Economics Multiple Choice Questions

Q21. Who amongst the following benefits most from inflation?  [UPPCS (Pre) 1995]

(A) Creditors 
(B) Debtors
(C) Saving Bank Account Holders
(D) Government Pensioners

Ans:(B) Debtors


Q22. Consider the following statements.
1. Inflation benefits the debtors.
2. Inflation benefits the bond holders.
Which of the statement(s) given above is/are correct?      [UPSC (Pre) 2013]

(A) Only 1 
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Ans:(A) Only 1


Q23. Which one of the following is NOT a method to control inflation?           
  [Maharashtra PSC (Pre) 1996]

(A) Controlling the demand
(B) Controlling the supply of money
(C) Reducing the rate of interest
(D) Rationing of commodities

Ans:(C) Reducing the rate of interest


Q24. Which of the following price index number are used for calculation of Central Government employee wage compensation?  [UPPCS (Pre) 2003]

(A) Wholesale price index
(B) Consumer price index for industrial workers
(C) Consumer price index for agricultural labourers
(D) None of the above

Ans:(B) Consumer price index for industrial workers


Q25. With reference to India, consider the following statements.
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared on Consumers Price Index for Industrial Workers [CPI(IW)] the WPI gives less weight to food articles.
Which of the following statement(s) given above is/are correct?             
 [Kerala PSC (Pre) 2010]

(A) Only 1
(B) Only 2
(C) Both 1 and 2
(D) Neither 1 nor 2

Ans:(C) Both 1 and 2


Q26. Consider the following statements and state which is/are correct?
1. The sub-prime crisis which hit the U.S. economy was caused by sudden increase in oil prices.
2. The crisis led to default in home loan repayment.
3. It led to failure of some U.S. Banks.
4. Sub-prime crisis caused crash in Indian stock market.
Choose your answer from the given codes.         [UPPCS (Pre) 2010]

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

Ans:(C) Only 2, 3 and 4


Q27. The most common measure of estimating inflation in India is    [UPPCS (Pre) 2012]

(A) Price Index
(B) Wholesale Price Index
(C) Consumer Price Index
(D) Price Index of Index Goods

Ans:(C) Consumer Price Index



Q28. RESIDEX, an index of residential prices in India, was launched in the year                         [UPSC (Mains) 2012]

(A) 2001
(B) 2004
(C) 2007
(D) 2008

Ans:(C) 2007


Q29. In calculation of index of wholesale prices, which one of the following sector is assigned maximum weightage?                                    [UPSC (Mains) 2008]

(A) Food articles
(B) Non-food articles
(C) Fuel, power, light and lubricant
(D) Manufactured products

Ans:(D) Manufactured products


Q30. Who has been recently made the chairman of the work group on revision of Wholesale Price Index Services?                                       [UPSC (Mains) 2004]

(A) C. Rangrajan
(B) P.R. Panchamukhi
(C) K.C. Pant
(D) Abhijit Sen

Ans:(D) Abhijit Sen

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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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