Question : What happens when there is a demand deficiency in an economy?

Option 1: Poverty

Option 2: Stagnation

Option 3: Recession

Option 4: Inflation

Question : What is a moderate degree of controlled inflation called?

Option 1: Reflation

Option 2: Stagflation

Option 3: Hyper-inflation

Option 4: Disinflation

Question : A labour-intensive technique would be chosen in a:

Option 1: labour-surplus economy

Option 2: capital-surplus economy

Option 3: developed economy

Option 4: developing economy

Question : What kind of relationship exists between income and demand in the case of normal goods?

Option 1: There is no impact of income on demand.

Option 2: There is a direct relationship.

Option 3: There is an inverse relationship.

Option 4: Sometimes, there is a direct and sometimes an inverse relationship.

Question : The equilibrium price of a commodity will rise if there is a/an:

Option 1: increase in supply combined with a decrease in demand.

Option 2: increases in both demand and supply.

Option 3: decrease in both demand and supply.

Option 4: increase in demand accompanied by a decrease in supply.

Question : Which of the following statements is true regarding disinflation?

Option 1: A scenario when inflation is mainly due to inflation of only a few commodities and not of all commodities.

Option 2: An overall decrease in prices over a specific period.

Option 3: A decrease in the rate of inflation in a specific period.

Option 4: A sudden sharp decrease in prices due to unexpected reasons.