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1. What do you mean by the supply of goods?
A. Stock available for sale
B. Total stock in the warehouse
C. The actual production of the goods
D. Quantity of the goods offered for sale at a particular price per unit of time
ANSWER: D.Quantity of the goods offered for sale at a particular price per unit of time
SOLUTION :A supply of goods includes the following: the transfer of ownership of goods by agreement. the sale of movable goods on a commission basis by an auctioneer or agent.
Moscow
2. What do you mean by ‘under conditions of a perfect competition in the product market’?
A. MRP = VMP
B. MRP > VMP
C. VMP > MRP
D. None of the above
ANSWER:A.MRP = VMP
SOLUTION:
All firms sell an identical product (the product is a commodity or homogeneous). All firms are price takers (they cannot influence the market price of their products).
3. Which of the following is the relation that the law of demand defines?
A. Income and price of a commodity
B. Price and quantity of a commodity
C. Income and quantity demanded
D. Quantity demanded and quantity supplied
ANSWER : B.Price and quantity of a commodity
SOLUTION:
The Law of Demand is one of the most fundamental concepts in economics. It works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services that we observe in everyday transactions.
4. What do you mean by a mixed economy?
A. Modern and traditional industries
B. Public and private sectors
C. Foreign and domestic investments
D. Commercial and subsistence farming
ANSWER: B.Public and private sectors
SOLUTION:
A mixed economy is a system that combines elements of both a market economy and a command economy. In a mixed economy, some resources and businesses are privately owned while others are owned by the government, and both free markets and government intervention play a role in economic decision-making.
5. What do you mean by the demand of a commodity?
A. Desire for the commodity
B. Need for the commodity
C. Quantity demanded of that commodity
D. Quantity that consumers are able and willing to buy at various prices during any particular period of time
ANSWER: D.Quantity that consumers are able and willing to buy at various prices during any particular period of time
SOLUTION:
Demand for a commodity refers to amount of the commodity demanded at a particular price and at a particular time.
6. What do you mean by Gross National Product?
A. The total value of goods and services produced in the country
B. The total value of all the transactions in the country
C. The depreciation in the total value of goods and services produced in the country
D. The total value of goods and services produced in the country and the net factor income from abroad
ANSWER: D.The total value of goods and services produced in the country and the net factor income from abroad
SOLUTION:
The total value of goods and services produced in the country and the net factor income from abroad.
7. Which of the following is/are linked with the financial sector of India and controlled by the Reserve Bank of India (RBI)?
A. Commercial bank
B. Money lenders
C. Stock exchange operations
D. All of the above
ANSWER: C.Stock exchange operations
SOLUTION :
The entities linked with the financial sector of India and regulated by the Reserve Bank of India (RBI) are the commercial banks and stock exchange operations.
8. When price floor is set above equilibrium price it will result in?
A. Shortage
B. Surpluses
C. Equilibrium
D. None of the above
ANSWER: B.Surpluses
SOLUTION:
When a price floor is set above the equilibrium price, the quantity supplied will exceed the quantity demanded, and excess supply or surpluses will result.
9. What is Gross Domestic Product?
A. The total value of goods and services manufactured in the country
B. The total value of all the transactions in the country
C. The reduction in the total value of goods and services produced in the country
D. The monetary value of all finished goods and services made within a country during a specific period.
ANSWER: D.The monetary value of all finished goods and services made within a country during a specific period.
SOLUTION:
the total value of goods produced and services provided in a country during one year.
10. What is the main economic problem faced by the society?
A. Unemployment
B. Inequality
C. Poverty
D. Scarcity
ANSWER: D.Scarcity
SOLUTION:
The fundamental problem in economics is the issue with the scarcity of resources but unlimited wants. Economics has also pointed out that a man’s needs cannot be fulfilled. The more our needs are fulfilled, the more wants we develop with time. By definition, scarcity implies a limited quantity of resources.