MCQs
Total Questions : 89
| Page 3 of 9 pages
Answer: Option A. -> Only 2
Answer: (a)
This rise in wholesale food prices was not captured by WPI as the weightage for food articles is just 14.3% compared to 65% for manufactured products in this index.
On the other hand, the weightage for food is 57% in CPI items which captures the impact of food prices better.
Further, wholesale prices do not take into account the substantial margins at the retail level, which tend to rise when there are shortages.
Answer: (a)
This rise in wholesale food prices was not captured by WPI as the weightage for food articles is just 14.3% compared to 65% for manufactured products in this index.
On the other hand, the weightage for food is 57% in CPI items which captures the impact of food prices better.
Further, wholesale prices do not take into account the substantial margins at the retail level, which tend to rise when there are shortages.
Answer: Option B. -> Increase
Answer: (b)
During inflation interest rates should increase so that the investor invests more in lieu of higher interest-earning thus money supply reduces which can reduce inflation.
Similarly higher interest rates mean credit becomes costly so that again supply of money reduces which helps in curbing inflation.
Answer: (b)
During inflation interest rates should increase so that the investor invests more in lieu of higher interest-earning thus money supply reduces which can reduce inflation.
Similarly higher interest rates mean credit becomes costly so that again supply of money reduces which helps in curbing inflation.
Answer: Option B. -> Both (A) and (R) are correct, and (R) is the correct explanation of (A).
Answer: (b)
Investment in capital and labour will increase productivity and production which will cause either rise in wages or the creation of employment or both thus the overall income will rise.
Answer: (b)
Investment in capital and labour will increase productivity and production which will cause either rise in wages or the creation of employment or both thus the overall income will rise.
Answer: Option C. -> Bank rate is decreased
Answer: (c)
Answer: (c)
Answer: Option C. -> producer
Answer: (c)
Supply-side economics lays greater emphasis on the point of view of the producer whereas the demand side economics lays emphasis on the interest of the consumer.
Answer: (c)
Supply-side economics lays greater emphasis on the point of view of the producer whereas the demand side economics lays emphasis on the interest of the consumer.
Answer: Option A. -> Market of safe securities
Answer: (a)In the parlance of economy, Gilt-edged market is called market of safe securities. “Gilt-edged” denotes high-grade securities, consequently carrying low yields.
Answer: (a)In the parlance of economy, Gilt-edged market is called market of safe securities. “Gilt-edged” denotes high-grade securities, consequently carrying low yields.
Answer: Option D. -> 2011-12
Answer: (d)
Answer: (d)
Answer: Option A. -> upward to the right
Answer: (a)
When the curve slopes downwards from left to right; higher prices reduce the quantity demanded.
Answer: (a)
When the curve slopes downwards from left to right; higher prices reduce the quantity demanded.
Answer: Option D. -> Money stock
Answer: (d)
The money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It includes currency in circulation and demand deposits.
Near money: assess which can readily be converted into cash, such as bells of exchange.
Narrow money: Money in forms that can be used as a medium of exchange generally notes, coins and certain balances held by banks.
Answer: (d)
The money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It includes currency in circulation and demand deposits.
Near money: assess which can readily be converted into cash, such as bells of exchange.
Narrow money: Money in forms that can be used as a medium of exchange generally notes, coins and certain balances held by banks.
Answer: Option D. -> Consumer price index for industrial workers
Answer: (d)
Answer: (d)
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