Tag: economics

Questions Related to economics

Crop Failure leads to reduced supply and increased prices of food products, thereby affecting ______________.

economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

  1. cost of living

  2. standard of living

  3. both (a) and (b)

  4. neither (a) nor (b)

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Correct Option: C

There will be a __________ demand for industrial and consumer goods in rural areas, in case of prosperity in agriculture. 

economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

  1. low

  2. moderate

  3. high

  4. can't be determined

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Correct Option: C

More people employed in Agriculture leads to _____________.

economics the state of the indian economy on the eve of independence agricultural market system policy of agriculture, industry and foreign trade under british rule rural development

  1. employment opportunity in rural areas

  2. avoidance of Urban Congestion and Urban Pollution

  3. eeduction in Rural Brain Drain

  4. all of the above

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Correct Option: D

In the long run production function all inputs are fixed.

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. True

  2. False

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Correct Option: B

In the long run there is enough time for the firm to cover its losses and earn normal profits. This is because in the long run, all inputs are __________.

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. identical

  2. homogenous

  3. variable

  4. fixed

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Correct Option: C

The period of time in which the plant capacity can be varied is known as __________.

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. the short period

  2. the market period

  3. the long period

  4. all of the above.

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Correct Option: C

In the case of very short period ______ is variable.

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. land

  2. capital

  3. labour

  4. none of the above

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Correct Option: D

In short run when the level of production increases, average fixed cost will____.

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. remain same

  2. decrease

  3. increase

  4. all the three possible depending upon the merit of case

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Correct Option: B
Explanation:
The AFC curve is asymptotic to to both the x and y axis as the fixed cost can never be 0 since fixed cost is positive. It slopes downwards throughout its length from left to right showing continuous fall in average fixed cost with an increase in output. 

In the long run ___________.

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. all inputs are fixed

  2. all inputs are variable

  3. some inputs are fixed and rest are variable

  4. a few are variable and rest are fixed

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Correct Option: B
Explanation:

In the long run all inputs are variable as there is enough time for all factors to adjust according to the requirements for achieving least cost output. 

____ refers to that period in which supply of a commodity can be increased or decreased depending upon changed condition of demand. 

economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

  1. Very short period

  2. Short period

  3. Long period

  4. Very long period

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Correct Option: C