Questions

Q:

Consider the following statements about impact of tax :

1. A tax is shifted forward to consumers if the demand is inelastic relative to supply.

2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand.

Which of the statements given above is/are correct?

 

A) 1 only B) 2 only
C) Both 1 and 2 D) Neither 1 nor 2
 
Answer & Explanation Answer: C) Both 1 and 2

Explanation:

Only if either demand or supply was either completely elastic or inelastic will the tax burden fall entirely on either the buyer or the seller. Between these 2 extremes, tax incidence varies continuously from a perfectly inelastic supply or perfectly elastic demand, where the sellers assumes the entire burden of the tax to the perfectly elastic supply or perfectly inelastic demand where the buyers bear the entire burden. To better see how the elasticity of supply and demand affects tax incidence, consider a 20% tax on a can of soda. Suppose the government decides that the buyer should pay the 20% tax. Does this mean that the buyers will be paying 20% more, or will sellers have to share some of the tax burden? Since higher prices decrease demand, regardless of the reason for the higher prices, sellers will share some of the burden. How much of the burden will be determined by the elasticity of supply and demand for the product?

Report Error

View Answer Report Error Discuss

Filed Under: Indian Economy
Exam Prep: Bank Exams

0 90035
Q:

Improve the bracketed part of the sentence.

I had (a few) eggs in the fridge, so we need to go to the market to buy them.

A) a little B) few
C) little D) No improvement
 
Answer & Explanation Answer: B) few

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: English
Exam Prep: Bank Exams

0 89989
Q:

Rearrange the parts of the sentence in correct order.

 

P: In the least-developed countries, if agricultural productivity were drastically reduced by climate change, the cost of living would rise by one or two percent, and at a time when per capita income will likely have doubled.
Q: It may still be vulnerable to climate change for many years to come.
R: In developing countries, in contrast, as much as a third of GNP and half the population currently depends on agriculture.
S: Agriculture is practically the only sector of the economy affected by climate.

A) PQRS B) RQPS
C) RPSQ D) none
 
Answer & Explanation Answer: D) none

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: English
Exam Prep: Bank Exams

0 89955
Q:

The boundaries of the plates of the earth's crust are the weak zones known as ___________ zones.

 

A) cosmic B) seismic
C) formic D) anaemic
 
Answer & Explanation Answer: B) seismic

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: General Science
Exam Prep: Bank Exams

2 89943
Q:

Rearrange the parts of the sentence in correct order.

The reference

P - ­is simultaneously a matter
Q - ­to the size of a vulnerable community
R­ - of legal as well as political and ethical perspective

A) RPQ B) QRP
C) QPR D) PRQ
 
Answer & Explanation Answer: C) QPR

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: English
Exam Prep: Bank Exams

0 89918
Q:

Which country is set to register Himalayan pink salt as Geographical Indications (GI)?

 

A) Pakistan B) Nepal
C) Bangladesh D) India
 
Answer & Explanation Answer: A) Pakistan

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: General Awareness
Exam Prep: Bank Exams

1 89898
Q:

Improve the bracketed part of the sentence.

It is revealing that the gender divide in cognition levels worsens with rise in age, as girls are often compelled to (drop in) of school for a variety of reasons.

A) drop at B) drop out
C) drop of D) No improvement
 
Answer & Explanation Answer: B) drop out

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: English

0 89861
Q:

Rearrange the parts of the sentence in correct order.

 

Tarapur agreement guaranteed supplies of

 

P : Tarapur reactors for entire life

Q : enriched uranium fuel from

R : the US for running the

 

A) PRQ B) QRP
C) RQP D) PQR
 
Answer & Explanation Answer: B) QRP

Explanation:
Report Error

View Answer Report Error Discuss

Filed Under: English
Exam Prep: Bank Exams , GRE , TOEFL

0 89806