Current Affairs MCQ for UPSC Exams – 15 October 2015

:: Miscellaneous ::

Q.1. Consider the following statements :

1. In India GDP is calculated in the basis of factor cost of net National Products
2. Price of the product at the production basis is known as factor price
3. Market price is always more than factor price.

Correct statements are –

a. 1,2
b. 1,2,3
c. 2,3
d. 1,3

Q.2  According to Keynesian school of economics –

1. A mis-match between demand and supply pulls up prices is demand – pull inflation
2. A price rise which is the result of increase in the production cost is cost push inflation

a. 1 Correct
b. 2 Correct
c. both correct
d. both incorrect

3. The governments resort to following options to check rising inflations

1. Government go on to increase the production to matching the level of demand is short term measure.
2. Tighter monetary policy to cool down either the demand – pull or cost push inflation by cutting down money supply in the economy.

a. 1 Correct
b. 2 Correct
c. both correct
d. both incorrect

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