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 Indian Economy Questions

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Q:

"Gilt-edged" means ___________.

 

A) bullion market   B) market of government securities  
C) market of guns D) market of pure metals
 
Answer & Explanation Answer: B) market of government securities  

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Q:

What is poverty gap?

 

A) the difference between poverty line and actual income level of all those living below that line B) gap between developed and developing nations
C) gap between the rich and the poor D) gap between infrastructural facilities in developed and developing nations  
 
Answer & Explanation Answer: A) the difference between poverty line and actual income level of all those living below that line

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Q:

Which of the following is a characteristic of the monopolistic competition?

 

A) A large number of firms compete B) Each firm produces a differentiated product
C) Both answers A and B are correct D) Barriers to entry
 
Answer & Explanation Answer: C) Both answers A and B are correct

Explanation:

A large number of firms compete and Each firm produces a differentiated product is a characteristic of the market structure for monopolistic competition.

 

 

 

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Q:

When did India's population touch 100 crore mark

A) May, 2001 B) May 2000
C) May, 2002 D) May, 2003
 
Answer & Explanation Answer: B) May 2000

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Q:

Match the characteristics with their market structure:

(a) Differentiated products, but close substitutes for consumers so their demand curves are elastic.
(b) Firm will tend to set output so that it earns maximum profits.

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

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Q:

Where was electricity supply first introduced in India

A) Kolkata B) Mumbai
C) Darjeeling D) Chennai
 
Answer & Explanation Answer: C) Darjeeling

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Q:

Visible and invisible items of debit and credit are the part of___________.

 

A) import-export policy B) balance of payment
C) balance of trade D) annual budget
 
Answer & Explanation Answer: B) balance of payment

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Q:

What does cyclical unemployment mean?

 

A) Unemployment during recessionary phase of trade cycle B) Disguised unemployment
C) Seasonal unemployment D) Voluntary unemployment
 
Answer & Explanation Answer: A) Unemployment during recessionary phase of trade cycle

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