Tag: economics

Questions Related to economics

Longevity is measured in terms of __________.

economics dynamic of human development development indices various development indexes social development

  1. life expectancy at birth

  2. life expectancy at the age of 5

  3. life expectancy at the age of 18

  4. life expectancy at the age of 60

Show answer
Correct Option: A
Explanation:

Longevity is measured in terms of life expectancy at birth. Longevity is one of the indicators of Human Development Index. Life expectancy at birth can be defined as a statistical measure which reflects the mortality rate in an economy.

Human well being is measured by _______.

economics dynamic of human development development indices various development indexes social development

  1. Consumer Price Index (CPI)

  2. Human Resource Index (HRI)

  3. Human Development Index (HDI)

  4. Human Socio-benefit Index

Show answer
Correct Option: C
Explanation:

Human well being is measured by Human Development Index. It was developed by United Nation Development Programme( UNDP)HDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.

Human Development Index was developed by ________.

economics dynamic of human development development indices various development indexes social development

  1. United Nation Organisation

  2. United Nation Development Programme (UNDP)

  3. World Trade Organisation

  4. World Bank

Show answer
Correct Option: B
Explanation:

Human Development Index was developed by United Nation Development Programme( UNDP)HDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.

Level of human well-being in India is __________.

economics dynamic of human development development indices various development indexes social development

  1. moderate

  2. high

  3. constant

  4. low

Show answer
Correct Option: D
Explanation:
Level of human well-being in India is low. Level of human being is measured in terms of Human Development Index.
Level of human being depends on human development indicators, like, life expectancy, education, per capita income, etc.

Level of knowledge is measured in terms of _________.

economics dynamic of human development development indices various development indexes social development

  1. knowledge

  2. education

  3. memory

  4. training

Show answer
Correct Option: B
Explanation:

Level of knowledge is measured in terms of education. Level of knowledge is one of the indicators of Human Development Index. It helps to test the overall educational facilities in a nation.

Returns to scale means ________________.

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. the behaviour of production or return when all the production factors are increased or decreased simultaneously in the same ration

  2. the behaviour of production where one or two factors of production are fixed while the others are variable

  3. the marginal returns goes on increasing as more labour is invested in industry.

  4. the behaviour of production, when changes are made in factor proportions, keeping on or some factors fixed

Show answer
Correct Option: A
Explanation:

In the long run all factors are varied, the proportion of inputs while kept same is scaled up or down in order to produce at the minimum efficiency scale (long run minimum average cost) . Thus as the entire scale of production is changing, this phenomenon is know as returns to scale. 

The Cobb-douglas production function $Q= K^{1/2} L^{1/3}$ exhibits __________. 

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. constant returns to scale

  2. increasing returns to scale

  3. decreasing returns to scale

  4. none of the above

Show answer
Correct Option: C
Explanation:

The terms in the equation are raised to coefficients less than 1, this implies for every one unit increase in input the output will increase by less than 1. Thus, this is is a function exhibiting deceasing returns to scale. 

In the standard notation of Cobb Douglas Function, if + = 1,  the production function exhibits _____.

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. constant returns to scale

  2. increasing returns to scale

  3. decreasing returns to scale

  4. none of the above

Show answer
Correct Option: A

In the standard notation of Cobb Douglas Function, if the terms are raised to coefficients greater than 1, then the production function exhibits _______.

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. CRS

  2. DRS

  3. IRS

  4. None of the above

Show answer
Correct Option: C
Explanation:

In the standard notation of Cobb Douglas Function, if the terms are raised to numbers greater than 1 then for each one unit increase in input the output will increase by more than 1. eg: $Q(K,L)$ = ${K^3}$${L^6}$ 


Law of variable proportion applies _________.

economics production and costs return to scale and cobb douglas function total product, average product and marginal product laws of returns - returns to a factor and returns to scale

  1. when all inputs are variable

  2. when all inputs are fixed

  3. some inputs are fixed and one input is variable

  4. all of the above

Show answer
Correct Option: C