MCQs
Total Questions : 150
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Answer: Option C. -> Consumer Price Index
Answer: (c)
The Consumer Price Index Numbers for Industrial Workers CPI (IW) is utilized for fixation and revision of wages and determination of variable Dearness Allowances payable to workers in organized sectors of the economy.
Despite the coverage being limited to Industrial Workers, presently, the CPI (IW) is also utilized as an indicator for measuring inflationary trends in the country and for policy formulations.
Answer: (c)
The Consumer Price Index Numbers for Industrial Workers CPI (IW) is utilized for fixation and revision of wages and determination of variable Dearness Allowances payable to workers in organized sectors of the economy.
Despite the coverage being limited to Industrial Workers, presently, the CPI (IW) is also utilized as an indicator for measuring inflationary trends in the country and for policy formulations.
Answer: Option C. -> Machinery
Answer: (c)
The term depreciation represents a loss or diminution in the value of an asset consequent upon wear and tear, obsolescence, effluxion of time or permanent fall in market value. Physical deterioration of an asset is caused by movement, strain, friction, erosion etc.
For instance, building, machinery, furniture, vehicles, plant etc. Wear and tear is the general but primary cause of depreciation.
Answer: (c)
The term depreciation represents a loss or diminution in the value of an asset consequent upon wear and tear, obsolescence, effluxion of time or permanent fall in market value. Physical deterioration of an asset is caused by movement, strain, friction, erosion etc.
For instance, building, machinery, furniture, vehicles, plant etc. Wear and tear is the general but primary cause of depreciation.
Answer: Option A. -> Walras
Answer: (a)
French economist Leon Walras put forward the General Equilibrium Theory in his pioneering 1874 work ‘Elements of Pure Economics.
The theory attempts to explain the functioning of economic markets as a whole, rather than as individual phenomena. It tried to show how and why all free markets tended toward equilibrium in the long run.
Answer: (a)
French economist Leon Walras put forward the General Equilibrium Theory in his pioneering 1874 work ‘Elements of Pure Economics.
The theory attempts to explain the functioning of economic markets as a whole, rather than as individual phenomena. It tried to show how and why all free markets tended toward equilibrium in the long run.
Answer: Option A. -> A teacher teaching his own daughter at home
Answer: (a)
Economic activities are related to the production, distribution, exchange and consumption of goods and services. The primary aim of the economic activity is the production of goods and services with a view to make them available to consumers.
“Human activities which are performed in exchange for money or money’s worth are called economic activities.” In other words, economic activities are those efforts that are undertaken by man to earn Income, Money, and Wealth for his life and to secure maximum satisfaction of wants with limited and scarce means. A teacher teaching his own daughter at home is a non-economic activity.
“Human activities which are not performed for money or money’s worth are called non-economic activities.” Here, there is no monetary consideration in exchange for such activities.
Answer: (a)
Economic activities are related to the production, distribution, exchange and consumption of goods and services. The primary aim of the economic activity is the production of goods and services with a view to make them available to consumers.
“Human activities which are performed in exchange for money or money’s worth are called economic activities.” In other words, economic activities are those efforts that are undertaken by man to earn Income, Money, and Wealth for his life and to secure maximum satisfaction of wants with limited and scarce means. A teacher teaching his own daughter at home is a non-economic activity.
“Human activities which are not performed for money or money’s worth are called non-economic activities.” Here, there is no monetary consideration in exchange for such activities.
Answer: Option B. -> Goods are exchanged with goods.
Answer: (b)
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.
Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce.
Answer: (b)
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.
Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, such as when the currency may be either unstable or simply unavailable for conducting commerce.
Answer: Option B. -> Trading
Answer: (b)
The tertiary sector or service sector is the third of the three economic sectors of the three-sector theory.
The others are the secondary sector (manufacturing), and the primary sector (agriculture). Tertiary activities are service-based and give non-tangible value to customers such as the provision of services, trading, etc.
Answer: (b)
The tertiary sector or service sector is the third of the three economic sectors of the three-sector theory.
The others are the secondary sector (manufacturing), and the primary sector (agriculture). Tertiary activities are service-based and give non-tangible value to customers such as the provision of services, trading, etc.
Answer: Option D. -> Superior good
Answer: (d)
A superior good is a product that people demand more of as then their incomes grow. These are products that are generally more expensive and rarer like diamonds and classic cars.
Such a good must possess two economic characteristics: it must be scarce, and, along with that, it must have a high price.
Answer: (d)
A superior good is a product that people demand more of as then their incomes grow. These are products that are generally more expensive and rarer like diamonds and classic cars.
Such a good must possess two economic characteristics: it must be scarce, and, along with that, it must have a high price.
Answer: Option C. -> Appreciation in the money value of assets
Answer: (c)
A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realised on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price.
Capital gains may refer to "investment income" that arises in relation to real assets. In other words, a capital gain represents an appreciation in value accruing over a prescribed period of time on the asset.
Answer: (c)
A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realised on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price.
Capital gains may refer to "investment income" that arises in relation to real assets. In other words, a capital gain represents an appreciation in value accruing over a prescribed period of time on the asset.
Answer: Option A. -> Gross National Product— Depreciation
Answer: (a)
Net national product at market price is the market value of the output of final goods and services produced at the current price in one year of a country.
If we subtract the depreciation charges from the gross national product, we get the net national product at market price.
Answer: (a)
Net national product at market price is the market value of the output of final goods and services produced at the current price in one year of a country.
If we subtract the depreciation charges from the gross national product, we get the net national product at market price.
Answer: Option A. -> Income distribution
Answer: (a)
In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth. It was developed by Max O.
Lorenz in 1905 for representing inequality of the wealth distribution.
On the graph, a straight diagonal line represents perfect equality of wealth distribution; the Lorenz curve lies beneath it, showing the reality of wealth distribution.
Answer: (a)
In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth. It was developed by Max O.
Lorenz in 1905 for representing inequality of the wealth distribution.
On the graph, a straight diagonal line represents perfect equality of wealth distribution; the Lorenz curve lies beneath it, showing the reality of wealth distribution.
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