Questions on Indian Economy


1. Money cost is also called ________.
Answer :    Nominal cost

2. Economic profit is the difference between total revenue and_________
Answer :     Economic cost/ total cost

3. the distinction between the fixed and variable factors is possible only in ________
Answer :     Short run

4. Total cost is the sum of _________
Answer :     Total fixed cost and total variable cost

5. The marginal cost curve is _________
Answer :    'U' shaped

6. Under perfect competition, the firms are producing ____ product. 
Answer :    Homogeneous

7. When the Average revenue of the firm is greater than its average cost, the firm is earning______
Answer :     Super normal profit

8. The perfect competitive firms are _________ 
Answer :     Price-Takers

9. Monopoly power achieved through patent right is called ___
Answer :     Legal monopoly

10. Firms realize the importance of ______ under oligopoly.
Answer :     Mutual co-operation

11. Marginal productivity theory is the ______theory of distribution. 
Answer :     General

12. Marginal productivity theory is based on the assumption of _________competition.
Answer :     Perfect

13. Transfer earnings refer to ________ cost.
Answer :     Opportunity

14. Money wages are also known as ______ wages. 
Answer :     Nominal

15. Organization is done by the___________
Answer :     Entrepreneur

16. The term consumption function explains the relationship between____ and ________
Answer :     Income and Consumption

17. ___ is the ratio of charge in saving to a change in income.
Answer :    Marginal Propensity to save

18. The worldwide depression of 1930s was also caused by a ____
Answer :     Fall in investment

19. __________ refers to the cash holdings of the people.
Answer :     Liquidity Preference

20. The magnified effect of initial investment on income is called______ effect.
Answer :     Multiplier

21. The direct exchange of goods for goods is known as ______ 
Answer :     Barter system

22. Deflation is a period marked by __________ prices 
Answer :     Falling

23. The equation of exchange (MV = PT) was given by
Answer :     Prof. Irving Fisher

24. Galloping inflation is also known as ___ 
Answer :    Hyper-inflation or run-away inflation

25. Monetary policy is usually effective in controlling __________.
Answer :     Inflation

26. _______ means different sources of government income. 
Answer :    Public revenue

27. the absence of direct and proportional benefit is ________ 
Answer :    Quid pro - quo

28. ____are considered as fundamental principles of taxation.
Answer :     Canons of taxation

29. The classification of direct and indirect taxes is based on criterion of _________ tax.
Answer :    Shifting of the incidence

30. _________ tax is a blend of progressive tax and proportional tax. 
Answer :     Degressive