Economic and Social Development | Inflation and Price Index
Economic and Social Development | Inflation and Price Index
1. In India, inflation is measured by the
Wholesale Price Index number
Consumers Price Index
Producer Price Index
National Income deflation
Correct Answer
Wrong Answer
2. For measuring the changes in the price level of the country, which among the following index number is used?
Consumer price index number
Production index number
Security price index number
Wholesale price index number
Correct Answer
Wrong Answer
3. Economic growth is usually coupled with
Deflation
Inflation
Stagflation
Hyper-inflation
Correct Answer
Wrong Answer
4. Inflation rate based on consumer price index increases if
Bank rate is decreased
Reverse repo rate is decreased
Statutory Liquidity ration is increased
Repo rate is increased
Correct Answer
Wrong Answer
5. Inflation is best described as
high prices
increase in price index
increase in purchasing power
increase in price of particular goods
Correct Answer
Wrong Answer
6. Who amongst the following benefits most from inflation?
Creditors
Debtors
Saving Bank Account Holders
Government Pensioners
Correct Answer
Wrong Answer
7. Which one of the following is NOT a method to control inflation?
Controlling the demand
Controlling the supply of money
Reducing the rate of interest
Rationing of commodities
Correct Answer
Wrong Answer
8. Which of the following price index number are used for calculation of Central Government employee wage compensation?
Wholesale price index
Consumer price index for industrial workers
Consumer price index for agricultural labourers
None of the above
Correct Answer
Wrong Answer
9. The most common measure of estimating inflation in India is
Price Index
Wholesale Price Index
Consumer Price Index
Price Index of Index Goods
Correct Answer
Wrong Answer
10. Which one of the following statements is an appropriate description of deflation?
It is a sudden fall in the value of a currency against other currencies
It is persistent recession in both the financial and real sectors of economy
It is a persistent fall in the general price level of goods and services
It is a fall in the rate of inflation over a period of time
Correct Answer
Wrong Answer
11. An expression coined by economists to describe an economy that is growing at such a slow pace that more jobs are being lost than are being added
Stagflation
Recession
Growth Recession
Ratchet Inflation
Correct Answer
Wrong Answer
12. A rapid increase in the rate of inflation is sometimes attributed to the 'base effect'. What 'base effect'?
It is the impact of dRAS/RTStic deficiency in supply due to failure of crops
It is the impact of the surge in demand due to rapid economic growth
It is the impact of the price levels of previous year on the calculation of inflation rate
None of the statements (A), (B). and (C) given above is correct in this content
Correct Answer
Wrong Answer
13. Index 'Residex' is associated with
Share Prices
Mutual Fund Prices
Price Index
Land Prices
Correct Answer
Wrong Answer
14. RESIDEX, an index of residential prices in India, was launched in the year
2001
2004
2007
2008
Correct Answer
Wrong Answer
15. In calculation of index of wholesale prices, which one of the following sector is assigned maximum weightage?
Food articles
Non-food articles
Fuel, power, light and lubricant
Manufactured products
Correct Answer
Wrong Answer
16. Who has been recently made the chairman of the work group on revision of Wholesale Price Index Services?
C. Rangrajan
P.R. Panchamukhi
K.C. Pant
Abhijit Sen
Correct Answer
Wrong Answer
17. The base year for All-India Wholesale Price Index (WPI) has been changed by the Government of India from 2004-05 to
2010-11
2011-12
2012-13
2013-14
Correct Answer
Wrong Answer
18. Which of the following fixed the four percent inflation target in India with tolerance level of +/-2 percent for the period 2016 to 2021?
Reserve Bank of India
Government of India
NITI Aayog
Fourteenth Finance Commission
Correct Answer
Wrong Answer
19. Producer Price Index measures
the average change in the prices of produced goods and services
the marginal change in the prices of produced goods and services
the total change in the prices of produced goods and services
None of the above
Correct Answer
Wrong Answer
20. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
industrial output fails to keep pace with agricultural output
agricultural output fails to keep pace with industrial output
poverty and unemployment increase
imports grow faster than exports
