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

Question : 1

An expression coined by economists to describe an economy that is growing at such a slow pace that more jobs are being lost than are being added

a) Growth Recession

b) Ratchet Inflation

c) Stagflation

d) Recession

Question : 2

Which of the following is included in M1?

a) stock

b) gold

c) checkable deposits

d) credit cards

Question : 3

The average fixed cost curve will always be

a) a downward sloping convex to the origin curve

b) a downward sloping straight line

c) a rectangular hyperbola

d) a U-shaped curve

Question : 4

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

Question : 5

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.

Question : 6

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

a) 2007

b) 2008

c) 2001

d) 2004