Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

If all inputs are trebled and the resultant output is doubled, this is a case of____________.

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

  1. Constant returns to scale

  2. Increasing returns to scale

  3. Diminishing returns to scale

  4. Negative returns to scale

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Correct Option: C
Explanation:
If all inputs are trebled and the resultant output is doubled, this is a case of diminishing returns to scale.
Diminishing return to scale can be defined as a situation when there is an increase in input causes a less proportional increase in output than the input. It is a type of effect which can be seen in the short run period when we increase inputs.

A decrease in the demand for cameras keeping other things the same results in ________.

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

  1. Increase the number of cameras bought

  2. Decrease the price but increase the number of cameras bought

  3. Increase the price of cameras

  4. Decrease the price and also the number of cameras bought

Show answer
Correct Option: D
Explanation:

Decrease in demand will decrease the price and quantity both.

Cross holding method of Disinvestment refers to ____________________.

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

  1. Government selling part of its Shares in one PSU to other PSUs

  2. Government selling Shares of PSUs to Public Sector Financial Institutions & Banks

  3. Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges

  4. None of the above

Show answer
Correct Option: A
Explanation:

Cross holding method of Disinvestment refers to Government selling part of its Shares in one PSU to other PSUs.The term disinvestment is more popularly used where central/ state government sells its holdings of public sector companies.Disinvestment means selling of Public investment to a Private entrepreneur.Disinvestment of the public sector can be defined as a process of transferring the ownership of any enterprise from public to private sector.

Which of the following is a function of an entrepreneur?

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

  1. Initiating a business enterprise

  2. Risk bearing

  3. Innovating

  4. All of the above

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Correct Option: D
Explanation:

An entrepreneur has to initiate a business enterprise, bear the risk and innovate new products.

The term disinvestment is more popularly used ____________________________.

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

  1. Where a holding company sells shares of a Subsidiaray company

  2. Where an investment company off loads its holding

  3. Where central / State government sells its holdings of public sector companies

  4. None of the above

Show answer
Correct Option: C
Explanation:

The term disinvestment is more popularly used where central/ state government sells its holdings of public sector companies.Disinvestment means selling of Public investment to a Private entrepreneur.Disinvestment of the public sector can be defined as a process of transferring the ownership of any enterprise from public to private sector.

Comforts lies between the.

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

  1. Inferior goods and necessaries

  2. Luxuries and inferior goods

  3. Necessaries and luxuries

  4. None of the above

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Correct Option: C
Explanation:

Comforts lies between necessaries and luxuries because comforts refer to those goods which are not required for a happy living.

Which of the following goods is likely to have perfectly inelastic demand?

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

  1. Car

  2. Salt

  3. Cabbage

  4. Sugar

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Correct Option: B
Explanation:

'Salt' have perfectly inelastic demand.

In a very short period the supply.

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

  1. Can be changed

  2. Cannot be changed

  3. Can be increased

  4. None of the above

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Correct Option: B
Explanation:

In very short period (market period) supply cannot be changed.

Privatisation refers to __________________.

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

  1. The transfer of assets or service functions from public to private ownership or control

  2. The opening of hitherto closed areas to Private Sector entry

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C
Explanation:

Privatization refers to -a) The transfer of assets or service functions from the public to private ownership or control

b) The opening of hitherto closed areas to Private Sector entry
In simple words, Privatization can be defined as a process of transferring ownership of an enterprise or industry from the public to the private sector.

Equity Offer through 'Differential Pricing Method' primarily refers to ________________________.

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

  1. Government selling part of its Shares in one PSU to other PSUs

  2. Government selling Shares of PSUs to Public Sector Financial Institutions and Banks

  3. Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges

  4. None of the above

Show answer
Correct Option: B
Explanation:

Differential pricing refers to different prices functional in the market based on various factors such as geography, external environment or various reasons. This implies that there is one product in the market, but, different people need to pay different prices for it. 

Cross holding method of Disinvestment refers to Government selling part of its Shares in one PSU to other PSUs. The term disinvestment is more popularly used where central/ state government sells its holdings of public sector companies. Disinvestment means selling of Public investment to a Private entrepreneur.

The correct option is B.