जीपीएससी परीक्षा पूर्वतयारी

14 Question Description Which of the following best describes ‘venture capital’?

A Venture capital is a type of financing provided by large, established companies to small, early-stage startups.

B Venture capital is a type of financing provided by banks and financial institutions to small, early-stage startups.

C Venture capital is a type of financing provided by wealthy individuals or firms to small, early-stage startups in exchange for an ownership stake in the company.

D Venture capital is a type of financing provided by the government to small, early-stage startups.

E None of the above

Correct Answer C

Marks 1

15 Question Description If the government subsidizes producers in a perfectly competitive market, then

A The demand for the product will increase

B The demand for the product will decrease

C The consumer surplus will increase

D The consumer surplus will decrease

E None of the above

Correct Answer C

Marks 1

16 Question Description Consider the following liquid assets:

1.Demand deposits with the banks

2.Time deposits with the banks

3.Savings deposits with the banks

4.Currency

The correct sequence of these decreasing orders of Liquidity is:

A 1-4-3-2

B 4-3-2-1

C 2-3-1-4

D 4-1-3-2

E None of the above

Correct Answer D

Marks 1

17 Question Description Which of the following statements is correct?

A If the NPV of a project is greater than 0, its PI will equal 0.

B If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.

C If the PI of a project is less than 1, its NPV should be less than 0.

D If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its NPV will be greater than 0.

E None of the above

Correct Answer C

Marks 1

18 Question Description Recently, European Union (EU) members have agreed to implement a minimum tax rate. Consider the following statements

regarding Global Minimum Tax:

1.)It aims to apply a standard minimum tax rate to a defined corporate income base worldwide.

2.)This framework encourages nations to have tax competition through lower tax rates.

3.)It aims to promote tax competition between governments to attract foreign investment.

Which of the statements given above is/are correct?

A 1 only

B 1 and 2 only

C 2 and 3 only

D 1, 2 and 3

E None of the above

Correct Answer A

Marks 1

19 Question Description Which of the following best describes a cartel?

A An organization of independent firms producing similar products that work together to raise prices and restrict output.

B An organization of independent firms producing different products that work together to raise prices and restrict output.

C An organization of interdependent firms producing different products that work together to raise prices and restrict output.

D An independent body set up by the government against oligopolistic firms.

E None of the above

Correct Answer A

Marks 1

20 Question Description Consider the following statements:

1.) Capital Receipts indicate the receipts which lead to a decrease in assets or an increase in liabilities of the government.

2.) Capital expenditure is used to create assets or to reduce liabilities.

Which of the statements given above is/are correct?

A 1 only

B 2 only

C Both 1 and 2

D Neither 1 nor 2

E None of the above

Correct Answer C

Marks 1

21 Question Description Which of the following best explains the cascading effect of taxation?

(1) When tax imposition leads to a disproportionate increase in prices by an extent more than the rise in the tax.

(2) When tax imposition leads to a disproportionate decrease in prices by an extent more than the rise in the tax.

(3) When tax imposition leads to a disproportionate decrease in imports.

(4) When tax imposition leads to a disproportionate decrease in exports.

A 1 only

B 2 and 3 only

C 4 only

D 3 and 1 only

E None of the above

Correct Answer A

Marks 1

22 Question Description In Stock Market parlance, the term “Automatic stabilizers” refer to

A Inherent mechanisms in the stock market that automatically cause stock market gains to be cancelled out by losses, which make

expected long-run returns equal to zero

B The invisible hand mechanisms which automatically bring the economy out of a recession

C Government revenue and expenditure items that change automatically in response to changes in economic activity

D Discretionary monetary policy manoeuvres designed to keep inflation under control automatically

E None of the above

Correct Answer C

Marks 1

23 Question Description Pareto efficiency occurs when

A There is no way to reorganize production so that it will increase the satisfaction of one person without reducing the satisfaction of

another person

B There is no way to reorganize consumption so that it will increase the satisfaction of one person without reducing the satisfaction of another person

C N o reorganization of production and consumption is possible by which some individuals are made better off without making

someone else worse off

D There is no way to reorganize production or consumption so that it will increase the satisfaction of one person by reducing thesatisfaction of another person

E None of the above

Correct Answer C

Marks 1

24 Question Description

Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________.

A 8/6 bolts

B 1/2 bolt

C 1 bolt

D 8 bolts

E None of the above

Correct Answer C

Marks 1

25 Question Description Which of the following statements is/are true about the impact of inflation in the economy?

A Unanticipated inflation hurts the fixed income earners most.

B Higher than expected inflation hurts creditors but benefits debtors.

C Inflation creates inefficiency in the economy because it forces people to search for prices when they could be doing something else.

D All of the above.

E None of the above

Correct Answer D

Marks 1