{"id":10221,"date":"2024-07-11T09:21:02","date_gmt":"2024-07-11T08:21:02","guid":{"rendered":"https:\/\/mcqsadda.com\/?p=10221"},"modified":"2024-07-17T12:02:13","modified_gmt":"2024-07-17T11:02:13","slug":"inflation-set-1","status":"publish","type":"post","link":"https:\/\/mcqsadda.com\/index.php\/2024\/07\/11\/inflation-set-1\/","title":{"rendered":"Inflation Set &#8211; 1"},"content":{"rendered":"\n<h1 class=\"wp-block-heading has-text-align-right has-vivid-purple-color has-text-color has-link-color has-larger-font-size wp-elements-c9b0dba6bd0a537b80b39f616b52d83c\">Prev       <strong><a href=\"https:\/\/mcqsadda.com\/index.php\/2024\/07\/11\/inflation-set-1\/\">1<\/a>        2        3        4       <a title=\"\" href=\"https:\/\/mcqsadda.com\/index.php\/2024\/05\/06\/noun-set-5\/\"> <\/a>5<\/strong>       Next<\/h1>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-green-cyan-background-color has-background has-text-align-left wp-element-button\" href=\"https:\/\/mcqsadda.com\/index.php\/2024\/07\/11\/inflation-quiz-1\/\">mock test<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. <strong><strong><strong>Inflation is the state in which &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. The value of money decreases<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B.  The value of money increases<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. The value of the money increases first and then decreases<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. The value of money decreases first and increases later<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: A.The value of money decreases<BR>\nSOLUTION :Price of currency decreases.<\/p>\n<\/div>egin\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. How inflation affects the price of the commodities?<\/strong><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A. Price of the commodities decreases<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Price of the commodities increases<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. No effect<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. First the price decreases later on increases<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER:B. Price of the commodities increases.<BR>\nSOLUTION: \nPrices of goods are increasing.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. When there is high inflation in the economy, how will it affect the supply of money in the economy?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. &nbsp;No effect on the money supply<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. &nbsp;&nbsp;Supply of money decreases<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. &nbsp;Supply of money increases<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. None of the above<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER : C.Supply of money increases<BR>\nSOLUTION: \nSupply of money increases.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. Which of the following class will not be negatively affected by the higher inflation?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. The consumer class<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. The debtor class<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Pensioner class<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Business class<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: D.Business class<BR>\nSOLUTION: \nThe Business class will be richer by receiving the higher prices of the commodities.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. &nbsp;<strong>What is a stagflation?<\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. A situation in which the economy experiences recession.<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. A situation in which the economy have inflation and recession altogether<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C.  &nbsp;An economy where unemployment is high<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Both b and c<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: D.Both b and c<BR>\nSOLUTION: \nBoth b and c<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>6. &nbsp;<strong><strong>Who compared the inflation with the robbers?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A.  Professor Keynes<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Professor Jagdish Bhagwati<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Professor Brahmand and Wakeel<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Amartya Sen and JK Mehta<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: C.Professor Brahmand and Wakeel<BR>\nSOLUTION: \nProfessor Brahmanand and Wakeel have compared the inflation to robbers.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>7. Who wrote the book &#8220;How to pay for Money&#8221;?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Amartya Sen<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B.  Adam Smith<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Karl Marx<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Professor Keynes<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: D.Professor Keynes<BR>\nSOLUTION :\nProfessor Keynes.\n<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>8. &nbsp;<strong><strong>Which of the following concept is just opposite to deflation?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Stagflation<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Inflation<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Recession<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Disinflation<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER:B.Inflation<BR>\nSOLUTION:\nInflation refers to the increase in the price of the goods while deflation means the decrease in the price of the goods.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>9.Which of the following measure is adopted to reduce inflation?<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. Reduction in bank rate<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. Reduction in Repo rate<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. Increase in government expenditure<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. Cuts in government spending<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: D.Cuts in government spending<BR>\nSOLUTION: \nReduction in government expenditure reduces the supply of money in the economy, which further reduces inflation.\n<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>10. <strong>What is the base year for measuring inflation at wholesale Prices Index (WPI) in India?<\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>A. 2004-05<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>B. 2001-02<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>C. 2011-12<\/strong><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>D. 2014-15<\/strong><\/h3>\n\n\n\n<button class=\"acc\">ANSWER &#038; SOLUTION<\/button>\n<div class=\"pnl\">\n  <p>ANSWER: C.2011-12<BR>\nSOLUTION:\nThe new base year for measuring inflation is 2011-12.\n<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-vivid-green-cyan-background-color has-background has-text-align-left wp-element-button\" href=\"https:\/\/mcqsadda.com\/index.php\/2024\/07\/11\/inflation-quiz-1\/\">mock test<\/a><\/div>\n<\/div>\n\n\n\n<h1 class=\"wp-block-heading has-text-align-right has-vivid-purple-color has-text-color has-link-color has-larger-font-size wp-elements-c9b0dba6bd0a537b80b39f616b52d83c\">Prev       <strong><a href=\"https:\/\/mcqsadda.com\/index.php\/2024\/07\/11\/inflation-set-1\/\">1<\/a>        2        3        4       <a title=\"\" href=\"https:\/\/mcqsadda.com\/index.php\/2024\/05\/06\/noun-set-5\/\"> <\/a>5<\/strong>       Next<\/h1>\n","protected":false},"excerpt":{"rendered":"<p>Prev 1 2 3 4 5 Next 1. Inflation is the state in which &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230; A. The value of money decreases B. The value of money increases C. The value of the money increases first and then decreases D. The value of money decreases first and increases later ANSWER &#038; SOLUTION ANSWER: A.The value of<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[5654,5655,5646,5477,5476,4029,5649,5652,5482,5487,5480,5481,5485,5486,5483,5484],"class_list":{"0":"post-10221","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economics","7":"tag-economics-mcqs-for-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-exams","8":"tag-economics-mcqs-for-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-examsin-kannada","9":"tag-exam-veda","10":"tag-how-inflation-affects-the-price-of-the-commodities","11":"tag-inflation-is-the-state-in-which","12":"tag-mcqs-adda","13":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-exams","14":"tag-mcqs-for-pc-psi-sda-fda-pdo-vao-banking-kas-ias-ssc-gd-ssc-chsl-ssc-cgl-for-all-compitative-examsin-kannada","15":"tag-what-is-a-stagflation","16":"tag-what-is-the-base-year-for-measuring-inflation-at-wholesale-prices-index-wpi-in-india","17":"tag-when-there-is-high-inflation-in-the-economy-how-will-it-affect-the-supply-of-money-in-the-economy","18":"tag-which-of-the-following-class-will-not-be-negatively-affected-by-the-higher-inflation","19":"tag-which-of-the-following-concept-is-just-opposite-to-deflation","20":"tag-which-of-the-following-measure-is-adopted-to-reduce-inflation","21":"tag-who-compared-the-inflation-with-the-robbers","22":"tag-who-wrote-the-book-how-to-pay-for-money"},"_links":{"self":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts\/10221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/comments?post=10221"}],"version-history":[{"count":2,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts\/10221\/revisions"}],"predecessor-version":[{"id":10439,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/posts\/10221\/revisions\/10439"}],"wp:attachment":[{"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/media?parent=10221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/categories?post=10221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mcqsadda.com\/index.php\/wp-json\/wp\/v2\/tags?post=10221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}