Barter system requires double coincidence of wants.
- True
- False
Answer: True
Both parties must desire exactly what the other has to offer.
Economics – GK Questions
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Broad money in India is?
- M1
- M2
- M3
- M4
Answer: M3
M3 = M1 + Time deposits with banks.
M1 = Currency + ___ + Other deposits.
- employment elasticity (or labor market)
- Demand deposits
- 112
- Peer (or P2P)
Answer: Demand deposits
M1 is the narrowest measure of money supply.
Legal tender can be refused.
- True
- False
Answer: False
Legally, it cannot be refused for the settlement of debts.
Fiat money is backed by?
- Gold
- Silver
- Government order
- Forex
Answer: Government order
Fiat money has no intrinsic value and is backed by govt decree.
CSO is now merged into?
- NSSO
- NSO
- RBI
- NITI Aayog
Answer: NSO
National Statistical Office (NSO).
Per capita income = National Income / ___.
- Population
- short
- less
- 3.5
Answer: Population
Represents the average income per person in the country.
Nominal GDP is always greater than Real GDP.
- True
- False
Answer: False
False during periods of deflation or in the base year.
GDP deflator formula?
- Nominal/Real*100
- Real/Nominal*100
- Nominal*Real
- Real-Nominal
Answer: Nominal/Real*100
Measures the overall change in price level in the economy.
Real GDP is adjusted for ___.
- open market borrowings (or debt / bonds)
- inflation
- countervailing
- PT (or PY)
Answer: inflation
Real GDP uses base year prices to remove inflation effects.
Transfer payments are included in GDP.
- True
- False
Answer: False
No goods or services are produced in exchange for transfers.
Double counting is avoided by using?
- Income method
- Value added method
- Expenditure method
- None
Answer: Value added method
Only the value added at each stage of production is counted.
NNP at factor cost is known as ___.
- below
- National Income
- collusion
- frictional
Answer: National Income
It is the purest measure of a country's national income.
GNP includes net factor income from abroad.
- True
- False
Answer: True
GNP = GDP + Net Factor Income from Abroad (NFIA).
GDP at market price - Indirect taxes + Subsidies = ?
- GDP at FC
- GNP
- NNP
- NDP
Answer: GDP at FC
Net indirect taxes are subtracted to find factor cost.
Opportunity cost is also called?
- Explicit cost
- Economic cost
- Accounting cost
- Sunk cost
Answer: Economic cost
Economic cost includes both explicit and implicit costs.
Total cost = Total fixed cost + ___.
- Foreign Currency Assets (FCA)
- Total variable cost
- 1998
- Okun's
Answer: Total variable cost
TC is the sum of TFC and TVC.
Fixed cost changes with output.
- True
- False
Answer: False
Fixed cost remains constant regardless of output level.
Marginal cost curve cuts average cost at?
- Maximum
- Minimum
- Origin
- Infinity
Answer: Minimum
MC intersects AC exactly at its lowest point.
MRTS is the slope of ___.
- isoquant
- final
- interest
- NPCI (or National Payments Corporation of India)
Answer: isoquant
Marginal Rate of Technical Substitution.