MCQs
Total Questions : 150
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Answer: Option D. -> The rate of interest
Answer: (d)
Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing.
The assets demand for money is inversely related to the market interest rate. This is because, at a lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).
Answer: (d)
Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing.
The assets demand for money is inversely related to the market interest rate. This is because, at a lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).
Answer: Option C. -> supply creates its own demand
Answer: (c)
Say’s law, or the law of the market is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767–1832), who stated that “supply creates its own demand”. “Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes.
The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics.
Answer: (c)
Say’s law, or the law of the market is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767–1832), who stated that “supply creates its own demand”. “Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes.
The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics.
Answer: Option B. -> intermediary
Answer: (b)
Good is any tangible item, whether produced or found naturally and which is available for exchange. A free good is a good that is so abundant in supply that it has no opportunity cost, for example, air.
Intermediary good is a firm’s product that is used as an input into the production process of either the same firm or another.
Answer: (b)
Good is any tangible item, whether produced or found naturally and which is available for exchange. A free good is a good that is so abundant in supply that it has no opportunity cost, for example, air.
Intermediary good is a firm’s product that is used as an input into the production process of either the same firm or another.
Answer: Option D. -> Public sector and private sector industries
Answer: (d)
Joint sector industries are owned jointly by the government and private individuals who have contributed to the capital.
In the joint sector, both the public sector and private sector join hands to establish new enterprises. The joint sector is an extension of the concept of a mixed economy.
Answer: (d)
Joint sector industries are owned jointly by the government and private individuals who have contributed to the capital.
In the joint sector, both the public sector and private sector join hands to establish new enterprises. The joint sector is an extension of the concept of a mixed economy.
Answer: Option A. -> Mixed Economy
Answer: (a)
In capitalism, people may sell or lend their property, and other people may buy or borrow them.
In many countries with mixed economies (part capitalism and part socialism), there are laws about what we can buy or sell, or what prices we can charge, or whom we can hire or fire.
Answer: (a)
In capitalism, people may sell or lend their property, and other people may buy or borrow them.
In many countries with mixed economies (part capitalism and part socialism), there are laws about what we can buy or sell, or what prices we can charge, or whom we can hire or fire.
Answer: Option C. -> Estate duty
Answer: (c)Estate duty is a tax on the total market value of a person’s assets at the date of his or her death. The deceased person’s assets, as a whole, are called an estate. Inheritance tax is levied on assets that legal heirs inherit, while estate duty is applicable on the assets of those who are dead.
Answer: (c)Estate duty is a tax on the total market value of a person’s assets at the date of his or her death. The deceased person’s assets, as a whole, are called an estate. Inheritance tax is levied on assets that legal heirs inherit, while estate duty is applicable on the assets of those who are dead.
Answer: Option C. -> per capita income
Answer: (c)
Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population.
It does not attempt to reflect the distribution of income or wealth. Per capita income is often used to measure a country’s standard of living.
However, it is not a good standard of measuring standard of living as it is the income of one person in the country.
Answer: (c)
Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population.
It does not attempt to reflect the distribution of income or wealth. Per capita income is often used to measure a country’s standard of living.
However, it is not a good standard of measuring standard of living as it is the income of one person in the country.
Answer: Option B. -> change in its price
Answer: (b)
The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of demand to a change in price.
Its measure depends upon comparing the percentage change in the price with the resultant percentage change in the quantity demanded.
Thus, the elasticity of demand is the ratio of percentage change in the amount demanded to a percentage change in price.
Answer: (b)
The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of demand to a change in price.
Its measure depends upon comparing the percentage change in the price with the resultant percentage change in the quantity demanded.
Thus, the elasticity of demand is the ratio of percentage change in the amount demanded to a percentage change in price.
Answer: Option B. -> supply price
Answer: (b)
Effective Demand is "the demand in which the consumer is able and willing to purchase at conceivable price" simply saying if the product price is low more will buy, but if the rates go high then the quantity of the demand goes down.
Keynes used two terms: Aggregate Demand Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.
Answer: (b)
Effective Demand is "the demand in which the consumer is able and willing to purchase at conceivable price" simply saying if the product price is low more will buy, but if the rates go high then the quantity of the demand goes down.
Keynes used two terms: Aggregate Demand Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.
Answer: Option B. -> Population
Answer: (b)
The most well-known theory of population is the Malthusian theory. It explains the relationship between the growth in food supply and in population. It states that population increases faster than food supply and if unchecked leads to vice or misery.
Thomas Robert Malthus enunciated his views about population in his famous book, Essay on the Principle of Population as it Affects the Future Improvement of Society, published in 1798.
Answer: (b)
The most well-known theory of population is the Malthusian theory. It explains the relationship between the growth in food supply and in population. It states that population increases faster than food supply and if unchecked leads to vice or misery.
Thomas Robert Malthus enunciated his views about population in his famous book, Essay on the Principle of Population as it Affects the Future Improvement of Society, published in 1798.
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