become costlier B) Exports become costlier and imports become cheaper.
C) Exports value is equivalent to imports value D) No effect on exports and imports
 
Answer & Explanation Answer: A) Exports become cheaper and imports become costlier

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Q:

As per the announcement by the government in August 2017, Banks importing gold and precious metals will have to pay ______ tax under the GST.

 

A) 5%   B) 10%  
C) 3%   D) 8%
 
Answer & Explanation Answer: C) 3%  

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Q:

Which of the following is done at a Stock Exchange ?

A) Commodities are bought and sold at wholesale price B) Commodities are bought and sold at retail price
C) Securities are bought and sold D) None of these
 
Answer & Explanation Answer: C) Securities are bought and sold

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Q:

__________ says that if we keep increasing the employment of an input, with other inputs fixed, eventually a point will be reached after which the resulting addition to output (i.e., marginal product of that input) will start falling.

A) Law of diminishing marginal product B) Law of variable proportions
C) The Short Run D) The Long Run
 
Answer & Explanation Answer: A) Law of diminishing marginal product

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Q:

A growing country is one with ___________ there.

A) rising GNP at constant prices B) rising GNP at current prices
C) constant GNP at constant prices D) No option is correct
 
Answer & Explanation Answer: A) rising GNP at constant prices

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Q:

____________ is the relationship between the variable input and output, keeping all other inputs are held constant.

A) Total product B) Average product
C) Isoquant D) The Long Run
 
Answer & Explanation Answer: A) Total product

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