Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy
Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
Description : The basis of determining dearness allowance to employees in India is - (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate
Last Answer : (2) Consumer Price Index Explanation: The Consumer Price Index Numbers for Industrial Workers CPI (1W) is utilized for fixation and revision of wages and determination of variable Dearness ... utilized as an indicator for measuring inflationary trend in the country and for policy formulations.
Description : The basis of determining dearness allowance to employees in India is _______ (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate
Last Answer : Consumer Price Index
Description : Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation
Last Answer : (2) Per capita income Explanation: Some economists believe that economic growth is meaningless if it is not distributed across different segments of population. So per capita income is considered by ... Gross Domestic Product (GDP) is the most comprehensive measure of over-all economic performance.
Last Answer : Per capita income
Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy
Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.
Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy
Last Answer : the high rate of inflation prevailing in the economy
Description : The best measure to assess a country's economic growth is - (1) per capita income at constant prices (2) per capita income at current prices , (3) gross domestic product at current prices (4) gross national product at current prices
Last Answer : (1) per capita income at constant prices Explanation: Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period ... the aggregate (such as GDP or Gross National Income) and dividing it by the total population.
Description : The best measure to assess a country’s economic growth is (1) per capita income at constant prices (2) per capita income at current prices (3) gross domestic product at current prices (4) gross national product at current prices
Last Answer : per capita income at constant prices
Description : Which of the following explains the term economic growth? a. Increase in per capita production b. Increase in per capita real income c. structural change in the economy d. all the above are right
Last Answer : d. all the above are right There is no single definition that can define the term economic growth. However, there are various indicators that explain the term
Description : Economic progress of a country is determined by - (1) Increase in per capita income of people of country (2) Increase in the price of produced capital goods during the year (3) Increased numbers of Trade Unions (4) Fall in the general price level of a country
Last Answer : (1) Increase in per capita income of people of country Explanation: Economic progress of a country is determined by increase in per capita income of people f that country.
Description : Economic progress of a country is determined by (1) Increase in per capita income of people of country (2) Increase in the price of produced capital goods during the year (3) Increased numbers of Trade Unions (4) Fall in the general price level of a country
Last Answer : Increase in per capita income of people of country
Description : The standard of living in a country is represented by its: (1) poverty ratio (2) per capita income (3) national income (4) unemployment rate
Last Answer : (2) per capita income Explanation: Per capita income or average income or income per person is the mean income within an economic aggregate, such as a county or city. It is calculated by taking a ... not a good standard of measuring standard of living as it is income of one person of the country.
Description : An individual's actual standard of living can be assessed by - (1) Gross National Income (2) Net National Income (3) Per Capita Income (4) Disposable Personal Income
Last Answer : (3) Per Capita Income Explanation: The standard of living is a measure of the material welfare of the inhabitants of a country. The baseline measure of the standard of living is real ... GDP increases a nation's standard of living providing that output rises faster than the total population.
Description : An individual’s actual standard of living can be assessed by (1) Gross National Income (2) Net National Income (3) Per Capita Income (4) Disposable Personal Income
Last Answer : Per Capita Income
Last Answer : per capita income
Description : From the national point of view, which of the following indicates micro approach? (1) Study of sales of mobile phones by BSNL (2) Unemployement among Women (3) Per capita income in India (4) Inflation in India
Last Answer : (1) Study of sales of mobile phones by BSNL Explanation: Macroeconomics is a branch of economics in which a variety of economy-wide phenomena is thoroughly examined such as, inflation, price levels, rate ... and firms. So the study of sales of mobile phones by BSN I, comes under microeconomics.
Last Answer : Study of sales of mobile phones by BSNL
Description : Per capita income of is higher where as human development index of a. Maharashtra, Kerala b. Kerala, Maharashtra c. both are correct. d. both are incorrect.
Last Answer : a. Maharashtra, Kerala
Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C
Last Answer : c. budget surplus of $1000
Description : In India, Inflation measured by the : A. National Income Deflation B. Wholesale Price Index number C. Consumer Price Index D. None of above
Last Answer : C. Consumer Price Index
Description : Countries that depend mainly on the export of primary products for their income, are prone to - (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth
Last Answer : (3) increasing unemployment Explanation: Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of ... primary products were hit particularly hard by falling commodity prices between 1980 and 1984.
Description : Countries that depend mainly on the export of primary products for their income, are prone to (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth
Last Answer : increasing unemployment
Description : Which of the following is not required while computing Gross National Product (GNP)? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government
Last Answer : (3) Per capita income of citizens Explanation: Gross National Product (GNP) is the market value of all products and services produced in one year by labour and property supplied by the ... measures the value of goods and services that the country's citizens produced regardless of their location.
Description : The total value of goods and services produced in a country during a given period is - (1) Disposable income (2) National income (3) Per capita income (4) Net national income
Last Answer : (2) National income Explanation: National income is the total value a country's final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics.
Description : The total value of goods and services produced in a country during a given period is (1) Disposable income (2) National income (3) Per capita income (4) Net national income
Last Answer : National income
Description : Which of the following is not required while computing Gross National Product (GNP) ? (1) Net foreign investment (2) Private investment (3) Per capita income of citizens (4) Purchase of goods by government
Last Answer : Per capita income of citizens
Description : The supply of labour in the economy depends on - (1) Population (2) National income (3) Per capita income (4) Natural resources
Last Answer : (1) Population Explanation: The supply curve for labor depends on variables such as population, wage rates, etc. in developing countries, the vast population base explains the relatively lower wage ... accessibility to labour supply. This is just the opposite in the case of developed countries.
