demand & supply, profit loss, inflation & price index section 2 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 6

With reference to India, consider the following statements

1. WPI is available on a monthly basis only.
2. As compare to Consumer Price Index for the Industrial Worker (CPIIW), the WPI gives less weightage to food articles.

a) Only 2

b) Both 1 and 2

c) Only 1

d) Neither 1 nor 2

Question : 7

During period of inflation, rates should

a) Remain constant

b) Increase

c) Decrease

d) Fluctuate

Question : 8 [RAS/RTS (Pre) 2016]

Inflation rate based on consumer price index increases if

a) Statutory Liquidity ration is increased

b) Repo rate is increased

c) Bank rate is decreased

d) Reverse repo rate is decreased

Question : 9

Assertion (A) :
Investment has a demand effect.

a) (A) is correct, but (R) is incorrect.

b) Both (A) and (R) are correct, and (R) is the correct explanation of (A).

c) Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

d) (A) is incorrect, but (R) is correct.

Question : 10

The supply-side economics lays greater emphasis on the point of view of :

a) global economy

b) consumer

c) producer

d) middle-man