Question:

Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be

A.

2.5%

B.

3%

C.

4.25%

D.

3.5%

Answer» b. 3%

Question:

Super normal profits occurs when

A.

Average revenue is more than average cost

B.

Total revenue is maximum

C.

Total cost is minimum

D.

MC is equal to MR

Answer» a. Average revenue is more than average cost

Question:

Real GDP is measured in………….prices

A.

Base year

B.

Current year

C.

1980

D.

2000

Answer» a. Base year

Question:

Which of these is/ are included in the domestic territory of a country?

A.

Territory lying within the political frontier including territorial water of the country.

B.

Ships and aircrafts operated by the residents of the country between two or more countries.

C.

Fishing vessels, oil and natural gas rigs and floating platforms.

D.

All the three

Answer» b. Ships and aircrafts operated by the residents of the country between two or more countries.

Question:

For a monopoly firm the MR Curve

A.

Overlaps AR curve

B.

Is above the AR curve

C.

Lies half way between AR curve and the Y axis

D.

Is same as AR curve

Answer» c. Lies half way between AR curve and the Y axis

Question:

Which of the following issue relates to micro-economics

A.

Impact of crude price hike on inflation

B.

Impact of change in bank rate on bank saving and investment

C.

Impact of Information technology on economic growth

D.

Impact of shortage of wheat production on wheat prices

Answer» d. Impact of shortage of wheat production on wheat prices

Question:

Scarcity of resources leads to

A.

Unsatisfaction of human wants

B.

Evaluation of alternative uses of scarce resources

C.

Both

D.

None

Answer» c. Both

Question:

Which of these items are excluded in the computation of National Income under value added method?

A.

Own acquired fixed assets by the Government enterprises, Govt. and household

B.

Production for self-consumption

C.

Imputed rent for own occupied house

D.

All the three

Answer» d. All the three

Question:

Which of the following is/ are not an economic resource

A.

Land

B.

Capital

C.

Labour

D.

Air

Answer» d. Air

Question:

In economic theory the term “means” refers to

A.

Resources

B.

Arithmetic mean

C.

A characteristic

D.

None

Answer» a. Resources