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Generate QuizEconomics – Medium Level – GK Questions
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Broad money in India is?
- M1
- M2
- M3
- M4
Answer: M3
M3 = M1 + Time deposits with banks.
M1 = Currency + ___ + Other deposits.
- employment elasticity (or labor market)
- Demand deposits
- 112
- Peer (or P2P)
Answer: Demand deposits
M1 is the narrowest measure of money supply.
CSO is now merged into?
- NSSO
- NSO
- RBI
- NITI Aayog
Answer: NSO
National Statistical Office (NSO).
Real GDP is adjusted for ___.
- open market borrowings (or debt / bonds)
- inflation
- countervailing
- PT (or PY)
Answer: inflation
Real GDP uses base year prices to remove inflation effects.
Double counting is avoided by using?
- Income method
- Value added method
- Expenditure method
- None
Answer: Value added method
Only the value added at each stage of production is counted.
GDP at market price - Indirect taxes + Subsidies = ?
- GDP at FC
- GNP
- NNP
- NDP
Answer: GDP at FC
Net indirect taxes are subtracted to find factor cost.
Opportunity cost is also called?
- Explicit cost
- Economic cost
- Accounting cost
- Sunk cost
Answer: Economic cost
Economic cost includes both explicit and implicit costs.
Marginal cost curve cuts average cost at?
- Maximum
- Minimum
- Origin
- Infinity
Answer: Minimum
MC intersects AC exactly at its lowest point.
Isoquant shows combinations of?
- Goods
- Inputs
- Prices
- Costs
Answer: Inputs
Different combinations of inputs producing the same output.
Law of variable proportions applies to ___ run.
- short
- drives out
- TRIMs (or Trade-Related Investment Measures)
- Treasury
Answer: short
Analyzes the effect of adding variable inputs to fixed ones.
Monopsony is a market with?
- One seller
- One buyer
- Two sellers
- Many buyers
Answer: One buyer
A single buyer controls the entire market demand.
Cartel is a form of ___.
- India Debt Resolution Company Ltd (IDRCL)
- Countercyclical
- collusion
- arbitrage (or resale)
Answer: collusion
Cartels are formal collusive agreements among firms.
Price discrimination is possible in?
- Perfect competition
- Monopoly
- Oligopoly
- Monopolistic
Answer: Monopoly
Requires market control and market segmentation.
Monopolistic competition features ___ differentiation.
- product
- working
- lender of last resort
- purchasing (or buying)
Answer: product
Products are similar but differentiated by brand/features.
Unitary elasticity means total revenue remains ___.
- balance (or sum to zero)
- constant
- indifference
- Total variable cost
Answer: constant
Total revenue is maximized and constant at Ed=1.
Consumer equilibrium is where budget line is ___ to IC.
- tangent
- Total receipts excluding borrowings
- low (or zero / no)
- crowding out
Answer: tangent
Tangency ensures MRS equals the price ratio.
Slope of indifference curve is?
- MRS
- MRT
- MPC
- MPS
Answer: MRS
Marginal Rate of Substitution represents the slope.
Ordinal utility is associated with ___ curve.
- technological
- John Maynard Keynes
- Pareto Efficiency (or Pareto Optimality)
- indifference
Answer: indifference
Indifference curve shows ordinal ranking of preferences.
Marginal utility is zero when total utility is?
- Zero
- Minimum
- Maximum
- Negative
Answer: Maximum
Total utility peaks when marginal utility becomes zero.
Income elasticity for inferior goods is ___.
- Total variable cost
- negative
- decrease (or reduce / lower)
- dumping
Answer: negative
Demand falls as income rises for inferior goods.