InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following is an example of Non-durable good ?A. MilkB. BreadC. Both (a) and (b)D. Clothes |
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Answer» Correct Answer - C C. Milk and Bread are the examples of Non-durable good.Goods that are immediately consumed in one use or ones that have a lifespan of less than three years are called non-durable good. |
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| 2. |
Japanese Embassy in India is a part of domestic territory of :A. IndiaB. JapanC. Both (a) and (b)D. International Area |
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Answer» Correct Answer - B B. Japanese Embassy in India is a part of domestic territory of Japan . |
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| 3. |
Give an example of a person who is staying abroad for a period more than one year and still he is treated as normal resident of India . |
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Answer» Correct Answer - An Indian working in Indian Embassy in USA will be treated as normal resident of India. An Indian working in Indian Embassy in USA will be treated as normal resident of India. |
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| 4. |
If factor cost is greater than market price , then it means that :A. Indirect Taxes `gt` SubsidesB. Indirect Taxes = SubsidiesC. Indirect Taxes `lt` SubsidesD. Indirect Taxes `ge` subsidies |
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Answer» Correct Answer - C C. If factor cost is greater than market price , then it means that : Indirect Taxes `lt` Subsides. |
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| 5. |
Depreciation means :A. Destruction of a plant in a fire accidentB. Loss of fixed assets over time due to wear and tearC. Loss of fixed assets in an earthquakeD. Closure of the plant due to lock out |
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Answer» Correct Answer - B B. Depreciation means Loss of fixed assets over time due to wear and tear . |
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| 6. |
Are the following statements true or false ? Give reasons. National Income is always more than the Domestic Income . |
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Answer» Correct Answer - False . National Income can also be less than domestic income , when net factor income from abroad is negative . National Income is always more than the Domestic Income only when net factor income from abroad is positive. False . National Income can also be less than domestic income , when net factor income from abroad is negative . National Income is always more than the Domestic Income only when net factor income from abroad is positive. |
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| 7. |
Which one of the following is an intermediate product ?A. Purchase of pulses by consumersB. Machine purchased by a firmC. Wheat used by a flour millD. Wheat used by households |
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Answer» Correct Answer - C C. Wheat used by a flour mill is an intermediate product. |
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| 8. |
Define capital formation . OR Define investment . |
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Answer» Correct Answer - Capital formation refers to addition to the capital stock of an economy . For example , construction of building , purchase of machinery , etc. Capital formation refers to addition to the capital stock of an economy . For example , construction of building , purchase of machinery , etc. |
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| 9. |
Are the following statements true or false ? Give reasons. The concept of normal resident applies to individuals only. |
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Answer» Correct Answer - False . The concept applies to institutions also , in addition to individuals. False . The concept applies to institutions also , in addition to individuals. |
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| 10. |
Are the following statements true or false ? Give reasons. Gross investment can be equal to net investment . |
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Answer» Correct Answer - True . It is possible when depreciation is zero. True . It is possible when depreciation is zero. |
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| 11. |
Are the following statements true or false ? Give reasons. Market price is always more than factor cost. |
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Answer» Correct Answer - False. Market price can be less than factor cost if net indirect taxes (NIT) are negative . Market price can also be equal to factor cost if NIT is zero. False. Market price can be less than factor cost if net indirect taxes (NIT) are negative . Market price can also be equal to factor cost if NIT is zero. |
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| 12. |
Are the following statements true or false ? Give reasons. A good can be intermediary good in one case and a final good in another case. |
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Answer» Correct Answer - True. A good can be intermediate good as well as a final good , depending upon its nature of use. For example , a car purchased by a household is a final good , whereas , it will be an intermediate good if it is purchased by a car dealer. True. A good can be intermediate good as well as a final good , depending upon its nature of use. For example , a car purchased by a household is a final good , whereas , it will be an intermediate good if it is purchased by a car dealer. |
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| 13. |
Are the following statements true or false ? Give reasons. In final goods , no value is to be added . |
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Answer» Correct Answer - True . Because final goods have crossed the production boundary. True . Because final goods have crossed the production boundary. |
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| 14. |
Unforeseen obsolescence of fixed capital assets during production is :A. Consumption of Fixed CapitalB. Capital LossC. Income LossD. None of the above |
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Answer» Correct Answer - B B.Unforeseen obsolescence of fixed capital assets during production is Capital Loss. |
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| 15. |
Which of the following are covered under the domestic territory of India ?A. State Bank of India in LondonB. Google office in IndiaC. Office of Tata Motors in AustraliaD. Russian Embassy in India |
