Economics

(b) Market where the price of a commodity is determined by free play of the forces of supply and demand.

A free market is characterized by voluntary exchange and competition, with prices set by supply and demand rather than by government control. Option (a) describes free trade, and option (c) describes a duty-free port.

(b) Depression

A depression is a prolonged period of low general economic activity marked by falling output, high unemployment and falling prices. A recession is a shorter and milder decline, while boom and recovery are phases of rising activity.

(d) Palm Oil

Nepal is a major importer of palm oil (mainly from Indonesia and Malaysia); it is not a traditional export item of Nepal. Garments, tea and pashmina shawls are well-known Nepali exports.

(b) Nationalization

Nationalization is the transfer of a firm or industry from private ownership to public (government) ownership. Privatization is the opposite process — moving public sector enterprises to the private sector.

(c) 7%

Nepal Rastra Bank's Monetary Policy for fiscal year 2067/68 (2010/11 AD), announced in July 2010, set the inflation projection at around 7 percent, with the policy stance aimed at containing price pressures arising mainly from supply-side constraints and rising food and fuel prices.

(d) 5.5%

Nepal Rastra Bank's monetary policy for FY 2010/11 was framed around a projected real GDP growth of about 5.5%, with inflation targeted at around 8.5%. The other options are not the figure stated in that policy.

(c) Exchange of goods with goods

Barter trade is the direct exchange of goods and services for other goods and services without the use of money.

(a) Adam Smith

Adam Smith is called the father of Economics because his 1776 book The Wealth of Nations first set out economics as a systematic subject.

(c) Excise duty

Excise duty is levied by the government on the production or manufacture of goods within the country (e.g. on alcohol, tobacco, petroleum products). Custom duty applies to imports/exports, sales tax on sale of goods, and income tax on income.