Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

____________ of the Constitution of India, requires the central government to prepare the 'Annual Financial Statement' of the country.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Article 172

  2. Article 116

  3. Article 112

  4. None of the above

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Correct Option: C
Explanation:

According to Article 112 of the Constitution of India, the central government has to prepare the annual financial statement of the country following the standard format and mentioning the required details adhering to the budget of the country. 

Which of the following are the constituents of the budget in India?

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Annual statement of accounts for the current year.

  2. Annual statement of accounts for the preceding year.

  3. Estimates of revenue and expenditure for the current year.

  4. All of the above

Show answer
Correct Option: D
Explanation:
Budget is an annual statement of the estimates of the government receipts and government expenditure during the period of the financial year. It unveils the fiscal policy of the government, focusing on growth and stability of the economy. In India, budget is prepared for three consecutive years: preceding year, current year and estimated budget of the upcoming year. 

Budget period is the __________.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. Period of budget committee

  2. Period of budget centers

  3. Period for which a budget is prepared

  4. Period of budget officer

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Correct Option: C

The ultimate responsibility of framing and executing economic policies is that of ________.

business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

  1. govt

  2. RBI

  3. state govt

  4. none of above

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Correct Option: A
Explanation:

Economic policies refers to those policies which are required for efficient functioning of an economy in proper law and order. These policies are framed and implemented by the government of the country in order to run the economy effectively. Therefore, the ultimate responsibility of framing and executing economic policies is that of the government of the country. 

A production possibility frontier explains ________ of Economics.

business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

  1. law of diminishing marginal returns

  2. law of variable proportions

  3. law of marginal utility

  4. water vs. diamond paradox

Show answer
Correct Option: A
Explanation:

Production possibility frontier explain the law of diminishing marginal returns as with the consumption of every additional unit of one good ,the consumer is willing to sacrifice much less and less ,in two-commodity case.That is why the production possibility curve is concave to the origin.

The concept of marginal utility plays a central role in ________.

business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

  1. supply analysis

  2. stock analysis

  3. demand analysis

  4. security analysis

Show answer
Correct Option: C
Explanation:

Marginal utility refers to the utility derived from the consumption of an additional unit of a commodity. It is of utmost importance in demand analysis of the consumers. The utility refers to the power of satisfying consumer's wants.

________ says that the additional benefit which a person derives from a given increase in his stock of a thing diminishes with every increase in the stock that he already has.

business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

  1. Marshall

  2. Robbins

  3. Keynes

  4. Smith

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Correct Option: A
Explanation:

Alfred Marshall propounded the law of diminishing marginal utility..He stated that as the consumption increases the marginal utility derived from the each successive units tends to decline. The consumer is less willing to sacrifice one good to consume one more additional unit of another good at a higher level of consumption.

Which of the following is an exception to the law of diminishing marginal utility?

business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

  1. Reading

  2. Miser

  3. Hobbies

  4. All of the above

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Correct Option: D
Explanation:

Law of marginal does not hold true in case of readers, misers and hobbies as the consumption increases the marginal utility derived from the each successive units tends to rise. For example, if a person's hobby is to collect stamps, then the marginal utility derived by collecting one more unit of stamp will rise.

Which of the following assumption is applicable for the law of diminishing marginal utility?

business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

  1. The consumer is rational human being and he aims at minimization of satisfaction.

  2. The units of consumption are of reasonable size.

  3. All the units of the given commodity are heterogeneous.

  4. There is long time interval between the consumption of the goods.

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Correct Option: B
Explanation:

To uphold the law of marginal utility, the reasonable sized units are to be consumed. The law of marginal utility states that as consumption increases, the marginal utility derived from each successive units tends to decline.

The law of diminishing marginal utility states that as the stock of a commodity with the consumer ____, its marginal utility to the consumer _____.

business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

  1. decreases; decreases

  2. increases; decreases

  3. decreases; remains unchanged

  4. increases; increases

Show answer
Correct Option: B
Explanation:

The law of diminishing marginal utility states that as the consumption increases the marginal utility derived from the each successive units tends to decline. The consumer is less willing to sacrifice one good to consume one more additional unit of another good at a higher level of consumption.