Tag: impact of technology on livelihoods

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Questions Related to impact of technology on livelihoods

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 consumer surplus of a product represent.

  1. Excess of demand price over price paid

  2. Excess of price over cost of production

  3. Excess of demand price of equilibrium price

  4. Demand price minus taxes
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. This represents the net benefit to the consumer.

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 what the consumer is prepared to pay and what the actually pays is called ________.

  1. Producer surplus

  2. Consumer surplus

  3. Normal profit

  4. Abnormal profit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Consumer surplus is defined as the difference between the maximum amount a consumer is willing to pay and the market price they actually pay for a product.

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

Shortage of supply of goods would cause ________.

  1. Equilibrium price to rise

  2. Equilibrium price to fall

  3. Equilibrium price to remain same

  4. Cost of production to go up
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the supply of goods is lower than the demand (shortage), competition among buyers for the limited supply drives the equilibrium price upward.

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

EPCG stands for ______________.

  1. Export Promotion Capital Goods

  2. Expert Programmes for Credit Generation

  3. Exchange Programme for Consumer Goods

  4. Export Promotion Consumer Goods
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

EPCG stands for Export Promotion Capital Goods. This is a scheme provided by the government of India for importers and exporters to promote exports. 

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 a market is in equilibrium_________.

  1. No shortages exist

  2. Quantity demanded equals Quantity supplied

  3. A price is established that clears the market

  4. All of the above are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When market is in equilibrium there is a balance of quantity demanded and quantity supplied are the same. Hence, because quantity demanded = quantity supplied there are no shortages in the market and the price is fixed which clears the 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

Consumer has no consumer surplus on _______ of the commodity consumed.

  1. first unit

  2. second unit

  3. all units

  4. last unit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Consumer has no consumer surplus on last unit of the commodity consumed. This is because consumer surplus is based on the law of diminishing marginal utility. According to this law, the Marginal utility/satisfaction of the consumer goes on decreasing with every additional consumption of the commodity. Hence, it is because of this law that the consumers willingness to pay for additional unit goes on diminishing and there is no consumer surplus on the last unit. 

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 a large firm takes up advertising and grants margin to distribution, it is called.

  1. Technical economics.

  2. Managerial economics.

  3. Marketing economics.

  4. Financial economics.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When large firm takes up advertising and grants margin to distribution its called as market economics. Market economics facilitates sale and purchase of goods and services 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

In the situation of market equilibrium:

  1. Market demand = Market supply.

  2. Market demand > Market supply.

  3. Market demand < Market supply.

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

At equilibrium level market demand is equal to market supply. This is the state where the market forces of demand and supply are same and there can be no change in the price. This is the state where the ideal market price is achieved. 

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 minimum assured price offered by the government to the farmers for the purchase of their output is called____________.

  1. ceiling price.

  2. equilibrium price.

  3. support price.

  4. market price.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The minimum assured price offered by the government to the farmers for the purchase of their output is called support price. This helps the farmers to get adequate remuneration for their crop yield. It saves the customers from losses. 

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 being perfectly inelastic, what will be the effect of increase or decrease in demand on price and equilibrium quantity?

  1. Price increases or decreases respectively.

  2. No effect on equilibrium quantity.

  3. Both (a) and (b).

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

In case of perfectly inelastic demand the change in price will have no effect on the quantity demanded. The consumers do not change their demand due to the change in price. This usually is seen in case of necessities. Hence, the equilibrium quantity will be same the price might increase or decrease.