GK Economics Test 13

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1. The angency estimating the national income of India is

Reserve Bank of India

Planning Commission

Ministry of Firiance

Central Statistical Organisation

2. If the Indian is making a loss on passenger traffic, it should increase its prices. The suggested remedy would only work if the demand for air travel had a price elasticity of

greatest than one

one

zero

less than one but more than zero

3. The total utihty which a consurner derives from n units of a commodity minus the total utility he derives firom ‘n -1’ unit is

consumer’s surplus ‘n-1’ units

consumer’s surplus from n units

total utility of n units

marginal utility of n units

4. The goals of monetary policy do not include

Maximum tax revenue

Price stability

Maxmimun output

Full employment

5. Saving is a function of

income

investment

export

improvement in productivity

6. Private investment will most-likely to be increased as a result of a rise in

the price of shares

expected yield on new capital

the rate of interest

personal taxation

7. The two-gaps theory refers to

savings gap and employment gap

the wage-goods gap and exchange gap

savings gap and exchange gap

savings gap and wage-goods gap

8. Currency drain is a phenomenon referresd to when

of’cufrency by foreigners in a country goes up

domestic currency is exported

the holding of currency by foreigners

the currency holding by parallel economy increases

9. Bank rate means

rate of profit of the banking institution

the official rate of interest charged by the central bank of the country

interest rate chixgedl by the sheduled banks

interest rate charged by moneylenders

10. If a firm is producing an output the marginal cost of which is greater then the marginal revenue,it

cannot be a monopolist

would increase its profit or roduce its loss by feducing output.

will be making an absolute loss

Wd increase its prirofit byIncreasing its output

Question 1 of 10