Tag: economics of development

Questions Related to economics of development

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of _____________________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Constant Returns to Scale.

  2. Increasing Returns to Scale.

  3. Decreasing Returns to Scale.

  4. All of these.

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Correct Option: A
Explanation:

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of Constant Returns to Scale.Constant Returns to Scale can be defined as a situation when an increase in inputs cause proportional increase in output.

As a consequence of economic reforms, the MRTP Act 1969 was replaced by competition Act in the year __________ .

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. 2001

  2. 2002

  3. 2003

  4. 2004

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Correct Option: B
Explanation:

Monopolies and Restrictive Trade Practices act, 1969 was enacted to prevent the concentration of economic power to common detriment, control of monopolies, and prohibition of monopolistic and restrictive trade practices and matters connected therewith. But after the New economic reforms, liberalization, privatization, and globalization it was necessary that there must be competition in the market for the survival of the fittest. Therefore, the MRTP Act 1969 was replaced by Competition Act in year 2002. 

You are given the following data:

Factor  Output
0 0
1 15
2 30
3 45
4 60
5 75

The above data is an example of:

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Constant Returns to Scale.

  2. Decreasing Returns to Scale.

  3. Increasing Returns to Scale.

  4. Globalization.

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Correct Option: A

__________ of credit control affects indiscriminately all sectors of the economy.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Qualitative Methods

  2. Quantitative Methods

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: B
Explanation:

Quantitative methods of credit control affects indiscriminately all sectors of the economy.Quantitative measures to control credit are also known as general measures. Quantitative instruments of control credit are those instruments which focus on overall supply of money in the economy. These measures are used in a manner such that overall supply of money in the economy is reduced during inflation and increased during deflation.

After a certain period of time, the demand of the people for agricultural output _________ and for industrial output __________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. falls, rises

  2. rises, falls

  3. falls, constant

  4. constant, rises

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Correct Option: A
Explanation:

After a certain period of time, the demand of the people for agricultural output falls and for industrial output rises. Since the coming of industrialization, the demand for industrial products are risings which is a result of modern standard of living from the traditional one so people prefer industrial product over agricultural product.