Tag: foreign trade in india

Questions Related to foreign trade in india


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

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

  1. True

  2. False

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Correct Option: A
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.

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

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

  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

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Correct Option: A


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

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

  1. True

  2. False

Show answer
Correct Option: B
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.