Question:

Total profit of a firm in a perfect competitive market is –

A.

Total revenue less total cost

B.

Marginal revenue less marginal cost

C.

Total revenue less marginal cost

D.

Total revenue less variable cost

Answer» a. Total revenue less total cost

Question:

…….. is the price at which demand for a commodity is equal to its supply

A.

Normal price

B.

Equilibrium price

C.

Short run price

D.

Secular price

Answer» b. Equilibrium price

Question:

Which of the following faces a downward sloping demand curve

A.

Firm in a competitive market

B.

Firm in a monopoly market

C.

Both

D.

None

Answer» b. Firm in a monopoly market

Question:

If in 2000 nominal GDP is = `70000 Crore and the prices in 2000 were 40% more than the real GDP in 2000 using 1996 as a base year is

A.

`45,000 Crore

B.

`50,000 Crore

C.

`42,000 Crore

D.

`98000 Crore

Answer» b. `50,000 Crore

Question:

Manipulation in CRR enables the RBI to …….

A.

Influence the lending ability of the commercial banks

B.

Check unemployment growth

C.

Check poverty

D.

Increase GDP

Answer» a. Influence the lending ability of the commercial banks

Question:

A read garment factory pays `100 for suit length and `5 for cotton thread purchased and `50 to thelabour for stitching the suit which he sells in the market for `750. His contribution to GDP is

A.

`595

B.

`750

C.

`600

D.

`400

Answer» b. `750

Question:

Which of the following is near money?

A.

Bill of exchange

B.

Saving bonds

C.

Gilt edged securities

D.

All the three

Answer» d. All the three

Question:

Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be…….

A.

12%

B.

10%

C.

10.5%

D.

9.5%

Answer» a. 12%

Question:

CRR means

A.

Cash Reserve Ratio

B.

Current rate of return

C.

Cumulative rate of return

D.

Current rate of Rupee

Answer» a. Cash Reserve Ratio

Question:

Optional money is a

A.

Legal tender money

B.

Non-legal tender money

C.

Limited legal tender money

D.

Full bodied money

Answer» b. Non-legal tender money