Monday, January 9, 2012

Economics Quiz - 15

1. The State’s action under which a creditor’s right to take action against a debtor for realization of debt – money is kept under suspension for a specified period is called.
[A] Rationalization
[B] Ceiling
[C] Embargo
[D] Moratorium

2. Equilibrium price is that price which
[A] maximizes producers profit
[B] equates consumers and producers surplus
[C] maximizes consumer’s satisfaction
[D] equates supply and demand

3. ‘Capital goods’ refer to goods which
[A] serve as a source of raising further capital
[B] help in the further production of goods
[C] directly go into the satisfaction of human wants
[D] find multiple uses

4. Recession is defined as
[A]Two or more quarters of increasing inflation
[B]The period after the trough of a business cycle
[C]The period before the peak of the business cycle
[D]Two or more quarters of declining output

5. Which of the following is not a component of aggregate expenditure in an economy?
[C]Government purchases

6. According to Keynes, the Aggregate Supply curve is
[C]First horizontal and then vertical
[D]First vertical and then horizontal

7. In an economy Marginal Propensity to Save (MPS) is 0.20. Multiplier for the economy is

8. If RBI would like to sterilize a net outflow of foreign exchange, it should
[A]Increase the bank rate
[B]Increase the CRR
[C]Buy government securities in the open market
[D]Increase the repo rate

9. Which of the following is not true with respect to a perfectly competitive market?
[A]There are many sellers in the market.
[B]Individual firms are price makers.
[C]Products sold by the firms are identical.
[D]Anyone can enter or exit the industry without difficulty.

10. The type of planning experimented between 1978 and 1980 is known as
[A] Rolling Plan
[B] Annual Plan
[C] Indicative Plan
[D] Collective Plan

11. Narasimhan report relates to the restructuring of
[A]sick industries
[B] sales tax
[C]income tax
[D] banks

12. Which of the following organizations functions as an apex institution for the agencies engaged in the economic development of Scheduled Castes and Scheduled Tribes?
[A] National Research Development Corporation
[B] National Institute of Rural Development
[C] National Scheduled Castes and Scheduled Tribes Finance and Development Corporation
[D] National Bank For Agriculture and Rural Development

13. A market in which a single seller is required for efficient production is called a
[A]Regulated industry.
[B]Natural monopoly.
[C]Legal monopoly.
[D]Contestable market.

14. Which of the following is/are the reason(s) for using average or arc elasticity to measure the elasticity of demand?
[A]Most demand curves are shaped like an arc.
[B]It measures the elasticity of the entire demand curve, not just over a price range.
[C]Because when a single point is chosen to calculate elasticity, its value will change depending on the base, or the starting point.
[D]Price elasticity never varies along a straight-line demand curve.

15. If sales of CD players increase from 10,000 to 14,000 per month as per capita income increases from Rs. 15,000 to Rs.20,000, which of the following is true?
[A]Demand for CD players is income inelastic
[B]CD player is a Giffin good
[C]CD player is an inferior good, but not a Giffin good
[D]CD player is a luxury