CURRENCY INFLATION MCQS SET 19

CURRENCY INFLATION MCQS SET 19

181) Which one of the following factors can cause the Cost-Push inflation in an economy?
A) Oil price shocks in the world
B) Fluctuation in the production of food grains
C) Imposition of high commodity taxes
D) All of the above
Correct Answer: All of the above
   
182) With reference to inflationary indices, consider the following statements
1. At present the WPI for all commodities including manufactured products is released only on a monthly basis in India. .
2. International practice for reporting CPI inflation is also on a monthly basis.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
183) Which one of the following laws stated that the size of a firm and its growth rate are independent?
A) Gibrat's law
B) Goodhart's law
C) Hubbert's law
D) None of the above
Correct Answer: Gibrat's law
   
184) Consider the following statements
1. Short term Phillips Curve looked like a normal Phillips Curve.
2. In long term Philips Curve, a single rate of unemployment was consistent with a stable inflation rate.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Both 1 and 2
   
185) Which one of the following coin the term 'Stagflation' in the economy?
A) Iain Macleod
B) Milton Friedman
C) J M Keynes
D) William Phillips
Correct Answer: Iain Macleod

186) Which of the following statements is/are true with respect to Phillips Curve?
1. It shows the trade-off between unemployment and inflation.
2. The downward sloping curve of Phillips Curve is generally held to be valid only in the short run.
3. In the long run, Phillips Curve is usually thought to be horizontal at the Non-Accelerating Inflation Rate of Unemployment (NAIRU)
Select the correct answer using the codes given below
A) Only 1
B) 2 and 3
C) 1 and 2
D) 1, 2 and 3
Correct Answer: 1, 2 and 3
   
187) Which one of the following goods/ services is not the non-merit good/ service of an economy?
A) Fertiliser subsidies
B) Priority sector loans/lending
C) Tax exemption on medical expenses
D) Subsidies on road and bridges constructions
Correct Answer: Subsidies on road and bridges constructions
   
188) Which one of the following consequences can be observed when there is an undue expansion or increase of the money supply in an economy?
A) Headline inflation
B) Chronic deflation
C) Chronic inflation
D) Core inflation
Correct Answer: Chronic inflation
   
189) Consider the following statements about the measurement of the Inflation
1. Prices of the items of particular sets are compared to prices of items of five year ago.
2. Inflation is measured based on the Consumer Price Index (CPI) which measures the change in prices of a selection of goods at retail rates.
Which of the statements given above is/are correct?
A) Only 1
B) Only 2
C) Both 1 and 2
D) Neither 1 nor 2
Correct Answer: Neither 1 nor 2
   
190) Which one of the following measures is generally used the government to contain the recession of the economy?
A) Increasing money supply
B) Increasing government spending
C) Decreasing taxation
D) All of the above
Correct Answer: All of the above