Questions and answers for exam Preparation

MCQs

Total Questions : 89 | Page 9 of 9 pages

Question 81. Inflation is best described as

increase in purchasing power
increase in price of particular goods
high prices
increase in price index

Discuss Question

Answer: Option B. -> increase in price of particular goods
Answer: (b)

Question 82. Inflation in India is measured on which of the following indexes / indicators?

Gross Domestic Product (GDP)
Cost of Living Index (CLI)
Consumer Price Index (CPI)
Wholesale Price Index (WPI)

Discuss Question

Answer: Option D. -> Wholesale Price Index (WPI)
Answer: (d)
Inflation in India is measured on the Wholesale Price Index (WPI). The wholesale price index (WPI) is based on the wholesale price of a few relevant commodities or over commodities available.
Cost of Living Index - It is a theoretical price index that measures the relative cost of living over time or regions.
Consumer Price Index - It is a measure that examines the weighted average of prices of a basket of consumer goods & services such as transportation food and medical care.

Question 83. In view of the fact that kerosene is an inferior good in India, what is/are its implication(s)?

As households get richer, they consume less kerosene.
Over time there is a decline in quality of kerosene.
Government needs to stop subsidies on kerosene.

Select the correct answer using the code given below.

1 and 2 only
2 and 3 only
1 only
1, 2 and 3

Discuss Question

Answer: Option C. -> 1 only
Answer: (c)Generally Kerosene is used as fuel by the poor, as they get prosperity, they use little of this fuel.

Question 84. The base of Consumer Price Index for Industrial Workers is being shifted from 1982 to—

1998
2000
1995
2001

Discuss Question

Answer: Option D. -> 2001
Answer: (d)The base of CPI for industrial worker is being shifted from 1982 to 2001.

Question 85. Which one of the following is not a method to control inflation?

Reducing the rate of interest
Rationing of commodities
Controlling the demand
Controlling the supply of money

Discuss Question

Answer: Option A. -> Reducing the rate of interest
Answer: (a)

Question 86. Economic growth is usually coupled with

Stagflation
Hyper-inflation
Deflation
Inflation

Discuss Question

Answer: Option D. -> Inflation
Answer: (d)

Question 87. Which one among the following pairs is not correctly matched?

When total product reaches its maximum : Marginal product becomes zero
When total product increases at an increasing rate : Marginal product increases
When total product : Marginal increases at a diminishing rate , product declines
When total product begins to decline : Marginal product becomes positive

Discuss Question

Answer: Option D. -> When total product begins to decline : Marginal product becomes positive
Answer: (d)

Question 88. Which of the following statements is/are true?

If increase in demand and supply are of equal magnitude, the price will remain unchanged, but the equilibrium quantity will increase.
If increase in demand is of greater magnitude than increase in supply, both equilibrium price and equilibrium quantity will increase.
If increase in supply is of greater magnitude than increase in demand, equilibrium price will fall but equilibrium quantity will increase.

Select the correct answer using the code given below :