Indian Economy Questions

Q:

A large underground economy results in an

A) Overstated GDP B) Understated GDP price index
C) Overstated GDP price index D) Understated GDP
 
Answer & Explanation Answer: D) Understated GDP

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Q:

On January 3, 2018, RBI initiated ‘PCA’ against the Allahabad Bank. How many public sector banks have been covered under ‘PCA’?

 

A) 18 B) 17
C) 11 D) 15
 
Answer & Explanation Answer: C) 11

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3 1635
Q:

National income accountants can avoid multiple counting by

A) subtracting NDP from GDP B) add exports, but subtract imports
C) only counting final goods D) None of the above
 
Answer & Explanation Answer: C) only counting final goods

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Q:

According to World Economic Forum Global Gender Gap Report 2017, Indian has closed ______ percentage of its gender gap.

A) 39 B) 67
C) 53 D) 91
 
Answer & Explanation Answer: B) 67

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Q:

A sales tax is a type of

A) aggressive B) regressive
C) both A & B D) None of the above
 
Answer & Explanation Answer: B) regressive

Explanation:

Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased.

 

For example, if you purchase a new laptop Rs. 40000 and live in an area where the sales tax is 6%, you would pay Rs.2400 in sales tax.

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Q:

The law of supply indicates that other things equal

A) producers will offer more of a product at high prices than at low prices B) the quantity supplied of the good rises
C) the quantity supplied of the good rises D) producers will offer more of a product at high prices than at low prices
 
Answer & Explanation Answer: A) producers will offer more of a product at high prices than at low prices

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Q:

If depreciation exceeds gross investment

A) the economy's stock of capital is growing B) the economy's stock of capital may be either growing or shrinking
C) net investment is zero D) the economy's stock of capital is shrinking
 
Answer & Explanation Answer: D) the economy's stock of capital is shrinking

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Q:

Short term contractions and expansions in economic activity are called ______________

A) Expansions B) Recession
C) Deficits D) The business cycle
 
Answer & Explanation Answer: D) The business cycle

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