Practice Quiz set 1 - indian economy mcq Online Quiz (set-1) For All Competitive Exams
Q-1) Which one of the following agencies of Indian Government implements the price support scheme (PSS)?
(a)
(b)
(c)
(d)
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.
Q-2) Which one of the following terms is used in Economics to denote a technique for avoiding risk by making a counteracting transaction?
(a)
(b)
(c)
(d)
Hedging is used in limiting or offsetting the probability of loss from fluctuations in the prices of commodities, currencies or securities.
Q-3) Which of the following can be the outcomes of very high inflation in the economy?
- Reduction in economic growth
- Increase in savings
- Reduction in exports
Select the correct answer using the codes below :
(a)
(b)
(c)
(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.
Q-4) Who has been recently made the chairman of the work group on revision of Wholesale Price Index Services?
(a)
(b)
(c)
(d)
Q-5) Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?
(a)
(b)
(c)
(d)
Q-6) Which of the following fixed the four percent inflation target in India with tolerance level of +/–2 percent for the period 2016 to 2021?
(a)
(b)
(c)
(d)
Q-7) Consider the following factors regarding an industry :
- Capital Investment
- Business Turnover
- Labour Force
- Power Consumption
Which of these determine the nature and size of the industry?
(a)
(b)
(c)
(d)
The factors which are responsible for the industry are capital investment, labour force and power consumption.
However, the nature and size of business are not determined by the turnover of the business.
Q-8) With reference to India, consider the following statements. - The Wholesale Price Index (WPI) in India is available on a monthly basis only.
- As compared on Consumers Price Index for Industrial Workers [CPI(IW)] the WPI gives less weight to food articles.
Which of the following statement(s) given above is/are correct?
(a)
(b)
(c)
(d)
Q-9) Consider the following statements.- Inflation benefits the debtors.
- Inflation benefits the bond holders.
Which of the statement(s) given above is/are correct?
(a)
(b)
(c)
(d)
Q-10) The income elasticity of demand for inferior goods is
(a)
(b)
(c)
(d)
Inferior goods have a negative(less than 0) income elasticity of demand meaning that demand falls as income rises.