Tag: economics

Quizzes (361) Questions (3598)

Questions Related to economics

Multiple choice economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

Crop Failure leads to reduced supply and increased prices of food products, thereby affecting ______________.

  1. cost of living

  2. standard of living

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When crop failure occurs, food supply drops and prices rise. This increases the cost of living and lowers the standard of living for consumers.

Multiple choice economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

There will be a __________ demand for industrial and consumer goods in rural areas, in case of prosperity in agriculture. 

  1. low

  2. moderate

  3. high

  4. can't be determined
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Agricultural prosperity increases the disposable income of rural households, which leads to higher demand for industrial and consumer goods in those areas.

Multiple choice economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

More people employed in Agriculture leads to _____________.

  1. employment opportunity in rural areas

  2. avoidance of Urban Congestion and Urban Pollution

  3. eeduction in Rural Brain Drain

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

More agricultural employment reduces rural unemployment, prevents urban migration (reducing congestion and pollution), and reduces rural brain drain as youth find local opportunities.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In the long run production function all inputs are fixed.

  1. True

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

In the long run, all inputs are variable. The statement that all inputs are fixed in the long run is incorrect; that condition applies to the very short period or is simply false by definition.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In the long run there is enough time for the firm to cover its losses and earn normal profits. This is because in the long run, all inputs are __________.

  1. identical

  2. homogenous

  3. variable

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

In the long run, firms have sufficient time to adjust all factors of production, meaning all inputs become variable. This flexibility allows firms to optimize their scale of operations.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

The period of time in which the plant capacity can be varied is known as __________.

  1. the short period

  2. the market period

  3. the long period

  4. all of the above.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The long period is defined as a time frame long enough for a firm to change its plant capacity, which involves adjusting fixed factors like capital and machinery.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In the case of very short period ______ is variable.

  1. land

  2. capital

  3. labour

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

In the very short period (market period), the supply is fixed because there is no time to adjust any factors of production. Therefore, none of the listed factors (land, capital, labour) are variable.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In short run when the level of production increases, average fixed cost will____.

  1. remain same

  2. decrease

  3. increase

  4. all the three possible depending upon the merit of case
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The AFC curve is asymptotic to to both the x and y axis as the fixed cost can never be 0 since fixed cost is positive. It slopes downwards throughout its length from left to right showing continuous fall in average fixed cost with an increase in output. 

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In the long run ___________.

  1. all inputs are fixed

  2. all inputs are variable

  3. some inputs are fixed and rest are variable

  4. a few are variable and rest are fixed
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the long run all inputs are variable as there is enough time for all factors to adjust according to the requirements for achieving least cost output. 

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

____ refers to that period in which supply of a commodity can be increased or decreased depending upon changed condition of demand. 

  1. Very short period

  2. Short period

  3. Long period

  4. Very long period
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The long period provides sufficient time for firms to adjust their production capacity in response to changes in market demand, making supply more elastic.