Indian Economy Questions Practice Question and Answer

Q:

Diamonds are priced higher than water because–

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  • 1
    consumers do not buy them at lower prices.
    Correct
    Wrong
  • 2
    they are sold by selected firms with monopolistic powers.
    Correct
    Wrong
  • 3
    their total utility to buyers is higher than that of water.
    Correct
    Wrong
  • 4
    their marginal utility to buyers is higher than that of water
    Correct
    Wrong
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Answer : 2. "they are sold by selected firms with monopolistic powers."

Q:

Externality theory is the basic theory of the following branch of Economics–

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  • 1
    International Economics
    Correct
    Wrong
  • 2
    Environomics
    Correct
    Wrong
  • 3
    Fiscal Economics
    Correct
    Wrong
  • 4
    Macro Economics
    Correct
    Wrong
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Answer : 2. "Environomics"

Q:

Which factor is mainly responsible for increase in demand of natural resources?

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  • 1
    Scientific advancement
    Correct
    Wrong
  • 2
    Use of biodegradable chemicals
    Correct
    Wrong
  • 3
    Increasing human population
    Correct
    Wrong
  • 4
    Environmental pollution
    Correct
    Wrong
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Answer : 3. "Increasing human population"

Q:

The Micro, Small and Medium Enterprises Development Act was passed in the year ____.    

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  • 1
    2002
    Correct
    Wrong
  • 2
    2006
    Correct
    Wrong
  • 3
    2004
    Correct
    Wrong
  • 4
    2008
    Correct
    Wrong
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Answer : 2. "2006"

Q:

Raw materials and money in hand are called _____.

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  • 1
    Human capital
    Correct
    Wrong
  • 2
    Working capital
    Correct
    Wrong
  • 3
    Factors of production
    Correct
    Wrong
  • 4
    None of the above
    Correct
    Wrong
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Answer : 2. "Working capital"

Q:

___________ unemployment happens when people are not able to find jobs during some months of the year.

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  • 1
    Disguised
    Correct
    Wrong
  • 2
    Educated
    Correct
    Wrong
  • 3
    Seasonal
    Correct
    Wrong
  • 4
    None of the above
    Correct
    Wrong
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Answer : 3. "Seasonal"

Q:

In which account will the expenditure on the installation of new machinery be disbursed?

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  • 1
    Cash account
    Correct
    Wrong
  • 2
    Machinery Account
    Correct
    Wrong
  • 3
    Profit or loss
    Correct
    Wrong
  • 4
    Installation expense account
    Correct
    Wrong
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Answer : 2. "Machinery Account"

Q:

A discount given for the purpose of increasing sales is called-

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  • 1
    Commercial leave
    Correct
    Wrong
  • 2
    Cash discount
    Correct
    Wrong
  • 3
    Discount received
    Correct
    Wrong
  • 4
    None of these
    Correct
    Wrong
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Answer : 1. "Commercial leave"

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