Tag: supply curve and price determination in the market

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Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

When a transaction is processed online, how can the merchant verify the customer's identity?

  1. use secure sockets layers

  2. use secure electronic transactions

  3. use electronic data interchange

  4. use financial electronic data interchange
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Secure Electronic Transaction (SET) was a communications protocol standard for securing credit card transactions over networks, specifically designed to verify the identity of the customer and the merchant.

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

Indian financial system has provisions for the transfer of resources from the center to the states; the important means of resource transfer are _________________.

  1. devolution from the central taxes

  2. grant-in-aids for different purposes

  3. loans of short and long term periods

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

The Indian financial system transfers resources to states through multiple channels, including tax devolution, grants-in-aid, and various loan facilities.

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

Prices under price mechanism are determined by the ____________.

  1. market forces of demand and supply

  2. government as well as firms

  3. producers alone

  4. factors of production
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In price mechanism, prices of commodities in the market are determined by the forces of demand and supply that generates open competition in the market which leads optimum distribution of goods and services. 

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

Forces of demand and supply operate within the framework of a market.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa which generates within the framework of a market. 

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

___________ markets are those markets where factor services are bought and sold.

  1. Factor

  2. Service

  3. Production

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

Factor market refers to those market where factor services i.e. factors of production like capital, land, labour, and entrepreneurship are bought and sold against some factor payments like interest, rent, wages, and profit.

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

Price mechanism operates in a ___________ economy

  1. socialist

  2. free-enterprise

  3. mixed

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

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa. Therefore for price mechanism to operate, the market should be free from all types of interventions. 

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

In a free-market economy, the services of ___________ are available only at some price.

  1. government

  2. factors of production

  3. housewives

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

In a free market economy, prices of commodities in the market are affected by the forces of demand and supply that generates open competition in the market which leads to optimum allocation and utilization of resources because the prices of the factor of production depends upon the demand and supply of the commodities produced by it. 

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

______________ is the mechanism in which prices play a key role in directing the activities of producers, consumers and resource suppliers.

  1. Price mechanism

  2. Market mechanism

  3. Production mechanism

  4. Demand-supply mechanism
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa. It also regulates the supply of resources in the economy as more resources are supplied if there is more demand for the commodity produced using it. 

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

Forces of demand and supply operate within the framework of a/an __________.

  1. economy

  2. market

  3. nation

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

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa which generates within the framework of a market.