Tag: economics of development

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

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 _____________________.

  1. Constant Returns to Scale.

  2. Increasing Returns to Scale.

  3. Decreasing Returns to Scale.

  4. All of these.
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

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

  1. 2001

  2. 2002

  3. 2003

  4. 2004
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 

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

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:

  1. Constant Returns to Scale.

  2. Decreasing Returns to Scale.

  3. Increasing Returns to Scale.

  4. Globalization.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the data, as the factor increases by 1, the output increases by 15 consistently. This constant ratio of output to factor (15/1 = 30/2 = 45/3 = 60/4 = 75/5 = 15) indicates constant returns to scale.

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

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

  1. Qualitative Methods

  2. Quantitative Methods

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

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

  1. falls, rises

  2. rises, falls

  3. falls, constant

  4. constant, rises
Reveal answer Fill a bubble to check yourself
A Correct answer
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.