Indian Economy problems
- 1. Microeconomics is the study of
Options- A. Decisions of individual firms
- B. Decisions of individual households
- C. Decisions of individual consumers
- D. All of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: All of the above
Explanation:
Microeconomics is the branch or subset of economics that deals with the study of Decisions of individual firms, households and consumers.
- 2. Microeconomics is concerned with
Options- A. The electronics industry
- B. The study of individual
- C. The economy as a whole
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: The study of individual
Explanation:
Microeconomics is concerned with the study of individual firms, households, etc...
- 3. The multiplier effect means that Also asked in: Analyst, Bank Clerk, Bank PO
Correct Answer: The multiplier effect means that "An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent"
- 4. Unemployment would cause an economy to
Options- A. produce outside its production possibilities frontier
- B. produce inside it's production possibilities frontier
- C. produce on it's production possibilites frontier
- D. All of the above Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: produce inside it's production possibilities frontier
- 5. A negative supply shock in the short run causes
Options- A. the aggregate supply curve to shift to the left
- B. unemployment to fall
- C. the aggregate supply curve to shift to the right
- D. the price level to fall Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: the aggregate supply curve to shift to the left
Explanation:
A negative supply shock in the sho rt run causes the aggregate supply curve to shift to the left.
- 6. Value added can be determined by Also asked in: Analyst, Bank Clerk, Bank PO
Correct Answer: Value added is determined by the difference between the price of product or service and the cost of producing it Added Value = Price that the product or service is sold at - cost of producing the product
- 7. Which tax uses the same rate for all income levels?
Options- A. Income tax
- B. Proportional tax
- C. Both A & B
- D. Service tax Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Proportional tax
Explanation:
Tax that uses the same rate for all income levels is proportional tax.
- 8. In national income accounting, government purchases include
Options- A. Federal
- B. Local
- C. State
- D. All of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: All of the above
Explanation:
In national income accounting, government purchases by Local, State and Federal governments.
- 9. The largest expenditure component of GDP is
Options- A. Consumption
- B. Net exports
- C. Government spending
- D. Investments Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Consumption
- 10. Which taxes are included in GST?
Options- A. Taxes on lottery
- B. Sales/VAT tax
- C. Both A & B
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Both A & B
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