LakshyaEducation.in

VEDIC MATHS Video Series
  • Home
  • Video Series
    • Vedic Maths Videos
    • Quantitative Aptitude Videos
    • Class 8 Maths Videos
    • Class 9 Maths Videos
    • Class 10 Maths Videos
  • Quiz & Solutions
  • Blog
  • Store
  • Login
  • Contact Us
  • Home
  • Topic
  • Indian Economy
  • Demand And Supply
  • Profit Loss
  • Inflation And Price Index

Indian Economy > Demand And Supply > Profit Loss

INFLATION AND PRICE INDEX MCQs

Total Questions : 89

Page 1 of 9 pages
Question 1. In a perfectly competitive economy production and consumption will both be Pareto optimal, if the economy operates at a point where
  1.    output levels are above equilibrium
  2.    there is general equilibrium
  3.    output levels are below equilibrium
  4.    consumption is less than output
 Discuss Question
Answer is Option B. -> there is general equilibrium
Answer: (b) General equilibrium involving both production and consumption also ensures the achievement of Pareto efficiency. Pareto efficiency in this regard requires that the marginal rate of transformation should be equal to the marginal rate of substitution of the individuals.
Question 2. Inflation is caused by
  1.    Decrease in money supply
  2.    Increase in supply of goods
  3.    Increase in cash with the government
  4.    Increase in money supply
 Discuss Question
Answer is Option D. -> Increase in money supply
Answer: (d) Inflation is increased in the prices of commodities. It is caused due to decrease in supply and an increase in demand for commodities. So when the money supply in the economy increases it means people have more purchasing capacity and thus demand increases which result in inflation. Some factors affecting inflationary pressure.
Question 3. Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?
  1.    D.N. Ghosh
  2.    R.H. Patil
  3.    C. Rangarajan
  4.    I.V. Reddy
 Discuss Question
Answer is Option C. -> C. Rangarajan
Answer: (c)
Question 4. Which one of the following terms is used in Economics to denote a technique for avoiding risk by making a counteracting transaction?
  1.    Hedging
  2.    Discounting
  3.    Deflating
  4.    Dumping
 Discuss Question
Answer is Option A. -> Hedging
Answer: (a) Hedging is used in limiting or offsetting the probability of loss from fluctuations in the prices of commodities, currencies or securities.
Question 5. The price at which the Government purchase foodgrains for maintaining the public distribution system and for building up buffer stocks are known as
  1.    Procurement prices
  2.    Issue prices
  3.    Minimum support prices
  4.    Coiling prices
 Discuss Question
Answer is Option A. -> Procurement prices
Answer: (a) The price at which the Government purchases foodgrains for maintaining the public distribution system and for building up buffer stocks are known as procurement prices. Minimum support price: It is a form of market Intervention by Govt. of India to insure agricultural producers against any sharp fall in farm price. M.S.P. was announced by the Govt of India. Issue price: It is the price at which shares are offered to retail investors in the IPO issue.
Question 6. A ‘closed economy’ is an economy in which
  1.    only exports take place.
  2.    the money supply is fully controlled.
  3.    deficit financing takes place.
  4.    neither exports nor imports take places.
 Discuss Question
Answer is Option D. -> neither exports nor imports take places.
Answer: (d)This is an economy that does not interact with the economy of any other country. A closed economy prohibits imports and exports and prohibits any other country from participating in their stock market.
Question 7. Which of the following fixed the four percent inflation target in India with tolerance level of +/–2 percent for the period 2016 to 2021?
  1.    NITI Aayog
  2.    Fourteenth Finance Commission
  3.    Reserve Bank of India
  4.    Government of India
 Discuss Question
Answer is Option D. -> Government of India
Answer: (d)
Question 8. The income elasticity of demand for inferior goods is
  1.    less than zero
  2.    equal to one
  3.    less than one
  4.    greater than one
 Discuss Question
Answer is Option A. -> less than zero
Answer: (a)Inferior goods have a negative(less than 0) income elasticity of demand meaning that demand falls as income rises.
Question 9. The production function of a firm will change whenever
  1.    the firm increases its level of output
  2.    input price changes
  3.    the firm employs more of any input
  4.    the relevant technology changes
 Discuss Question
Answer is Option D. -> the relevant technology changes
Answer: (d)
Question 10. Consider the following factors regarding an industry :

  1. Capital Investment

  2. Business Turnover

  3. Labour Force

  4. Power Consumption


Which of these determine the nature and size of the industry?
  1.    2, 3 and 4
  2.    1, 3 and 4
  3.    1, 2 and 4
  4.    2 and 3
 Discuss Question
Answer is Option B. -> 1, 3 and 4
Answer: (b) The factors which are responsible for the industry are capital investment, labour force and power consumption. However, the nature and size of business are not determined by the turnover of the business.
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • Next →
  • Share on Facebook!
  • Share on Pinterest!

