Tag: major economic problems

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Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

'Commodity Service method' is another name for:

  1. Expenditure method

  2. Income method

  3. Value-added method

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Commodity service method also known as value added method refers to a method for calculating the national income of quoted price of a commodity in general where the amount of cost in each level of production is added to generate the total price of the commodity including the normal profit for the production unit. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

Which of the following problem in an economy is a result of corruption in the country?

  1. Lack of political and social justice.

  2. Rising poverty and unemployment.

  3. Income inequality.

  4. All of the above.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Corruption is a shape of dishonesty or illegal crime undertakes by a person or organization entrusted with a place of authority. The negative belongings of corruption it reduces foreign direct and domestic investments, increase inequality and poverty, raises the number of freeloaders in the economy, distorts and exploits public investments and reduces public revenues. 

There are many causes of corruption like the greed of money, higher levels of market and political monopolization, low levels of democracy, lows economic freedom.

The correct option is D.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

Which of the following is an argument for the relevance of dividends?

  1. Informational content

  2. Reduction of uncertainty

  3. Some investors' preference for current income

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Dividend is the allocation of reward from a segment of the company's income and is paid to a class of its shareholders. Dividends are decided and managed by the company's board of directors, although they must be accepted by the shareholders from side to side their voting rights. 

Walter and Gordon not compulsory that shareholders favour current dividend and therefore a positive relation­ship exist between dividend and market value. The reason put following this argument is that investor is generally risk-averse and that they prefer current the dividend, attaching lesser importance to future divi­dends or capital gains.

The correct answer is D.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The Reserve Bank of India was established in the year _________.

  1. 1947

  2. 1951

  3. 1935

  4. 1969
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Reserve Bank of India was established on 1st Apr,1935 Kolkata. 

The Reserve Bank of India is India's central bank, which controls the issue and supply of the Indian rupee. RBI is the regulator of entire Banking in India. RBI plays an important part in the Development Strategy of the Government of India

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The economy of Britain crumbled after the First World War. Identify the factor which did not contribute to the above.

  1. Strengthening of domestic markets in colonies.

  2. Industrialization of China.

  3. Stiff competition from Us, Germany, Japan.

  4. Huge wage structure in colonies.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The British economy suffered due to competition from the US, Germany, and Japan, as well as the loss of markets. Industrialization of China was not a primary factor in the post-WWI British economic decline.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

Assume there are four families in a country. The average per capita income of these families is Rs. 5000. If the income of three families is Rs. 4000, Rs. 7000 and Rs. 3000 respectively, what is the income of the fourth family?

  1. Rs. 7500

  2. Rs. 3000

  3. Rs. 2000

  4. Rs. 6000

  5. Rs. 9000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Total income of four families $= 5000 * 4 = 20000$

Total income of three families $= 4000 + 7000 + 3000 = 14000$

Income of the fourth family $= 20000 – 14000 =  6000$

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

Which of the following is not considered production in Economics?

  1. Tilling of soil by farmers

  2. Singing a song before friends

  3. Construction of Canal by laborers

  4. Painting a picture for sale
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Production is a process of merging various material inputs and irrelevant inputs in order to make something for consumption. It is the action of creating output, a good or service which has the value and contribution to the beneficial of the individuals. Tiling of soil by friends, construction of canal by laborers, Painting a picture for sale are considered in the production of economics. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

A person who is not gainfully employed is called an unemployed person.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A person who is not gainfully employed, that is, a person who is not paid in monetary terms or in kind in return of his work, is known as an unemployed person since he cannot contribute in the GDP of a country.