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Demand and Supply Profit Loss Inflation and Price Index – Indian Economy GK MCQ

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Post published:June 18, 2023
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Demand and Supply, Profit Loss, Inflation and Price Index Mcq

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Demand and Supply Profit Loss Inflation and Price Index – Indian Economy GK MCQ ( मांग और आपूर्ति लाभ हानि मुद्रास्फीति और मूल्य सूचकांक )

Deepen your understanding of demand, supply, profit, loss, inflation, and price index with a comprehensive collection of Multiple Choice Questions (MCQs) sourced from previous year papers of various competitive exams, including UPSC IAS. Test your knowledge, enhance your problem-solving skills, and stay updated with key concepts in economics.

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Demand and Supply Profit Loss Inflation and Price Index – Indian Economy GK MCQ – Previous Year Questions

Question:

In a perfectly competitive economy production and consumption will both be Pareto optimal, if the economy operates at a point where

A output levels are above equilibrium
B there is general equilibrium
C output levels are below equilibrium
Dconsumption is less than output

Question:

Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?

AD.N. Ghosh
BR.H. Patil
CC. Rangarajan
D I.V. Reddy

Question:

Which one of the following terms is used in Economics to denote a technique for avoiding risk by making a counteracting transaction?

A Hedging
BDiscounting
CDeflating
DDumping

Question:

Inflation is caused by

ADecrease in money supply
B Increase in supply of goods
C Increase in cash with the government
D Increase in money supply

Question:

The price at which the Government purchase foodgrains for maintaining the public distribution system and for building up buffer stocks are known as

A Procurement prices
BIssue prices
CMinimum support prices
D Coiling prices

Question:

The production function of a firm will change whenever

Athe firm increases its level of output
Binput price changes
Cthe firm employs more of any input
Dthe relevant technology changes

Question:

Which of the following fixed the four percent inflation target in India with tolerance level of +/–2 percent for the period 2016 to 2021?

A NITI Aayog
B Fourteenth Finance Commission
C Reserve Bank of India
DGovernment of India

Question:

A ‘closed economy’ is an economy in which

Aonly exports take place.
B the money supply is fully controlled.
C deficit financing takes place.
D neither exports nor imports take places.

Question:

The income elasticity of demand for inferior goods is

Aless than zero
B equal to one
C less than one
Dgreater than one

Question:

Consider the following factors regarding an industry : Capital Investment Business Turnover Labour Force Power Consumption Which of these determine the nature and size of the industry?

A2, 3 and 4
B 1, 3 and 4
C 1, 2 and 4
D2 and 3

Question:

Which one of the following statements is an appropriate description of deflation?

A It is a persistent fall in the general price level of goods and services
B It is a fall in the rate of inflation over a period of time
CIt is a sudden fall in the value of a currency against other currencies
DIt is persistent recession in both the financial and real sectors of economy

Question:

Who recommends the MSP and issue prices?

APlanning commission
BCommission for Agricultural Costs and Prices
CMinistry of agriculture
DNABARD

Question:

Which of the following is not a ‘Public Good’?

A National Defence
BLight House
C Electricity
D Public Parks

Question:

A rapid increase in the rate of inflation is sometimes attributed to the ‘base effect’. What ‘base effect’?

A It is the impact of the price levels of previous year on the calculation of inflation rate
BNone of the statements (A), (B) and (C) given above is correct in this content
CIt is the impact of drastic deficiency in supply due to failure of crops
DIt is the impact of the surge in demand due to rapid economic growth

Question:

In India, in the overall Index of Industrial Production, the indices of eight core industries have a combined weight of 37-90%. Which of the following are among those eight core industries? Cement Fertilisers Natural gas Refinery products Textiles Select the correct answer using the codes given below.

A Only 1, 2, 3 and 4
B1, 2, 3, 4 and 5
COnly 1 and 5
DOnly 2, 3 and 4

Question:

The acronym SRO, being used in the capital market for various market participants, stands for which one of the following?

A Securities Roll-back Operators
BSelf Regulatory Organisations
C Small Revenue Operators
DSecurities Regulatory Organisations

Question:

What is meant by price discrimination?

A A situation where the same product is sold to different consumers for different prices
B Subsidization of a product by the Government to sell it at a lower price
CIncrease in price of a commodity over time
DGeneral decrease in price of a commodity over time

Question:

Which one of the following is the act of stimulating the economy by increasing the money supply or by reducing taxes ?

AInertial inflation
B Disinflation
C Reflation
DInflation hedge

Question:

Which of the following would cause the aggregate demand curve to shift to the right?

A an increase in real interest rates
Ban appreciation of the American dollar
C an increase in purchases by the federal government
Da decrease in the money supply

Question:

With reference to India, consider the following statements. The Wholesale Price Index (WPI) in India is available on a monthly basis only. As compared on Consumers Price Index for Industrial Workers [CPI(IW)] the WPI gives less weight to food articles. Which of the following statement(s) given above is/are correct?