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

Question : 1

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 : 2

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 : 3

Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes ?

a) Inertial inflation

b) Disinflation

c) Reflation

d) Inflation hedge

Question : 4

A rapid increase in the rate of inflation is sometimes attributed to the ‘base effect’. What ‘base effect’?

a) It is the impact of the price levels of previous year on the calculation of inflation rate

b) None of the statements (A), (B) and (C) given above is correct in this content

c) It is the impact of drastic deficiency in supply due to failure of crops

d) It is the impact of the surge in demand due to rapid economic growth

Question : 5

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

a) National Defence

b) Light House

c) Electricity

d) Public Parks

Question : 6

Who recommends the MSP and issue prices?

a) Planning commission

b) Commission for Agricultural Costs and Prices

c) Ministry of agriculture

d) NABARD