Indian Economy problems
- 1. In the expansion phase of a business cycle
Options- A. economy moves from peak to trough
- B. economy moves from contraction to peak
- C. economy moves from trough to peak
- D. economy moves from trough to trough Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: economy moves from trough to peak
Explanation:
Business cycles are identified as having four distinct phases:
1. Expansion,
2. Peak,
3. Contraction, and
4. Trough.
Expansion is the phase of the business cycle when the economy moves from a trough to a peak. It is a period when the level of business activity surges and gross domestic product (GDP) expands until it reaches a peak. A period of expansion is also known as an economic recovery.
An expansion is characterized by increasing employment, economic growth, and upward pressure on prices.
- 2. Which of the following is a microeconomic statement?
Options- A. The price of personal computers declined last year.
- B. Unemployment was 6.8 percent of the labor force last year.
- C. The real domestic output increased by 2.5 percent last year.
- D. The general price level increased by 4 percent last year. Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: The price of personal computers declined last year.
- 3. The production possibilities curve illustrates the basic principle that
Options- A. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
- B. the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
- C. an economy will automatically obtain full employment of its resources.
- D. an economy's capacity to produce increases in proportion to its population size. Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
Explanation:
A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good is nothing but a production possibilities curve.
- 4. A government subsidy to the producers of a product
Options- A. reduces product demand
- B. increases product supply
- C. reduces product supply
- D. increases product demand Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: increases product supply
- 5. Which property would be classified as expendable?
Options- A. Food given to Army
- B. Cement
- C. Paint
- D. All of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: All of the above
Explanation:
Expendable properties are those properties that are consume in use or that lose their identity in use. It also include those properties that become an integral part of other property when put to use and those properties which have an expected service life of less than one year.
- 6. What was one outcome of laissez faire economic policies?
Options- A. Poverty traps that cannot be escaped through free choice
- B. Monopoly power that emerges naturally in the market and allows businesses to exploit consumers
- C. Businesses pay workers low
- D. All of the above Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: All of the above
Explanation:
Laissez-faire is simply a way to describe a government's hands-off approach to economic policies. This approach was particularly prevalent in the United States at the turn of the 20th century, which led to numerous issues within American manufacturing.
There are many outcomes of laissez-faire economic policies. Some of the outcomes of laissez-faire economics were:
* Businesses pay workers low.
* Pollution of air and water.
* Poverty traps that cannot be escaped through free choice.
* General glut that results from overproduction or underconsumption
* Monopoly power that emerges naturally in the market and allows businesses to exploit consumers.
* Exploitation of the working class that pushes wages down to subsistence and compels laborers to work in harsh and unsafe conditions.
* External economies that generate situations where desirable goods are underproduced on the market, and undesirable goods are overproduced on the market.
* Public goods that are not supplied by the market due to free-rider problems.
- 7. Which of the following is not a prime cost?
Options- A. Supervisor's wages
- B. Assembly line wages
- C. Machine operators wages
- D. Direct labor wages Also asked in: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO
Correct Answer: Supervisor's wages
Explanation:
The prime cost calculates the use of raw materials and direct labor, but does not factor in indirect expenses, such as advertising and administrative costs.
Supervisor's wages doesn;t come under prime cost.
- 8. The law of supply indicates that, other things equal
Options- A. sellers will offer more of a product at low prices than at high prices.
- B. buyers will purchase less of a good at high prices than at low prices.
- C. Sellers will offer more of a product at high prices than at low prices.
- D. the product supply curve is downward sloping. Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: Sellers will offer more of a product at high prices than at low prices.
- 9. A trial balance is prepared to
Options- A. measure credits
- B. measure debits
- C. measure credits = debits are not
- D. None of the above Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: measure credits = debits are not
- 10. A basic concept in economics is that all resources are
Options- A. Valuable
- B. Limited
- C. Renewable
- D. Allocated Also asked in: AIEEE, Bank Exams, CAT, GATE, Analyst, Bank Clerk, Bank PO
Correct Answer: Limited
Explanation:
The basic concept in economics is that all resources are limited.
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