SECTION-4

Economics Multiple Choice Questions

 
Q11. In India, inflation is measured by the               [UPSC (Pre) 1997 RAS/RTS (Pre) 2013]

(A) Wholesale Price Index number
(B) Consumers Price Index
(C) Producer Price Index
(D) National Income deflation

Ans:(B) Consumers Price Index

 

Q12. For measuring the changes in the price level of the country, which among the following index number is used?                                   [HCS (Pre) 2014]

(A) Consumer price index number
(B) Production index number
(C) Security price index number
(D) Wholesale price index number

Ans:(A) Consumer price index number

 

Q13. Economic growth is usually coupled with                                  [UPSC (Pre) 2010]

(A) Deflation
(B) Inflation
(C) Stagflation
(D) Hyper-inflation

Ans:(B) Inflation

 

Q14. Inflation rate based on consumer price index increases if              [RAS/RTS (Pre) 2016]

(A) Bank rate is decreased
(B) Reverse repo rate is decreased
(C) Statutory Liquidity ration is increased
(D) Repo rate is increased

Ans:(A) Bank rate is decreased

 

Q15. Which is incorrect about inflation?                                                   [RAS/RTS (Pre) 2008]

(A) Inflation indicated the rise in the price of basket of commodities on a point-topoint basis
(B) The inflation rate in India is calculated on the basis of the wholesale price index
(C) For some commodities retail prices are also considered for measurement of inflation
(D) Inflation rate going down does not mean prices are declining

Ans:(A) Inflation indicated the rise in the price of basket of commodities on a point-topoint basis

 

Q16. Inflation is best described as                                                             [RAS/RTS (Pre) 1996]

(A) high prices
(B) increase in price index
(C) increase in purchasing power
(D) increase in price of particular goods

Ans:(D) increase in price of particular goods

 

Q17. An expression coined by economists to describe an economy that is growing at such a slow pace that more jobs are being lost than are being added         [HCS (Pre) 2014]

(A) Stagflation
(B) Recession
(C) Growth Recession
(D) Ratchet Inflation

Ans:(C) Growth Recession

 

Q18. A rapid increase in the rate of inflation is sometimes attributed to the ‘base effect’. What ‘base effect                                                             [UPSC (Pre) 2011]

(A) It is the impact of drastic deficiency in supply due to failure of crops
(B) It is the impact of the surge in demand due to rapid economic growth
(C) It is the impact of the price levels of previous year on the calculation of inflation rate
(D) None of the statements (A), (B) and (C) given above is correct in this content

Ans:(C) It is the impact of the price levels of previous year on the calculation of inflation rate

 

Q19. In India, in the overall Index of Industrial Production, the indices of eight core industries have a combined weight of 37-90%. Which of the following are among those eight core industries?
1. Cement
2. Fertilisers
3. Natural gas
4. Refinery products
5. Textiles
Select the correct answer using the codes given below.                   [UPSC (Pre) 2012]

(A) Only 1 and 5
(B) Only 2, 3 and 4
(C) Only 1, 2, 3 and 4
(D) 1, 2, 3, 4 and 5

Ans:(C) Only 1, 2, 3 and 4

 

Q20. Index ‘Residex’ is associated with                             [UPSC (Mains) 2015]

(A) Share Prices
(B) Mutual Fund Prices
(C) Price Index
(D) Land Prices

Ans:(D) Land Prices

1      2              5              8

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Read More Sections of Indian Economy Objective Questions

Each section contains maximum 80 Questions. To practice more questions visit other sections.
 

 Indian Economy Objective Questions – Section-1

 

 Indian Economy Objective Questions – Section-2

 

 Indian Economy Objective Questions – Section-3

 

 Indian Economy Objective Questions – Section-4

 

 Indian Economy Objective Questions – Section-5

 

 Indian Economy Objective Questions – Section-6

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