Tag: economics

Questions Related to economics

Pradhan Mantri Gram Sadak Yojana was aimed at improving road connectivity in _________.

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  1. urban area

  2. rural area

  3. both areas

  4. none of above

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Correct Option: B
Explanation:

Pradhan Mantri Gram Sadak Yojana was aimed at improving road connectivity in rural areas. This program is launched with the objective of providing road to all unconnected villages so that production mechanism in these areas rise. Constructing all weather road connectivity is included in this program.

Headquarters of southern railway is at ________.

nutrition and health status introduction to tamil nadu economy tamil nadu economy food security and nutrition economics

  1. Chennai

  2. Hyderabad

  3. Thiruvananthapuram

  4. Bangalore

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Correct Option: A
Explanation:

Southern railways are one of the 17 railway zones of India. Its headquarters are located in Chennai of Tamilnadu state.  It covers the states of Tamil Nadu, Kerala, Puducherry and small portions of Andhra Pradesh and Karnataka. 

Which country has the third largest education system in the world?

nutrition and health status introduction to tamil nadu economy tamil nadu economy food security and nutrition economics

  1. China

  2. Brazil

  3. India

  4. Argentina

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Correct Option: C

Imports of goods and services raises the _______ of foreign exchange.

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  1. supply

  2. demand

  3. both (a) and (b)

  4. neither (a) nor (b)

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Correct Option: B
Explanation:

Imports of goods and services raises the demand of foreign exchange. It s a component of the demand of foreign exchange because payments for imports are made in foreign exchange only.

The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is called the _____________.

national income identity for open economy open economy macroeconomics determination of income and employment economics

  1. income multiplier

  2. output multiplier

  3. employment multiplier

  4. money supply multiplier

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Correct Option: B

Coefficient of correlation will be always ______________.

national income identity for open economy open economy macroeconomics determination of income and employment economics

  1. More than 0

  2. More than-1

  3. Less than-1

  4. Between-1 and + 1

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Correct Option: D

An economy which has trade relation with rest of the world is called an _______.

national income identity for open economy open economy macroeconomics determination of income and employment economics

  1. open economy

  2. closed economy

  3. mixed economy

  4. under developed

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Correct Option: A
Explanation:

An open economy is one that operates a domestic sector and an international (foreign) sector and is interdependent. It is open to international trade. The economy will usually consist of 4 sectors, firms households, government and foreign sector when the economy is open.

The aggregate demand in an economy will ____________, if the government expenditure rises.

national income identity for open economy open economy macroeconomics determination of income and employment economics

  1. increase

  2. decrease

  3. remain unchanged

  4. either B or C

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Correct Option: A

The ____________, states, that if all the individuals in the economy increase the proportion of income they save, the total value of savings in the economy will
not increase, rather it would decrease or remain unchanged.

national income identity for open economy open economy macroeconomics determination of income and employment economics

  1. paradox of savings

  2. paradox of income function

  3. paradox of thrift

  4. none of the above

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Correct Option: C

The critical elements of macro-economic environment are:
I. Economic system
II. Economic legislation
III. Economic Planning
IV. Economic Policy Statements
Of these:

national income identity for open economy open economy macroeconomics determination of income and employment economics

  1. I and II are correct

  2. II and IV are correct

  3. I, II and III are correct

  4. All are correct

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Correct Option: D
Explanation:

For an economy to run smoothly and maintain order, there has to be an economic system that is governed by legislation, and constant planning  is undertaken in order to add new and review existing policies to further develop the economy.