Description : 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%
Last Answer : (b) 3% ;
Description : If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden
Last Answer : (b) Rate of inflation ;
Description : 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
Last Answer : (b) `50,000 Crore ;
Description : Nominal GDP is measured in ………………..prices (a) Base year ; (b) Current year ; (c) 1980 ; (d) 2000
Last Answer : (b) Current year ;
Description : Nominal GDP is (a) The total value of goods and services net of exports (b) The total value of goods and services produced during periods of low unemployment (c) The total value of goods and services measured at current prices (d) The total value of goods and services produced at full employment.
Last Answer : (c) The total value of goods and services measured at current prices
Description : If the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate is: a. 2% b. 3% c. 5% d. 7% e. 2 ½%
Last Answer : b. 3%
Description : During the recessionary phase of a business cycle (a) The natural rate of unemployment will increase dramatically (b) Potential national income will exceed actual national income (c) Actual national income ... national income (d) The real rate of interest will exceed the nominal rate of interest.
Last Answer : (a) The natural rate of unemployment will increase dramatically
Description : If the disposal income of a household increases by 10% and the demand for bread falls by 5%. The income elasticity of bread is (a) 0.5 ; (b) -0.5 ; (c) 1.0 ; (d) -1.0
Last Answer : (b) -0.5 ;
Description : Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth
Last Answer : (c) Increase in real rate of interest ;
Description : Emergency loans are made at what rate over the normal Current Debt interest rate? a. 5% b. 7.5% c. 10% d. 12% e. 25%
Last Answer : b. 7.5%
Description : By selling a telephone for Rs. 2400, a shopkeeper make a profit of 25%. Then, his profit percentage, if he had sold it for Rs. 2016, is ? (a) 10% (b) 6.25% (c) 6.5% (d) 5% (e) 12%
Last Answer : (d) 5%
Description : Real GDP is measured in………….prices (a) Base year ; (b) Current year ; (c) 1980 ; (d) 2000
Last Answer : Base year
Description : What is the contribution of Animal Husbandry Sector in the agricultural growth ? (A) 10% (B) 12% – 15% (C) 7% – 9% (D) 5%
Last Answer : (C) 7% – 9%
Description : The weight of a foundation is assumed as (A) 5% of wall weight (B) 7% of wall weight (C) 10% of wall weight (D) 12% of wall weight
Last Answer : Answer: Option C
Description : A article is listed at Rs. 2000 and a discount of 20% is offered on the list price .What additional discount must be offered to the customer bring the net price to Rs. 1400? A. 12.5% B. 10% C. 12% D. 15%
Last Answer : Answer – A. 12.5% Explanation – S.P after 1st discount, 100%………2000 80%………? ?=2000×80/100=1600 Net S.P = Rs. 1400. Discount on Rs. 1600 = Rs. 200. ∴Required discount = (200/1600 x 100)% =12.5%
Description : Negotiation Ceilings which represent the maximum management is willing to pay are always a. 12% above the starting positions. b. 5% above the starting positions. c. 10% above the starting positions. d. unlimited. e. none of the above.
Last Answer : c. 10% above the starting positions.
Description : Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on (a) Increase in GDP ; (b) Inflationary pressure ; (c) Greater employment opportunity; (d) More equitable distribution of income and wealth
Last Answer : (b) Inflationary pressure ;
Description : If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three
Last Answer : ; (d) All or any of the above three
Description : RBI check inflation by (a) Increasing bank rate ; (b) Increasing CRR ; (c) Both ; (d) None
Last Answer : ; (c) Both ;
Description : 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
Last Answer : (d) Impact of shortage of wheat production on wheat prices
Description : Real rate of return is equal to: A. Nominal Rate × Inflation Rate, B.Nominal Rate ÷ Inflation Rate, C. Nominal Rate - Inflation Rate, D. Nominal Rate + Inflation Rate
Last Answer : B.Nominal Rate ÷ Inflation Rate,
Description : If your interest rate is 12.1%, and when you issue new bonds, the bond interest rate is: a. 10.7%. b. 12.1%. c. 13.5%. d. 6.1%. e. 12%.
Last Answer : c. 13.5%.
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 : Structural unemployment is mainly due to (a) Structural changes in the economy ; (b) Technological development (c) Growth in GDP ; (d) Population explosion.
