Description : The supply-side measure to control inflation is - (1) Reducing public expenditure (2) Price control through Public Distribution System (3) Higher taxation to mop up liquidity (4) Credit control
Last Answer : (2) Price control through Public Distribution System Explanation: The issue of inflation is addressed from both demand and supply sides. demand management is achieved by measures such as postponing public expenditure ... rice and wheat resorted to by FCI from its buffer stock in times of price rise.
Description : Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : (4) decreasing money supply Explanation: The technical and most often used way to control inflation is by tightening the money supply. The logic goes that when people do not have excess money, ... . Most central banks use high interest rates as the traditional way to fight or prevent inflation.
Description : Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : decreasing money supply
Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.
Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world
Description : The process of curing inflation by reducing money supply is called - (1) Cost-push inflation (2) Demand-pull inflation (3) Disinflation (4) Reflation
Last Answer : (3) Disinflation Explanation: Disinflation is a decrease in the rate of inflation -a slowdown in the rate of increase of the general price level of goods and services in a nation's gross ... a very short period of time. Disinflation takes place only when an economy is suffering from recession.
Description : The process of curing inflation by reducing money supply is called (1) Cost-push inflation (2) Demand-pull inflation (3) Disinflation (4) Reflation
Last Answer : Disinflation
Description : Under progressive taxation, the real value of tax on a given level of real income : (a) decreases under inflation (b) rises under depression (c) rises under inflation (d) remains unchanged under inflation
Last Answer : (c) rises under inflation
Description : The main emphasis of Keynesian economics is on - (1) Expenditure (2) Exchange (3) Foreign trade (4) Taxation
Last Answer : (1) Expenditure Explanation: Keynesian Economics is an economic theory of total spending in the economy and its effects on output and inflation. It emphasizes that government expenditures (or tax cuts) leads to increase in GDP which is a multiple of the original expenditure.
Description : The main emphasis of Keynesian economics is on (1) Expenditure (2) Exchange (3) Foreign trade (4) Taxation
Last Answer : Expenditure
Description : The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection
Last Answer : c) Stabilization
Description : In a period of inflation and price rises the supply of money remains - (1) the same (2) increases (3) decreases (4) increases or decreases pro-portionately.
Last Answer : (2) increases Explanation: Money supply is the total amount of monetary assets available in an economy at a specific time. The relation between money and prices is historically associated with the quantity ... money-supply growth, at least for rapid increases in the amount of money in the economy.
Description : In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.
Last Answer : increases
Description : Wagner’s hypothesis is associated with (a) Public receipts (b) Public expenditure (c) Supply of money (d) Public debt
Last Answer : (b) Public expenditure
Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above
Last Answer : Answer: D
Description : Effective demand depends on - (1) capital-output ratio (2) output-capital ratio (3) total expenditure (4) supply price
Last Answer : (4) supply price Explanation: Effective Demand is "the demand in which the consumer are able and willing to purchase at conceivable price" simply saying if the product price is low more ... Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.
Description : Effective demand depends on (1) capital-output ratio (2) output-capital ratio (3) total expenditure (4) supply price
Last Answer : supply price
Description : The process of budgeting helps in the control of A. Cost of production B. Liquidity C. Capital Expenditure D. All of the above
Last Answer : D. All of the above
Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks
Last Answer : (1) restricts lending Explanation: Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form gold or government approved securities before providing credit to ... , suck liquidity in the market, to tighten the measure to safeguard the customers' money.
Description : Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment
Last Answer : (c) reduce the rate of interest
Last Answer : restricts lending
Description : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.
Last Answer : (a) Higher aggregate demand.
Description : Which of these is one of the causes of inflation? (a) Increase in public expenditure ; (b) Deficit financing ; (c) Increase in administrative prices (d) All the three
Last Answer : (d) All the three
Description : The most important source of Public Revenue is (a) Taxation (b) Fees (c) Fines and Penalties (d) Subsidies
Last Answer : (a) Taxation
Description : )Which of the following fit the category of external risks? 1. Project delays, budget under-runs, movement of city utilities 2. Regulatory, currency changes, taxation 3. Natural disasters, ... , design, social impact 5. Political unrest, budget overruns, size and complexity of the project
Last Answer : 2. Regulatory, currency changes, taxation
Description : Taxation is a tool of - (1) Monetary-policy (2) Fiscal policy (3) Price policy (4) Wage policy
Last Answer : (2) Fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure.
Description : Taxation is a tool of (1) Monetary policy (2) Fiscal policy (3) Price policy (4) Wage policy
Last Answer : Fiscal policy
Description : Taxation and the government’s expenditure policy are dealt under under which policy? -General Knowledge
Last Answer : The answer is 'Fiscal policy'
Description : Taxation and the government's expenditure policy are dealt under under which policy? -Do You Know?
Last Answer : answer:
Description : 1. Which Judge of the Supreme Court was unsuccessfully sought to be impeached? 2. Maximum hydrogen bonding would be observed in which compound? 3. Taxation and the government's expenditure policy are ... longest day? 20. What was the main occupation of the people of the Indus Valley civilization?
