MCQs
Total Questions : 150
| Page 9 of 15 pages
Answer: Option C. -> Purchase of a house
Answer: (c)
Investment expenditure refers to the expenditure incurred either by an individual or a firm or the government for the creation of new capital assets like machinery, building etc.
Business inventories are goods that firms produce in one time period with the intent to sell later and they are counted as part of business investment. The purchase of a house cannot be considered an investment expenditure as it may be for personal use.
Answer: (c)
Investment expenditure refers to the expenditure incurred either by an individual or a firm or the government for the creation of new capital assets like machinery, building etc.
Business inventories are goods that firms produce in one time period with the intent to sell later and they are counted as part of business investment. The purchase of a house cannot be considered an investment expenditure as it may be for personal use.
Answer: Option C. -> holding assets in the form of cash
Answer: (c)
Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936).
It is the desire to hold money rather than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation.
Answer: (c)
Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936).
It is the desire to hold money rather than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation.
Answer: Option B. -> Aggregate consumption ¸ Aggregate income
Answer: (b)
In economics, the average propensity to consume (APC) is defined as the ratio of aggregate or total consumption to aggregate income in a given period of time.
Thus, the value of average propensity to consume, for any income level, may be found by dividing consumption by income.
Answer: (b)
In economics, the average propensity to consume (APC) is defined as the ratio of aggregate or total consumption to aggregate income in a given period of time.
Thus, the value of average propensity to consume, for any income level, may be found by dividing consumption by income.
Answer: Option D. -> Production
Answer: (d)
Demand refers to how much (quantity) of a product or service is desired by buyers.
The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.
So for demand to originate, a product is required first.
Answer: (d)
Demand refers to how much (quantity) of a product or service is desired by buyers.
The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.
So for demand to originate, a product is required first.
Answer: Option D. -> arise when there is expansion in an industry.
Answer: (d)
Internal economies are those economies in production—those reductions in production costs—which accrue to the firm itself when it expands its output or enlarges its scale of production.
The internal economies arise within a firm as a result of its own expansion independent of the size and expansion of the industry as a whole.
Answer: (d)
Internal economies are those economies in production—those reductions in production costs—which accrue to the firm itself when it expands its output or enlarges its scale of production.
The internal economies arise within a firm as a result of its own expansion independent of the size and expansion of the industry as a whole.
Answer: Option C. -> inventory
Answer: (c)
Inventory refers to raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.
Inventory represents one of the most important assets that most businesses possess because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company’s shareholders/owners.
Answer: (c)
Inventory refers to raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.
Inventory represents one of the most important assets that most businesses possess because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company’s shareholders/owners.
Answer: Option D. -> Expenditure
Answer: (d)Keynesian Economics is an economic theory of total spending in the economy and its effects on output and inflation. It emphasizes that government expenditures (or tax cuts) leads to increase in GDP which is a multiple of the original expenditure.
Answer: (d)Keynesian Economics is an economic theory of total spending in the economy and its effects on output and inflation. It emphasizes that government expenditures (or tax cuts) leads to increase in GDP which is a multiple of the original expenditure.
Answer: Option B. -> –5
Answer: (b)
Marginal Utility = Change in Total Utility / Change in number of Units consumed.
The first component of the formula is to calculate the change in total utility. The second component of the marginal utility formula is the change in the number of units that have been consumed.
This is done by subtracting the number that is currently being consumed from a previously consumed amount.
So, Marginal Utility (MU) from 10th Unit = TU10 - TU9
= 15 – 20= –5
Answer: (b)
Marginal Utility = Change in Total Utility / Change in number of Units consumed.
The first component of the formula is to calculate the change in total utility. The second component of the marginal utility formula is the change in the number of units that have been consumed.
This is done by subtracting the number that is currently being consumed from a previously consumed amount.
So, Marginal Utility (MU) from 10th Unit = TU10 - TU9
= 15 – 20= –5
Answer: Option A. -> Monopolistic Competition
Answer: (a)
Selling costs are the expenses on an advertisement, salesmanship, free sampling, free service, door-to door canvassing, and so on.
There is no selling problem under perfect competition where the product is homogeneous. Under monopolistic competition where the product is differentiated, selling costs are essential to push up the sales.
They are incurred to persuade a buyer to purchase one product in preference to another.
Answer: (a)
Selling costs are the expenses on an advertisement, salesmanship, free sampling, free service, door-to door canvassing, and so on.
There is no selling problem under perfect competition where the product is homogeneous. Under monopolistic competition where the product is differentiated, selling costs are essential to push up the sales.
They are incurred to persuade a buyer to purchase one product in preference to another.
Answer: Option A. -> All of these
Answer: (a)
Inflationary price rise is harmful to a country’s economic performance and to the welfare of its citizens. It can create a random redistribution of income given that inflation does not have an equal impact on individuals and groups.
The balance of payments may deteriorate because domestic inflation stimulates import spending, given that imports appear relatively cheaper, and dampens export sales.
A continuous price rise can be an obstacle to development as it has an adverse effect on saving and investment and causes a fall in growth.
Answer: (a)
Inflationary price rise is harmful to a country’s economic performance and to the welfare of its citizens. It can create a random redistribution of income given that inflation does not have an equal impact on individuals and groups.
The balance of payments may deteriorate because domestic inflation stimulates import spending, given that imports appear relatively cheaper, and dampens export sales.
A continuous price rise can be an obstacle to development as it has an adverse effect on saving and investment and causes a fall in growth.
Latest Videos
Latest Test Papers
Login With Google
Old way of Login
Login With Email