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Price Policy and Public Distribution

1. 

Demand of a commodity mainly depends on

A. desire to purchase B. power to purchase C. tax policy D. advertisement

Answer : A. desire to purchase

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2. 

When prices are rising, which of the following steps should the Government adopt to bring about reduction in prices?

A. Reduce the rate of tax for personal incomes B. Increase governmental spending C. Lower the interest rates D. Increase the availability of goods

Answer : D. Increase the availability of goods

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3. 

Stability of prices can be brought about by

A. Increasing production B. Controlling the circulation of money C. Controlling of currency D. Both (A) and (B)

Answer : D. Both (A) and (B)

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4. 

The general price level declined during the ______ plan

A. first B. second C. third D. fourth

Answer : A. first

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5. 

Match the following

List I List II
a) National Food Control Programme 1) 1954
b) Food corporation of india 2) 1965
c) Worst famine of India 3) 1918
d) Consumer Protection Act 4) 1986

A. a-1 ,b-2 ,c-4 ,d-3 B. a-2 ,b-1,c-3 ,d-4 C. a-1 ,b-2 ,c-3 ,d-4 D. a-1 ,b-3 ,c-2 ,d-4

Answer : C. a-1 ,b-2 ,c-3 ,d-4

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6. 

On which of the following do people of India spend most of their income?

A. Clothing B. Food C. Fuel and Light D. Household durables

Answer : B. Food

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