Last Answer : Answer : 1. Justice Ramaswami 2. Methanol 3. Fiscal policy 4. Jhumming 5. Chanakya 6. World Trade Organization 7. Ptyalin 8. Election Commission 9. Thorn 10. Portuguese 11. Obtuse 12. 1994-2004 13. Internal borrowings 14. Venus 15. 1613 16. 310 17. 2 years 18. 3.5% 19. Venus 20. Agriculture
Description : Lorenz curve shows - (1) Inflation (2) Unemployment (3) Income distribution (4) Poverty
Last Answer : (3) Income distribution Explanation: In economics, the Lorenz curve is a graphical representation of the distribution of income or of wealth. It was developed by Max O. Lorenz in 1905 for ... of wealth distribution; the Lorenz curve lies beneath it, showing the reality of wealth distribution.
Description : Lorenz curve shows (1) Inflation (2) Unemployment (3) Income distribution (4) Poverty
Last Answer : Income distribution
Description : What is "book-building"? (1) Preparing the income and expenditure ledgers of a company (book-keeping) (2) Manipulating the profit and loss statements of a company (3) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process (4) Publishers' activity
Last Answer : (3) A process of inviting subscriptions to a public offer of securities, essentially through a tendering process Explanation: Book building refers to the process of generating, capturing, and recording investor ... a base price and a band within which the investor is allowed to bid for shares.
Description : What is book-building ? (1) Preparing the income and expenditure ledgers of a company (book-keeping) (2) Manipulating the profit and loss statements of a company (3) A process ... subscriptions to a public offer of securities, essentially through a tendering process (4) Publishers' activity
Last Answer : A process of inviting subscriptions to a public offer of securities, essentially through a tendering process
Description : Inflation occurs when aggregate supply is - (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : (2) less than aggregate demand Explanation: If the supply is less than the demand, the price will increase. Inflation, the persistent increase in the average price level, can be ... Translating this to the macro-economy suggests that inflation occurs when aggregate demand exceeds aggregate supply.
Description : Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve
Last Answer : (4) Phillips curve Explanation: The Phillips curve shows the inverse relationship between inflation and unemployment: as unemployment decreases, inflation increases. The relationship, however, is not linear. Graphically, ... unemployment rate is on the x-axis and the inflation rate is on the y-axis.
Description : Which of the following can be used for checking inflation temporarily? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : (2) Decrease in money supply Explanation: An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. India ... those in the other developed countries. Economists claim that an increase in money supply alone constitutes inflation.
Description : Inflation is caused by - (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : (1) increase in money supply and decrease in production Explanation: Economists generally agree that in the long run, inflation is caused by increases in the money supply. According to the theory of ... few goods. The increase in money supply is not matched by the equivalent production of goods.
Description : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic
Last Answer : (b) If aggregate supply is completely inelastic
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : Inflation is caused by (1) increase in money supply and decrease in production (2) increase in money supply (3) increase in production (4) decrease in production
Last Answer : increase in money supply and decrease in production
Description : Inflation occurs when aggregate supply is (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : less than aggregate demand
Description : Which of the following can be used for checking inflation temporarily ? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : Decrease in money supply
Description : Which curve shows the inverse relationship between unemployment and inflation rates ? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve
Last Answer : Phillips curve
Description : The major objective of monetary policy is to - (1) increase government's tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy
Last Answer : (3) Promote economic growth with price stability Explanation: The main objective of monetary policy is to control the supply of money, often targeting an inflation rate or interest rate ... usually to contribute to lower unemployment, and to maintain predictable exchange rates with other currencies.
Description : The major objective of monetary policy is to (1) increase government’s tax revenue (2) revamp the Public Distribution System (3) Promote economic growth with price stability (4) weed out corruption in the economy
Last Answer : Promote economic growth with price stability
Description : The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption
Last Answer : (4) Keynes's psychological law of consumption Explanation: Keynes defined Psychological Law of Consumption in terms of, "The fundamental psychological law, upon which we are entitled to depend with great ... consumption as their income increases but not by as much as the increase in the income."
Description : The functional relationship between income and consumption expenditure is explained by (1) Consumer’ Surplus (2) Law of Demand (3) Law of Supply (4) Keynes’s psychological law of consumption
Last Answer : Keynes’s psychological law of consumption
Description : Application of MOP fertilizer is not suitable for — crop a. Soyabean b. Gram c. Wheat d. Tobacco
Last Answer : d. Tobacco
Description : As a result of higher rate of inflation in India, the U.S. dollar will - (1) Depreciate (2) Constant (3) Negligible (4) Appreciate
Last Answer : (4) Appreciate Explanation: A relatively higher rate of inflation causing rise in prices of the goods in India as compared to those in the USA will make US goods relatively cheaper and the Indian ... rate of inflation in India, the US dollar -will appreciate and the Indian rupee will depreciate.