Question 1

Which one of the following is an abiotic and renewable resource

Accepted Answer

Water

Question 2

The Tehri Hydro Power Complex is located in the State of

Accepted Answer

Uttarakhand

Question 3

Which of the following is NOT a social development scheme launched by the Government of India

Accepted Answer

LookEast Policy

Question 4

IPR stands for

Accepted Answer

IPR's stands for Intellectual Property Rights. Intellectual property is the product of the human intellect including creativity concepts, inventions, industrial models, trademarks, songs, literature, symbols, names, brands,....etc.

Question 5

What is the basic objective of monetary policy?

Accepted Answer

Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency The basic objective of monetary policy is to assist the economy in achieving a full-employment, noninflationary level of total output Cause-effect chain: Changes in the money supply affect interest rates, which affect investment spending and therefore aggregate demand

Question 6

Open market operation is a part of

Accepted Answer

Open market operations (OMO) refer to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system.

Question 7

Which action is an example of domestic policy?

Accepted Answer

Domestic policy is an area of public policy which concerns laws, government programs, and administrative decisions which are directly related to all issues and activity within a nation's borders. It differs from foreign policy, which refers to the ways a government advances its interests in world politics. Hence, Option A, The Supreme Court strikes down a law that bans importing inefficient automobiles is an example of domestic policy action.

Question 8

The largest proportion of federal revenues comes from

Accepted Answer

The largest proportion of federal revenues comes from personal income taxes. Almost half of all federal revenue (47 percent) comes from individual income taxes.

Question 9

Which property classification would include tools?

Accepted Answer

Answer

Question 10

Which of the following represents a positive economic statement?

Accepted Answer

The unemployment rate is 4.8 percent.

Question 11

Which ministry has started the exercise to revise base year to 2017 - 2018 for computation of wholesale inflation?

Accepted Answer

The India's commerce and industry ministry has started the exercise to revise base year to 2017-18 for computation of wholesale inflation with a view to present more realistic picture of the price situation In May last year, the government revised the base year for WPI-based inflation to 2011-12 to give a better indication of changes in prices of commodities. The new index, with 2017-18, is expected to have new items, which would provide a more realistic picture of price rise and its impact on people. Most of the additions could be in the manufactured products category. Currently, the index has a total of 697 items, including primary articles, fuel and power and manufactured products.

Question 12

What is true about economic resources?

Accepted Answer

Economic resources are those goods and services that can be converted into valuable products for individual and business purposes. There are four major types of economic resources: 1. land, 2. labor, 3. capital and 4. entrepreneurship. Land and labor are natural and human resources, while capital means physical resources or money. Entrepreneurship converts these resources into usable goods. However, resources have finite values, and proper utilization depends on economic systems and economic decisions.

Question 13

Which statement describes the term salary?

Accepted Answer

A salary is best described as a fixed amount of income that is paid to an individual on a weekly, bi-weekly or monthly basis. A salary can also be described as the annual earnings paid out over a year.

Question 14

In economics, if a good is inelastic,

Accepted Answer

If the percent change in quantity demanded is less than the percent change in price, economists label the demand for the good as inelastic. A good that is inelastic does not have very stretchy demand. In economic terms, the quantity demanded does not change a lot when the price changes. So, if the price of a good increases by 10 percent and the quantity demanded decreases by only 5 percent or less than 10, that good is said to have inelastic demand. Hence, in this case, consumers are not considered very sensitive, or responsive, to a change in the price of that good.

Question 15

The law of demand implies that

Accepted Answer

The law of demand implies that "The higher the price of a good, the lesser the quantity demanded". For example: If the rate of a mobile phone increased, the quantity demanded by the customers is decreased.

Question 16

Another name for false productivity is

Accepted Answer

Another name for false productivity is Spinning your wheels. They use the term for false productivity because your wheels are spinning as you're doing work but you're not going anywhere i.e, making any progress.

Question 17

National income accountants can avoid multiple counting by

Accepted Answer

only counting final goods

Question 18

Which of the following statements about GDP is correct?

Accepted Answer

Nominal GDP values production at current prices, whereas real GDP values production at constant prices.

Question 19

A large underground economy results in an

Accepted Answer

Understated GDP

Question 20

The law of supply indicates that other things equal

Accepted Answer

producers will offer more of a product at high prices than at low prices

Indian Economy Questions