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- Question
Which of the following is not true about a Demand Draft?
Options- A. It is a negotiable instrument.
- B. It is a banker's cheque.
- C. It may be dishonoured for lack of funds.
- D. It is issued by a bank.
- Correct Answer
- It may be dishonoured for lack of funds.
- 1. In terms of economics, if it is possible to make someone betteroff without making someone worseoff, then the situation is
Options- A. Inefficient
- B. Efficient
- C. Optimal
- D. Paretosuperior Discuss
- 2. If a budget is defeated in the legislature of a state then
Options- A. The Finance Minister alone has to resign
- B. The Finance Minister concerned has to be suspended
- C. The council of Ministers along with the Chief Minister has to resign
- D. Reelection have to be ordered Discuss
- 3. Backward bending supply curve belongs to which market?
Options- A. Capital
- B. Labour
- C. Money
- D. Inventories Discuss
- 4. National Income of India is compiled by
Options- A. Finance Commission
- B. Indian Statistical Institute
- C. National Development Council
- D. Central Statistical Organization Discuss
- 5. Which one of the following hypotheses postulates that individual's consumption in any time period depends upon resources available to the individual, rate of return on his capital and age of the individual?
Options- A. Absolute Income Hypothesis
- B. Relative Income Hypothesis
- C. Life Cycle Hypothesis
- D. Permanent Income Hypothesis Discuss
- 6. The innovation theory of profit was proposed by
Options- A. Marshall
- B. Clark
- C. Schumpeter
- D. Joan Robbinson Discuss
- 7. Which one of the following statements about Exchange-Traded Fund (ETF) is not correct?
Options- A. It is a marketable security.
- B. It experiences price changes throughout the day.
- C. It typically has lower daily liquidity and higher fees than mutual fund shares.
- D. An ETF does not have its net asset value calculated once at the end of every day. Discuss
- 8. Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
Options- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2 Discuss
- 9. According to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
Options- A. improve
- B. diminish
- C. remain constant
- D. first diminish and then improve Discuss
- 10. Which one of the following is also regarded as Disguised unemployment?
Options- A. Underemployment
- B. Frictional unemployment
- C. Seasonal unemployment
- D. Cyclical unemployment Discuss
Indian Economy problems
Search Results
Correct Answer: Paretosuperior
Correct Answer: The council of Ministers along with the Chief Minister has to resign
Correct Answer: Money
Correct Answer: Central Statistical Organization
Correct Answer: Life Cycle Hypothesis
Explanation:
The life-cycle theory of consumption, popularly known as life-cycle hypothesis,' was developed by Ando and Modigliani" in the early 1960s.
The life-cycle hypothesis postulates that individual consumption in any time period depends on
(i) resources available to the individual,
(ii) the rate of return on his capital, and
(iii) the age of the individual.
The resources available to an individual consist of his existing net wealth and the present value of all his current and future labour incomes. According to the life-cycle hypothesis, a rational consumer plans consumption on the basis of all his resources and allocates his income to consumption over time so that he maximizes his total utility over his life time.
Correct Answer: Schumpeter
Correct Answer: It typically has lower daily liquidity and higher fees than mutual fund shares.
Explanation:
An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
?Unlike mutual funds, an ETF trades like a common stock on a stock exchange.
?ETFs experience price changes throughout the day as they are bought and sold.
?ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.
Correct Answer: Both 1 and 2
Explanation:
Only if either demand or supply was either completely elastic or inelastic will the tax burden fall entirely on either the buyer or the seller. Between these 2 extremes, tax incidence varies continuously from a perfectly inelastic supply or perfectly elastic demand, where the sellers assumes the entire burden of the tax to the perfectly elastic supply or perfectly inelastic demand where the buyers bear the entire burden. To better see how the elasticity of supply and demand affects tax incidence, consider a 20% tax on a can of soda. Suppose the government decides that the buyer should pay the 20% tax. Does this mean that the buyers will be paying 20% more, or will sellers have to share some of the tax burden? Since higher prices decrease demand, regardless of the reason for the higher prices, sellers will share some of the burden. How much of the burden will be determined by the elasticity of supply and demand for the product?
Correct Answer: diminish
Explanation:
Economists use the concept of marginal utility to measure happiness and pleasure and how that affects consumer decision making. They have also identified the law of diminishing marginal utility, which means that the first unit of consumption of a good or service has more utility than the next units of consumption.Hence, the marginal utility of the good diminishes as the amount of good consumed increases.
Correct Answer: Underemployment
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