Tag: the government and economic development

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Questions Related to the government and economic development

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

When there is excess demand for a commodity, the 'Law of demand' implies that __________.

  1. price of the commodity falls

  2. price of the commodity remains same

  3. price of the commodity rises

  4. quantity demanded of the commodity falls
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the law of demand, when demand exceeds supply (excess demand), the scarcity of the commodity puts upward pressure on its price until the market reaches equilibrium.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Supply of perishable goods is inelastic.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Perishable goods cannot be stored for long periods, so producers must sell them regardless of the price, making their supply relatively unresponsive to price changes in the short run.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Total outlay is price multiplied by quantity. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total outlay is another method to measure elasticity of demand this is also known as the expenditure method, Total outlay is calculated by taking into account the total expenditure which Is price multiplied by quantity. 

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

_______ is the price at which demand, for a commodity is equal to is supply.

  1. Normal price

  2. Equilibrium price

  3. Short run price

  4. Secular price
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Equilibrium price is the price at which the quantity demanded and the quantity supplied is the same. After equilibrium is achieved the price does not change. It is the ideal market price.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

In economics, a state of balance is called ________________.

  1. saturation point

  2. stability point

  3. profit maximising point

  4. equilibrium point
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In economics, equilibrium is the state where market forces, such as supply and demand, are balanced, and there is no tendency for the price or quantity to change.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Consumer surplus arises because:

  1. Consumer has lot of money

  2. Quality of different units of the same commodity differs

  3. Consumer receives more than what he pays for

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Consumer surplus is the excess of amount that the consumer is willing to pay and the amount that the consumer actually pays. Hence, surplus arises because consumer receives more than what he pays for. 

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

What is 'deemed exports' provisions applicable to?

  1. Deemed export provision is applicable only to goods

  2. Deemed export provision is applicable only to services

  3. Deemed export provision is applicable both to goods and services

  4. Deemed export provision is applicable when goods and services are supplied to SEZ units/ developers
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

“Deemed exports” classically refer to those transactions under which provide of goods do not leave the country, and payment for such requirements is innermost in Indian Rupees shall be treated as 'deemed exports', provided that supplies are artificial or formed in India. 

The Deemed export advantage consists of refund on duty on expenses on imports or excisable substance used in the manufacture of goods which are supplied to the suitable projects. 'Deemed Export Benefit' method profits are availed of by units in Power, Petroleum plant, manure and Nuclear Power Projects.

Thus, the correct option is A.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Which of the following is the most appropriate cause of exports surplus in an economy?

  1. If the economy has diversified exports which are compulsive imports for other economies.

  2. If the economy has almost put everything in the negative list of import and has healthy forex reserves.

  3. If the economy promotes exports and imports without any barriers with incentives given to the exporters.

  4. None of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This has been the case of the developed economies of the world whose over had surplus in its trade accounts.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

The equilibrium price clears the market: It is the price at which ________.

  1. everything is sold

  2. quantity demanded equals quantity supplied

  3. excess demand is zero

  4. B and C
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

1:A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price
2:The equilibrium price clears the market: It is the price at which quantity demanded equals quantity supplied with excess demand is zero.

Multiple choice business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

Match the items of List-I and items of List-II and select the correct code for the answer.

List-I List-II
(a) Utilitarian Approach (i) Marginal Rate of Substitution
(b) Ordinal Approach (ii) Budget line and Indifference Curve
(c) Price-Consumption Curve (iii) $U = f(x, y)$
(d) Consumer Equilibrium (iv) $MRS _{xy} = MRS _{yx}$
  1. $(a) - (i), (b) - (iv), (c) - (iii), (d) - (ii)$
  2. $(a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)$
  3. $(a) - (iii), (b) - (i), (c) - (ii), (d) - (iv)$
  4. $(a) - (iv), (b) - (ii), (c) - (i), (d) - (iii)$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Utilitarian approach uses utility functions U = f(x, y). Ordinal approach uses indifference curves and budget lines. Price-consumption curve relates to changes in price, and consumer equilibrium occurs where the marginal rate of substitution equals the price ratio (MRSxy = Px/Py).