Indian Economy MCQs

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Among the given options, the nucleus is the heaviest. This is because the nucleus consists of both neutrons and protons, commonly referred to as nucleons. The combined weight of these nucleons makes the nucleus significantly heavier than an individual neutron or proton. In contrast, an atom, which includes a nucleus and orbiting electrons, is lighter because electrons have very miniscule mass compared to nucleons.

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The First National Commission on Labour was set up in 1966 which, for the first time, studied and analyzed the industrial relations in the country. The Second National Commission on Labour was set up in 1999, which analysed the industrial relations in India in the era of globalisation.

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Elastic demand – If the price changes, the quantity demanded will not change much. The more essential a good is, the lower its elasticity, as people will try to buy it, no matter the price.

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The supply function expresses the relationship between the total quantity supplied and the price received by all suppliers per unit of time, keeping other factors constant. It shows the relationship between price and supply.

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Macroeconomics includes the sum total of economic activities. It deals with issues like production, growth, inflation and unemployment of national income. It is all about maximizing national income and growth.

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Intermediate goods are semi-finished products that are used as inputs in the production of other goods, including final goods. It includes a material or commodity that is the end product of one process but is also used as an input in the production process of another good. Steel sheets serve as a raw material in the production of furniture.

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The three methods used for measuring national income are Value Added Method; Income Method; Expenditure Method. Pension (old-age pension) is not included in the national income as it is a transfer payment made by the government and a transfer income for the receiver.

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There are two methods that the RBI uses for credit control in the economy: The qualitative method (Marginal requirement, Rationing of credit, Direct action, Moral Suasion, etc) and the Quantitative method (Bank rate, Open Market Operations, Cash Reserve Ratio, Statutory Liquidity Ratio, etc).

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When the money supply increases, it means there is more money available in the economy to borrow. This increased supply conforms to the law of demand and tends to lower interest rates or lower the price of borrowing money. Similarly, when the money supply decreases, it will raise interest rates.

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An economy that does not interact with the economy of another country is known as a closed economy. A closed economy is self-sustaining, meaning that no imports are brought in and no exports are sent. This is in contrast to an open economy, in which a country trades with outside regions.