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Economics - Questions and Answers

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41. Expenditure on when or the following is not considered investment in the theory of income determination ?
A. Factory construction
B. A computer
C. Increase in stocks of unsold goods
D. Stocks or shares in a joint stock company
Explanation:
42. Which of the following is the most likely reason why total income tends to fluctuate ?
A. People adjust to changing incomes by changing saving habits
B. Consumption is not always a constant fraction of income
C. Many savings and investment decisions are taken by different people
D. Consumption habits often undergo dramatic changes.
Explanation:
43. India is more experience an annual rate of growth of prices which may be apply charactterizrd as
A. Suppressed inflation
B. Normal Inflation
C. Stagflation
D. Hyper Inflation
Explanation:
44. To know the potential purchasing power of the household sector, we make use of the concept of
A. National income
B. Personal income
C. Disposable income
D. Private income
Explanation:
45. Which of the following is the Banker of the Banks ?
A. IDBI
B. SBI
C. RBI
D. RBI and SBI
Explanation:
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