Indian Economy Questions

Q:

Which of the following is not true about a Demand Draft?

A) It is a negotiable instrument. B) It is a banker's cheque.
C) It may be dishonoured for lack of funds. D) It is issued by a bank.
 
Answer & Explanation Answer: C) It may be dishonoured for lack of funds.

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Q:

Which of the following is called GDP Deflator?

A) Ratio of nominal to real GDP B) Ratio of nominal to real GNP
C) Ratio of nominal to real CPI D) Ratio of real to nominal GNP
 
Answer & Explanation Answer: A) Ratio of nominal to real GDP

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Q:

The _________ balance is equal to capital flows from the rest of the world, minus capital flows to the rest of the world.

A) Current Account B) Savings Account
C) Capital Account D) Asset Account
 
Answer & Explanation Answer: C) Capital Account

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Q:

If hiring an extra worker increases a factory's output from 1000 to 1200 units per day, but the factory has to reduce the price of its product from Rs. 25 to Rs. 24 per unit to sell the additional output, the marginal revenue product of the last worker is

A) Rs. 3800 B) Rs. 200
C) Rs. 4000 D) Rs. 100
 
Answer & Explanation Answer: A) Rs. 3800

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Q:

The GST (Goods and Services Tax), recently passed by Government will be levied on which of the following products?

A) Petroleum Crude B) Tobacco
C) Natural Gas D) Aviation Turbine Fuel
 
Answer & Explanation Answer: B) Tobacco

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Q:

What was the debt-to-GDP ratio for the Financial Year 2016-17?

A) 60.40% B) 49.40%
C) 50.40% D) 55.40%
 
Answer & Explanation Answer: B) 49.40%

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Q:

The latest information about agriculture markets is collected and published by the ___________.

A) Food Corporation of India B) Directorate of Economics and Statistics
C) National Council of Applied Economic Research D) Indian Statistical Institute
 
Answer & Explanation Answer: B) Directorate of Economics and Statistics

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Q:

If the ___________ firm has zero costs or only has fixed cost, the quantity supplied in equilibrium is given by the point where the marginal revenue is zero.

A) Perfect Competition B) Monopoly
C) Oligopoly D) Monopolistic Competition
 
Answer & Explanation Answer: B) Monopoly

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