Indian Economy Practice Question and Answer
8 Q: “if other things remain the same” means
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62c41e5f31b6d20155fd2b65- 1ignoring everythingfalse
- 2to include each componentfalse
- 3all other unchanging thingstrue
- 4every variablefalse
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Answer : 3. "all other unchanging things"
Q: With whose cooperation was the Durgapur Steel Plant established?
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60d3170964466567bd755c5a- 1Germanyfalse
- 2Great Britaintrue
- 3Russiafalse
- 4Francefalse
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Answer : 2. "Great Britain"
Q: Which one of the following is not a clause of the World Trade Organisation?
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60125f788f4dda4a277cf829- 1Lowering trade barriers with negotiationsfalse
- 2Most favoured nation treatmentfalse
- 3Providing financial support to the countries having deficit balance of paymentstrue
- 4Discouraging unfair trade practices such as anti-dumping and export subsidiesfalse
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Answer : 3. "Providing financial support to the countries having deficit balance of payments"
Explanation :
Providing financial support to the countries having deficit balance of payments.
Q: Which curve shows the inverse relationship between unemployment and inflation rates?
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5f572460c1a5d57a18308e06- 1Phillips curvetrue
- 2Indifference curvefalse
- 3IS curvefalse
- 4Supply curvefalse
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Answer : 1. "Phillips curve "
Q: A ____________ occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.
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5f4cb7765e74bc4ee54ea1cb- 1Current Account Deficitfalse
- 2Budgetary Deficitfalse
- 3Revenue Deficitfalse
- 4Fiscal Deficittrue
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Answer : 4. "Fiscal Deficit"
Q: Diamonds are priced higher than water because–
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60123fc3178b94051cee4ac7- 1consumers do not buy them at lower prices.false
- 2they are sold by selected firms with monopolistic powers.true
- 3their total utility to buyers is higher than that of water.false
- 4their marginal utility to buyers is higher than that of waterfalse
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Answer : 2. "they are sold by selected firms with monopolistic powers."
Q: In which of the following banks, a person cannot open his account?
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6088f9ef06b39f63ea8ee107- 1Bank of Indiafalse
- 2Urban Co-operative Bankfalse
- 3Reserve Bank of Indiatrue
- 4All thesefalse
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Answer : 3. "Reserve Bank of India"
Q: Which of the following is considered a capital expense?
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64c3960f29beb3482a3bcc49- 1Pensionfalse
- 2Payment of salariesfalse
- 3Subsidiesfalse
- 4Construction of school buildingstrue
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Answer : 4. "Construction of school buildings"
Explanation :
1. Capital expenditure is money spent by the government on the development of machinery, equipment, buildings, health facilities, education etc.
2. It also includes expenditure by the government on the acquisition of fixed assets like land and investments which give future profits or dividends.
3. Creation of assets as well as repayment of loans is also capital expenditure, as it reduces liability.