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Chapter 7: Money, Banking and Inflation (Set-2)
Inflation refers to A Fall in general price level B Rise in general price level over time C Rise in money supply only D Fall in purchasing power of goods Explanation Inflation is a sustained increase in the overall price level of goods and services. Inflation results in a fall in A National income B…
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Chapter 7: Money, Banking and Inflation (Set-1)
Money is best defined as anything that A Is issued by the government B Has intrinsic value C Is generally accepted as a medium of exchange D Is used only for saving Explanation Money is defined by its acceptability as a medium of exchange in transactions. The primary function of money is to act as…
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Chapter 6: National Income and Related Aggregates (Set-4)
National income statistics are primarily used to A Fix individual wages B Measure economic performance of a country C Control population growth D Regulate private businesses Explanation National income data indicate the overall level and growth of economic activity. One major importance of national income estimates is that they help in A Determining literacy rate…
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Chapter 6: National Income and Related Aggregates (Set-3)
One major difficulty in measuring national income in developing countries is A Excessive documentation B Large non-monetized sector C High literacy rate D Perfect record keeping Explanation A large part of economic activity occurs without money transactions, making measurement difficult. Subsistence farming creates difficulty in national income estimation because A Output is exported B Output…
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Chapter 6: National Income and Related Aggregates (Set-2)
The product method of measuring national income is also known as A Value-added method B Income method C Expenditure method D Factor cost method Explanation The product method measures national income by summing value added at each stage of production. The product method estimates national income by calculating A Total sales value B Sum of…
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Chapter 6: National Income and Related Aggregates (Set-1)
National income refers to A Total money supply in an economy B Total value of final goods and services produced C Total income earned by residents of a country D Total government revenue Explanation National income measures the total income earned by residents from productive activities during a year. Gross Domestic Product (GDP) measures A…
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Chapter 5: Forms of Market and Price Determination (Set-4)
Collusive oligopoly refers to a situation where firms A Compete independently B Follow perfect competition C Cooperate to fix price and output D Always engage in price wars Explanation In collusive oligopoly, firms form agreements to jointly determine price or output to maximize collective profits. The primary objective of collusion among oligopolists is to A…
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Chapter 5: Forms of Market and Price Determination (Set-3)
Monopolistic competition is a market structure characterized by A One seller and many buyers B Few sellers with interdependence C Many sellers with differentiated products D Many sellers with homogeneous products Explanation Monopolistic competition has a large number of firms selling similar but differentiated products. Product differentiation means A Different prices for same product B…
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Chapter 5: Forms of Market and Price Determination (Set-2)
Monopoly is a market structure in which A Many sellers sell identical products B One seller controls the entire market C Few sellers sell differentiated products D Many buyers face one price Explanation Monopoly exists when a single firm supplies the entire market with no close substitutes. A monopolist is called a price maker because…
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Chapter 5: Forms of Market and Price Determination (Set-1)
A market in economics refers to A A physical place where goods are sold B A set of buyers only C A system where buyers and sellers interact to determine price D A government-controlled pricing system Explanation In economics, a market is not necessarily a place; it is any arrangement enabling buyers and sellers to…
