Tag: economics

Questions Related to economics

If Land is used for productive purposes, its fertility is reduced. Such fertility ________________.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Can be restored

  2. Cannot be restored at all

  3. Is lost forever

  4. Both (b) and (c)

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Correct Option: A

As a Factor of Production, the Elasticity of Supply of Land from the viewpoint of the entire economy is ______________.

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Infinite

  2. Zero

  3. Positive

  4. Negative

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Correct Option: B

Which category of land is rent-less land?

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. First category of land

  2. Second category of land

  3. Third category of land

  4. Marginal land

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Correct Option: D
Explanation:

Rent, for a land in the case of cultivation land, refers to the difference between the value of the produce and the cost of cultivation. Marginal land is the last grade of land cultivated whose price of produce is just equal to the cost incurred. Thus, it is a rent-less land, since the cost of cultivation is equal to the value of the produce.

Which of these is an example of Land as a Factor of Production?

economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

  1. Agricultural Lands

  2. Forests

  3. Diamond Mines

  4. All of the above

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Correct Option: D

The supply is __________, when a greater change in price leads to smaller change in quantity supplied.

economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

  1. relatively more elastic

  2. perfectly elastic

  3. perfectly inelastic

  4. relatively inelastic

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Correct Option: D

The percentage change in quantity supplied due to percentage change in price is called __________.

economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

  1. elasticity of supply

  2. law of supply

  3. supply curve

  4. elasticity of demand

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Correct Option: A
Supply is more elastic in case of ______________.
economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

  1. very short period

  2. short period

  3. long period

  4. both (b) and (c)

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Correct Option: C
When 15% increase in price of the commodity causes 10% increase in the quantity supplied, then elasticity of supply is _____________.
economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

  1. elastic

  2. inelastic

  3. perfectly elastic

  4. perfectly inelastic

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Correct Option: B

Write True or False with a reason.
Price elasticity of supply measures the change in quantity supplied in response to a change in own price of the commodity.

economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

  1. True

  2. False

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Correct Option: A
Explanation:

True. Price elasticity of supply$=\cfrac { Percentage\quad change\quad in\quad quantity\quad supplied }{ Percentage\quad change\quad in\quad price } $

CRR refers to the share of_____________ that rural banks have to maintain with RBI of their net demand and time liabilities?

economics theory of supply elasticity of supply supply - law of supply and price elasticity of supply law of supply and elasticity of supply

  1. Liquid cash

  2. Gold

  3. Forex reserves

  4. Illiquid cash

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Correct Option: A