demand & supply, profit loss, inflation & price index section 1 MCQ Questions & Answers Detailed Explanation
MOST IMPORTANT indian economy mcq - 3 EXERCISES
The following question based on Demand & Supply, Profit Loss, Inflation & Price Index topic of indian economy mcq
(a) Decrease in money supply
(b) Increase in supply of goods
(c) Increase in cash with the government
(d) Increase in money supply
The correct answers to the above question in:
Answer: (d)
Inflation is increased in the prices of commodities. It is caused due to decrease in supply and an increase in demand for commodities.
So when the money supply in the economy increases it means people have more purchasing capacity and thus demand increases which result in inflation. Some factors affecting inflationary pressure.
Practice Demand & Supply, Profit Loss, Inflation & Price Index (demand & supply, profit loss, inflation & price index section 1) Online Quiz
Discuss Form
Read more demand supply profit loss inflation price index Based Indian Economy Questions and Answers
Question : 1
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
Answer »Answer: (a)
The price at which the Government purchases foodgrains for maintaining the public distribution system and for building up buffer stocks are known as procurement prices.
Minimum support price: It is a form of market Intervention by Govt. of India to insure agricultural producers against any sharp fall in farm price. M.S.P. was announced by the Govt of India.
Issue price: It is the price at which shares are offered to retail investors in the IPO issue.
Question : 2
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
Answer »Answer: (d)
Question : 3
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) NITI Aayog
b) Fourteenth Finance Commission
c) Reserve Bank of India
d) Government of India
Answer »Answer: (d)
Question : 4
Which one of the following terms is used in Economics to denote a technique for avoiding risk by making a counteracting transaction?
a) Hedging
b) Discounting
c) Deflating
d) Dumping
Answer »Answer: (a)
Hedging is used in limiting or offsetting the probability of loss from fluctuations in the prices of commodities, currencies or securities.
Question : 5
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
Answer »Answer: (c)
Question : 6
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
Answer »Answer: (b)
General equilibrium involving both production and consumption also ensures the achievement of Pareto efficiency.
Pareto efficiency in this regard requires that the marginal rate of transformation should be equal to the marginal rate of substitution of the individuals.
GET Demand & Supply, Profit Loss, Inflation & Price Index PRACTICE TEST EXERCISES
demand & supply, profit loss, inflation & price index section 1
demand & supply, profit loss, inflation & price index section 2
demand & supply, profit loss, inflation & price index section 3
Demand & Supply, Profit Loss, Inflation & Price Index Shortcuts and Techniques with Examples
Verbal Reasoning
Question & Answer Quiz
Non Verbal Reasoning
Question & Answer Quiz
Quantitative Aptitude
Question & Answer Quiz
Computer MCQ
Question & Answer Quiz
General English
Question & Answer Quiz
History GK
Question & Answer Quiz
Polity GK
Question & Answer Quiz
Geography GK
Question & Answer Quiz
Economy GK
Question & Answer Quiz
General Awareness GK
Question & Answer Quiz
Recently Added Subject & Categories For All Competitive Exams
Number System - Aptitude Problems For IBPS RRB PO Prelims
Free Important 100+ Aptitude Number System practice multiple choice questions and answers test & Quiz PDF for IBPS RRB PO (Officer Scale 1) Prelims 2024 Exam
Continue Reading »
Classification MCQ Test: IBPS RRB PO 2024 Scale-1 Prelims
Free 150+ Classification Verbal Reasoning Multiple choice questions and answers practice test series PDF, Free Quiz For IBPS RRB PO Officer Scale 1 Level 2024
Continue Reading »
100+ Analogy Verbal Questions Answers PDF For IBPS RRB PO
Most Important Analogy Verbal Reasoning Multiple choice questions and answers practice test series PDF & Free Quiz For IBPS RRB PO Officer Scale 1 Level 2024
Continue Reading »
IBPS RRB Clerk 2024 Seating Arrangement Questions Answers
Seating Arrangement: Verbal Reasoning Practice multiple choice questions and answers test & Quiz PDF for IBPS RRB (Assistant Multipurpose) Clerk Prelims 2024
Continue Reading »