Indian Economics bits part - 3

  1. When the fiscal deficit is high, what happens to prices?
    A. Prices increase
    B. There is no direct impact on prices
    C. Prices remain stable
    D. Prices decrease

  2. A marketplace in which a final good or service is bought and sold is called ______.
    A. Factory Market
    B. Equity Market
    C. Commodity Market
    D. Product Market

  3. What is the economic impact of increase in productivity of firms?
    A. No change in Gross Domestic Product
    B. Increase in Gross Domestic Product
    C. Decrease in Gross Domestic Product
    D. The impact may vary among nations and their economic conditions

  4. What would happen to the demand curve when there is an increase in the price of substitute products?
    A. Outward Shift
    B. Initially inward and then after a period outward shift
    C. Inward shift
    D. Remains constant

  5. Which theory in economics proposes that countries export what they can most efficiently and plentifully produce?
    A. Input-Output Model
    B. Cournot Competition
    C. Heckscher-Ohlin Model
    D. Solow-Swan Model

  6. Which theory is used to make long-run predictions about exchange rates in a flexible exchange rate system?
    A. Balance of Payment Theory
    B. Interest Rate Approach
    C. Portfolio Balance Approach
    D. Purchasing Power Parity Theory

  7. The Pradhan Mantri Shram Yogi Mandhan Yojana ensures old age protection for unorganized workers whose monthly income is less than or equal to ___________.
    A. ₹ 10,000
    B. ₹ 12,000
    C. ₹ 15,000
    D. ₹ 20,000

  8. The Khadi and village Industries Commission Act was passed in the year ______.
    A. 1948
    B. 1956
    C. 1965
    D. 1964

  9. People above the age of _______ years are NOT eligible for the Pradhan Mantri Shram Yogi Mandhan Yojana.
    A. 60
    B. 50
    C. 45
    D. 40

  10. The demand for a normal good increases with ________ in the consumer’s income.
    A. Increase
    B. Decrease
    C. Constant
    D. Double

Correct Answers:

  1. B
  2. D
  3. B
  4. A
  5. C
  6. D
  7. C
  8. B
  9. D
  10. A