Tag: government budget and economy

Quizzes (6) Questions (228)

Questions Related to government budget and economy

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Price line depends on the __________.

  1. prices of two commodities

  2. income of the consumer

  3. related commodities

  4. both (A) and (B)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The price line (or budget line) represents the combinations of two goods a consumer can afford given their income and the prices of those goods. Therefore, it is determined by both the income and the prices.

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

If the consumer is below his budget line, the consumer ______________.

  1. is in equilibrium

  2. is spending all personal income

  3. is not spending all personal income

  4. may or may not be spending all personal income
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When the consumer is not spending all his income, he/she is inefficient with the current group of goods purchased. The optimal point for the consumer is the point at which the indifference curve is tangent to the budget line. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

In a wage system where an employee is paid a fixed amount irrespective of output is called ______.

  1. time rate system

  2. piece rate system

  3. time cum bonus system

  4. piece cum bonus rate system
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This can be explained with an example, if you get a monthly salary of Rs. $20,000$, the salary will not change depending on the output you produce it depends on time the person involves.
It will remain even if you produce 10 units or even 20 units. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

In which of the wage payment system an employee will be least interested in enhancing output?

  1. Time rate system

  2. Piece rate system

  3. Bonus payment system

  4. Time cum piece rate system
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A piece rate system is wherein the worker is paid a amount equal to the number of units he/she produces. For example if a worker is paid Rs.20 per unit and the worker produces 10 units. The worker will get paid a total of Rs.200 for producing the 10 units. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

In a wage system where an employee is paid according to output is called ________.

  1. time rate system

  2. piece rate system

  3. time cum bonus system

  4. piece cum bonus rate system
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A piece rate system is wherein the worker is paid a amount equal to the number of units he/she produces. For example if a worker is paid Rs.20 per unit and the worker produces 10 units. The worker will get paid a total of Rs.200 for producing the 10 units. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Slope of budget line is equal to ________.

  1. marginal rate of substitution between the factor inputs

  2. ratio of price of factor input

  3. demand of each factor input

  4. supply of each factor input
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The budget line shows the combination of two goods a individual can consume with his current income. Hence, it is equal to the ratio of prices between the two goods. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Budget line shows ________.

  1. combination of two commodities that a consumer can buy within same budget

  2. combination of two commodities that a producer can produce at same cost

  3. combination of two commodities that a consumer can consume to have same utility

  4. all of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the indifference curve analysis the income remains constant in order to calculate the slope of the budget line which gives us one part o the consumer equilibrium. The budget line shows the combination of two goods a individual can consume with his current income. The other half is obtained by the indifference curve which is the marginal rate of substitution. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

Slope of price line is equal to _______.

  1. marginal utility of each product

  2. ratio of quantity consumed of each good

  3. ratio of price of two goods

  4. ratio of cost of production of two goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The budget line shows the combination of two goods a individual can consume with his current income. Hence, it is equal to the ratio of prices between the two goods. 

Multiple choice business economics and quantitative methods government budget and economy consumer's budget public finance indifference curve

What % of India's external assistance comes in the form of loans?

  1. $50$.

  2. $25$.

  3. $40$.

  4. $90$.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Historically, a very large proportion of India's external assistance has been in the form of loans rather than grants, with figures often cited near 90 percent in academic contexts for this specific question.