Questions

Q:

‘Capital gains’ refers to goods which

A) serve as a source of raising further capital B) help in the further production of goods
C) directly go into the satisfaction of human wants D) find multiple uses
 
Answer & Explanation Answer: B) help in the further production of goods

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Q:

The ________ curve represents the demand of all consumers in the market taken together at different levels of the price of the good.

A) monotonic B) indifferent
C) market demand D) diminishing
 
Answer & Explanation Answer: C) market demand

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Q:

Which of following is true if the Government monetized part of its deficit?

A) Money supply in the economy will increase. B) Interest rate will increase.
C) Government revenue will decrease. D) Government expenditure will increase.
 
Answer & Explanation Answer: A) Money supply in the economy will increase.

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Q:

If for the year a country's GDP was $ 1315 million, consumer spending was $900 million, investment by businesses was $180 million, exports were $85 million and imports were $100 million, calculate government spending?

A) $220 million B) $250 million
C) $580 million D) $610 million
 
Answer & Explanation Answer: B) $250 million

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Q:

In perfect competition _____.

A) Products can be similar or different B) Producer can control price by controlling production
C) Demand curve is perfectly elastic D) All firms make economic profit in the long run
 
Answer & Explanation Answer: C) Demand curve is perfectly elastic

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Q:

If an unintended increase in business inventories occurs

A) aggregate expenditures must exceed the domestic output B) we can expect businesses to lower the level of production
C) we can expect aggregate production to be unaffected D) we can expect businesses to increase the level of production
 
Answer & Explanation Answer: B) we can expect businesses to lower the level of production

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Q:

In the following question, some part of the sentence may have errors. Find out which part of the sentence has an error and select the appropriate option. If asentence is free from error, select 'No Error'.

1. The 26th of January was chosen 

2. to commemorate the Purna Swaraj

3. declaration for the complete independence, of 1930.

4. No error

A) 1 B) 2
C) 3 D) 4
 
Answer & Explanation Answer: C) 3

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Q:

In the given question, a statement divided into different segments is given. The first segment is fixed, rearrange the other segments to form a coherent statement.

The dissolution of the assembly/ in the state which was (P)/ was followed by a prolonged (Q)/ already marred with political instability (R)/ tug of war for seizing the power (S)

A) RSPQ B) QSRP
C) PSRQ D) PRQS
 
Answer & Explanation Answer: D) PRQS

Explanation:

Clearly, R and S can't follow the first segment. This eliminates option 1.

Option 2: It is incorrect since P ends with was, which can't be used to end the statement.

Option 3: It is incorrect since the statement can't end in 'by a prolonged'.

Option 4: It makes a coherent statement; hence put it on hold.

Option 5: It is incorrect because P ends in 'was' and Q begins with 'was'.

Two 'was' can't be used together. Hence, the correct sequence is PRQS.

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