Unique Academic Board Solutions for Chapter: Inflation, Exercise 1: Self-Evaluation Test
Unique Academic Board General Knowledge/General Awareness Solutions for Exercise - Unique Academic Board Solutions for Chapter: Inflation, Exercise 1: Self-Evaluation Test
Attempt the practice questions on Chapter 4: Inflation, Exercise 1: Self-Evaluation Test with hints and solutions to strengthen your understanding. Indian Economy Economic & Social Development solutions are prepared by Experienced Embibe Experts.
Questions from Unique Academic Board Solutions for Chapter: Inflation, Exercise 1: Self-Evaluation Test with Hints & Solutions
Consider the following:
1. A rise in input costs
2. Reduction in labour costs
3. Lower rate of indirect taxes
Which of the above can cause the Cost-push Inflation phenomenon?
Consider the following observations:
1. Rising Minimum Support Prices (MSP) pushes up prices of agricultural produce in the market.
2. Extra creation of money over the same levels of production causes cost-push inflation in the economy.
Which of the above statement(s) is/are correct?
Consider the following:
1. Depreciation of exchange rate
2. Expansionary monetary policy
3. Government-led fiscal stimulus
Which of the above is/are the causes of Demand-Pull Inflation?
Consider the following statements in the context of Wholesale Price Index (WPI):
1. The WPI is a representative index of primary articles, fuel and power but excluding the manufactured products.
2. The major weightage under the Wholesale Price Index goes to the services sector due to its substantial contribution to GDP.
Which of the above statement(s) is/are correct?
Consider the following statements:
1. The Wholesale Price Index (WPI) is published monthly by the Central Statistical Organisation (CSO).
2. The prices used for the compilation of WPI include indirect taxes to account the impact of fiscal policy.
Which of the above statement(s) is/are correct?
Which of the following observations are correct?
1. Inflation discourages exports.
2. High inflation leads to less saving.
3. Inflation increases the cost of production.
4. Inflation redistributes wealth from creditors to debtors.
Choose the correct code.
Consider the following:
1. Increased interest rates
2. Increased public borrowing
3. Reduction in public expenditure
To control inflation, which of the above measures can be resorted to?
Consider the following statements in the context of the difference between Wholesale and Consumer Price Indices:
1. While Wholesale Price Index excludes the service sector, Consumer Price Index includes the same.
2. While Wholesale Price Index gives lesser weightage to food, Consumer Price Index gives higher weightage.
3. While Wholesale Price Index is published by the Ministry of labour, the Consumer Price Index is published by CSO.
Which of the above statement(s) is/are correct?
