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) Consumer Price Index
(b) Price Index of Index Goods
(c) Price Index
(d) Wholesale Price Index
The correct answers to the above question in:
Answer: (a)
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Question : 1
Who amongst the following benefits most from inflation?
a) Saving Bank Account Holders
b) Government Pensioners
c) Creditors
d) Debtors
Answer »Answer: (d)
Question : 2
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
Answer »Answer: (a)
An increase in absolute and per capita real GNP do not connote a higher level of economic development, if poverty and unemployment also increase, because this means the growth is not inclusive. The benefits of economic development are not reaped by many and growing inequality will rise.
Question : 3
Who has been recently made the chairman of the work group on revision of Wholesale Price Index Services?
a) K.C. Pant
b) Abhijit Sen
c) C. Rangrajan
d) P.R. Panchamukhi
Answer »Answer: (b)
Question : 4
Which one of the following agencies of Indian Government implements the price support scheme (PSS)?
a) NAFED
b) Agriculture pricing agency of India
c) FCI
d) None of the above
Answer »Answer: (a)
In Order to help the farmers in getting remunerative prices for their produce with a view to encouraging higher investment and also to increase production and productivity of a commodity, the government declares Minimum Support Price (MSPs) for 25 notified agricultural commodities for each Kharif & Rabi crop season.
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is one of the Central Nodal Agencies which implements PSS.
Question : 5
Which of the following can be the outcomes of very high inflation in the economy?
- Reduction in economic growth
- Increase in savings
- Reduction in exports
a) 2 and 3
b) 1 and 4 only
c) 3 and 4 only
d) 1 and 3 only
Answer »Answer: (d)
Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.
When the general price level rises, each unit of currency buys fewer goods and services.
Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value.
High inflation means the excessive supply of money and thus leads to a rise in the cost of credit and interest rates.
Higher inflation leads to a reduction in economic growth, a decrease in the cost of credit, increase in spending rather than saving as the value of money is declining.
Question : 6
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
Answer »Answer: (d)
The demand for a commodity at a given price is the quantity that will be purchased at a unit of time and at a unit price.
Demand has the following features; Demand refers to the quantity at a given price, Demand must be defined per unit time.
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