Economics Page-3

21) Which of the following is correct?
(A) Consumption is a function of income
(B) Consumption is a function of saving
(C) Income is a function of consumption
(D) Income is a function of saving

22) Perfect market means there are
(A) many sellers and many buyers
(B) few sellers and few buyers
(C) few sellers and many buyers
(D) few buyers and many sellers

23) The group of people who benefit from inflation is?
(A) creditor
(B) debtors
(C) salaried class
(D) wage earners

24) What is the meaning of the term stagflation?
(A) fall in prices due to less circulation of currency
(B) fall in employment due to declining production
(C) high inflation rate combined with high unemployment and unchanged consumer demand
(D) none of these

25) The term 'Dumping' means which of the following?
(A) the sale of the sub-standard commodity
(B) sale in a foreign market of a commodity at a price below marginal cost
(C) sale in a foreign market of a commodity just at marginal cost without too much of profit
(D) smuggling of goods without paying any customs duty


26) Gross National Product is the sum total of
(A) The money value of all goods produced
(B) The money value of all finished goods and services
(C) Payments to factors for the production of finished goods
(D) Market values of all goods minus the value of inventory

27) Economic development
(A) Is the same as economic growth
(B) Means improvement in lifestyle
(C) Exists when there is equal distribution of income
(D) All of the above

28) Economic development is measured on the basis of
(A) Increase in nominal GNP
(B) Increase in real GNP
(C) Increase in personal incomes
(D) Increase in government revenue

29) The govt can control inflation by
(A) Increasing demand for goods
(B) Increasing supply of goods
(C) Increasing money supply
(D) Decreasing taxes

30) The Asian Development Bank (ADS) is located in
(A) Beijing
(B) Tokyo
(C) Bangkok
(D) Manila



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