MCQs
Total Questions : 89
| Page 6 of 9 pages
Answer: Option C. -> the average change in the prices of produced goods and services
Answer: (c)
Answer: (c)
Answer: Option D. -> 1 and 3 only
Answer: (d)
Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.
When the general price level rises, each unit of currency buys fewer goods and services.
Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value.
High inflation means the excessive supply of money and thus leads to a rise in the cost of credit and interest rates.
Higher inflation leads to a reduction in economic growth, a decrease in the cost of credit, increase in spending rather than saving as the value of money is declining.
Answer: (d)
Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.
When the general price level rises, each unit of currency buys fewer goods and services.
Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value.
High inflation means the excessive supply of money and thus leads to a rise in the cost of credit and interest rates.
Higher inflation leads to a reduction in economic growth, a decrease in the cost of credit, increase in spending rather than saving as the value of money is declining.
Answer: Option A. -> Consumer Price Index
Answer: (a)
Answer: (a)
Answer: Option A. -> NAFED
Answer: (a)
In Order to help the farmers in getting remunerative prices for their produce with a view to encouraging higher investment and also to increase production and productivity of a commodity, the government declares Minimum Support Price (MSPs) for 25 notified agricultural commodities for each Kharif & Rabi crop season.
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is one of the Central Nodal Agencies which implements PSS.
Answer: (a)
In Order to help the farmers in getting remunerative prices for their produce with a view to encouraging higher investment and also to increase production and productivity of a commodity, the government declares Minimum Support Price (MSPs) for 25 notified agricultural commodities for each Kharif & Rabi crop season.
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is one of the Central Nodal Agencies which implements PSS.
Answer: Option D. -> Quantity demanded at certain price during any particular period of time
Answer: (d)
The demand for a commodity at a given price is the quantity that will be purchased at a unit of time and at a unit price.
Demand has the following features; Demand refers to the quantity at a given price, Demand must be defined per unit time.
Answer: (d)
The demand for a commodity at a given price is the quantity that will be purchased at a unit of time and at a unit price.
Demand has the following features; Demand refers to the quantity at a given price, Demand must be defined per unit time.
Answer: Option B. -> Land Prices
Answer: (b)
Answer: (b)
Answer: Option C. -> Consumer Price Index
Answer: (c)
The basis of determining dearness allowance (D.A.) to government employees in India is the consumer price index. Dearness Allowance (DA) is an allowance paid to employees to compensate them for the erosion of real income/wage due to inflation.
The increase in the cost of living and the consequent erosion of income is measured in terms of a consumer price index number and, DA to be sanctioned to employees is determined on the basis of the percentage increase in that index.
Dearness Allowance - D.A. is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people.
Answer: (c)
The basis of determining dearness allowance (D.A.) to government employees in India is the consumer price index. Dearness Allowance (DA) is an allowance paid to employees to compensate them for the erosion of real income/wage due to inflation.
The increase in the cost of living and the consequent erosion of income is measured in terms of a consumer price index number and, DA to be sanctioned to employees is determined on the basis of the percentage increase in that index.
Dearness Allowance - D.A. is calculated as a percentage of an Indian citizen’s basic salary to mitigate the impact of inflation on people.
Answer: Option A. -> Both 1 and 2
Answer: (a)
The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend.
Participants borrow and lend for short periods of time, typically up to twelve months. Money market trades in short-term financial instruments commonly called “paper.”
Answer: (a)
The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend.
Participants borrow and lend for short periods of time, typically up to twelve months. Money market trades in short-term financial instruments commonly called “paper.”
Question 59. Which of the following statements are correct?
- When marginal revenue is positive, total revenue increases with increase in output.
- When marginal revenue is zero, total revenue is maximum.
- When marginal revenue becomes negative, total revenue falls with increase in output.
Answer: Option D. -> 1, 2 and 3
Answer: (d)
Answer: (d)
Answer: Option B. -> Remain unchanged
Answer: (b)
Devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies. Since it is relative to other currencies so the internal price remains unchanged.
It causes a country’s exports to become less expensive and imports more expensive.
Devaluation is a monetary policy tool used by countries that have a fixed exchange rate or semi-fixed exchange rate. It is often confused with Depreciation and is the opposite of revaluation.
Answer: (b)
Devaluation is a deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies. Since it is relative to other currencies so the internal price remains unchanged.
It causes a country’s exports to become less expensive and imports more expensive.
Devaluation is a monetary policy tool used by countries that have a fixed exchange rate or semi-fixed exchange rate. It is often confused with Depreciation and is the opposite of revaluation.
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