demand & supply, profit loss, inflation & price index section 1 MCQ Questions & Answers Detailed Explanation

Question : 1

In India, in the overall Index of Industrial Production, the indices of eight core industries have a combined weight of 37-90%. Which of the following are among those eight core industries?

1. Cement
2. Fertilisers
3. Natural gas
4. Refinery products
5. Textiles

a) Only 1, 2, 3 and 4

b) 1, 2, 3, 4 and 5

c) Only 1 and 5

d) Only 2, 3 and 4

Question : 2

The acronym SRO, being used in the capital market for various market participants, stands for which one of the following?

a) Securities Roll-back Operators

b) Self Regulatory Organisations

c) Small Revenue Operators

d) Securities Regulatory Organisations

Question : 3

What is meant by price discrimination?

a) A situation where the same product is sold to different consumers for different prices

b) Subsidization of a product by the Government to sell it at a lower price

c) Increase in price of a commodity over time

d) General decrease in price of a commodity over time

Question : 4

Which of the following is not a ‘Public Good’?

a) National Defence

b) Light House

c) Electricity

d) Public Parks

Question : 5

Who recommends the MSP and issue prices?

a) Planning commission

b) Commission for Agricultural Costs and Prices

c) Ministry of agriculture

d) NABARD

Question : 6

Which one of the following statements is an appropriate description of deflation?

a) It is a persistent fall in the general price level of goods and services

b) It is a fall in the rate of inflation over a period of time

c) It is a sudden fall in the value of a currency against other currencies

d) It is persistent recession in both the financial and real sectors of economy