Sub Topics

  • Inflation And Price Index

Topics

  • Computer Aptitude
  • SAIL Junior Officer (E-0)
  • 10th Grade
  • 11th Grade
  • 12th Grade
  • 4th Grade
  • 5th Grade
  • 6th Grade
  • 7th Grade
  • 8th Grade
  • 9th Grade
  • NCERT
  • Cat
  • Commerce
  • Computer Science
  • Engineering
  • English
  • General Knowledge
  • Ias
  • Management
  • Quantitative Aptitude
  • Reasoning Aptitude
  • General Studies (Finance And Economics)
  • Analytical Instrumentation
  • Biochemistry
  • Bioinformatics
  • Biology
  • Biotechnology
  • Bitsat
  • Business Statistics
  • C Programming
  • C++ Programming
  • Cell Biology
  • Chemistry
  • Cost Accounting
  • Drug And Pharmaceutical Biotechnology
  • Electrical Measurement And Instrumentation
  • Environment Management
  • Environmental Biotechnology
  • Enzyme Technology
  • Financial Management And Financial Markets
  • Gate
  • General Science
  • Geography
  • Heat Transfer
  • History And National Movements
  • Human Anatomy And Physiology
  • Human And Cultural Diversity
  • Human Resource Management
  • Indian Economy
  • Indian Geography
  • Indian History
  • Indian Polity
  • Instrumentation Transducers
  • International Relations
  • Life Sciences
  • Marketing And Marketing Management
  • Mass Transfer
  • Mechanics Of Materials
  • Microbiology
  • Neet
  • Professional Communication
  • Renewable Energy
  • Sociology
  • Surveying
  • Total Quality Management
  • Uidai Aadhaar Supervisor Certification
  • Virology

Recent Questions

Q.   In Each Question, The First And The Last Sentences Of The Pa....

Q.   His Death Is A Great Blow, Most Terrible To . . . . . . . .

Q.   Azure Blob Storage Offers How Many Storage Tiers?

Q.   Find Out Whether There Is Any Grammatical Error In Below Sen....

Q.   In Power Point, This Is A Container For Text Or Graphics.

Q.   Symmetric Multiprocessing (SMP) Architectures Are Useful For....

Q.   It Is An Instrument That Entitles The Holder To A Proportio....

Q.   In Each Question Below A Sentence Broken Into Four Or Five P....

Q.   The Playground Of Lawn Tennis Is Called

Q.   How Many Numbers (N) Can We Have, Such That 100<N<1000....

Q.    a Button That Makes Characters Either Upper Or Lower Case ....

Q.    the Area Of A Rectangle Is 45 Cm². If Its Length Is 9 Cm,....

Q.   Which Of The Following Presentation Elements Can You Modify ....

Q.   Di....

Q.   Adversity

Q.   1 U = _______ Nanokatals.

Q.   The Manner In Which Bombs Exploded In Five Trains With In A ....

Q.   Spiny Seeds With Hooks are Dispersed By Animals.

Q.   The Process Of Improving The Cutting Action Of The Grinding ....

Q.   To Meet The Educational Needs Of The People, The Madarasa-I ....

LakshyaEducation.in
Lakshya Education
Bhilai,Chattisgarh,India
Email: admin@lakshyaeducation.in Phone: 07893519977 (WhatsApp)

Quick Links

  • Vedic Maths
  • Quantitative Aptitude
  • Class – IX Maths
  • Class – X Maths
  • YouTube Channel
  • Maths Fast Trick
  • Blog

Our Services

  • About us
  • Privacy
  • TOS
  • Refund / Cancellation
  • Contact
  • Affiliate Program
  • Copyright © 2022 All Right Reserved | Lakshya Education     ( )
    Login / Register

    Your Account will be created automatically when you click the below Google or Facebook Login Button.
    •   Login With Facebook
    •  Login With Google
     Login With Email/Password