Economy

Indian Economy Question and Answer – Economic and commercial developments for competitive examinations are an important subject, especially for examinations like banks, UPSC and IAS. There are a number of questions based on Indian Economy, Monetary Policy, Agriculture, Five Year Plan, Mixed Economy, Latest Economy Current Affairs, which are here to keep you updated and get success in the interview.

1. Capacity utilisation
Question Asked : SSC CHSL (10+2) DEO & LDC Exam 2014

(A) is usually near 100 percent.
(B) represents the percent of the labour force that is employed.
(C) is a measure of the proportional of the existing capital stock used for current production.
(D) rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production.

2. The book which is at the centre piece of the study of Macro – Economics was written by
Question Asked : SSC GL Tier-I Exam 2014

(A) Prof. Samuelson
(B) Prof. J.M. Keynes
(C) Prof. Benham
(D) Prof. Baumol

3. According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the
Question Asked : SSC GL Tier-I Exam 2014

(A) Marginal efficiency of capital
(B) Marginal propensity to save
(C) Marginal propensity to consumption
(D) Marginal efficiency to investment

4. Which of the following relation always holds true?
Question Asked : SSC GL Tier-I Exam 2014

(A) Income = Consumption + Investment
(B) Income = Consumption + Saving
(C) Saving = Investment
(D) Income = Consumption + Saving + Investment

5. Which of the following is not an investment expenditure in goods and services?
Question Asked : SSC Graduate Level Tier-I Exam 2013

(A) Expansion of the main plant of a company
(B) Purchase of a house
(C) Purchase of machinery
(D) An increase in business Inventories

6. Investment multiplier shows The effect of investment on
Question Asked : SSC Graduate Level Tier-I Exam 2013

(A) Employment
(B) Savings
(C) Income
(D) Consumption

7. Effective demand depends on
Question Asked : SSC Higher Secondary Level Data Entry Operator & LDC, Exam 2010

(A) capital-output ratio
(B) output-capital ratio
(C) total expenditure
(D) supply price

8. Full employment is a situation where
Question Asked : SSC Combined Matric Level (Pre) Exam 2006

(A) there is no involuntary unemployment
(B) there is involuntary unemployment
(C) there is no voluntary unemployment
(D) there is voluntary unemployment

9. Speculative demand for cash is determined by
Question Asked : SSC Combined Matr1e Level (Pre) Exam 2002

(A) The rate of interest
(B) the level of income
(C) the general price level
(D) the market conditions

10. Liquidity Preference means
Question Asked : SSC Combined Matric Level (Pre) Exam 2002

(A) holding assets in the form of bonds and shares
(B) holding assets in the form of cash
(C) creation of immovable property
(D) assets in the form of jewellery