CPT Exam in General Economics 6

If the demand curve for good X is downward-sloping, an increase in the price will result in—-

Which of the following is the result of a decrease in the price of tea, other things being equal?

An increase in consumer income, other things being equal, will——-

Yesterday, seller A supplied 400 units of a good X at Rs10 per unit. Today, seller A supplies the same quantity of units at Rs. 5 per unit.

Based on this evidence, seller A has experienced a (an)

Which of the following is a variable cost in the short run?

If total revenue is Rs 100, explicit costs are Rs. 50, and implicit costs are Rs.30, then accounting profit equals :

If there are implicit costs of production, accounting profits will———

Price discrimination is a situation when a producer———–

In Perfect Competition—–

Assuming that tea is a normal good, a decrease in consumer income, other things being equal, will———

The market for hand tools (such as hammers and screwdrivers) is dominated by Black & Decker, Stanley, and Craftsman. This market is best described as

A market structure in which many firms sell products that are similar but not identical is known as——

If oligopolists engage in collusion and successfully form a cartel, the market outcome is——

Collusion is difficult for an oligopoly to maintain————

Which of the following is not a barrier to entry in a monopolized market?

Which of the following statements about price and marginal cost in competitive and monopolized markets is true?

A monopoly is able to continue to generate economic profits in the long run because———-

Why are transfer payments not a component of GDP?

Fresh evaluation of every item of expenditure from the very beginning of each financial
year is called?

The first devaluation of currency took place in——–

Assume that, in the population, 95 million people worked for pay last week, 5 million
people did not work for pay but had been seeking a job, 5 million people did not work for
pay and had not been seeking a job for the past several months, and 45 million were
under age 16. The unemployment rate, given these numbers, is:

Gross capital formation will increase if:
1. gross domestic savings increases
2. gross domestic consumption increase3. GDP increases
Select the correct answer using the codes given below.

Which of the following interest rates is still regulated?

1.  Savings account interest rate
2. Fixed deposit interest rate
3. Current account interest rate

Select the correct answer using the codes given below.

“An Enquiry into the Nature and Cause of the Wealth of Nations” book is written by?

A rise in general level of prices may be caused by——–

Which one of the following is likely to be the most inflationary in its effect?

In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’?
1. To enable the Central Bank to control the amount of advances the banks can create
2. To make the people’s deposits with banks safe and liquid
3. To prevent the commercial banks from making excessive profits
4. To force the banks to have sufficient vault cash to meet their day -to-day requirements.
Select the correct answer

An increase in the Bank Rate generally indicates that the———–

Consider the following specific stages of demographic transition associated with economic development
1. Low birthrate with low death rate
2. High birthrate with high death rate
3. High birthrate with low death rate
Select the correct order of the above stages using the codes given below:

In India, deficit financing is used for raising resources for———–

In the context of Indian economy, ‘Open Market Operations’ refers to———

The balance of payments of a country is a systematic record of———

The national income of a country for a given period is equal to the——–

The Reserve Bank of India regulates the commercial banks in matters of
1. liquidity of assets
2. branch expansion
3. merger of banks
4. winding-up of banks
Select the correct answer

Which of the following measures would result in an increase in the money supply in the
economy?
1. Purchase of government securities from the public by the Central Bank
2. Deposit of currency in commercial banks by the public3. Borrowing by the government from the Central Bank
4. Sale of government securities to the public by the Central Bank
Select the correct answer

The International Development Association, a lending agency, is administered by the—-

The lowering of Bank Rate by the Reserve Bank of India leads to———-

The SEZ Act, 2005, which came into effect in February 2006 has certain objectives. In this Context, consider the following:
1. Development of infrastructure facilities.
2. Promotion of investment from foreign sources.
3. Promotion of exports of services only.
Which of the above are the objectives of this Act?

The supply of a commodity does not depend directly upon——

Which of the following is / are treated as artificial currency?

New firms are barred from entering the market in———

India’s largest commercial bank is—–

Regarding the International Monetary Fund, which one of the following statements is correct?

Fiscal Policy is related to———–

Foreign exchange rate means the rate at which the currency of one country can be traded for———-

In India, during the last decade the total cultivated land for which one of the following crops has remained more or less stagnant?

In India, the tax proceeds of which one of the following as a percentage of gross tax
revenue has significantly declined in the last five years?

In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

Consider the following actions which the government can take:
1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIs.
Which of the above action/actions can help in reducing the current account deficit?

Consider the following statements:
The functions of commercial banks in India include
1. Purchase and sale of shares and securities on behalf of customers.
2. Acting as executors and trustees of wills.
Which of the statements given above is/are correct?