Tag: economic mechanism

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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

Which of the following is an important ingredient of Selling Economies?

  1. Advertising Economies

  2. Inventory Economies

  3. Transportation Economies

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

Advertising Economies is an important ingredient of Selling Economies. Advertising helps to increase the sale of a product by encouraging buyers to buy more products or avail more services. 

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

As a result of Economic Reforms, Re-structuring, Mergers & Acquisitions of Companies, Business Process Re-engineering, processes have been ___________.

  1. Simplified

  2. Made more procedural

  3. Subject to Central Government approval in all situations

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

As a result of Economic Reforms, Re-structuring, Mergers & Acquisitions of Companies, Business Process Re-engineering, processes have been simplified.

Economic reforms  are taken by the Indian government, which emphasized LPG model- liberalization, privatization and globalization.
Positive impact of Economic Reforms on the Indian Economy are :-a)Improvement in work culture

b) Increase in quality and cost consciousness
c)Increase in Value-Added Exports.

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

The consumer is in equilibrium at a point where the budget line.

  1. Is above an indifference curve

  2. Is below an indifference curve

  3. Is tangent to an indifference curve

  4. Cuts an indifference curve
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The consumer is in equilibrium at a point where the budget line is tangent to an indifference curve, because it can not intersect the IC either from above or below.

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

After the initial stages of increasing returns to scale, the Firm will experience ________________________.

  1. Still Increasing Returns to Scale

  2. Constant Returns to Scale

  3. Diminishing Returns to Scale

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

In economic terms, constant returns to scale is when a firm changes its inputs with the results being exactly the same change in outputs (production). In other words, if a firm increases its inputs they will see a proportional increase in production (or outputs). 

The similar can be true if a firm decreases its inputs and that results in a proportional decrease in outputs. Constant returns to scale take place when increasing the number of inputs leads to an equivalent increase in the output.

 Thus, the correct option is B.

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

Which of the following statement is true?

  1. Accumulation of capital depends solely on income

  2. Savings can also be affected by the State

  3. External economies go with size and internal economies with location

  4. The supply curve of labour is an upward slopping curve
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Since govt.  also earn income it can also effect savings.

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

When Total Revenue equals Economic Costs, it means that the firm________________.

  1. Has No-profits-No-Loss

  2. Earns Normal Profits

  3. Earns more than Normal Profits (i.e. Super -Normal Profits)

  4. Incurs Looses in the accounting sense
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Accounting profit is the monetary costs a firm pays out and the income a firm receive. It is the accounting profit, and it is higher than economic profit. 

Accounting profit = total monetary revenue- total costs. 

Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives.The level of profit that occurs when total revenue is equal to total cost. This stage indicates that a firm is doing just as well as it would have if it had selected to use its income to produce a different product or struggle in a different industry.

Common profit is also known as zero monetary profit.

Thus, the correct option is B.

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

An indifference curve slopes down towards right since more of one commodity and less of another result in.

  1. Same satisfaction

  2. Greater satisfaction

  3. Maximum satisfaction

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

An indifference curve slopes down towards right since more of one commodity and less of another result same satisfaction to the consumer.

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

Internal Economies and Diseconomies arise due to ________________.

  1. Overall industry-level changes

  2. Changes at the Firm level

  3. Both (a) and (b)

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

Internal Economies and Diseconomies arise due to changes at the Firm level.Internal Economies and Diseconomies in operations depend on the internal factors within the firm.
Internal Economies or diseconomies can be defined as a situatiion when the production of the firm gets affected because of the internal factors of the firm only.

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

If all inputs are trebled and the resultant output is doubled, this is a case of____________.

  1. Constant returns to scale

  2. Increasing returns to scale

  3. Diminishing returns to scale

  4. Negative returns to scale
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
If all inputs are trebled and the resultant output is doubled, this is a case of diminishing returns to scale.
Diminishing return to scale can be defined as a situation when there is an increase in input causes a less proportional increase in output than the input. It is a type of effect which can be seen in the short run period when we increase inputs.
Multiple choice organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

A decrease in the demand for cameras keeping other things the same results in ________.

  1. Increase the number of cameras bought

  2. Decrease the price but increase the number of cameras bought

  3. Increase the price of cameras

  4. Decrease the price and also the number of cameras bought
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Decrease in demand will decrease the price and quantity both.