Answer is Option B. -> there is general equilibrium Answer: (b)
General equilibrium involving both production and consumption also ensures the achievement of Pareto efficiency.
Pareto efficiency in this regard requires that the marginal rate of transformation should be equal to the marginal rate of substitution of the individuals.
Answer is Option D. -> Increase in money supply Answer: (d)
Inflation is increased in the prices of commodities. It is caused due to decrease in supply and an increase in demand for commodities.
So when the money supply in the economy increases it means people have more purchasing capacity and thus demand increases which result in inflation. Some factors affecting inflationary pressure.
Question 3. Who among the following has suggested migration to accrual accounting system from cash based accounting system in India?
Answer is Option A. -> Procurement prices Answer: (a)
The price at which the Government purchases foodgrains for maintaining the public distribution system and for building up buffer stocks are known as procurement prices.
Minimum support price: It is a form of market Intervention by Govt. of India to insure agricultural producers against any sharp fall in farm price. M.S.P. was announced by the Govt of India.
Issue price: It is the price at which shares are offered to retail investors in the IPO issue.
Question 6. A ‘closed economy’ is an economy in which
Answer is Option D. -> neither exports nor imports take places. Answer: (d)This is an economy that does not interact with the economy of any other country. A closed economy prohibits imports and exports and prohibits any other country from participating in their stock market.
Question 7. Which of the following fixed the four percent inflation target in India with tolerance level of +/–2 percent for the period 2016 to 2021?
Answer is Option B. -> 1, 3 and 4 Answer: (b)
The factors which are responsible for the industry are capital investment, labour force and power consumption.
However, the nature and size of business are not determined by the turnover of the business.