demand & supply, profit loss, inflation & price index section 2 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) Money volume
(b) Near money
(c) Narrow money
(d) Money stock
The correct answers to the above question in:
Answer: (d)
The money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. It includes currency in circulation and demand deposits.
Near money: assess which can readily be converted into cash, such as bells of exchange.
Narrow money: Money in forms that can be used as a medium of exchange generally notes, coins and certain balances held by banks.
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Read more demand supply profit loss inflation price index Based Indian Economy Questions and Answers
Question : 1
Which of the following price index number are used for calculation of Central Government employee wage compensation?
a) Consumer price index for agricultural labourers
b) None of the above
c) Wholesale price index
d) Consumer price index for industrial workers
Answer »Answer: (d)
Question : 2
An exceptional demand curve is one that slopes
a) upward to the right
b) horizontally
c) downward to the right
d) upward to the left
Answer »Answer: (a)
When the curve slopes downwards from left to right; higher prices reduce the quantity demanded.
Question : 3
The process of curing inflation by reducing money supply is called
a) Disinflation
b) Cost-push inflation
c) Down–pull inflation/Demand pull inflation
d) Reflation
Answer »Answer: (a)
The process of curing inflation by reducing the money supply is called disinflation.
Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the price level of goods and services in GDP. Cost pull inflation - It is caused by an increase in prices of inputs like Labour, raw material etc.
The increased price of the factors of production leads to the decreased supply of Goods. Demand-pull inflation - It is asserted to arise when Aggregate demand in an economy outpaces aggregate supply.
It involves inflation rising as real GDP rises and unemployment falls.
Question : 4
The base year for All-India Wholesale Price Index (WPI) has been changed by the Government of India from 2004-05 to
a) 2012-13
b) 2013-14
c) 2010-11
d) 2011-12
Answer »Answer: (d)
Question : 5
In the paralance of economy / commerce, what is ‘Gilt-edged market’?
a) Market of safe securities
b) Gold and Silver market
c) Industrial securities market
d) Market of software technology products
Answer »Answer: (a)
In the parlance of economy, Gilt-edged market is called market of safe securities. “Gilt-edged” denotes high-grade securities, consequently carrying low yields.
Question : 6
The supply-side economics lays greater emphasis on the point of view of :
a) global economy
b) consumer
c) producer
d) middle-man
Answer »Answer: (c)
Supply-side economics lays greater emphasis on the point of view of the producer whereas the demand side economics lays emphasis on the interest of the consumer.
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