Interesting Economic Questions for Students

Interesting Economic Questions

The Indian economy is the 6th largest in the world, measured by nominal GDP and the 3rd largest by purchasing power parity. It is characterized by a mixed economy, where the public sector coexists with the private sector, and the agriculture, services, and manufacturing sectors play important roles. The Indian economy has seen significant growth in recent decades, but still faces challenges such as poverty, corruption, and infrastructure issues. Nevertheless, India's rapidly growing population and increasing integration into the global economy make it a key player in the future of world economics.

Economic Questions

In this article, Interesting Economic Questions and Answers, we are giving important Indian Economic Questions related to the private sector, and the agriculture, services, and manufacturing sectors for those learners who are preparing for upcoming competitive exams. Under the Indian Economy section, Interesting Economic Questions and answers are generally asked in government and competitive exams. 

Also, Read Latest Current Affairs Questions 2022: Current Affairs Today

Students can quickly get free General Knowledge Mock Test and Current Affairs Mock Test on this platform for online exam practice to obtain good marks in competitive exams.

Interesting Economic Questions

  Q :  

There is no change in demand for a commodity when its price changes more. What demand will this be called?

(A) elastic

(B) inelastic

(C) perfectly inelastic

(D) highly elastic

Correct Answer : B
Explanation :

When the demand of a quantity does not change as a result of a change in the price of a commodity, the demand of that commodity is called a perfectly inelastic demand. In this case, the elasticity of demand is zero.

Q :  

When the demand curve of a commodity is parallel to the X-axis, then the demand for that commodity is elastic.

(A) zero

(B) unit

(C) more than unit

(D) complete

Correct Answer : D
Explanation :

Demand curve is parallel to X- axis n case of perfectly elastic demand. A perfectly elastic demand refers to the situation when demand is infinite at the prevailing price.

Q :  

Do regulated markets aim at developing a marketing structure to achieve which of the following?

(A) Widening the price spread between producer and consumer

(B) Reducing the price spread between producer and consumer

(C) Increase in non-working capital of traders

(D) Maximizing the non-working capital of the agents

Correct Answer : B

Q :  

Economic rent does not increase when a factor (output) unit is supplied by

(A) completely inelastic

(B) perfectly elastic

(C) relatively elastic

(D) relatively inelastic

Correct Answer : B

Q :  

Which of the following is the most important feature of product differentiation?

(A) Pure competition

(B) Monopolistic competition

(C) Monopoly

(D) Oligopoly

Correct Answer : B

Q :  

What is a situation called in which many firms produce similar goods?

(A) Perfect competition

(B) Monopolistic competition

(C) Pure Competition

(D) oligopoly

Correct Answer : A

Q :  

The difference between the price a consumer is ready to pay for a commodity and the price actually paid by him is called

(A) Consumer surplus

(B) Producer surplus

(C) Landlord surplus

(D) Surplus of labor

Correct Answer : A

Q :  

It is prudent to determine the quantity of production when the industry is in operation

(A) in case of increasing returns

(B) in case of constant returns

(C) in case of diminishing returns

(D) in case of negative returns

Correct Answer : B

Q :  

The demand for which of the following substances will not increase even if its price decreases?

(A) television

(B) refrigerator

(C) salt

(D) meat

Correct Answer : C

Q :  

When the price of a substitute for a good X falls, then the demand for X

(A) climbs

(B) descends

(C) no change takes place

(D) any one of the above

Correct Answer : B

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    Rajesh Bhatia

    A Writer, Teacher and GK Expert. I am an M.A. & M.Ed. in English Literature and Political Science. I am highly keen and passionate about reading Indian History. Also, I like to mentor students about how to prepare for a competitive examination. Share your concerns with me by comment box. Also, you can ask anything at

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