demand & supply, profit loss, inflation & price index section 1 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 1 [CDS-2013-II]

In a perfectly competitive economy production and consumption will both be Pareto optimal, if the economy operates at a point where

a) output levels are above equilibrium

b) there is general equilibrium

c) output levels are below equilibrium

d) consumption is less than output

Question : 2

Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?

a) D.N. Ghosh

b) R.H. Patil

c) C. Rangarajan

d) I.V. Reddy

Question : 3 [CDS-2016-I]

Which one of the following terms is used in Economics to denote a technique for avoiding risk by making a counteracting transaction?

a) Hedging

b) Discounting

c) Deflating

d) Dumping

Question : 4

Inflation is caused by

a) Decrease in money supply

b) Increase in supply of goods

c) Increase in cash with the government

d) Increase in money supply

Question : 5

The price at which the Government purchase foodgrains for maintaining the public distribution system and for building up buffer stocks are known as

a) Procurement prices

b) Issue prices

c) Minimum support prices

d) Coiling prices