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

Answer: (c)

Answer: (d)

The demand for a commodity at a given price is the quantity that will be purchased at a unit of time and at a unit price.

Demand has the following features; Demand refers to the quantity at a given price, Demand must be defined per unit time.

Answer: (d)

Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.

When the general price level rises, each unit of currency buys fewer goods and services.

Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value.

High inflation means the excessive supply of money and thus leads to a rise in the cost of credit and interest rates.

Higher inflation leads to a reduction in economic growth, a decrease in the cost of credit, increase in spending rather than saving as the value of money is declining.

Answer: (a)

In Order to help the farmers in getting remunerative prices for their produce with a view to encouraging higher investment and also to increase production and productivity of a commodity, the government declares Minimum Support Price (MSPs) for 25 notified agricultural commodities for each Kharif & Rabi crop season.

National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) is one of the Central Nodal Agencies which implements PSS.

Answer: (a)