8) What is the effect of an increase in aggregate demand on the economy?

c) Increase in output and prices

7) What is the role of the Reserve Bank of India?

c) to regulate the money supply

9) Which economic indicator measures the total value of goods and services produced within a country's borders?

a) Gross Domestic Product (GDP)

4) What is the law of diminishing marginal utility ?

b) As consumption increases, marginal utility decreases

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Economics Basics

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Questions 10

Answers

1
3) Which of the following is a benefit of international trade?
b) Decreased economic growth
a) Increased competition
d) Decreased innovation
c) Increased prices
2
8) What is the effect of an increase in aggregate demand on the economy?
D) Decrease in output
c) Increase in output and prices
a) Decrease in prices
b) Increase in unemployment
3
7) What is the role of the Reserve Bank of India?
d) to control prices
b) to promote economic growth
a) To formulate fiscal policy
c) to regulate the money supply
4
6) What is the primary objective of the Monetary Policy Committee?
c) To regulate banks
d) To stabilize the exchange rate
a) To control inflation
b) To promote economic growth
5
5) What is the primary goal of a firm in a perfectly competitive market?
b) To minimize costs
d) To maximize profits
a) To minimize prices
c) To maximize revenue
6
10) What is the term for a market structure in which many firms produce a differentiated product?
d) Perfect competition
a) Monopoly
b) Oligopoly
C) Monopolistic competition
7
9) Which economic indicator measures the total value of goods and services produced within a country's borders?
d) National Income
a) Gross Domestic Product (GDP)
c) Net Domestic Product (NDP)
b) Gross National Product (GNP)
8
4) What is the law of diminishing marginal utility ?
d) As consumption decreases, total utility decreases
b) As consumption increases, marginal utility decreases
a) As consumption increases, total utility increases
c) As consumption decreases, marginal utility increases
9
1) What is the purpose of tariffs?
d) to reduce prices
b) to restrict imports
a) To promote free trade
c) to increase exports
10
2) Which market structure is characterized by a single buyer?
d) Perfect competition
c) Oligopoly
b) Monopsony
a) Monopoly

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