Description : The supply of labour in the economy depends on (1) Population (2) National income (3) Per capita income (4) Natural resources
Last Answer : Population
Description : Which of the following explains the term economic growth? A. Increase in per capita production B. Increase in per capita real income C. Structural change in the economy D. All the above are right
Last Answer : D. All the above are right
Description : Rate of growth of an economy is measured in term of: A. National Income B. Per Capita Income C. Number of people who have been lifted above the poverty line D. Industrial Development
Last Answer : A. National Incom
Description : Which of the following explains economic growth: A. Increase in per capita production B. Increase in per capita real income C. structural change in the economy D. all the above are right
Last Answer : D. all the above are right
Description : Consumer's sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer's expenditures influence the allocation of resources. (4) consumer goods are free from government control,
Last Answer : (1) consumers are free to spend their income as they like. Explanation: Consumer sovereignty means that buyers ultimately determine which goods and services remain in production. In unrestricted markets, ... to motivate producers. So ultimately it means how the consumers want to spend their incomes.
Description : Consumer’s sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer’s expenditures influence the alloca tion of resources. (4) consumer goods are free from government control.
Last Answer : consumers are free to spend their income as they like.
Description : The term 'Green GNP' emphasises - (1) rapid growth of GNP (2) increase in per capita income (3) economic development (4) sustainable development
Last Answer : (4) sustainable development Explanation: The gross national product (GNP) measures the welfare of a nation's economy through the aggregate of products and services produced in that nation, Although ... national product that would indicate if activities benefit or harm the economy and well-being.
Description : The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called - (1) trickle down Hypothesis (2) trickle up hypothesis (3) U shaped hypothesis (4) poverty estimation hypothesis
Last Answer : (1) trickle down Hypothesis Explanation: According to the trickle down hypothesis the rapid growth of per capita income will be associated with a reduction in poverty. In India, this ... institution reform will reduce the incidence of poverty in the context of agricultural development in India.
Description : The hypothesis that rapid growth of per capita income will be associated with a reduction in poverty is called (1) trickle down Hypothesis (2) trickle up hypothesis (3) U shaped hypothesis (4) poverty estimation hypothesis
Last Answer : trickle down Hypothesis
Description : The term ‘Green GNP’ emphasises (1) rapid growth of GNP (2) increase in per capita income (3) economic development (4) sustainable development
Last Answer : sustainable development
Description : Object of the central council is a) The right to be protected against the marketing of goods which are hazardous to life and property b) The right to informed about the quality , ... and to be assured that consumer interests will receive due consideration appropriate fora e) All the above
Last Answer : e) All the above
Description : Object of the central council is A. The right to be protected against the marketing of goods which are hazardous to life and property B. The right to informed about the quality, quantity ... to be assured that consumer interests will receive due consideration appropriate fora E. All the above
Last Answer : E. All the above
Description : The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.
Last Answer : (1) Growth in Percapita Real Income from year to year. Explanation: Per capita Gross National Product (GNP) is the best index of development. It can be derived by dividing the GNP of a ... its world development report 1998, classified the countries in the world on the bases of per capita GNP.
Last Answer : Growth in Percapita Real Income from year to year.
Description : 1. Assume that there are only two goods: A and B In the base year, Quantity Price A 10 $1 B 10 $4 In the current year, Quantity Price A 20 $ 5 B 25 $20 The Consumer Price Index (CPI) for the current year is: a. 50 b. 100 c. 200 d. 500 e. 60
Last Answer : d. 500
Description : In the law of demand, the statement "Other things remain constant" means - (1) income of consumer should not change (2) price of other goods should not change (3) taste of consumer should not change (4) All of the above
Last Answer : (4) All of the above Explanation: In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher ... of good demanded by the consumer will be negatively correlated to the change in the price of the good.
Description : In the law of demand, the statement “Other things remain constant” means (1) income of consumer should not change (2) price of other goods should not change (3) taste of consumer should not change (4) All of the above
Last Answer : All of the above
Description : Inflation refers to a fall in the value of money. Which of the following is the key measure of inflation in India? A. Consumer Price Index B. Wholesale Price Index C. Personal Consumption Expenditures Price Index D. GDP Deflator E. All of the above
Last Answer : B. Wholesale Price Index Explanation: Inflation rates in India are usually quoted as changes in the Wholesale Price Index, for all commodities. Many developing countries use changes in the Consumer Price Index (CPI) as their central measure of inflation.
Description : An underdeveloped economy is characterized bya. High per capita real income b. Large proportion of labor force in the tertiary sector c. State of deprivation of large proportion of population d. All the above
Last Answer : c. State of deprivation of large proportion of population Underdeveloped countries face the problem of deprivation of large section of the population, low per capita real income etc.
Description : Assertion(A): Per capita Income is not a useful criterion and should not be used as measure of development. Reason( R) :Kerala with lower per capita income has a better human development ranking than Haryana. a) Both A ... of A. c) A is correct but R is wrong. d) A is wrong but R is correct.
Last Answer : b) Both A and R are true and R is the not correct explanation of A.
Description : Per capita income of is better. a. Maharashtra, Kerala b. Kerala, Maharashtra c. both are correct. d. both are incorrect.
Description : Which of the following best defines price discrimination? a. charging different prices on the basis of race b. charging different prices for goods with different costs of production c. charging ... a certain product of given quality and cost per unit at different prices to different buyers
Last Answer : d. selling a certain product of given quality and cost per unit at different prices to different buyers