EcoClub – Quiz 1
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After a total
of 67 entries came the first ‘All-correct’ response to the quiz !!!!!
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glimpse of the winner of first EcoClub Quiz.
Deepak Sharma
EcoClub – Quiz 1 Question and Answers
1. "Homemakers often feel their work is
taken for granted, and advocates in the women's movement argue that the
statistical invisibility of homemakers' work has substantive policy
implications." What is meant by
"statistical invisibility" here?
a)
homemakers' output is not counted in GDP
b)
Homemakers' output is double-counted in GDP
c)
Homemakers' output is added into GDP at an artificially-low price
d)
Homemakers' output is only counted into GDP if there exists a
market counterpart
2. "Household savings in financial
assets have dropped between FY10 and FY11 from 8.4 trillion to 7.7 trillion
rupees while the household savings in physical assets have grown from 8
trillion to 9.8 trillion rupees." From the statement, we infer that
a)
Households have been putting more of their saving into
physical assets rather than in financial instruments
b)
Households are keener in bank savings rather than more risky
equity assets
c)
Both A and B
d)
None of the above
3. If the price index is 120 in 1989 and 150
in 1990, what is the rate of inflation in 1990?
a) 20% b) 25% c) 30% d) more than 30%
4. "That is why the jump in May's
unemployment rate - from 7.2 percent to 7.5 percent, the highest during this
business cycle - caused dismay. Yet this may be missing the point. The number
of people in the labour force in the month of May jumped by 330,000." The
higher unemployment rate was probably caused by
a)
a fall in employment
b)
a massive destruction of jobs
c)
an increase in the participation rate
d)
an increase in the number of discouraged workers
5. "Even if employment continues to
climb, the jobless rate will likely stay around its current level for the
balance of this year.” That's because.........
a)
The labour force will
b)
the extra jobs will be part-time
c)
of increases in the participation rate
d)
of an increase in discouraged workers
6. Why Indians prefer buying gold and real
estate at high prices because
a)
They act as a status symbol and opulence in the society.
b)
They act as very effective hedges against high
inflation.
c)
They act as a secondary income to the families.
d)
None of the above
7. “Eliminating revenue deficit is needed to
sustain economic growth and reduce inflation”. Which of the following supports
the given statement?
a)
Revenue deficit eliminates supplementary monetary measures to
control inflation
b)
Elimination of revenue deficit will improve domestic
savings by turning government negative to positive savings
c)
With zero revenue deficits, fiscal deficit of government can be
used for investment expenditure
d)
Zero revenue deficits lowers the tax-GDP ratio and enhances the
revenue collection
8. Which of the following is a cause of
structural unemployment?
a)
Workers looking for better jobs
b)
geographical mobility of the labour force
c)
A decline in the economy's total production
d)
automation displacing workers from their jobs
9. "We saved 17 percent of our
disposable income during the recession, the highest rate since World War II.
The level of savings has fallen off since then to less than 10 percent of
disposable income." What effect would a higher savings rate have on the recession?
a)
It would not affect the recession
b)
it would make the recession less severe
c)
it would make the recession more severe
d)
it would have no predictable effect on the recession
10. "There has been times when the
federal government has kept pumping fiscal stimulus into the economy when it
was already growing vigorously and did not need the boost. The result was
......"
a)
Higher taxes
b)
Higher inflation
c)
Higher unemployment
d)
More discouraged workers
