Tag: major definitions of economics

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Questions Related to major definitions of economics

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

An increase in the supply of a good is caused by.

  1. Improvements in its technology

  2. Fall in the prices of other goods

  3. Fall in the prices of factors of production

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An increase in supply occurs when production becomes more efficient or cheaper, which can be caused by technological improvements, lower input costs, or favorable conditions for other goods.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

The quantity supplied of a good or service is the amount that.

  1. In actually bought a given time period at a given price

  2. Producers wish they could sell at a higher price

  3. Producers plan to sell during a given time period at a given price

  4. People are willing to buy during a given time period at a given price
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quantity supplied refers to the amount of a good that producers are willing and able to offer for sale at a specific price during a specific period.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

The way in which rational consumers allocate their expenditure on goods and service is best described by ___________.

  1. The law of diminishing marginal utility

  2. The law of demand

  3. The theory of value

  4. The marginal rate of substitution
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The law of diminishing marginal utility explains how consumers allocate their income to maximize satisfaction by equating the marginal utility per dollar spent across different goods.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

A place or locality where goods are bought and sold is called a ____________.

  1. shopping complex

  2. geographical boundary

  3. market

  4. area
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A market is defined as a place (however it need not be a physical place, as now-days various transactions are carried out over the internet, even this is referred to as a 'market') where buyers and sellers meet to buy and sell respectively (ie exchange goods) at a predetermined equilibrium price. The market will clear at the price point where what people want to buy and what people are willing to sell is equal. 

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

There was increase in tax rate from 20% to 24% w.e.f. 1.6.2018. Which of the following rate is applicable when invoice was issued after change in rate of tax in June 2017 but payment received and goods supplied in April 2017 __________________.

  1. 20% as it is lower of the two

  2. 24% as it is higher of the two

  3. 20% as payment was issued in the period during which the supply was effected

  4. 24% as invoice being one of the factors was issued after rate change
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the time of supply rules under GST, when the payment is received and goods are supplied before the change in tax rate, the original tax rate applies regardless of when the invoice is issued.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Will the inputs and/or capital goods supplied from the job-worker's premises be considered for calculating the aggregate turnover of the job-worker?

  1. Yes

  2. No

  3. Partially true

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

Goods sent for job work remain the property of the principal; therefore, they are not included in the aggregate turnover of the job worker, who only provides a service.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Stock should include ____________________.

  1. Goods held as security

  2. Goods held as consignee

  3. Goods with customers for approval on sale or return basis

  4. Goods sold but not delivered
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Stock should include goods held by the entity as a consignee, as these are physically in their possession and part of their inventory management, even if ownership remains with the consignor.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

In case of low-level commodities, income effect is _____.

  1. Zero

  2. Negative

  3. Infinite

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

An income effect is positive in case of normal goods. There is direct relationship between income and quantity demanded. Income effect is negative in case of inferior goods (including Giffen goods) where we find inverse relationship between income and quantity demanded.