Tag: fundamental duties and directive principles of state policy

Questions Related to fundamental duties and directive principles of state policy

Recession is generally associated with the phenomena of __________.

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

  1. falling prices

  2. falling sensex

  3. falling population

  4. falling public spending

Show answer
Correct Option: A
Explanation:

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

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

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

  1. Periodic variations

  2. Oscillatory variations

  3. (a) or (b)

  4. Irregular variations

Show answer
Correct Option: A
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.

A business cycle contraction will tend to cause: ______.

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

  1. decrease in foreign capital

  2. increase in unemployment

  3. fall in inflation

  4. all the three

Show answer
Correct Option: D
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.

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

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

  1. Income Effect

  2. Substitution Effect

  3. Demonstration Effect

  4. Utility Effect

Show answer
Correct Option: A

TR minus total explicit cost is called:

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

  1. profit

  2. economic profit

  3. supernormal profit

  4. accounting profit

Show answer
Correct Option: D
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.