Question:

Which one of the following is the largest item of expenditure of the Government of India onrevenue account?

A.

defense

B.

pensions

C.

subsidies

D.

interest payments

Answer» d. interest payments

Question:

ISLM model was firstly developed by …………

A.

hansen

B.

hicks

C.

keynes

D.

none

Answer» b. hicks

Question:

The main type of un employment referred by the Keynesian:

A.

voluntary

B.

involuntary

C.

both

D.

none

Answer» b. involuntary

Question:

Which is the most effective quantitative method to control inflation in the economy?

A.

bank rate policy

B.

selective credit control

C.

cash reserve ratio

D.

both (a) and (b)

Answer» c. cash reserve ratio

Question:

Involuntary unemployment is almost zero in the phase of business cycle.

A.

expansion

B.

contraction

C.

trough

D.

depression

Answer» a. expansion

Question:

Inflation is measured on the basis of:

A.

wholesale price index

B.

consumer price index

C.

marshall’s index

D.

all of these

Answer» b. consumer price index

Question:

refers to the top or the highest point of business cycle.

A.

expansion

B.

peak

C.

expansion and peak

D.

none of the above

Answer» b. peak

Question:

Wars, new inventions, harvest failures, and changes in government policy are examplesof:

A.

the business cycle.

B.

economic models.

C.

shocks.

D.

opportunity costs.

Answer» c. shocks.

Question:

Inflation occurs whenever

A.

the price level rises.

B.

the money supply increases.

C.

the price level rises continuously over a period of time.

D.

the price level falls continuously over a period of time.

Answer» c. the price level rises continuously over a period of time.

Question:

The trough of a business cycle occurs when hits its lowest point.

A.

inflation

B.

the money supply

C.

aggregate economic activity

D.

the unemployment rate

Answer» c. aggregate economic activity