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

Question : 6 [CDS-2013-II]

The production function of a firm will change whenever

a) the firm increases its level of output

b) input price changes

c) the firm employs more of any input

d) the relevant technology changes

Question : 7 [RAS/RTS (Pre) 2018]

Which of the following fixed the four percent inflation target in India with tolerance level of +/–2 percent for the period 2016 to 2021?

a) NITI Aayog

b) Fourteenth Finance Commission

c) Reserve Bank of India

d) Government of India

Question : 8

A ‘closed economy’ is an economy in which

a) only exports take place.

b) the money supply is fully controlled.

c) deficit financing takes place.

d) neither exports nor imports take places.

Question : 9 [CDS-2013-II]

The income elasticity of demand for inferior goods is

a) less than zero

b) equal to one

c) less than one

d) greater than one

Question : 10

Consider the following factors regarding an industry :

1. Capital Investment
2. Business Turnover
3. Labour Force
4. Power Consumption

a) 2, 3 and 4

b) 1, 3 and 4

c) 1, 2 and 4

d) 2 and 3