Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

_______ is a prediction or estimation of future values of a variable like sales, demand, price, profits etc.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Planning

  2. Decision making

  3. Forecasting

  4. None of above

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Correct Option: C
Explanation:

Forecasting refers to predicting the imputed values of various economic variables like demand, supply etc. to develop premises for the economic plans for smooth conduct of production in the economy according to the plans that aims at achieving growth and development of the economy.  

Which of the following is not a part of the opportunity cost of going on holiday?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. The money you spent on a theatre show.

  2. The money you could have made if you had stayed at home and worked.

  3. The money you spent on airline tickets.

  4. The money you spent on food.

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Correct Option: D
Explanation:

The money spent on food is not a part of the opportunity cost of going on holiday.Opportunity cost of production of a commodity refers to the cost which has to be sacrificed in terms of the next best alternative which could be produced out of that cost. Therefore, food is part of our everyday expense which will not be considered as the sacrifice of any other commodity. 

Which of the following is/are an outcome of a technological change?

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. A downward shift in the production function

  2. Same output with fewer inputs or more output with same inputs

  3. Invention of a product or production process

  4. Both (b) and (c) above

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Correct Option: D
Explanation:
1) Same output with fewer inputs or more output with same inputs
2) Invention of a product or production process
Both the situations can be defined as an outcome of a technological change as the production rises because of technological advancement in both the situation.
As a result, the production possibility curve will shift to the right.

 Production is a / an _____________ activity.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Charitable

  2. Beneficial

  3. Economic

  4. Successful

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Correct Option: C
Explanation:
Economic activity is an activity that generates income and involves production, sale and distribution of goods and services. The motive behind an economic activity is to earn money and not to meet emotional and sentimental human needs. 
Thus, production is an economic activity that generates income and is undertaken with a motive to earn profit.
The correct option is C.

Ram : My corn harvest this year is poor.
Krishna : Don't worry. Price increases will compensate for the fall in quantity supplied.
Vinod : Climate affects crop yields. Some years are bad, others are good.
Madhur : The Government ought to guarantee that our income will not fall.
In the conversation the normative statement is made by ______________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Ram

  2. Krishna

  3. Vinod

  4. Madhur

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Correct Option: D
Explanation:

Normative Statement refers to "What ought to be" or it makes an assessment of an activity and offers advice. Hence the statement made by Madhur is a normative statement.

Custom Duties are levied on ______________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Exports and Imports

  2. Manufacture of excisable goods / commodities

  3. Services Rendered

  4. Sale made by a Dealer in the course of inter-state or intra-state or commerce

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Correct Option: A
Explanation:

Custom Duties are levied on exports and imports. Custom duty can also be defined as a type of tax which should be paid by people for exporting to foreign countries and importing goods from foreign countries.

Convertibility of rupee means _________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. determination its own exchange rate in international market

  2. conversion of rupee into any foreign currency

  3. transfer of funds in international market

  4. none of these

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Correct Option: B
Explanation:

Convertibility of rupees refers to the ability of rupees to be converted into any foreign currency backing with the exchange rate that prevails at the time of conversion. 

'Economics is what Economists do' is given by _____________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Jacob Viner

  2. Henry Smith

  3. Pigou

  4. Paul A. Samuelson

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Correct Option: A
Explanation:

Jacob Viner defined Economics as  'Economics in what Economists do'.

Oikonomia means ______________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. industry

  2. household

  3. services

  4. none of these

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Correct Option: B
Explanation:

"Oikonomia" is a Latin word which means household as it is related to the financial management of  household activities through which the concept of economics was derived. 

The term 'Economics' owes its origin to the Greek word ___________.

organisation of commerce and management economics of development and planning fundamental of economic development economics of development economic mechanism

  1. Aikonomia

  2. Wikonomia

  3. Oikonomia

  4. None of the above

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Correct Option: C
Explanation:

The term 'Economics' owes its origin to the Greek work 'Oiknonomiia' means 'household'.