Question 1

Bilateral monopoly occurs where

Accepted Answer

Bilater monopoly occurs in a market where a single seller ie, a only one monopoly and a single buyer ie, one monopsony exists

Question 2

The real wage will rise if the nominal wage

Accepted Answer

increases more rapidly than the general price level.

Question 3

Increasing marginal cost of production explains

Accepted Answer

why the supply curve is upsloping.

Question 4

Trade blocs help countries by

Accepted Answer

A trade bloc is a type of intergovernmental agreement for a group of countries where barriers to trade are reduced or eliminated among the participating states and less competition and for economic integration.

Question 5

Which of the following is classified as working capital?

Accepted Answer

Working capital, also known as net working capital, is the difference between a company’s current assets, like cash, accounts receivable and inventories of raw materials and finished goods, and its current liabilities, like accounts payable. Working Capital = Current Assets - Current Liabilities

Question 6

Poverty level in india is estimated on the basis of

Accepted Answer

Household consumer expenditure

Question 7

The demand curve shows the relationship between

Accepted Answer

quantity demanded and the price of the good

Question 8

Through specialization and international trade, a nation

Accepted Answer

can attain some combination of goods lying outside its production possibilities curve

Question 9

If intermediate goods and services were included in GDP

Accepted Answer

the GDP would be overstated.

Question 10

The concept of net domestic investment refers to

Accepted Answer

total investment less the amount of investment goods used up in producing the year's output.

Question 11

A command economy tends to exist under a

Accepted Answer

A command economy types of government decide which goods would be produced without any interference of the public. Command economy ran in Germany during the rule of Adolf Hitler. A command economy tends to exist under a socialist government that provides a lot of regulation.

Question 12

What was the strength of Indus economy?

Accepted Answer

Agriculture

Question 13

The MPC for an economy is

Accepted Answer

Marginal propensity to consume (MPC) in economics is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers).

Question 14

The most common economic system in the world is a

Accepted Answer

Mixed economy is the most common economic system in the world.

Question 15

Production costs to an economist

Accepted Answer

Production costs to an economist reflect opportunity costs.

Question 16

"GDP price index" measures changes in the

Accepted Answer

"GDP price index" measures changes in the value of final output produced in the nation.

Question 17

The greater is the marginal propensity to consume, the

Accepted Answer

smaller is the marginal propensity to save

Question 18

Employment in agriculture comes under

Accepted Answer

service sector

Question 19

The foreign purchases effect

Accepted Answer

moves the economy along a fixed aggregate demand curve

Question 20

A sales tax is a type of

Accepted Answer

Sales tax is an additional amount of money you pay based on a percentage of the selling price of goods and services that are purchased. For example, if you purchase a new laptop Rs. 40000 and live in an area where the sales tax is 6%, you would pay Rs.2400 in sales tax.

Indian Economy Questions