. Production is a function of

(1) Profits

(2) Costs

(3) Price

(4) Factory

. A fall in the price of a commodity leads to

(1) A rise in Consumer’s real income

(2) A shift in demand

(3) A fall in demand

(4) A fall in Consumers real income

. When the price of a commodity is higher than the
controlled price, it is known as

(1) Overdue price

(2) Fair price

(3) Black-market price

(4) Surplus price

. The type of economy we have in India is

(1) Capitalistic

(2) Socialistic

(3) Communistic

(4) Mixed

. Main cause of the inflation in India is

(1) Lack of money

(2) No foreign exchange

(3) Low output

(4) None of the above

. Which one of the following is the cheapest source of energy?

(1) Wind power

(2) Hydroelectricity

(3) Solar energy

(4) Tidal wave power

. Small industries are encouraged because

(1) There is a large employment potential

(2) Quality of goods produced is high

(3) Cost of production is low

(4) Initial capital investment is low

. The measurement of poverty line is based on the criterion of

(1) Their dwelling houses

(2) The nature of employment

(3) Caloric consumption

(4) The level of education

. Land Development banks provide credit to the farmers for

(1) Buying land

(2) Digging wells

(3) Marketing their agricultural surplus

(4) All the above

. India’s largest export of tea is to

(1) China

(2) America

(3) The United Kingdom

(4) Japan

. Inflation means

(1) Falling prices

(2) Rising prices

(3) Low prices

(4) Very high prices

. Which one of the following is a legal money

(1) Gold

(2) Cheque

(3) Promissory note

(4) Currency notes and coins

. Which one of the following is an indirect tax?

(1) Land revenue

(2) Income Tax

(3) Import duty

(4) Estate duty

. Hundred-rupee note is issued by

(1) The State Bank of India

(2) The Reserve Bank of India

(3) The Ministry of Finance

(4) None

. The state of insing price is known as

(1) Inflating

(2) Deflation

(3) Stagflation

(4) Reflation