INSIGHT UPSC QUIZ

Consider the following statements:

1. In microeconomics, we study the behaviour of individual economic agents in the markets for different goods and services. 

2. In macroeconomics, focus is on the overall performance of the economy.

Which of the statement(s) given above is/are NOT correct?

In context of the difference between ‘devaluation and depreciation’, consider the following statements:

1. Devaluation is the deliberate downward adjustment of a country's currency value, whereas depreciation is a fall in the value of a currency.

2. Devaluation is more relevant in a fixed or semi-fixed exchange rate, whereas depreciation is more relevant in a floating exchange rate.

3. Devaluation makes imports more expensive, and exports more competitive, whereas depreciation makes imports cheaper, and exports less competitive.

Which of the statements given above are correct?

Read the following statements carefully in the context of ‘Gross Domestic Product at Market Prices’:

1. It is the market value of all final goods and services produced within a domestic territory of a country measured in a year.

2. It includes all production done by national residents or the non-residents in a country.

3. It excludes all production done by residents in a country if the production is owned by a foreign company.

Which of the statements given above is/are correct?

Consider the following statements:

1. A surplus current account means that the nation is a lender to other countries and a deficit current account means that the nation is a borrower from other countries. 

2. The capital account deals with the change in ownership of a country’s assets, and the current account reflects the change in a country’s net income.

3. Developing nations typically run very large capital account deficits in proportion to their GDP, which are financed by loans and grants on the current account.

Which of the statements given above is/are correct?

Consider the following statements:

1. Reserve Bank of India allowed stock exchanges to start the T+1 Settlement system for completion of share transactions.

2. T+1 settlement system will help in reducing the number of outstanding unsettled trades at any instant.

3. A shortened cycle not only reduces settlement time but also frees up the capital required to collateralize that risk. 

Which of the statement(s) given above is/are correct?

 With reference to Indian Economy, which among the following is/are classified as foreign investment:

1. Investment made by Multinational Corporations (MNCs).

2. FDI under government route.

3. External Commercial Borrowings. 

4. Foreign investor investing in an Indian small scale industrial unit.

Select the correct answer using the code given below:

Which of the following statements regarding the differences between Consumer Price Index (CPI) and GDP Deflator are correct?

1. While CPI does not represent all the goods which are produced in a country, GDP deflator takes into account all such goods and services.

2. While CPI does not include prices of imported goods, GDP deflator includes prices of imported goods.

3. While the weights are constant in CPI, they differ according to production level of each good in GDP deflator.

Select the correct answer using the code given below.

Which of the following would result in appreciation of the domestic currency (rupee) in terms of foreign currency (US dollar)?

1. Rise in the interest rates in India.

2. Increase in income of Indians in comparison to Americans.

2. Aggregate demand of India grows faster than the rest of the world’s demand.

Select the correct answer using the code given below.

Consider the following statements:

1. The demand for every good in the market has a direct relationship with increase or decrease in its price.

2. Price elasticity is a measure of the change in demand of product/service in response to changes in income of consumers.

Which of the statement(s) given above is/are correct?

 Consider the following statements:

1. Profit is the difference between total revenue and total cost.

2. With the increase in output the total profit of the company always increases.

Which of the statement(s) given above is/are correct?