Question 1

If two goods are complements, then

Accepted Answer

In economics, If two goods are complements, then the cross elasticity of demand is negative. That means a good's demand is increased when the price of another good is decreased. Conversely, the demand for a good is decreased when the price of another good is increased. It is opposite of substitute goods.

Question 2

Microeconomics deals with the

Accepted Answer

Microeconomics deals with the * Allocation of resources of the economy as between production of different goods and services. * Determination of prices of goods and services. * Behavior of industrial decision makers.

Question 3

Revenue should be recognized when

Accepted Answer

Revenue should be recognized when it is realized or when it is earned. When a service is performed something is earned and revenue should be recognized.

Question 4

Fiscal policy is connected with

Accepted Answer

Fiscal policy is connected with public revenue and expenditures. This policy is the use of government revenue collection to monitor the nation's economy.

Question 5

Government imposes taxes to

Accepted Answer

Government imposes taxes to run the machinery of the state. Taxes serve as the main source of income for the government revenue.

Question 6

A favorable cost variance occurs when

Accepted Answer

Cost variance is nothing but the difference between the actual incurred cost and the estimated standard cost. This can be occured due to any changes in the volume of goods or services ordered. A favorable cost variance occurs when the actual incurred cost is less than the standard cost estimated before the production.

Question 7

Most electric, gas, and water companies are examples of

Accepted Answer

Most electric, gas, and water companies are examples of natural monopolies. Utilities like water, electricity and gas are essential services that play a vital role in economic and social development.

Question 8

Which of the following is not a primary function of a bank?

Accepted Answer

Facilitating import of goods

Question 9

What does the term 'Call Money' refer to?

Accepted Answer

A loan made for a very short period of a few days or aweek

Question 10

In 2015, the nominal rate of interest in a country was 5.5% and the inflation rate then was 2.5%. So real rate of interest in 2015 was _________.

Accepted Answer

3 percent

Question 11

India has stated it aims to reduce the emissions intensity of its GDP by 33-35% by 2030 from 2005 levels and achieve _______________ of its cumulative electric power of around 350GW installed capacity from non-fossil fuel-based energy resources, mai…

Accepted Answer

India has said it aims to reduce the emissions intensity of its GDP by 33-35% by 2030 from 2005 levels and achieve 40% of its cumulative electric power of around 350GW installed capacity from non-fossil fuelbased energy resources, mainly renewable power. The statement comes ahead of the UN Framework Convention on Climate Change (UNFCCC) to be held in Paris in December 2015, where countries would try to forge a new global climate agreement based on “climate justice" and principles of equity and common but differentiated responsibilities and respective capabilities.

Question 12

An increase in price of which of these products will have a ripple effect in increasing the prices of many products, thereby resulting in inflation?

Accepted Answer

Petroleum

Question 13

If price of an article decreases from Rs. 12 to Rs. 10, quantity demanded increases from 1000 units to 1400 units. Find point elasticity of demand?

Accepted Answer

-2.4

Question 14

What will you call a system of taxation under which the poorer sections are taxed at higher rates than the richer sections?

Accepted Answer

Regressive tax

Question 15

Trickle down theory ignores the impact of economic growth on

Accepted Answer

Income distribution

Question 16

What is a bank rate?

Accepted Answer

Rate at which Central bank of a country advances loans to other banks in the country

Question 17

Which of the following tax systems will help to reduce economic inequalities in India?

Accepted Answer

Progressive Tax

Question 18

Consider the following statements: 1. Inflation in India continued to be moderate during 2017-18 2. There was significant reduction in food inflation, particularly pulses and vegetables during the period. Which of the statements given above is/are c…

Accepted Answer

According to the Survey, inflation in the country continued to moderate during 2017-18 with the CPI based headline inflation averaging 3.3 per cent during the period --the lowest in the last six financial years Retail inflation fell to a record low of 2.18% in May as prices of kitchen staples like vegetables and pulses declined sharply although there was a marginal spike in fruit rates.

Question 19

In which market form, a market or an industry is dominated by a single seller?

Accepted Answer

Monopoly

Question 20

Which amongst the following is not a component of monetary policy in India?

Accepted Answer

Public Debt

Indian Economy Questions