CDS ECONOMICS QUIZ 1

Question 1:

Which of the following is the opportunity cost of chosen activity ?

Out of pocket cost

Out of pocket cost plus cost incurred by government

Value of all opportunities forgone

Value of next best alternative that is given up

Question 2:

The situation where the equilibrium level of real GDP falls short of potential GDP is known as ?

Recessionary gap

Inflationary gap

Demand side inflation

Supply side inflation

Question 3:

The situation in an economy which is growing slowly along with rapid inflation( rising price level ) is called

Stagnation

Deflation

Stagflation

Recession

Question 4:

Which of the following statements is not correct ?

Real GDP is calculated by valuing outputs of different years at common prices

Potential GDP is the real GDP that the economy would produce if its resources were fully employed

Nominal GDP is calculated by valuing outputs of different years at constant prices.

Real GDP per capita is the ratio of real GDP divided by population

Question 5:

According to UNDP human development report 2020 in which of the HDI components has india improved in recent years ?

Life expectancy at birth

Expected years of schooling

GNI per capita

Mean years of schooling

Question 6:

The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as ?

Bank rate

Nominal interest rate

Real interest rate

Terms of credit

Question 7:

The excess of total expenditure of government over its total receipts, excluding borrowings, is known as:

Primary deficit

Fiscal deficit

Current deficit

Capital deficit

Question 8:

Which of the following is not a function of money?

Act as an intermediate in the exchange process

Act as a store of value

Used as a unit of account

Used for regulating consumption

Question 9:

The mismatch in the regional or occupational pattern of job vacancies and the pattern of worker availability results in

Structural unemployment

Disguised unemployment

Altered unemployment

Cyclical unemployment

Question 10:

Match list 1 and list II and select the correct answer using the code given below the list

List I List II

(Curve) (Indications)

A.Lorrenz curve 1. Inflation and employment

B.Phillips curve 2.Tax rate and tax revenue

C.Engel curve 3. inequality in distribution of income or wealth

D.Laffer curve 4.income and proportion of expenditure on food

3 4 1 2

2 1 4 3

3 1 4 2

2 4 1 3