Demand & Supply, Profit Loss, Inflation & Price Index Section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

Inflation is caused by

a) Decrease in money supply

b) Increase in supply of goods

c) Increase in cash with the government

d) Increase in money supply

Question : 2

The price at which the Government purchase foodgrains for maintaining the public distribution system and for building up buffer stocks are known as

a) Procurement prices

b) Issue prices

c) Minimum support prices

d) Coiling prices

Question : 3

The production function of a firm will change whenever

a) the firm increases its level of output

b) input price changes

c) the firm employs more of any input

d) the relevant technology changes

Question : 4

Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?

a) D.N. Ghosh

b) R.H. Patil

c) C. Rangarajan

d) I.V. Reddy

Question : 5

In a perfectly competitive economy production and consumption will both be Pareto optimal, if the economy operates at a point where

a) output levels are above equilibrium

b) there is general equilibrium

c) output levels are below equilibrium

d) consumption is less than output