Indian Economy problems
- 1. A command economy tends to exist under a
Options- A. Representative government that provides no regulation.
- B. Socialist government that provides a lot of regulation.
- C. Communist government that provides little regulation.
- D. Democratic government that provides some regulation. Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Socialist government that provides a lot of regulation.
Explanation:
A command economy types of government decide which goods would be produced without any interference of the public.
Command economy ran in Germany during the rule of Adolf Hitler.
A command economy tends to exist under a socialist government that provides a lot of regulation.
- 2. What was the strength of Indus economy?
Options- A. Trading
- B. Agriculture
- C. Electricity
- D. Mining Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Agriculture
- 3. The MPC for an economy is
Options- A. the slope of the savings schedule or line.
- B. 1 divided by the slope of the savings schedule or line.
- C. the slope of the consumption schedule or line.
- D. 1 divided by the slope of the consumption schedule or line. Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: 1 divided by the slope of the consumption schedule or line.
Explanation:
Marginal propensity to consume (MPC) in economics is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers).
- 4. The most common economic system in the world is a
Options- A. Mixed
- B. Command
- C. Planned
- D. Market Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Mixed
Explanation:
Mixed economy is the most common economic system in the world.
- 5. Production costs to an economist
Options- A. reflect opportunity costs
- B. consist only of explicit costs
- C. always reflect monetary outlays
- D. never reflect monetary outlays Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: reflect opportunity costs
Explanation:
Production costs to an economist reflect opportunity costs.
- 6. "GDP price index" measures changes in the
Options- A. Amount of resources available in the nation
- B. Value of final output produced in the nation
- C. Cost of resources employed in the nation
- D. Prices of the output produced in the nation Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Value of final output produced in the nation
Explanation:
"GDP price index" measures changes in the value of final output produced in the nation.
- 7. The greater is the marginal propensity to consume, the
Options- A. lower is the price level
- B. smaller is the marginal propensity to save
- C. lower is the average propensity to consume
- D. higher is the interest rate Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: smaller is the marginal propensity to save
- 8. Employment in agriculture comes under
Options- A. organised sector
- B. service sector
- C. unorganised sector
- D. semi organised sector Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: service sector
- 9. The foreign purchases effect
Options- A. shifts the aggregate demand curve leftward
- B. moves the economy along a fixed aggregate demand curve
- C. shifts the aggregate demand curve rightward
- D. shifts the aggregate supply curve rightward Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: moves the economy along a fixed aggregate demand curve
- 10. A sales tax is a type of
Options- A. aggressive
- B. regressive
- C. both A & B
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: regressive
Explanation:
Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased.
For example, if you purchase a new laptop Rs. 40000 and live in an area where the sales tax is 6%, you would pay Rs.2400 in sales tax.
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