Tag: economic mechanism

Questions Related to economic mechanism

Which of the following statement is correct?

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

  1. Supply of land is perfectly elastic

  2. Fertility of land cannot change

  3. Land does not yield any result unless human efforts are employed

  4. Supply of land can be increased

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Correct Option: C
Explanation:

Land does not yield (product) anything, unless human efforts are employed is correct statement.

Quantitative measures to control credit are also called _____________.

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

  1. General Measures

  2. Selective Methods

  3. Both (a) and (b)

  4. Neither (a) nor (b)

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Correct Option: A
Explanation:

Quantitative or the traditional method of credit control comprises of bank rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control include directive of margin requirement, credit rationing, regulation of consumer credit and direct action.

The correct option is A.

In India, the three major objectives of economic policy are growth, social justice and price stability. Which of the above objectives can be pursued most effectively by the monetary authorities of the country?

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

  1. Growth

  2. Social Justice

  3. Price Stability

  4. None of the above

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Correct Option: B
Explanation:

In India, the three major objectives of economic policy are growth, social justice and price stability. Social Justice can be pursued most effectively by the monetary authorities of the country. Social justice can be defined which is an ideal situation where everone gets equal treatment; any sort of dicimination is not applicable.

Oligopolistic industries are characterized by:

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

  1. A few dominant firms and substantial barriers to entry.

  2. A few large firms and no entry barriers

  3. A large number of small firms and no entry bathers.

  4. One dominant firm and low entry barriers.

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Correct Option: A
Explanation:

Oligopolistic industries have a few dominant firms and substantial barriers to entry; because there is may be some entry barriers.

Which of the following is not a quantitative method of credit control __________________.

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

  1. Bank Rate policy

  2. Open market operations

  3. The Repo Rate

  4. Consumer credit regulation

Show answer
Correct Option: D
Explanation:

Quantitative or traditional methods of credit control consist of banks rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control consist of the guideline of margin requirement, credit rationing, regulation of customer credit and direct action. 

Quantitative controls are planned to control the volume of credit created by the banking system qualitative measures or selective methods are intended to regulate the flow of credit in specific uses.

The correct option is D.

Quantitative Methods aim at influencing _______________________.

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

  1. The end-use of credit in specific areas

  2. The total volume of credit in the banking system

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: B
Explanation:

Quantitative Methods aim at influencing the total volume of credit in the banking system.Quantitative measures to control credit are also known as general measures. Quantitative instruments of control credit are those instruments which focus on overall supply of money in the economy. These measures are used in a manner such that overall supply of money in the economy is reduced during inflation and increased during deflation.

Our economy is characterized by __________.

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

  1. unlimited wants and needs

  2. unlimited material resources

  3. no energy resources

  4. abundant productive labour

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Correct Option: A
Explanation:
Our economy is characterized by unlimited wants and needs.Every economy in the world is characterized by needs and wants which are unlimited as it is a very well known fact that human needs are never ending.
Economics deals with the management of this scarce resources to its alternative uses in order to gain maximum satisfaction and profit.

____is the top traffic handler in coastal & overseas shipping.

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

  1. Kochi

  2. Kandla

  3. Thiruvanandpuram

  4. Vishakhapatnam

Show answer
Correct Option: B
Explanation:

Kandla, also known as the Kandla Port Trust or Deendayal Port is a seaport in Kutch District of Gujarat state in western India, near the city of Gandhidham. Located on the Gulf of Kutch, it is one of major ports on west coast as it is one of the top traffic handler off all the merchandise that is imported and exported to the west countries. 

Who first raised the fears of a world food shortage?

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

  1. David Ricardo

  2. T.R. Malthus

  3. J.S. Mill

  4. J.B. Say

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Correct Option: B
Explanation:

Thomas Robert Malthus was an English cleric and scholar, influential in the fields of political economy and demography who for the first time proposed the condition of food shortage on the grounds of scarce resources and unlimited wants after studying the world demographics. 

Of the major $12$ ports, _________ has been the top traffic handler for last five years.

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

  1. Paradip

  2. Cochin

  3. Kandla

  4. Mumbai

Show answer
Correct Option: C
Explanation:

Kandla, also known as the Kandla Port Trust or Deendayal Port is a seaport in the Kutch district of Gujarat state in western India, near the city of Gandhidham. Located on the Gulf of Kutch, it is one of the major ports on the west coast as it is one of the top traffic handlers of all the merchandise that is imported and exported to the western countries.