Tag: foreign trade in india

Quizzes (2) Questions (133)

Questions Related to foreign trade in india

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 a situation when import of inputs becomes expensive, equilibrium price of the commodity tends to rise.

  1. True

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

True.
When import of inputs becomes expensive, the cost of production rises, leading to a cut in supplies. The supply curve shifts to the left. Accordingly, equilibrium price of the commodity tends to rise.

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

According to Keynesian theory of income determination, at full employment, a fall in aggregate demand lead to a ___________.

  1. fall in prices of output and resources

  2. fall in real gross national product and employment

  3. rise in real gross national product and investment

  4. rise in prices of output and resources
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the Keynesian model, if aggregate demand falls at full employment, the resulting surplus of goods and labor exerts downward pressure on prices and wages.

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 no excess demand or excess supply in the market, everybody is equally satisfied (or nobody suffers any shortage).

  1. True

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

False.
When there is no excess demand or excess supply, the market clears. However, it does not mean that everybody is equally satisfied. At the given market price, some people may not be able to buy the product, and therefore, remain unsatisfied.