Tag: the government and economic development

Questions Related to the government and economic development

When there is excess demand for a commodity, the 'Law of demand' implies that __________.

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. price of the commodity falls

  2. price of the commodity remains same

  3. price of the commodity rises

  4. quantity demanded of the commodity falls

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Correct Option: C

Supply of perishable goods is inelastic.

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

Total outlay is price multiplied by quantity. 

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:

Total outlay is another method to measure elasticity of demand this is also known as the expenditure method, Total outlay is calculated by taking into account the total expenditure which Is price multiplied by quantity. 

_______ is the price at which demand, for a commodity is equal to is supply.

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. Normal price

  2. Equilibrium price

  3. Short run price

  4. Secular price

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Correct Option: B
Explanation:

Equilibrium price is the price at which the quantity demanded and the quantity supplied is the same. After equilibrium is achieved the price does not change. It is the ideal market price.

In economics, a state of balance is called ________________.

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. saturation point

  2. stability point

  3. profit maximising point

  4. equilibrium point

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Correct Option: D

Consumer surplus arises because:

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. Consumer has lot of money

  2. Quality of different units of the same commodity differs

  3. Consumer receives more than what he pays for

  4. None of the above

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Correct Option: C
Explanation:

Consumer surplus is the excess of amount that the consumer is willing to pay and the amount that the consumer actually pays. Hence, surplus arises because consumer receives more than what he pays for. 

What is 'deemed exports' provisions applicable to?

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. Deemed export provision is applicable only to goods

  2. Deemed export provision is applicable only to services

  3. Deemed export provision is applicable both to goods and services

  4. Deemed export provision is applicable when goods and services are supplied to SEZ units/ developers

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Correct Option: A
Explanation:

“Deemed exports” classically refer to those transactions under which provide of goods do not leave the country, and payment for such requirements is innermost in Indian Rupees shall be treated as 'deemed exports', provided that supplies are artificial or formed in India. 

The Deemed export advantage consists of refund on duty on expenses on imports or excisable substance used in the manufacture of goods which are supplied to the suitable projects. 'Deemed Export Benefit' method profits are availed of by units in Power, Petroleum plant, manure and Nuclear Power Projects.

Thus, the correct option is A.

Which of the following is the most appropriate cause of exports surplus in an economy?

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. If the economy has diversified exports which are compulsive imports for other economies.

  2. If the economy has almost put everything in the negative list of import and has healthy forex reserves.

  3. If the economy promotes exports and imports without any barriers with incentives given to the exporters.

  4. None of the above.

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Correct Option: A
Explanation:

This has been the case of the developed economies of the world whose over had surplus in its trade accounts.

The equilibrium price clears the market: It is the price at which ________.

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. everything is sold

  2. quantity demanded equals quantity supplied

  3. excess demand is zero

  4. B and C

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Correct Option: D
Explanation:

1:A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price
2:The equilibrium price clears the market: It is the price at which quantity demanded equals quantity supplied with excess demand is zero.

Match the items of List-I and items of List-II and select the correct code for the answer.

List-I List-II
(a) Utilitarian Approach (i) Marginal Rate of Substitution
(b) Ordinal Approach (ii) Budget line and Indifference Curve
(c) Price-Consumption Curve (iii) $U = f(x, y)$
(d) Consumer Equilibrium (iv) $MRS _{xy} = MRS _{yx}$
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. $(a) - (i), (b) - (iv), (c) - (iii), (d) - (ii)$

  2. $(a) - (ii), (b) - (iii), (c) - (iv), (d) - (i)$

  3. $(a) - (iii), (b) - (i), (c) - (ii), (d) - (iv)$

  4. $(a) - (iv), (b) - (ii), (c) - (i), (d) - (iii)$

Show answer
Correct Option: C