demand & supply, profit loss, inflation & price index section 3 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 11 [UPPCS (Pre) 1998]

Assertion (A):
The rate of inflation in India has come down in the last three years.
Reason (R):
The country has received a large amount of foreign capital during these years.

a) (A) is true, but (R) is false

b) (A) is false, but (R) is true

c) Both (A) and (R) are true and (R) is the correct explanation of (A)

d) Both (A) and (R) are true, but (R) is not the correct explanation of (A)

Question : 12

In India, inflation is measured by the :

a) consumers price Index for agricultural

b) wholesale price Index Number

c) consumers price Index for urban non-manual workers

d) National Income Deflation

Question : 13 [CDS-2013-II]

If the average total cost is declining then

a) total cost must be constant

b) the average fixed cost curve must be above the average variable cost curve

c) the marginal cost must be less than the average total cost

d) the marginal cost must be greater than the average total cost

Question : 14

Many times we read a term “Free Market” in newspapers. What does it mean?

1. It is a market where pricing is driven by the laws of supply and demand.
2. In free market things are available without restraints of the government.
3. In such market, goods are free from extraneous influences such as buffer or quotas.

a) only 3

b) only 1

c) only 2

d) Both 1 and 2

Question : 15

When economic development takes place

a) Market imperfections increase

b) Specialisation increases

c) Commercialisation decreases

d) None of the above