Exchange rates are determined by which factors?
Technology used in production
Comparative cost advantage of each country
Forces of demand and supply of currencies
The government plays a leading role in fixing exchange rates.
What do you say when there is a fall in the value of a currency in terms of other currencies?
Appreciation of the currency
Depreciation of the currency
Stabilisation of the currency
Regulation of rates
Match the following.Higher real GDP in case of high GDPHigher level of employment if growth is substantial and benefits are equally distributedAbsolute poverty can be reduced increase the living standardMore resources will be available to government increases consumer income
1 2 3 4
i ii iv iii
1 2 3 4 iii ii iv i
1 2 3 4 iv ii iii i
1 2 3 4 iii iv ii i
From the following options, identify a factor that leads to inflation.
High demand and high supply
High productivity
Low population
Increase in money supply
Which option does not belong to the category of unemployment?
Structural unemployment
Frictional unemployment
Factorial unemployment
Cyclical unemployment
Who are included in working population?
All those in the population of working age who are willing and able to work.
All those in the population who are willing but not able to work.
All those in the population whose number exceeds the required.
Working people who are in excess number.
How is inflation measured?
Wholesale price index
Factory level price index
Retail price index
Broker level price index
Inferior goods have the following features:
High price and high quality
Low price and low quality
Small share of market
Wide variety
Name the type of unemployment resulting from low demand for goods and services in the economy during periods of recession.
Seasonal unemployment
Disguised unemployment
What is the main reason for price rise of goods and services?
High profit maximisation
Increasing consumer demand and no corresponding increase in supply
Low cost of production
Improved methods of production
