Description : Name the curve which shows the quantity of products a seller wishes to sell at a given price level. (1) Demand curve (2) Cost curve (3) Supply curve (4) None of these
Last Answer : (3) Supply curve Explanation: The supply curve shows the relationship between the price of a good and the quantity supplied, holding constant the values of all other variables that affect supply. Each point on the curve shows the quantity that sellers would choose to sell at a specific price.
Last Answer : Supply curve
Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes
Last Answer : (4) When only price of the commodity changes Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that ... only when there is a change in other determinants of demand, other than price of the commodity.
Description : One of the essential conditions of perfect competition is : (1) product differentiation (2) multiplicity of prices for identical products at any one time. (3) many sellers and a few buyers. (4) Only one price for identical goods at any one time.
Last Answer : (4) Only one price for identical goods at any one time. Explanation: The fundamental condition of perfect competition is that there must be a large number of sellers or firms. ... perfect competition, the control over price is completely eliminated because all firms produce homogeneous commodities.
Description : What type of products, does CACP recommend minimum support price for? (1) Industrial products (2) Agricultural products (3) Pharmaceutical products (4) None of the above
Last Answer : (2) Agricultural products Explanation: The Agricultural Prices Commission was set up in January. 1965 to advise the Government on price policy of major agricultural commodities. Since March 1985, the ... are fixed by the government. each year, after taking into account the recommendations of CACP.
Description : Elasticity of demand measures the responsiveness of the quantity demanded of a goods to a (1) change in the price of the goods (2) change in the price of substitutes (3) change in the price of the complements (4) change in the price of joint products
Last Answer : (1) change in the price of the goods Explanation: Price elasticity of demand is a measure of responsiveness of the quantity of a good or service demanded to changes in its price. This measure of ... good with respect to the change in the price of some other good, a complementary or substitute good.
Description : flation (a) Always reduces cost of living (b) Always reduces standard of living © Reduces price of products (d) Reduces purchasing power of money
Last Answer : (d) Reduces purchasing power of money
Description : What type of products, does CACP recommend minimum support price for ? (1) Industrial products (2) Agricultural products (3) Pharmaceutical products (4) None of the above
Last Answer : Agricultural products
Last Answer : When only price of the commodity changes
Last Answer : change in the price of the goods
Last Answer : Only one price for identical goods at any one time.
Description : In order to maximize profits, a monopoly company will produce that quantity at which the: a. marginal revenue equals average total cost b. price equals marginal revenue c. marginal revenue equals marginal cost d. total revenue equals total cost
Last Answer : c. marginal revenue equals marginal cost
Description : Deflation is a situation in which - (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.
Last Answer : (3) The value of money is increasing. Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused ... conversely, deflation increases the real value of money - the currency of a national or regional economy.
Description : The Keynesian consumption function shows a relation between - (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate
Last Answer : (3) aggregate consumption and aggregate income Explanation: According to Keynesian Theory of consumption, the current real disposable income is the most important determinant of consumption in the short run. It bases consumption on current income.
Description : Dumping is a form of price discrimination at - (1) within industry (2) national level (3) international level (4) local level
Last Answer : (3) international level Explanation: Dumping is, in general, is a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price ... trade practice as it may cause or threat en to cause material injury to the importing markets.
Description : According to the classical system, saving is a function of - (1) Income (2) The interest rate (3) The real wage (4) The Price level
Last Answer : (1) Income Explanation: Saving function is a mathematical relation between saving and income by the household sector. This function captures the saving-income relation, the flip side of the consumption-income relation that forms one of the key building blocks for Keynesian economics.
Description : Given the money wages, if the price level in an economy increases, then the real wages will - (1) increase (2) decrease (3) remain constant (4) become flexible
Last Answer : (2) decrease Explanation: If workers receive a higher nominal wage and the price level does not change, then the real purchasing power of their wages is higher and they are inclined to increase the quantity of labor supplied.
Description : Speculative demand for cash is determined by - (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions
Last Answer : (1) The rate of interest Explanation: 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. ... rate, more people will expect a rise in interest rate (or a fall in bond prices).
Description : Economic progress of a country is determined by - (1) Increase in per capita income of people of country (2) Increase in the price of produced capital goods during the year (3) Increased numbers of Trade Unions (4) Fall in the general price level of a country
Last Answer : (1) Increase in per capita income of people of country Explanation: Economic progress of a country is determined by increase in per capita income of people f that country.
Description : The relationship between the value of money and the price level in an economy is - (1) Direct (2) Inverse (3) Proportional (4) Stable
Last Answer : (2) Inverse Explanation: The basic causal relationship between the price level and the value of money is that as the price level goes up, the value of money goes down. The "value of money" refers to ... price level" refers to the average of all of the prices of goods and services in a given economy.
