Tag: fundamental concepts and terminologies

Quizzes (13) Questions (5)

Questions Related to fundamental concepts and terminologies

Multiple choice economics fundamental concepts and terminologies savings, investment, wealth, welfare and business cycle fundamental duties and directive principles fundamental duties and directive principles of state policy

Recession is generally associated with the phenomena of __________.

  1. falling prices

  2. falling sensex

  3. falling population

  4. falling public spending
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Recession is also known as business contraction cycle ,where a decrease in general price level in an economy is observed.

Multiple choice economics fundamental concepts and terminologies savings, investment, wealth, welfare and business cycle fundamental duties and directive principles fundamental duties and directive principles of state policy

__________ are of regular nature and repeat themselves after a fixed interval of time.

  1. Periodic variations

  2. Oscillatory variations

  3. (a) or (b)

  4. Irregular variations
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Periodic variations occur after a fixed interval or period of time. They happen repeatedly. In economics, periodic variations can be found in production and consumption.

Multiple choice economics fundamental concepts and terminologies savings, investment, wealth, welfare and business cycle fundamental duties and directive principles fundamental duties and directive principles of state policy

A business cycle contraction will tend to cause: ______.

  1. decrease in foreign capital

  2. increase in unemployment

  3. fall in inflation

  4. all the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
A business contraction cycle or recession cycle will cause:
1) Capital accumulated from foreign countries gets depleted
2) Unemployment level in an economy increase because wage level falls as the profit of the business decreases due to low investment..
3) Decrease in general price level is also observed  ,that is, fall in inflation.
Multiple choice economics fundamental concepts and terminologies savings, investment, wealth, welfare and business cycle fundamental duties and directive principles fundamental duties and directive principles of state policy

When we say that the Demand for a commodity depends upon the money income of the Consumer, we are referring to -

  1. Income Effect

  2. Substitution Effect

  3. Demonstration Effect

  4. Utility Effect
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The income effect describes how a change in a consumer's real income, due to a change in the price of a commodity, affects the quantity demanded.

Multiple choice economics fundamental concepts and terminologies savings, investment, wealth, welfare and business cycle fundamental duties and directive principles fundamental duties and directive principles of state policy

TR minus total explicit cost is called:

  1. profit

  2. economic profit

  3. supernormal profit

  4. accounting profit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accounting profits refers to the profits which include implicit cost in them along with normal profits.It only excludes explicit cost from the overall revenue.