Last Answer : (a) Structural changes in the economy ;
Description : Inflationary conditions may co-exist with which of the following situation (a) Increase in factor cost ; (b) Increase in employment opportunities; (c) Growth in GDP and imports ; (d) All the three
Last Answer : ; (d) All the three
Description : Deflation is a state when (a) Prices are falling ; (b) Consistent increase in prices ; (c) Fall in GDP ; (d) Collapse of sensex
Last Answer : (a) Prices are falling ;
Description : 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
Last Answer : (a) Influence the lending ability of the commercial banks ;
Description : If we add……………. to net domestic production we get GDP (a) Depreciation ; (b) Direct tax ; (c) Indirect tax ; (d) Interest payment
Last Answer : (a) Depreciation ;
Description : ……………… is an index of price change for goods and services included in GDP (a) Price index ; (b) Sensex ; (c) GDP deflator ; (d) None
Last Answer : (c) GDP deflator ;
Description : If GDP exceeds GNP the possible reasons could be (a) Foreigners are earning more in India than Indians are earning in foreign countries (b) High incidence of plant and machinery wear out (c) Indian are earning more in foreign countries than foreigners earnings in India (d) None
Last Answer : (a) Foreigners are earning more in India than Indians are earning in foreign countries
Description : Which of these is not a part of GDP for the year 2006? (a) Earning of an International fashion show organized in Delhi (b) Sale of ticket for Republic day parade. ; (c) Fee of a practicing Chartered Accountant (d) A house built in 2000 and first sold in 2006
Last Answer : (d) A house built in 2000 and first sold in 2006
Description : Which of these would not be part of GDP? (a) Sale of Intermediate goods ; (b) Income from illegal betting ; (c) Household services rendered by a house wife in her family ; (d) All the three
Last Answer : (d) All the three
Description : GDP can be defined as sum of the market value of the……….. (a) Final manufactured goods and services ; (b) Intermediate goods (c) Goods and services exported ; (d) Sub-standard goods and discarded services
Last Answer : (a) Final manufactured goods and services ;
Description : In an open economy (a) GDP=GNP ; (b) GDP>GNP ; (c) GDP
Last Answer : ; (d) All the three are possible
Description : In a closed economy (a) GDP=GNP ; (b) GDP>GNP ; (c) GDP
Last Answer : (a) GDP=GNP ;
Description : GDP is defined as (a) The market value of all goods and services produced in the domestic economy during the year ; (b) Current value of all the capital goods produced in the country. ; (c) ... during the year. ; (d) All the capital goods and consumable goods produced and sold during the year
Last Answer : (a) The market value of all goods and services produced in the domestic economy during the year ;
Description : Which of the following equation is correct? (a) GNP=GDP+Net factor income from abroad (b) GNP=GDP+Gross factor income from abroad (c) GNP=GDP-Net factor income from abroad (d) GNP=GDP-Gross factor income from abroad
Last Answer : (a) GNP=GDP+Net factor income from abroad
Description : Which of the following equation is correct (a) NDP=GDP- Depreciation ; (b) NDP=GDP+ Depreciation ; (b) NDP=GDP- Depreciation-subsidy; (d) NDP=GDP- Depreciation+subsidy
Last Answer : (a) NDP=GDP- Depreciation ;
Description : Choose the correct statement (a) GPD at fc = GPD mp-IT +S ; (b) GPD at fc = GDP mp-IT –S ; (c) GDP at fc = GDP mp+IT+S; (d) GDP at fc = GDP mp+IT-S
Last Answer : (a) GPD at fc = GPD mp-IT +S ;
Description : All entries in the balance of payments should collectively sum to (a) GDP of that country ; (b) GNP of that country ; (c) Zero ; (d) Exports of that country.
Last Answer : (c) Zero
Description : The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies
Last Answer : (c) Net foreign income from abroad
Description : GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.
Last Answer : (d) When subsidies exceeds indirect taxes.
Description : GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize
Last Answer : (b) Exports minus imports ;
Description : GDP at market price exceeds GDP at factor cost by the amount of revenue raised through ………………. (a) Direct taxes ; (b) Indirect taxes ; (c) Income tax ; (d) Tax on rents
Last Answer : ; (b) Indirect taxes ;
Description : A bond with the number 12.6S2005, indicates that: a. the interest rate is 12.6%; due in May. b. the interest rate is 12%; due on June 05. c. the interest rate is 12%; due in June 2005. d. the interest rate is 5%; due on December 6. e. the interest rate is 12.6%; due on December 31, 2005.
Last Answer : e. the interest rate is 12.6%; due on December 31, 2005.
Description : What is the correct formula for GDP Deflater? a) Nominal GDP - (minus) Real GDP b) Nominal GDP + Real GDP c) Nominal GDP/ Real GDP d) Real GDP/ Nominal GDP
Last Answer : c) Nominal GDP/ Real GDP
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
Description : Cost push inflation arises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in price of precious metal
Last Answer : (a) Persistent rise in factor cost ;
Description : Demand pull inflation rises due to (a) Persistent rise in factor cost ; (b) Mismatch between demand and supply of commodities (c) Combine phenomena of demand pull and cost-push inflation. ; (d) Increase in Price of precious metal
Last Answer : ; (b) Mismatch between demand and supply of commodities
Description : CRR is used to (a) Combat inflation ; (b) Check black money ; (c) Check tax evasion ; (d) All the three
Last Answer : (a) Combat inflation ;