Tag: economics

Questions Related to economics

The way in which rational consumers allocate their expenditure on goods and service is best described by ___________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. The law of diminishing marginal utility

  2. The law of demand

  3. The theory of value

  4. The marginal rate of substitution

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Correct Option: A

A place or locality where goods are bought and sold is called a ____________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. shopping complex

  2. geographical boundary

  3. market

  4. area

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Correct Option: C
Explanation:

A market is defined as a place (however it need not be a physical place, as now-days various transactions are carried out over the internet, even this is referred to as a 'market') where buyers and sellers meet to buy and sell respectively (ie exchange goods) at a predetermined equilibrium price. The market will clear at the price point where what people want to buy and what people are willing to sell is equal. 

There was increase in tax rate from 20% to 24% w.e.f. 1.6.2018. Which of the following rate is applicable when invoice was issued after change in rate of tax in June 2017 but payment received and goods supplied in April 2017 __________________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. 20% as it is lower of the two

  2. 24% as it is higher of the two

  3. 20% as payment was issued in the period during which the supply was effected

  4. 24% as invoice being one of the factors was issued after rate change

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Correct Option: C

Will the inputs and/or capital goods supplied from the job-worker's premises be considered for calculating the aggregate turnover of the job-worker?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Yes

  2. No

  3. Partially true

  4. None of the above

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Correct Option: B

Stock should include ____________________.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Goods held as security

  2. Goods held as consignee

  3. Goods with customers for approval on sale or return basis

  4. Goods sold but not delivered

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Correct Option: B

In case of low-level commodities, income effect is _____.

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Zero

  2. Negative

  3. Infinite

  4. Positive

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Correct Option: B
Explanation:

An income effect is positive in case of normal goods. There is direct relationship between income and quantity demanded. Income effect is negative in case of inferior goods (including Giffen goods) where we find inverse relationship between income and quantity demanded.

Which commodity can be called as Giffen goods?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Inferior commodity

  2. Superior commodity

  3. Any of the above

  4. None of the above

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Correct Option: A
Explanation:

Any Giffen good is an inferior good but all inferior goods cannot be Giffen goods. For Giffen goods, negative income effect is superior to substitution effect.

Which of the following is not the characteristic of human wants?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Human wants are unlimited

  2. Wants are complementary

  3. Wants are competitive

  4. Wants are non-variable

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Correct Option: D
Explanation:

Human wants are unlimited and the resources to meet them are limited and have different uses. This gives rise to all the economic problems. 

Human wants are also complementary say for example the want for butter is complementary to the want of bread. Wants are also competitive as they need to be arranged in the order of priority. 
The most urgent wants need to be satisfied first. Wants are ever changing and variable. They change with the change in income, status, education, fashion, etc.
Thus, the correct option is D.

Which of the following is not an intangible goods?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Downloadable music

  2. Mobile apps

  3. Digital book

  4. Car

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Correct Option: D
Explanation:

An intangible good is a good that does not have a physical nature, as opposed to a physical good (an object). Buying a car is one of the example of tangible good.

Consider the following statements:
Statement 1: Goods are those things which are tangible or intangible.
Statement 2: They satisfy human wants.
Which of the following are true?

economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

  1. Only 1

  2. Only 2

  3. None

  4. Both

Show answer
Correct Option: B
Explanation:

Goods are tangible things which imply they can be touched and seen. The intangible things satisfying human wants are termed as services. Goods also help in the satisfaction of human wants or needs.

Thus, the answer is B.