31. Devaluation of currency will be more beneficial if A. prices of domestic goods remain constant B. prices of exports remain constant C. prices of imports remains constant D. prices of exports rise proportionately

[amp_mcq option1=”prices of domestic goods remain constant” option2=”prices of exports remain constant” option3=”prices of imports remains constant” option4=”prices of exports rise proportionately” correct=”option4″]

Detailed SolutionDevaluation of currency will be more beneficial if A. prices of domestic goods remain constant B. prices of exports remain constant C. prices of imports remains constant D. prices of exports rise proportionately

32. The current price index (base 1960) is nearly 330. This means that A. all items cost 3-3 times more than what they did in 1960 B. the prices of certain selected items have gone up to 3-3 times C. weighted means of prices of certain item has increased 3-3 times D. gold price has gone up 3-3 times

[amp_mcq option1=”all items cost 3-3 times more than what they did in 1960″ option2=”the prices of certain selected items have gone up to 3-3 times” option3=”weighted means of prices of certain item has increased 3-3 times” option4=”gold price has gone up 3-3 times” correct=”option3″]

Detailed SolutionThe current price index (base 1960) is nearly 330. This means that A. all items cost 3-3 times more than what they did in 1960 B. the prices of certain selected items have gone up to 3-3 times C. weighted means of prices of certain item has increased 3-3 times D. gold price has gone up 3-3 times

35. If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be A. zero B. equal to government income C. larger than government income D. negative

[amp_mcq option1=”zero” option2=”equal to government income” option3=”larger than government income” option4=”negative” correct=”option2″]

Detailed SolutionIf an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be A. zero B. equal to government income C. larger than government income D. negative

38. Revenue of the state governments are raised from the following sources, except A. entertainment tax B. expenditure tax C. agricultural income tax D. land revenue

[amp_mcq option1=”entertainment tax” option2=”expenditure tax” option3=”agricultural income tax” option4=”land revenue” correct=”option3″]

Detailed SolutionRevenue of the state governments are raised from the following sources, except A. entertainment tax B. expenditure tax C. agricultural income tax D. land revenue

40. Which of the following is not viewed as a national debt? A. Provident Fund B. Life Insurance Policies C. National Saving Certificate D. Long-term Government Bonds

[amp_mcq option1=”Provident Fund” option2=”Life Insurance Policies” option3=”National Saving Certificate” option4=”Long-term Government Bonds” correct=”option1″]

Detailed SolutionWhich of the following is not viewed as a national debt? A. Provident Fund B. Life Insurance Policies C. National Saving Certificate D. Long-term Government Bonds