Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

If Land is used for productive purposes, its fertility is reduced. Such fertility ________________.

  1. Can be restored

  2. Cannot be restored at all

  3. Is lost forever

  4. Both (b) and (c)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The fertility of land can be depleted through intensive use, but it is not lost forever; it can be restored through methods like fertilization, crop rotation, and fallowing.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

As a Factor of Production, the Elasticity of Supply of Land from the viewpoint of the entire economy is ______________.

  1. Infinite

  2. Zero

  3. Positive

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

Since the total amount of land in the entire economy is fixed and cannot be increased regardless of price, the supply is perfectly inelastic, which corresponds to an elasticity of zero.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

Which category of land is rent-less land?

  1. First category of land

  2. Second category of land

  3. Third category of land

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

Rent, for a land in the case of cultivation land, refers to the difference between the value of the produce and the cost of cultivation. Marginal land is the last grade of land cultivated whose price of produce is just equal to the cost incurred. Thus, it is a rent-less land, since the cost of cultivation is equal to the value of the produce.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

Which of these is an example of Land as a Factor of Production?

  1. Agricultural Lands

  2. Forests

  3. Diamond Mines

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

In economics, land includes all natural resources provided by nature, including agricultural soil, forests, and mineral deposits found in mines.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

The supply is __________, when a greater change in price leads to smaller change in quantity supplied.

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

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

When a large change in price results in a very small change in the quantity supplied, the supply is considered relatively inelastic (price elasticity of supply < 1).

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

The percentage change in quantity supplied due to percentage change in price is called __________.

  1. elasticity of supply

  2. law of supply

  3. supply curve

  4. elasticity of demand
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Elasticity of supply measures the responsiveness of the quantity supplied to a change in price. It is defined as the percentage change in quantity supplied divided by the percentage change in price.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply
Supply is more elastic in case of ______________.

  1. very short period

  2. short period

  3. long period

  4. both (b) and (c)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the long run, producers have more time to adjust their production processes, acquire new resources, or enter/exit the market, making supply more elastic. In the short run, production capacity is often fixed.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply
When 15% increase in price of the commodity causes 10% increase in the quantity supplied, then elasticity of supply is _____________.

  1. elastic

  2. inelastic

  3. perfectly elastic

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

Elasticity of supply = (% change in quantity supplied) / (% change in price). Here, 10% / 15% = 0.67. Since the value is less than 1, the supply is considered inelastic.

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

Write True or False with a reason.
Price elasticity of supply measures the change in quantity supplied in response to a change in own price of the commodity.

  1. True

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

True. Price elasticity of supply$=\cfrac { Percentage\quad change\quad in\quad quantity\quad supplied }{ Percentage\quad change\quad in\quad price } $

Multiple choice economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

CRR refers to the share of_____________ that rural banks have to maintain with RBI of their net demand and time liabilities?

  1. Liquid cash

  2. Gold

  3. Forex reserves

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

Cash Reserve Ratio (CRR) is the portion of deposits that banks must hold as liquid cash with the Reserve Bank of India. It is a tool used to control liquidity in the banking system.