INSIGHT UPSC QUIZ

 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?

Which among the following are the merits of ‘flexible exchange rate system’ over ‘fixed exchange rate system’?

1. The government does not need to maintain large stock of foreign exchange reserves.

2. Movements in the exchange rate are managed by the central banks by buying and selling foreign currencies.

3. The countries gain autonomy in conducting their monetary policies.

Select the correct answer using the code given below.

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?

With reference to a normal Union Budget, consider the following types of deficits:

1. Fiscal Deficit.

2. Revenue Deficit.

3. Effective Revenue Deficit.

4. Primary Deficit.

Arrange the types of deficits mentioned above in decreasing order and select the correct answer using codes given below:

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?

With reference to market economy, consider the following statements:

1. All economic activities are organised through the market.

2. In a market system, all goods or services come with a price.

3. Information about how much and what to produce is provided by the government.

Select the correct answer using the code given below:

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?

Which of the following conditions can increase the acceptability of a national currency to be used as an international medium of exchange?

1. The amount of goods that can be bought with a certain amount of that currency does not change frequently. 

2. The national currency is freely convertible at a fixed price into another asset like gold.

3. The issuing authority has full control over the value of that asset into which the currency can be converted.

Select the correct answer using the code given below.

Consider the following statements with reference to the differences between the ‘Real GDP and Nominal GDP’:

1. Nominal GDP is also known as GDP at constant prices.

2. Real GDP is Nominal GDP adjusted for inflation.

3. Nominal GDP growth is higher than real GDP growth.

Which of the statements given above are correct?

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?