Inflation Problem And Policies CBSE Questions & Answers

Inflation Problem And Policies

This is Economics Class 11 Inflation Problem and Policies CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
Match the following. Options are as follows
Question 1 figure 1
  • A
    a(II), b(III),c(I)
  • B
    a(III), b(I),c(II)
  • C
    a(I), b(II),c(III)
  • D
    a(I), b(III),c(II)
    Correct
2
Which is the monetary measure to control inflation
  • A
    Hard credit policy
    Correct
  • B
    Increase in taxation
  • C
    Soft credit policy
  • D
    Decrease in taxation
3
Higher indirect taxes cause due to
  • A
    Both
    Correct
  • B
    a rise in the duty on alcohol, fuels and cigarettes
  • C
    a rise in Value Added Tax
  • D
    None
4
When national output rises, the economy is said to be in
  • A
    A deflation.
  • B
    A recession.
  • C
    An expansion
    Correct
  • D
    Inflation.
5
A country is said to be experiencing inflation when
  • A
    Total output is falling over time.
  • B
    Prices of most goods and services are rising over time
    Correct
  • C
    Total output is rising over time.
  • D
    Prices of most goods and services are falling over time.
6
The inflation rate is the
  • A
    Percent increase in the unemployment rate over a year.
  • B
    Percent increase in the average level of prices over a year
    Correct
  • C
    Percent increase in output over a year.
  • D
    Price level divided by the level of output.
7
To check rise in prices or inflation following measures are suggested except
  • A
    Increase in agriculture production
  • B
    Checking black money
  • C
    Less deficit financing
  • D
    Moral degradation
    Correct
8
Printing new notes, huge rise in consumer’s spending due to growing population is an example of
  • A
    None
  • B
    Demand-pull
    Correct
  • C
    Cost-push
  • D
    Both
9
Indicator which is used to measure inflation in India
  • A
    EPI
  • B
    DPI
  • C
    HPI
  • D
    WPI
    Correct
10
How is rapidly rising population responsible for prise rise in India
  • A
    Supply for goods rise steeply
  • B
    Both
  • C
    None
  • D
    Demand for goods rise steeply
    Correct
11
Consequences of deficit financing results in
  • A
    Decrease in money demand
  • B
    Decrease in money supply
  • C
    Increase in money supply
    Correct
  • D
    Increase in money demand
12
Which of the following can start inflation?
  • A
    An increase in aggregate demand
  • B
    Both
    Correct
  • C
    None
  • D
    A decrease in aggregate supply
13
Demand-pull inflation is an inflation that results from an initial ________.
  • A
    Increase in natural resource prices
  • B
    Decrease in aggregate demand
  • C
    Increase in wage rates
  • D
    Increase in aggregate demand
    Correct
14
Cost-push inflation can start with
  • A
    An increase in government expenditures.
  • B
    An increase in oil prices
    Correct
  • C
    A decrease in investment.
  • D
    A decrease in the quantity of money
15
At the time ho inflation expenditure on defence should be
  • A
    Decreased
  • B
    No change
  • C
    Increased
    Correct
  • D
    None of these