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

Question : 1

Gilt-edged market means

a) Market dealing with metals

b) Market of government securities

c) Bullion market

d) Market dealing with exports

Question : 2

Assertion (A):
The rate of inflation in India has come down in the last three years.
Reason (R):
The country has received a large amount of foreign capital during these years.

a) (A) is true, but (R) is false

b) (A) is false, but (R) is true

c) Both (A) and (R) are true and (R) is the correct explanation of (A)

d) Both (A) and (R) are true, but (R) is not the correct explanation of (A)

Question : 3

In India, inflation is measured by the :

a) consumers price Index for agricultural

b) wholesale price Index Number

c) consumers price Index for urban non-manual workers

d) National Income Deflation

Question : 4

Which of the following statements is true about supply-side economics?

a) The Laffer Curve says that, if marginal tax rates fall, tax revenues will rise, and the budget deficit will decrease

b) If the tax laws of 1981 and 1986 had had their intended effect, consumption would have risen, causing an increase in both real GDP and in the price level

c) The main change made by the tax laws of 1981 and 1986 was to increase marginal tax rates in order to balance the budget

d) All of these

Question : 5

Match List-I with List-II and select answers using the codes given below in the lists.

a) 2 1 4 3

b) 2 1 3 4

c) 1 2 3 4

d) 1 2 4 3

Question : 6

Which one of the following causes the condition in which prices increase rapidly as a currency loses its value ?

a) Stealth inflation

b) Stagflation

c) Conflation

d) Hyper inflation