Tag: economics

Questions Related to economics

Net investment refers to expenditure incurred on new capital goods.

  1. True

  2. False


Correct Option: A

Which of the following is an example of an intermediate goods?

  1. A Tata Indica sold by a dealer of second hand cars

  2. Steel and cement used to construct a flyover

  3. Farming crop purchased by FCI

  4. All of the above


Correct Option: B

The value of plant and machinery used and worn out in the manufacturing of goods and services is known as _______.

  1. transfer payment

  2. intermediate goods

  3. depreciation

  4. gross block


Correct Option: C

Which of these is not a final goods?

  1. steel fabricated structure

  2. scholarship paid to meritorious students

  3. milk purchased by a road side tea stall

  4. brick used in construction of temporary shed for the factory


Correct Option: A

 __________ are financial assets which are not a medium of exchange but are a close substitute for a transaction of business. 

  1. Equivalent money

  2. FIAT money

  3. Token money

  4. Near money


Correct Option: D

_______ account for the difference between GNP and NNP.

  1. Indirect taxation

  2. Capital formation

  3. Direct tax

  4. all the three


Correct Option: B

Which of these is not a feature of a Capitalist economy?

  1. Right of private property

  2. Social justice

  3. Profit maximization

  4. Consumer sovereighty


Correct Option: B

Depreciation means __________.

  1. loss of equipment over time due to wear and tear

  2. destruction of plant

  3. closure of plant

  4. none of the above


Correct Option: A

Goods that represent the social prestige are __________.

  1. complimentary goods

  2. conspicuous consumption

  3. ignorance

  4. inferior goods


Correct Option: B

A refrigerator operating in a chemist's shop is an example of ______________.

  1. free good

  2. final good

  3. intermediate good

  4. consumer good


Correct Option: C