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

Question : 1

The most common measure of estimating inflation in India is

a) Consumer Price Index

b) Price Index of Index Goods

c) Price Index

d) Wholesale Price Index

Question : 2

Who amongst the following benefits most from inflation?

a) Saving Bank Account Holders

b) Government Pensioners

c) Creditors

d) Debtors

Question : 3

An increase in absolute and per capita real GNP do not connote a higher level of economic development, if

a) poverty and unemployment increase

b) imports grow faster than exports

c) industrial output fails to keep pace with agricultural output

d) agricultural output fails to keep pace with industrial output

Question : 4

Which of the following can be the outcomes of very high inflation in the economy?

1. Reduction in economic growth
2. Increase in savings
3. Reduction in exports

a) 2 and 3

b) 1 and 4 only

c) 3 and 4 only

d) 1 and 3 only

Question : 5

Demand for a commodity refers to

a) Need for that commodity

b) Quantity demanded of that commodity

c) Desire for that commodity

d) Quantity demanded at certain price during any particular period of time

Question : 6

Producer Price Index measures

a) the total change in the prices of produced goods and services

b) None of the above

c) the average change in the prices of produced goods and services

d) the marginal change in the prices of produced goods and services