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
___________ is a situation of persistent and appreciable rise in prices, leading to fall in purchasing power of money
  • A
    Deflation
  • B
    Growth
  • C
    Inflation
    Correct
  • D
    None
2
___________ arises when there is an excess of demand for goods over their supply
  • A
    Cost-push inflation
  • B
    Cosh ­pull inflation
  • C
    Demand ­push inflation
  • D
    Demand ­pull inflation
    Correct
3
Increase in money supply , Growth in black money and Increase in population are the causes of
  • A
    Both
  • B
    None
  • C
    Demand ­pull inflation
    Correct
  • D
    Cosh ­pull inflation
4
Cost push inflation occurs when
  • A
    Both
  • B
    Rise in price is due to rise in the cost of production
    Correct
  • C
    None
  • D
    There is an excess of demand for goods over their supply
5
Continuously falling general price level is
  • A
    Inflation
  • B
    Deflection
  • C
    Hyperinflation
  • D
    Deflation
    Correct
6
Which of the following is not the non-monetary measure
  • A
    Increasing output or increasing inputs
  • B
    Controlling money wages
  • C
    Increase in rate of interest
    Correct
  • D
    Price control and rationing.
7
Which of the following is the monetary measure (i) A check on the supply of money (ii) Increases in rate of interest (iii) Price control and rationing. Options are
  • A
    II,III
  • B
    I,II,III
  • C
    I,II
    Correct
  • D
    I,III
8
Which of the following is consistent with an increase in the inflation rate?
  • A
    A decrease in the mark-up coefficient.
  • B
    All of the above
  • C
    A decrease in unemployment benefits.
  • D
    An increase in expected inflation rate
    Correct
9
The condition of a continually rising price level is defined as
  • A
    Stagnation.
  • B
    Inflation
    Correct
  • C
    Stagflation.
  • D
    Disinflation.
10
The price level over 60 years period between 1950-51 to 2009-10 shows more or less persistent
  • A
    Downward trend
  • B
    Straight line trend
  • C
    Upward trend
    Correct
  • D
    None of these
11
Which is not the monetary measure to control inflation?
  • A
    Soft loan policy
    Correct
  • B
    Tight the regulation of money issue
  • C
    None
  • D
    Hard credit policy
12
Selling of securities in the open market by the central bank creates
  • A
    Inflation
  • B
    Both
  • C
    None
  • D
    Deflation
    Correct
13
Debtor _____ while creditors ____ during inflation
  • A
    Gain, Lose
    Correct
  • B
    Lose, Lose
  • C
    Lose, Gain
  • D
    Gain, Gain
14
Following are the reasons of cost-push inflation except
  • A
    Rising labour cost
  • B
    Monopoly employers
  • C
    Lower indirect taxes
    Correct
  • D
    Components cost
15
Policy of the government with respect to taxes and with respect to its own expenditure on running the administration of the country is known ass
  • A
    Monetary policy
  • B
    None
  • C
    Both
  • D
    Fiscal policy
    Correct