Indian Economy problems
- 1. The innovation theory of profit was proposed by
Options- A. Marshall
- B. Clark
- C. Schumpeter
- D. Joan Robbinson Also asked in: Bank Exams
Correct Answer: Schumpeter
- 2. Which one of the following statements about Exchange-Traded Fund (ETF) is not correct?
Options- A. It is a marketable security.
- B. It experiences price changes throughout the day.
- C. It typically has lower daily liquidity and higher fees than mutual fund shares.
- D. An ETF does not have its net asset value calculated once at the end of every day. Also asked in: Bank Exams
Correct Answer: It typically has lower daily liquidity and higher fees than mutual fund shares.
Explanation:
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
?Unlike mutual funds, an ETF trades like a common stock on a stock exchange.
?ETFs experience price changes throughout the day as they are bought and sold.
?ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
- 3. Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
Options- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2 Also asked in: Bank Exams
Correct Answer: Both 1 and 2
Explanation:
Only if either demand or supply was either completely elastic or inelastic will the tax burden fall entirely on either the buyer or the seller. Between these 2 extremes, tax incidence varies continuously from a perfectly inelastic supply or perfectly elastic demand, where the sellers assumes the entire burden of the tax to the perfectly elastic supply or perfectly inelastic demand where the buyers bear the entire burden. To better see how the elasticity of supply and demand affects tax incidence, consider a 20% tax on a can of soda. Suppose the government decides that the buyer should pay the 20% tax. Does this mean that the buyers will be paying 20% more, or will sellers have to share some of the tax burden? Since higher prices decrease demand, regardless of the reason for the higher prices, sellers will share some of the burden. How much of the burden will be determined by the elasticity of supply and demand for the product?
- 4. According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
Options- A. improve
- B. diminish
- C. remain constant
- D. first diminish and then improve Also asked in: Bank Exams
Correct Answer: diminish
Explanation:
Economists use the concept of marginal utility to measure happiness and pleasure and how that affects consumer decision making. They have also identified the law of diminishing marginal utility, which means that the first unit of consumption of a good or service has more utility than the next units of consumption.Hence, the marginal utility of the good diminishes as the amount of good consumed increases.
- 5. Which one of the following is also regarded as Disguised unemployment?
Options- A. Underemployment
- B. Frictional unemployment
- C. Seasonal unemployment
- D. Cyclical unemployment Also asked in: Bank Exams
Correct Answer: Underemployment
- 6. When there is only one buyer and one seller of product, it is called _____ situation.
Options- A. Public monopoly
- B. Bilateral monopoly
- C. Franchised monopoly
- D. Monopsony Also asked in: Bank Exams
Correct Answer: Bilateral monopoly
- 7. Which among the following is not an account under Balance of Payment?
Options- A. Current Account
- B. Capital Account
- C. Official Reserves Account
- D. Unilateral Payments Account Also asked in: Bank Exams
Correct Answer: Official Reserves Account
- 8. Which one of the following is not an instrument of credit control in India?
Options- A. Rationing of credit
- B. Direct Action
- C. Open Market operations
- D. Variable cost reserve ratios Also asked in: Bank Exams
Correct Answer: Variable cost reserve ratios
- 9. Which among the following is an example of micro-economic variable?
Options- A. National Income
- B. Aggregate Supply
- C. Employment
- D. Consumer's Equilibrium Also asked in: Bank Exams
Correct Answer: Consumer's Equilibrium
- 10. Which of the following taxes is levied by the State Government only?
Options- A. Wealth tax
- B. Entertainment tax
- C. Income tax
- D. Gift tax Also asked in: Bank Exams
Correct Answer: Entertainment tax
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