Tag: indian economy on the eve of independence

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Questions Related to indian economy on the eve of independence

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).

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

Sellers market denotes a situation where _______.

  1. commodities are available at competitive rates

  2. demand exceeds supply

  3. supply exceeds demand

  4. supply and demand are evenly balanced
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A market is termed to be sellers market when the demand is high and seller has a high degree of control on the market due to limited supply; in this case, the demand tends to exceed the available supply for a commodity.

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 dual pricing?

  1. Wholesale price and Retail pricning

  2. Pricing by agents and Pricing by retailers

  3. Price fixed by Government and Price in open market

  4. Daily prices and Weekly prices
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Dual pricing is a system where the government fixes a price for a portion of a commodity (often for public distribution) while allowing the remainder to be sold at a higher price in the open market.

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

As per indifference curve and price line, a consumer will not be in equilibrium when

  1. Ratios of marginal utilities and prices of the respective goods are equal

  2. Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices

  3. The marginal rate of substitution is equal to the ratio of prices of the two goods

  4. The marginal rate of substitution is decreasing
Reveal answer Fill a bubble to check yourself
A Correct answer
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 difference between the minimum price the producer is willing to accept and the equilibrium price is called ________.

  1. price

  2. profit

  3. producers surplus

  4. consumers surplus
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Producer surplus is the difference between the actual price a producer receives (the equilibrium price) and the minimum price they would have been willing to accept for that 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

Graphically, when is the supply curve is below the demand curve?

  1. Excess demand

  2. Excess supply

  3. Equilibrium

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

When the supply curve is below the demand curve, it means that at a given price, the quantity demanded is greater than the quantity supplied, which is the definition of excess demand.

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

Graphically, an equilibrium is a point where _____.

  1. supply curve is above the demand curve

  2. supply curve is below the demand curve

  3. market supply curve intersects the market demand curve

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Market equilibrium is defined as the point where the quantity supplied equals the quantity demanded, which is represented graphically by the intersection of the supply and demand curves.

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

At any price lower than equilibrium price, there is _____.

  1. excess supply

  2. excess demand

  3. deficient supply

  4. deficient demand
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When the price is set below the equilibrium level, the quantity demanded by consumers exceeds the quantity supplied by producers. This gap is referred to as excess demand or a shortage.