UPSC 2021 › Indian Economy › National Income & Economic Growth

2 questions · 2021 · answers as per the UPSC key

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UPSC 2021 · Q4 · Indian Economy › National Income & Economic Growth · Save

Consider the following statements : Other things remaining unchanged, market demand for a good might increase if

  1. price of its substitute increases
  2. price of its complement increases
  3. the good is an inferior good and income of the consumers increases
  4. its price falls

Which of the above statements are correct?

(a) 1 and 4 only
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 3
Show answer
Answer: (a) 1 and 4 only
UPSC 2021 · Q12 · Indian Economy › National Income & Economic Growth · Save

With reference to Indian economy, demand-pull inflation can be caused/increased by which of the following?

  1. Expansionary policies
  2. Fiscal stimulus
  3. Inflation-indexing wages
  4. Higher purchasing power
  5. Rising interest rates

Select the correct answer using the code given below.

(a) 1, 2 and 4 only
(b) 3, 4 and 5 only
(c) 1, 2, 3 and 5 only
(d) 1, 2, 3, 4 and 5
Show answer
Answer: (a) 1, 2 and 4 only