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Q:

In India, planned economy is based on

A) Mixed Economy System B) Capitalist System
C) Gandhian System D) Socialist System

Answer:   D) Socialist System



Explanation:
Subject: Indian Economy
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Q:

The law of increasing opportunity costs states that

A) along a production possibilites curve, increases in the production of one good make the production of that good easier and easier B) increases in wages cause increases in the costs of production
C) costs of production increases and then decreases D) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good
 
Answer & Explanation Answer: D) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good

Explanation:

Opportunity cost is the cost of what you are giving up to do what you are currently doing. If you can either go to work or go to the beach, and you choose to work, the opportunity cost of working is the value you would have gotten had you gone to the beach.

 

The law of increasing opportunity costs states that as you increase production of one good, the opportunity cost to produce an additional good will increase.

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0 30
Q:

Entrepreneurship as a theory of business was propounded by

A) Thomas A. Coleman B) Joseph A. Schumpeter
C) Adam Smith D) Douglas McGregor
 
Answer & Explanation Answer: B) Joseph A. Schumpeter

Explanation:

Entrepreneurship as a theory of business was propounded by Joseph. A. Schumpeter.

 

Schumpeter’s Innovation Theory of Profit :


Definition:  The Innovation Theory of Profit was proposed by Joseph. A. Schumpeter, who believed that an entrepreneur can earn economic profits by introducing successful innovations.

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4 89
Q:

In economics, if a good is inelastic,

A) its supply or demand is not sensitive to price changes. B) consumers have lost an interest in purchasing it.
C) producers have lost an interest in manufacturing it. D) its supply or demand is too sensitive to price changes.
 
Answer & Explanation Answer: A) its supply or demand is not sensitive to price changes.

Explanation:

A good that is inelastic does not have very stretchy demand.

In economic terms, the quantity demanded does not change a lot when the price changes. What do I mean by "does not change a lot"? If the percent change in quantity demanded is less than the percent change in price, economists label the demand for the good as inelastic.

 

So, if the price of a good increases by 10 percent and the quantity demanded decreases by only 5 percent, that good is said to have inelastic demand. The quantity demanded does not stretch much relative to the change in price.

 

Hence, in this case, consumers are not considered very sensitive, or responsive, to a change in the price of that good.

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1 117
Q:

Which statement describes the term salary?

A) Salary refers to the fixed amount paid on a daily basis. B) Salary refers to the varying amount paid on a daily basis.
C) Salary refers to the fixed amount paid on a weekly, bi-weekly, or monthly basis. D) None of the above
 
Answer & Explanation Answer: C) Salary refers to the fixed amount paid on a weekly, bi-weekly, or monthly basis.

Explanation:

A salary is best described as a fixed amount of income that is paid to an individual on a weekly, bi-weekly or monthly basis.

 

A salary can also be described as the annual earnings paid out over a year.

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1 164
Q:

In the expansion phase of a business cycle

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
 
Answer & Explanation Answer: C) 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.

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1 199
Q:

As per the decision of the GST Council, e-Way Bill system has been rolled out from

A) 1st March 2018 B) 1st April 2018
C) 1st May 2018 D) 1st January 2018
 
Answer & Explanation Answer: B) 1st April 2018

Explanation:

As per the decision of the GST Council, e-Way Bill system has been rolled out from 1st of April this year (2018).

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1 151
Q:

Economic resources are also called

Answer

Economic resources include land, labour, capital and entrepreneurship. 


Entrepreneurship is also considered an economic resource because individuals are responsible for creating businesses and moving economic resources in the business environment.


 


These economic resources are also called as Factors of production.


 

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0 112
Q:

What is true about economic resources?

A) Economic resources are limited. B) Economic resources are always controlled by the government.
C) Economic resources include only money. D) Economic resources exist only at the individual level.
 
Answer & Explanation Answer: A) Economic resources are limited.

Explanation:

Economic resources are those goods and services that can be converted into valuable products for individual and business purposes.

There are four major types of economic resources:

1. land,

2. labor,

3. capital and

4. entrepreneurship.

 

Land and labor are natural and human resources, while capital means physical resources or money.

Entrepreneurship converts these resources into usable goods.

 

However, resources have finite values, and proper utilization depends on economic systems and economic decisions.

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