MCQs
Total Questions : 89
| Page 7 of 9 pages
Answer: Option C. -> a rectangular hyperbola
Answer: (c)
Total fixed costs are constant, so the average fixed cost curve diminishes with the output. Thus, the average fixed cost curve is a rectangular hyperbola.
Answer: (c)
Total fixed costs are constant, so the average fixed cost curve diminishes with the output. Thus, the average fixed cost curve is a rectangular hyperbola.
Answer: Option C. -> Inflation
Answer: (c)
With the increase in GDP, aggregate demand increases, because more production means people have more disposable income, which means more consumer spending.
As a result, prices rise in response, and in conclusion, because aggregate demand grows faster than long-term aggregate supply, economic growth will be coupled with inflation.
Hyperinflation - In economics, hyperinflation occurs when a country experiences very high and usually actuarially rates of inflation. Economic growth is usually coupled with inflation.
Answer: (c)
With the increase in GDP, aggregate demand increases, because more production means people have more disposable income, which means more consumer spending.
As a result, prices rise in response, and in conclusion, because aggregate demand grows faster than long-term aggregate supply, economic growth will be coupled with inflation.
Hyperinflation - In economics, hyperinflation occurs when a country experiences very high and usually actuarially rates of inflation. Economic growth is usually coupled with inflation.
Question 63. Consider the following statements and state which is/are correct?
- The sub-prime crisis which hit the U.S. economy was caused by sudden increase in oil prices.
- The crisis led to default in home loan repayment.
- It led to failure of some U.S. Banks.
- Sub-prime crisis caused crash in Indian stock market.
Answer: Option A. -> Only 2, 3 and 4
Answer: (a)
Answer: (a)
Answer: Option B. -> Returns to scale
Answer: (b)The way total output changes due to change in all inputs in the same proportion is known as “law of return to scale”.
Answer: (b)The way total output changes due to change in all inputs in the same proportion is known as “law of return to scale”.
Answer: Option A. -> Monopolistic competition
Answer: (a)Monopolistic competition is a form of market in which there are large numbers of sellers of a particular products but each seller sells somewhat differentiated but close products.
Answer: (a)Monopolistic competition is a form of market in which there are large numbers of sellers of a particular products but each seller sells somewhat differentiated but close products.
Answer: Option D. -> Hyper inflation
Answer: (d)
Hyperinflation occurs when a country experiences very high and usually accelerating rates of monetary and price inflation, causing the population to minimize their holdings of money.
Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.
Stagflation: Persistent high inflation combined with high unemployment.
Conflation: The merging of two or more sets of information texts, ideas etc into one.
Stealth inflation: It is a type of charge or fee created by the business to gain extra profit and revenue from its customers.
Answer: (d)
Hyperinflation occurs when a country experiences very high and usually accelerating rates of monetary and price inflation, causing the population to minimize their holdings of money.
Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.
Stagflation: Persistent high inflation combined with high unemployment.
Conflation: The merging of two or more sets of information texts, ideas etc into one.
Stealth inflation: It is a type of charge or fee created by the business to gain extra profit and revenue from its customers.
Question 67. Match List-I with List-II and select answers using the codes given below in the lists.
List
List II
A. Boom
1. Business activities are at a high level with increasing income, output and employment at the macro level.
B. Recession
2. Gradual fall of income, output and employment with business activity in a low gear.
C. Depression
3. Unprecedented level of underemployment and unemployment, drastic fall in income, output.
D. Recovery
4. Steady rise in the general level of prices, income, output and employment.
Codes: A B C D
List
List II
A. Boom
1. Business activities are at a high level with increasing income, output and employment at the macro level.
B. Recession
2. Gradual fall of income, output and employment with business activity in a low gear.
C. Depression
3. Unprecedented level of underemployment and unemployment, drastic fall in income, output.
D. Recovery
4. Steady rise in the general level of prices, income, output and employment.
Codes: A B C D
Answer: Option C. -> 1 2 3 4
Answer: (c)
Answer: (c)
Answer: Option B. -> Market of government securities
Answer: (b)
The gilt-edged market refers to the market for Government and semi-government securities, backed by the Reserve Bank of India (RBI).
Government securities are tradeable debt instruments issued by the Government for meeting its financial requirements. The term gilt-edged means ‘of the best quality’.
Answer: (b)
The gilt-edged market refers to the market for Government and semi-government securities, backed by the Reserve Bank of India (RBI).
Government securities are tradeable debt instruments issued by the Government for meeting its financial requirements. The term gilt-edged means ‘of the best quality’.
Answer: Option C. -> 2 only
Answer: (c)
Headline inflation also called as WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy.
As a result, headline inflation may not present an accurate picture of the current state of the economy as it doesn’t take account of the service sector.
Answer: (c)
Headline inflation also called as WPI inflation is a measure of the total inflation within an economy and is affected by areas of the market which may experience sudden inflationary spikes such as food or energy.
As a result, headline inflation may not present an accurate picture of the current state of the economy as it doesn’t take account of the service sector.
Answer: Option A. -> The Laffer Curve says that, if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease
Answer: (a)
The Laffer Curve says that, if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease.
Supply-side economics is a macroeconomic theory that gives economic growth can be most effectively created by investing in capital and by lowering barriers to the production of goods and services.
Answer: (a)
The Laffer Curve says that, if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease.
Supply-side economics is a macroeconomic theory that gives economic growth can be most effectively created by investing in capital and by lowering barriers to the production of goods and services.