Tag: indian economy on the eve of independence

Questions Related to indian economy on the eve of independence

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

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Correct Option: C

Sellers market denotes a situation where _______.

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. commodities are available at competitive rates

  2. demand exceeds supply

  3. supply exceeds demand

  4. supply and demand are evenly balanced

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Correct Option: B
Explanation:

A market is termed to be sellers market when the demand is high and seller has a high degree of control on the market due to limited supply; in this case, the demand tends to exceed the available supply for a commodity.

What is dual pricing?

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. Wholesale price and Retail pricning

  2. Pricing by agents and Pricing by retailers

  3. Price fixed by Government and Price in open market

  4. Daily prices and Weekly prices

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Correct Option: C

As per indifference curve and price line, a consumer will not be in equilibrium when

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. Ratios of marginal utilities and prices of the respective goods are equal

  2. Ratio of marginal utilities of the two goods is equal to the ratio of their respective prices

  3. The marginal rate of substitution is equal to the ratio of prices of the two goods

  4. The marginal rate of substitution is decreasing

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Correct Option: A

The difference between the minimum price the producer is willing to accept and the equilibrium price 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. price

  2. profit

  3. producers surplus

  4. consumers surplus

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Correct Option: C

Graphically, when is the supply curve is below the demand curve?

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. Excess demand

  2. Excess supply

  3. Equilibrium

  4. None of these

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Correct Option: A

Graphically, an equilibrium is a point where _____.

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. supply curve is above the demand curve

  2. supply curve is below the demand curve

  3.  market supply curve intersects the market demand curve

  4. none of these

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Correct Option: C

At any price lower than equilibrium price, there is _____.

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. excess supply

  2. excess demand

  3. deficient supply

  4. deficient demand

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Correct Option: B