macro fundamentals, GDP, investment & growth section 4 MCQ Questions & Answers Detailed Explanation

Question : 1

Consider the statements regarding the various inflation indices published in the country:

1. Wholesale Price Index (WPI) does not represent the inflation in services
2. Consumer Price Index (CPI) represents the inflation in goods and services
3. CPI and WPI represent the inflation of imported goods also
4. GDP deflator captures the inflation of the goods and services produced domestically

Select the correct answer using the code given below:

a) (ii), (iii) & (iv) only

b) (i), (ii), (iii) only

c) (i) & (ii) only

d) All of the above

Answer »

Question : 2

Reason for low-productivity in Indian agriculture is

a) small land holdings

b) engagement of more persons in agricultural operations than needed

c) All of the above

d) backward technique of production

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Question : 3

Long-term agricultural credit is provided by

a) District Cooperative Bank

b) Primary Cooperative Society

c) State Cooperative Bank

d) Land Development Bank

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Question : 4

Consider the following statements regarding Small-Scale industries,

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Small-Scale industries are in most cases not as efficient and competitive as large-scale ones. Yet the Government provides preferential treatment and reservation in a range of products to the small firms because small scale-industries.

1. Provide higher employment on a per-unit capital development basis.
2. Promote a regional dispersion of industries and economic activities.
3. Have performed better in the export of manufactured products than the large scale ones.
4. Provide jobs to low skill workers who otherwise may not find employment avenues elsewhere.

Which of the above statements are correct?

a) 1 and 2

b) 1 and 4

c) 3 and 4

d) 2 and 3

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Question : 5

Consider the following statements:

1. Investment in the economy increases with a decrease in the capital-output ratio
2. Economic output increases with a decrease in capital-output ratio

Select the correct answer using the code given below:

a) Both (i) & (ii)

b) (ii) only

c) (i) only

d) Neither (i) nor (ii)

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Question : 6

As per Micro, Small and Medium Enterprises Development Act 2006, medium enterprises are defined as those with the investment of

a) Rs. 5 crores to Rs. 10 crores

b) Rs. 25 lakhs to Rs. 5 crores

c) more than Rs. 10 crores

d) less than Rs. 10 crores

Answer »