Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice economics how does production take place? land land,labour, capital and entrepreneur production mechanism

Which of the following includes entrepreneurs cost of production?
I. Wages of labour
II. Interest of capital
III. Cost of raw materials
IV. Depreciation of capital goods 

  1. I and II are correct

  2. II and III are correct

  3. II and IV are correct

  4. All are correct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Entrepreneurs' cost of production includes-
1) wages of labour
2) interest of capital(amount of money invested)
3) depreciation of capital goods like machinery
-as all these are to be bear by the entrepreneur or the business entity.
Multiple choice economics how does production take place? land land,labour, capital and entrepreneur production mechanism

The cost of entrepreneur as a factor of production is _______.

  1. interest

  2. rent

  3. dividend/profit

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

Dividend/profit is known as the cost as a factor of production.For instance, when an entrepreneur invests his ideas to run an organization,then as a result ,profit is derived which is known as the cost of entrepreneur.

Multiple choice economics how does production take place? land land,labour, capital and entrepreneur production mechanism

An entrepreneur takes the responsibility of _________.

  1. production

  2. supply of a production

  3. management

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

An entrepreneur uses his skill and knowledge to run an organization and thus, he takes the responsibility of the whole organization in order to ensure the smooth functioning of the organization.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

In order to reduce credit in the country, RBI may ________________.

  1. Buy securities in the open market

  2. Sell securities in the open market

  3. Reduce cash reserve ratio

  4. Reduce Repo Rate
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If RBI sells securities to public then commercial bank will buy those using its reserves then commercial banks don't have enough fund to lend money to general public so it reduces the credit in the country.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

One of the State Government avails of a temporary financial assistance from Reserve Bank of India. This type of finance is called ____________ ?

  1. Overdraft

  2. Temporary loan

  3. Short term finance

  4. Ways and Means advance
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ways and Means Advances (WMA) are a facility provided by the RBI to the Central and State Governments to help them tide over temporary mismatches in the cash flow of their receipts and payments.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

'Penal rate' is also known as _____________.

  1. rate of interest

  2. bank rate

  3. rate of capital formation

  4. rate of unemployment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Bank Rate is now aligned to Marginal Standing Facility (MSF) rate, also called the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.

LAF is a facility extended by the Reserve Bank of India to the scheduled commercial banks (excluding RRBs) and primary dealers to avail of liquidity in case of requirement or park excess funds with the RBI in case of excess liquidity on an overnight basis against the collateral of Government securities including State Government securities. Basically LAF enables liquidity management on a day to day basis.

Marginal Standing Facility (MSF) is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to the penal rate at which banks can borrow money from the central bank over and above what is available to them through the LAF window.