demand & supply, profit loss, inflation & price index section 3 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the following statements and state which is/are correct?

1. The sub-prime crisis which hit the U.S. economy was caused by sudden increase in oil prices.
2. The crisis led to default in home loan repayment.
3. It led to failure of some U.S. Banks.
4. Sub-prime crisis caused crash in Indian stock market.

a) Only 2, 3 and 4

b) 1, 2, 3 and 4

c) Only 1

d) Only 2 and 4

Question : 2

The way total output changes due to change in all inputs in same proportion is known as law of

a) Increasing returns

b) Returns to scale

c) Diminishing returns

d) Constant returns

Question : 3

Economic growth is usually coupled with

a) Hyper inflation

b) Deflation

c) Inflation

d) Stagflation