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Answer» Correct Answer - B B. Google office in India is covered under the domestic territory of India. |
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| 16. |
Are the following statements true or false ? Give reasons. All purchased by a production unit from other production units are intermediate products. |
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Answer» Correct Answer - False . Because all such purchases are not necessarily used up for further production or resold during the year. For example , products like machines , vehicles , etc. are final products even though they are purchased by a production unit from other production units . Note : As per CBSE guidelines , no marks will be given if reason to the answer is not explained. False . Because all such purchases are not necessarily used up for further production or resold during the year. For example , products like machines , vehicles , etc. are final products even though they are purchased by a production unit from other production units . Note : As per CBSE guidelines , no marks will be given if reason to the answer is not explained. |
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| 17. |
Sugar purchased by a Sweet shop is an `"_______"` good , while is a `"______"` good when it is purchased by a consumer .A. capital , finalB. final , intermediateC. intermediate , finalD. final , producer |
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Answer» Correct Answer - C C. Sugar purchased by a Sweet shop is an `"intermediate"` good , while is a `"final "` good when it is purchased by a consumer . |
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| 18. |
Depreciation of fixed capital assets refers to :A. Normal wear and tearB. Foreseen obsolescenceC. Normal wear & tear & foreseen obsolescenceD. Unforeseen obsolescence |
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Answer» Correct Answer - C C.Depreciation of fixed capital assets refers to Normal wear & tear & foreseen obsolescence |
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| 19. |
Net factor income from abroad is :A. Exports minus ImportsB. Visible Exports minus Visible ImportsC. Factor incomes received from abroad minus factor incomes paid abroadD. Factor incomes received from abroad |
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Answer» Correct Answer - C C. Net factor income from abroad is Factor incomes received from abroad minus factor incomes paid abroad. |
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| 20. |
Goods purchased for the following purpose are final goods : (choose the correct alternative )A. For satisfaction of wantsB. For investment in firmC. Both (a) and (b)D. None of the above |
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Answer» Correct Answer - C C. Goods purchased for satisfaction of wants and For investment in firm are final goods . |
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| 21. |
Are the following statements true or false ? Give reasons. Intermediate goods have a derived demand , while final goods have direct demand. |
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Answer» Correct Answer - True. Intermediate goods have a derived demand as their demand depends on demand for final goods . On the other hand , final goods have a direct demand as they satisfy the wants directly. True. Intermediate goods have a derived demand as their demand depends on demand for final goods . On the other hand , final goods have a direct demand as they satisfy the wants directly. |
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| 22. |
Which among the following are final goods and which are intermediate goods ? Give reasons. (a) Milk purchased by a tea stall. (b) Bus purchased by a school. (c) Juice purchased by a student from the school canteen. |
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Answer» Correct Answer - (a) It is an intermediate good as milk is purchased by a tea stall for further production . (b) It is a final good as bus is treated as an investment for the school. (c) It is a final good as juice purchased by a student is meant for consumption purpose. (a) It is an intermediate good as milk is purchased by a tea stall for further production . (b) It is a final good as bus is treated as an investment for the school. (c) It is a final good as juice purchased by a student is meant for consumption purpose. |
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| 23. |
Classify the following as final goods or intermediate goods. (i) Machine purchased by a firm. (ii) Soft drinks purchased by the school canteen. (iii) Clothes purchased by an individual. (iv) Coal purchased by a factory. (v) Electricity consumption in a business. (vi) Book purchased by a student . (vii) Books purchased by a book seller. (viii) Postage stamps purchased by a consumer. (ix) Postage stamps purchased by a business unit. (x) Exhaust fans used for making water coolers. (xi) Seeds purchased by a farmer to produce wheat. (xii) Seeds purchased for kitchen gardening . (xiii) Machines purchased by a dealer of machines. (xv) Sewing machine purchased by a housewife. |
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Answer» Correct Answer - Final Goods : (i) , (iii) , (vi) , (viii) , (xii) , (xiv) , (xv) ; Intermediate Goods : (ii) , (iv) , (v) , (vii) , (ix) , (x) , (xi) , (xiii). Final Goods : (i) , (iii) , (vi) , (viii) , (xii) , (xiv) , (xv) ; Intermediate Goods : (ii) , (iv) , (v) , (vii) , (ix) , (x) , (xi) , (xiii). |
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| 24. |
Are the following statements true or false ? Give reasons. End - use of the goods categorise the goods as intermediate goods and final goods. |
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Answer» Correct Answer - True. If the end-use of the good is for further production or resale , then the good is an intermediate good. However , if it the end-use of the good is consumption or investment , then the good is a final good. True. If the end-use of the good is for further production or resale , then the good is an intermediate good. However , if it the end-use of the good is consumption or investment , then the good is a final good. |
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| 25. |
What is meant by intermediate goods ? |
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Answer» Correct Answer - Intermediate goods refer to those goods which are used either for resale or for further production in the same year. Intermediate goods refer to those goods which are used either for resale or for further production in the same year. |
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