demand & supply, profit loss, inflation & price index section 2 MCQ Questions & Answers Detailed Explanation

MOST IMPORTANT indian economy mcq - 3 EXERCISES

Top 30,000+ Indian Economy Memory Based Exercises

The following question based on Demand & Supply, Profit Loss, Inflation & Price Index topic of indian economy mcq

Questions : Disinvestment is :

(a) Increase in investment.

(b) Offloading of shares of private companies to government.

(c) Off-loading of government shares to private companies.

(d) Closing down of business concerns.

The correct answers to the above question in:

Answer: (c)

Disinvestment is a process in which off-loading of government shares is done to private companies.

A company or government organization will divest an asset or subsidiary as a strategic move for the company, planning to put the proceeds from the divestiture to better use that garners a higher return on investment.

Practice Demand & Supply, Profit Loss, Inflation & Price Index (demand & supply, profit loss, inflation & price index section 2) Online Quiz

Discuss Form

Valid first name is required.
Please enter a valid email address.
Your genuine comment will be useful for all users! Each and every comment will be uploaded to the question after approval.

Read more demand supply profit loss inflation price index Based Indian Economy Questions and Answers

Question : 1

RESIDEX, an index of residential prices in India, was launched in the year

a) 2007

b) 2008

c) 2001

d) 2004

Answer: (a)

Question : 2

Which of the following is not seen as an advantage of the gold standard?

a) No country needs to serve at the centre of this fixed exchange rate system.

b) For a given stock of gold, a rise in real money supply can only occur if the price level declines.

c) Inflation is unlikely to emerge as a significant problem.

d) The monetary mechanism has credibility.

Answer: (b)

For a given stock of gold, a rise in real money supply can only occur if the price level declines. The blue fit of Gold standard is that a fixed assets back the money values. It provide a self regulating and stabilizing effect on the economy that discourages the inflation.

Question : 3

Rise in the price of a commodity means

a) fall in the value of currency only

b) rise in the value of commodity only

c) rise in the value of currency only

d) fall in the value of currency and rise in the value of commodity

Answer: (a)

When the price level rises, each unit of currency buys fewer goods and services.So rise in the price of a commodity means fall in the value of currency only.

Question : 4

In an economy a condition of lack of money supply in comparison to the supply of the goods services, will lead to:

a) Hyperinflation

b) Inflation

c) Deflation

d) Devaluation

Answer: (c)

Deflation may be caused by a combination of the supply and demand for goods and the supply and demand for money, specifically the supply of money going down and the supply of goods going up.

Question : 5

Which one among the following is a fixed cost to a manufacturing firm in the short run?

a) Overtime payment to worker

b) Cost of energy

c) Insurance on buildings

d) Cost of raw materials

Answer: (c)

In the short run insurance premium are fixed costs because they are independent of the level of production.

Question : 6

What is meant by ‘Public Good’?

a) A commodity whose benefits are indivisibly spread among the entire community

b) A Government scheme that benefits the poor households

c) A commodity produced by the Government

d) Any commodity that is very popular among general public

Answer: (a)

Public good means a commodity or service which is given without profit to everyone in a society by government or any organisation.

Recently Added Subject & Categories For All Competitive Exams

IBPS Clerk Prelims 2024 Synonyms Questions Solved Answers

Most important IBPS Clerk Prelims 2024 Synonyms and Antonyms multiple choice questions and answers with detailed solutions, English vocabulary PDF Download

14-May-2024 by Careericons

Continue Reading »

New Cloze Test Questions and Answers PDF - IBPS Clerk 2024

The most important Cloze Test questions with detailed answers for upcoming IBPS Clerk prelims 2024. Latest English verbal ability practice MCQs, PDF

13-May-2024 by Careericons

Continue Reading »

Mensuration Aptitude Practice Mcq Questions IBPS Clerk 2024

Most Important Practice Mensuration aptitude multiple choice questions, answers with detailed solutions, PDF beginner to advanced for IBPS Clerk Prelims 2024

11-May-2024 by Careericons

Continue Reading »

Top Clock Aptitude Questions and Answers PDF IBPS Clerk 2024

Recent Important IBPS Clerk Prelims 2024 Aptitude Clock MCQ Questions and answers with easy and logical explanation, PDF. Topic wise Free online practice test

10-May-2024 by Careericons

Continue Reading »