Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

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

An inferior commodity is one which is consumed in smaller quantities when the income of consumer ________.

  1. becomes nil

  2. remains the same

  3. falls

  4. rises
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The price of inferior goods are very cheap and usually associated with low levels of income. So when the consumer's income rises they try to consume normal good and when there income decreases they consume inferior goods. 

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

The supply of a good refers to the _________.

  1. Actual production of the good

  2. Total existing stock of the good

  3. Stock available for sale

  4. Amount of the good offered for sale at a particular price per unit of time
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The supply of a good refers to the amount of the good offered for sale at a particular price per unit(period) of time.

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

As per the concept of increasing marginal opportunity cost, under the PPF theory, it can be interpreted that to produce more units of good X, ____________ of good Y have to be sacrificed.

  1. increasing units

  2. constant units

  3. decreasing units

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

The slope of the curve i.e. marginal opportunity cost which states that for production of every successive unit of butter we need to sacrifice more and more of guns because resource are use specific. 

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

If India exports goods worth Rs.$20$ crores and imports goods worth Rs.$30$ crores, it will ________________.

  1. have a surplus of Rs$10$ crores in balance of trade
  2. have a deficit of Rs$10$ crores in balance of trade
  3. have a deficit of Rs$50$ crores in balance of trade

  4. can't say
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

BOT =  export - Import i.e. $20 - 30 = 10$ crore deficit.

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

When Price = Rs. 20, quantity is demanded 9 units, and when Price = Rs. 19, quantity demanded is 10 units. What is the Marginal Revenue resulting from an increase in output from 9 units to 10 units?

  1. Rs. 20

  2. Rs. 19

  3. Rs. 10

  4. Rs. 1
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total Revenue at 9 units is 9 * 20 = 180. Total Revenue at 10 units is 10 * 19 = 190. Marginal Revenue = 190 - 180 = 10.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money
How are the two goods (apples and oranges) related when, as a result of rise in the price of apples, demand for oranges increases?

  1. Substitute Goods

  2. Complementary Goods

  3. Normal Goods

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

A substitute good is a good that can be used in place of another. It is a good with a positive cross elasticity of demand.

This means a good's demand is increased when the price of another good is increased; both in the same direction.

For example, if apples and oranges are substitutes for a consumer, then if the price of apples increases, the consumer will buy less of apples and more of oranges. Thus, when price of apples increases, the demand for oranges will rise. 

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money
Which of the following pairs represents substitute goods?

  1. Car and petrol

  2. Juice and cold drink

  3. Bread and butter

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

Juice and cold drinks can be taken in place of each other. Therefore,they are substitute goods as substitute goods are those goods where demand of one good rises when the price of another good gets increased.