Tag: business economics and quantitative methods

Questions Related to business economics and quantitative methods

In a situation when productivity increases owing to improvement in technology, equilibrium price tends fall.

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. True

  2. False

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Correct Option: A
Explanation:

True.
Owing to improvement in technology, supply of the good in the market will increase causing a rightward shift of the supply curve. Accordingly, equilibrium price will decrease.

Market price is always equal to or greater than the support price of a commodity.

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. True

  2. False

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Correct Option: A
Explanation:

True.

In a situation of support price (which is the minimum price assured to the producers), market price ought to be equal to or greater than the support price.

In a state of increasing cost of production leading to a substantial cut in production, equilibrium price will fall.

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. True

  2. False

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Correct Option: B
Explanation:

False.
With a substantial cut in production due to increase in cost of production, the supply curve shifts to the left and equilibrium price will, thus, increase.

In a situation of war when people are fearing shortage of rice, equilibrium price of rice tends to rise.

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. True

  2. False

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Correct Option: A
Explanation:

True.
Fearing shortage of rice, the demand curve for rice will shift towards right, causing a rise in equilibrium price.


In a situation when import of inputs becomes expensive, equilibrium price of the commodity tends to rise.

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. True

  2. False

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Correct Option: A
Explanation:

True.
When import of inputs becomes expensive, the cost of production rises, leading to a cut in supplies. The supply curve shifts to the left. Accordingly, equilibrium price of the commodity tends to rise.

According to Keynesian theory of income determination, at full employment, a fall in aggregate demand lead to a ___________.

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. fall in prices of output and resources

  2. fall in real gross national product and employment

  3. rise in real gross national product and investment

  4. rise in prices of output and resources

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Correct Option: A


When there is no excess demand or excess supply in the market, everybody is equally satisfied (or nobody suffers any shortage).

business economics and quantitative methods foreign trade in india the government and economic development indian economy on the eve of independence impact of technology on livelihoods

  1. True

  2. False

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Correct Option: B
Explanation:

False.
When there is no excess demand or excess supply, the market clears. However, it does not mean that everybody is equally satisfied. At the given market price, some people may not be able to buy the product, and therefore, remain unsatisfied.

To control high rate interest rates, coercive collections and illegal insurance practices by the Micro Finance Institutes, Andhra Pradesh Government passed Andhra Pradesh Microfinance Institutions (Regulations of Money Lending) Act in?

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. 2014

  2. 2013

  3. 2005

  4. 2011

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Correct Option: D

When the rate of money inflation increases then the prices of commodities _____.

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. Increase

  2. Decrease

  3. Remain constant

  4. Do not change

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Correct Option: A
Explanation:

Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing the real burden of public and private debt, keeping nominal interest rates above zero so that central banks can adjust interest rates to stabilize the economy, and reducing unemployment due to nominal wage rigidity.

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed?

business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

  1. Ponzi schemes

  2. Micro Finance System

  3. Money Laundering Schemes

  4. Money tampering finance

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Correct Option: B