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- Question
In economics, if a good is inelastic,
Options- A. its supply or demand is not sensitive to price changes.
- B. consumers have lost an interest in purchasing it.
- C. producers have lost an interest in manufacturing it.
- D. its supply or demand is too sensitive to price changes.
- Correct Answer
- its supply or demand is not sensitive to price changes.
ExplanationIf the percent change in quantity demanded is less than the percent change in price, economists label the demand for the good as inelastic.
A good that is inelastic does not have very stretchy demand. In economic terms, the quantity demanded does not change a lot when the price changes.
So, if the price of a good increases by 10 percent and the quantity demanded decreases by only 5 percent or less than 10, that good is said to have inelastic demand.
Hence, in this case, consumers are not considered very sensitive, or responsive, to a change in the price of that good.
- 1. Which statement describes the term salary?
Options- A. Salary refers to the fixed amount paid on a daily basis.
- B. Salary refers to the varying amount paid on a daily basis.
- C. Salary refers to the fixed amount paid on a weekly, bi-weekly, or monthly basis.
- D. None of the above Discuss
- 2. What is true about economic resources?
Options- A. Economic resources are limited.
- B. Economic resources are always controlled by the government.
- C. Economic resources include only money.
- D. Economic resources exist only at the individual level. Discuss
- 3. Which ministry has started the exercise to revise base year to 2017 - 2018 for computation of wholesale inflation?
Options- A. Ministry of Commerce and Industry
- B. Ministry of Finance
- C. Ministry of Corporate Affairs
- D. All the above Discuss
- 4. Which of the following represents a positive economic statement?
Options- A. The government should extend unemployment benefits.
- B. The unemployment rate is too high.
- C. Taxes should not be increased since that will lower spending.
- D. The unemployment rate is 4.8 percent. Discuss
- 5. Which property classification would include tools? Discuss
- 6. The law of demand implies that
Options- A. the higher the price of a good, the lesser the quantity demanded
- B. the higher the price of a good, the higher the quantity demanded
- C. the higher the quantity demanded, the higher the price of a good
- D. All of the above Discuss
- 7. Another name for false productivity is
Options- A. making poor decisions
- B. filling your mind with negative self-talk
- C. driving toward success
- D. spinning your wheels Discuss
- 8. National income accountants can avoid multiple counting by
Options- A. subtracting NDP from GDP
- B. add exports, but subtract imports
- C. only counting final goods
- D. None of the above Discuss
- 9. Which of the following statements about GDP is correct?
Options- A. Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
- B. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
- C. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.
- D. Nominal GDP values production at current prices, whereas real GDP values production at constant prices. Discuss
- 10. A large underground economy results in an
Options- A. Overstated GDP
- B. Understated GDP price index
- C. Overstated GDP price index
- D. Understated GDP Discuss
Indian Economy problems
Search Results
Correct Answer: Salary refers to the fixed amount paid on a weekly, bi-weekly, or monthly basis.
Explanation:
A salary is best described as a fixed amount of income that is paid to an individual on a weekly, bi-weekly or monthly basis.
A salary can also be described as the annual earnings paid out over a year.
Correct Answer: Economic resources are limited.
Explanation:
Economic resources are those goods and services that can be converted into valuable products for individual and business purposes.
There are four major types of economic resources:
1. land,
2. labor,
3. capital and
4. entrepreneurship.
Land and labor are natural and human resources, while capital means physical resources or money.
Entrepreneurship converts these resources into usable goods.
However, resources have finite values, and proper utilization depends on economic systems and economic decisions.
Correct Answer: Ministry of Commerce and Industry
Explanation:
The India's commerce and industry ministry has started the exercise to revise base year to 2017-18 for computation of wholesale inflation with a view to present more realistic picture of the price situation
In May last year, the government revised the base year for WPI-based inflation to 2011-12 to give a better indication of changes in prices of commodities.
The new index, with 2017-18, is expected to have new items, which would provide a more realistic picture of price rise and its impact on people.
Most of the additions could be in the manufactured products category. Currently, the index has a total of 697 items, including primary articles, fuel and power and manufactured products.
Correct Answer: The unemployment rate is 4.8 percent.
Correct Answer: Answer
Correct Answer: the higher the price of a good, the lesser the quantity demanded
Explanation:
The law of demand implies that "The higher the price of a good, the lesser the quantity demanded".
For example:
If the rate of a mobile phone increased, the quantity demanded by the customers is decreased.
Correct Answer: spinning your wheels
Explanation:
Another name for false productivity is Spinning your wheels. They use the term for false productivity because your wheels are spinning as you're doing work but you're not going anywhere i.e, making any progress.
Correct Answer: only counting final goods
Correct Answer: Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
Correct Answer: Understated GDP
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