Indian Economy Questions

Q:

__________ of an input is defined as the change in output per unit of change in the input when all other inputs are held constant.

A) Marginal product B) Production function
C) Total product D) Average product
 
Answer & Explanation Answer: A) Marginal product

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Q:

For a certain shoe factory the fixed costs are Rs 200,000, selling price is Rs 2000 per pair of shoes and variable cost is Rs 1200 per pair, what is the breakeven quantity?

A) 100 B) 62.5
C) 167 D) 250
 
Answer & Explanation Answer: D) 250

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Q:

National Income refers to ___________

A) money value of goods and services produced in a country during a year  B) money value of stocks and shares of a country during a year
C) money value of capital goods produced by a country during a year D) money value of consumer goods and services produced in a country during a year 
 
Answer & Explanation Answer: A) money value of goods and services produced in a country during a year 

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Q:

An increase in the growth rate of the nominal money supply results in

A) Lower rate of inflation B) Higher rate of inflation
C) Lower interest rates D) Currency appreciation
 
Answer & Explanation Answer: B) Higher rate of inflation

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Q:

For the buying and selling of precious metals such as Goldand Silver, the market established is termed as ________ .

A) Capital Market B) Money Market
C) Bullion Market D) wholesale cash market
 
Answer & Explanation Answer: C) Bullion Market

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Q:

"The General Equilibrium Analysis" was developed by

A) Marshall B) Ricardo
C) Walras D) Adam Smith
 
Answer & Explanation Answer: C) Walras

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Q:

When the productive capacity of the economic system of state is inadequate to create sufficient number of jobs, it is called _______

A) seasonal unemployment B) structural unemployment  
C) disguised unemployment   D) cyclical unemployment
 
Answer & Explanation Answer: D) cyclical unemployment

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Q:

What situation would result if Government expenditure exceeds the Government revenue on Current Account?

A) Deficit budgeting B) Zero­based budgeting
C) Performance­based budgeting D) Surplus budgeting
 
Answer & Explanation Answer: A) Deficit budgeting

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