Revision Series | Economy | Basics of Economy | Part-2 | 63

December 28, 2023

Consider the following statements:
1. Microeconomics and Macroeconomics are two very separate branches of Economics with no correlation.
2. Microeconomics is the study of individual markets of demand and supply.
Select the correct statement(s) using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (B)

Consider the following:
1. Land and labour
2. Capital and Entrepreneurship
3. Revenue
4. Expenditure.
Select the factors of production:

(A) 1 and 2 only
(B) 2 only
(C) 1, 2 and 4
(D) All of the above

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Answer: (A)

Consider the following statements:
1. The three dominant sectors of the Indian economy are the primary, secondary and the tertiary sector.
2. The services sector is the second largest contributor to the Indian Economy.
Select the correct statement(s) using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (A)

Consider the following statements:
1. People engaged in primary activities are called blue collar workers.
2. Goods production and transportation, finance come under the tertiary sector.
Select the correct statement(s) using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (D)

A fall in general level of prices may be caused by:
1. a decrease in the money supply
2. an increase in the aggregate level of output
3. a decrease in the effective demand
Select the correct answer using the codes given below.

(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3

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Answer: (D)

Which of the following statements is incorrect regarding the National Organization relating to National Income Accounting?

(A) The National Statistical Organization (NSO) was setup after the merger of the Central Statistical Organization and the National Sample Survey Organization .
(B) The National Statistical Commission had recommended for the creation of the NSO.
(C) The NSO is headed by the Chief Statistician of India.
(D) None of the Above.

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Answer: (D)

Which of the following statement(s) is/are correct?
1. Goods which are consumed together are called complementary goods.
2. Demand for food does not change much even if food prices go up.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (C)

Which of the following statement(s) is/are correct?
1. The GVA calculates the national income from the supply side by looking at the value-added in each sector of the economy.
2. NSO (National Statistical Office) estimates the national income under the Ministry of Commerce.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (A)

Which of the following statement(s) is/are correct?
1. GDP price deflator measures the changes in prices for some selected goods and services produced in an economy.
2. GDP deflator is also known as the implicit price deflator.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (B)

Which of the following statement(s) is/are correct?
1. The PPPs are simply price relatives that show the ratio of the prices in national currencies of the same good or service in different countries.
2. One of the first attempt for estimating national income in India was made by Dadabhai Naoroji during pre-independence era.
Select the answer using the codes given below:

(A) 1 only
(B) 2 only
(C) Both 1 and 2
(D) None of the above

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Answer: (C)