Economy Set 1 MCQs

Economy GK

Economy Set 1 MCQs

Practice Economy GK MCQs on basic economic concepts including economy, economics, microeconomics, macroeconomics, goods and services, demand and supply, factors of production, opportunity cost, economic activities, sectors of economy and other fundamental concepts frequently asked in SSC, Railway, Banking, UPSC, JKSSB, JKPSC, Police, Defence and other competitive examinations.

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Total Questions

Practice Questions

Page 96 of 111
Question #1901
The 'Consumer Price Index' measures:
A. retail prices paid by consumers
B. wholesale prices
C. prices of imports
D. prices of exports
Discuss
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Correct Answer: Option A

Explanation:
CPI measures changes in retail prices paid by consumers.
This question belongs to: Economy GK Economy Set 1
Question #1902
The 'Wholesale Price Index' measures:
A. prices of services
B. prices of consumer goods only
C. retail prices
D. prices at the wholesale level
Discuss
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Correct Answer: Option D

Explanation:
WPI measures price changes at the wholesale level.
This question belongs to: Economy GK Economy Set 1
Question #1903
The 'core inflation' measure excludes:
A. food and fuel
B. manufactured goods
C. imports
D. services
Discuss
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Correct Answer: Option A

Explanation:
Core inflation excludes volatile food and fuel prices.
This question belongs to: Economy GK Economy Set 1
Question #1904
The 'Phillips curve' shows trade-off between:
A. inflation and unemployment
B. unemployment and growth
C. inflation and growth
D. interest rates and inflation
Discuss
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Correct Answer: Option A

Explanation:
Phillips curve shows inverse relationship between inflation and unemployment.
This question belongs to: Economy GK Economy Set 1
Question #1905
The 'stagflation' is a combination of:
A. low inflation and low unemployment
B. high inflation and high unemployment
C. high inflation and low unemployment
D. low inflation and high unemployment
Discuss
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Correct Answer: Option B

Explanation:
Stagflation is high inflation combined with high unemployment and stagnant demand.
This question belongs to: Economy GK Economy Set 1
Question #1906
The 'disinflation' refers to:
A. an increase in inflation
B. a fall in GDP
C. a fall in the price level
D. a decrease in the rate of inflation
Discuss
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Correct Answer: Option D

Explanation:
Disinflation is a slowdown in the rate of inflation.
This question belongs to: Economy GK Economy Set 1
Question #1907
The 'deflation' refers to:
A. a rise in inflation
B. a sustained fall in the general price level
C. a fall in unemployment
D. a fall in the rate of inflation
Discuss
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Correct Answer: Option B

Explanation:
Deflation is a sustained decline in the general price level.
This question belongs to: Economy GK Economy Set 1
Question #1908
The 'reflation' refers to:
A. a fall in prices
B. policy measures to stimulate the economy after a period of deflation or recession
C. increase in unemployment
D. reduction in money supply
Discuss
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Correct Answer: Option B

Explanation:
Reflation refers to policies to revive the economy after deflation or recession.
This question belongs to: Economy GK Economy Set 1
Question #1909
The 'hyperinflation' is:
A. extremely rapid and uncontrolled price rise
B. stable prices
C. falling prices
D. slow price rise
Discuss
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Correct Answer: Option A

Explanation:
Hyperinflation is extremely rapid and uncontrolled inflation.
This question belongs to: Economy GK Economy Set 1
Question #1910
The 'base effect' in inflation calculation means:
A. the influence of the previous year's price level on current inflation
B. effect of money supply
C. change in base year of the price index
D. effect of currency depreciation
Discuss
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Correct Answer: Option A

Explanation:
Base effect refers to the impact of the previous year's price level on the current inflation rate.
This question belongs to: Economy GK Economy Set 1
Question #1911
The 'headline inflation' is the measure that:
A. excludes all food items
B. excludes fuel
C. includes all items in the price index
D. only includes services
Discuss
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Correct Answer: Option C

Explanation:
Headline inflation includes all items in the price index.
This question belongs to: Economy GK Economy Set 1
Question #1912
The 'producer price index' measures prices received by:
A. producers for their output
B. retailers only
C. consumers
D. wholesalers only
Discuss
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Correct Answer: Option A

Explanation:
Producer Price Index measures prices received by producers.
This question belongs to: Economy GK Economy Set 1
Question #1913
The 'personal consumption expenditure price index' is commonly used in which country?
A. China
B. Japan
C. United States
D. India
Discuss
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Correct Answer: Option C

Explanation:
The PCE price index is a primary inflation measure in the US.
This question belongs to: Economy GK Economy Set 1
Question #1914
The 'consumer price index' in India is released by which organization?
A. Ministry of Finance
B. RBI
C. National Statistical Office
D. Labour Bureau
Discuss
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Correct Answer: Option C

Explanation:
CPI is released by the National Statistical Office.
This question belongs to: Economy GK Economy Set 1
Question #1915
The 'Wholesale Price Index' in India is released by:
A. NSO
B. RBI
C. Labour Bureau
D. Office of Economic Adviser, Ministry of Commerce and Industry
Discuss
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Correct Answer: Option D

Explanation:
WPI is released by the Office of Economic Adviser.
This question belongs to: Economy GK Economy Set 1
Question #1916
The 'Index of Industrial Production' in India is released by:
A. NITI Aayog
B. RBI
C. Ministry of Finance
D. Ministry of Statistics and Programme Implementation
Discuss
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Correct Answer: Option D

Explanation:
IIP is released by MoSPI.
This question belongs to: Economy GK Economy Set 1
Question #1917
The 'GST' is a value-added tax because:
A. it is levied on turnover
B. it is a direct tax
C. input tax credit is available
D. it is collected at source
Discuss
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Correct Answer: Option C

Explanation:
GST is a value-added tax because input tax credit avoids cascading.
This question belongs to: Economy GK Economy Set 1
Question #1918
The 'Goods and Services Tax' was first proposed in India by:
A. RBI
B. Gadgil Committee
C. Kelkar Task Force on FRBM? Actually Chelliah Committee
D. Narasimham Committee
Discuss
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Correct Answer: Option C

Explanation:
GST was first proposed by the Chelliah Committee on tax reforms, not Kelkar.
This question belongs to: Economy GK Economy Set 1
Question #1919
The 'Goods and Services Tax' was first proposed in India by which committee?
A. Chelliah Committee
B. Narasimham Committee
C. Gadgil Committee
D. Rangarajan Committee
Discuss
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Correct Answer: Option A

Explanation:
The Chelliah Committee first recommended GST in India.
This question belongs to: Economy GK Economy Set 1
Question #1920
The 'Goods and Services Tax' was first introduced in India through which amendment?
A. 101st Constitutional Amendment
B. 102nd Constitutional Amendment
C. 100th Constitutional Amendment
D. 99th Constitutional Amendment
Discuss
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Correct Answer: Option A

Explanation:
GST was introduced through the 101st Constitutional Amendment Act, 2016.
This question belongs to: Economy GK Economy Set 1
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