General knowledge question and answer on Indian economy



1
Gross Profit means
A.    Total Investment over total saving
B.    Changes in methods of production
C.    Changes in the form of business Organisation 
D.    Total receipts over total expenditure

Answer : D.  Total receipts over total expenditure

2
Agricultural income-tax is a source of revenue to
A.    Central Government
B.    State Government
C.    Local Administration
D.    Central and State Government

Answer : C.  Local Administration

3
Which of the following is not the instrument of fiscal policy ?
A.    Bank Rate
B.    Government expenditure
C.    Taxes
D.    Licence fees

Answer : A.  Bank Rate

4
The National Income Account includes
A.    Services of housewives
B.    Income of smugglers
C.    Services of sadhus
D.    Services of night-watchman

Answer : D.  Services of night-watchman

5
Total utility is maximum at a point, then marginal utility is
A.    Positive
B.    Zero
C.    Negative
D.    Positive but decreasing.

Answer : B.   Zero

6
Beyond a certain limit, a deficit financing will certainly lead to 
A.    Inflation 
B.    Deflation
C.    Recession
D.    Economic stagnatio.

Answer : A.  Inflation 



7
The credit control operation is performed by
A.    Rural Banks
B.    Commercial Banks
C.    Reserve Bank
D.    State bank of india

Answer : C.  Reserve Bank

8
Same price prevails throughout the market under
A.    Perfect Competition
B.    Monopoly
C.    Monopolistic competition
D.    Oligopoly

Answer : A.  Perfect Competition