Description : If other things remaining the same, the quantity of money in Fisher’s approach has (a) direct proportional relationship with price level. (b) direct proportional relationship with value of money. (c) inverse proportional relationship with price level. (d) no relation with the value of money.
Last Answer : (a) direct proportional relationship with price level.
Description : Milton Friedman gave emphasis in his quantity theory of money on (a) Production and Income (b) Price level (c) Supply of Money (d) Demand for Money
Last Answer : (d) Demand for Money
Description : “Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.
Last Answer : (b) always false
Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases
Last Answer : © price falls and demand also falls
Description : According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.
Last Answer : (b) level of income.
Description : .Induced investment depends on (a) Price level and rate of interest (b) Level of income and rate of interest © Level of employment and wage rate (d) Price level and wage rate.
Last Answer : (b) Level of income and rate of interest
Description : n the simple Keynesian model consumption is a function of, (a) Rate of interest. (b) Level of income. © Price level. (d) None of the above.
Last Answer : (b) Level of income.
Description : Dumping is a form of price discrimination at (1) within industry (2) national level (3) international level (4) local level
Last Answer : international level
Description : Deflation is a situation in which (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.
Last Answer : The value of money is increasing.
Description : The Keynesian consumption function shows a relation between (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate
Last Answer : aggregate consumption and aggregate income
Description : Economic progress of a country is determined by (1) Increase in per capita income of people of country (2) Increase in the price of produced capital goods during the year (3) Increased numbers of Trade Unions (4) Fall in the general price level of a country
Last Answer : Increase in per capita income of people of country
Description : Speculative demand for cash is determined by (1) The rate of interest (2) the level of income (3) the general price level (4) the market conditions
Last Answer : The rate of interest
Description : According to the classical system, saving is a function of (1) Income (2) The interest rate (3) The real wage (4) The Price level
Last Answer : Income
Description : The relationship between the value of money and the price level in an economy is (1) Direct (2) Inverse (3) Proportional (4) Stable
Last Answer : Inverse
Description : Given the money wages, if the price level in an economy increases, then the real wages will (1) increase (2) decrease (3) remain constant (4) become flexible
Last Answer : decrease
Description : Under increasing returns the supply curve is - (1) positively sloped from is to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis
Last Answer : (1) positively sloped from is to right Explanation: Supply curve, in economics, is a graphic representation of the relationship between product price and quantity of product that a seller is willing and ... i.e as the price of a commodity increases in the market, the amount supplied increases).
Description : When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will - (1) decrease (2) increase (3) remain the same (4) contract
Last Answer : (2) increase Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to ... is movement along a demand curve when a change in price causes the quantity demanded to change.
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : Under increasing returns the supply curve is (1) positively sloped from left to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis
Last Answer : positively sloped from left to right
Description : When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will (1) decrease (2) increase (3) remain the same (4) contract
Last Answer : increase
Description : Products that are modified through R&D: a. Are always more attractive to customers. b. Will allow the company to increase the price. c. Are thought of as new products. d. Are perceived to be half the age as before entering R&D. e. Are always completed in less than one year.
Last Answer : d. Are perceived to be half the age as before entering R&D.
Description : Consider the following statements and identify the right ones. i. Higher level of capital-output ratio indicates efficient use of capital. ii. It reflects the productivity of capital in the economy a. I only b. ii only c. both d. none
Last Answer : d. none View Answer /
Description : Which step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level ? 1. Product Development 2. Screening 3. Idea Generation 4. Business Analysis 5. None of these
Last Answer : Screening
Description : When a company distributes its products through a channel structure that includes one or more resellers, this is known as ________. A. indirect marketing B. direct marketing C. multi-level marketing D. integrated marketing
Last Answer : B. direct marketing
Description : Which step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? A)product development B)screening C)idea generation D)business analysis
Last Answer : B)screening
Description : The type of diversification in which the company adds up same type of products at the same level of production is ____________. A. conglomerate diversification. B. horizontal integration. C. vertical integration. D. concentric integration.
Last Answer : B. horizontal integration.
Description : Marketing is best defined as 1. matching a product with its market 2. promoting and selling products 3. facilitating satisfying exchange relationships 4. distributing products at the right price to stores 5. none of these
Last Answer : facilitating satisfying exchange relationships
Description : Marketing is best defined as: A) matching a product with its market. B) promoting and selling products. C) facilitating satisfying exchange relationships. D)distributing products at the right price to stores.
Last Answer : C) facilitating satisfying exchange relationships.
Description : Why would a company not want to split their stock when the price starts getting kind of high?
Last Answer : answer:Some companies envision a high stock price as prestigious and do not split their stocks. The effect of a stock split is nil on the overall capitalization of the company. Look at Berkshire-Hathaway, ... share price is up around $400. I haven't checked it lately. There are other examples. srm
Description : Which one of the following statements regarding preferred position in fine cut is false? a. Traditional customers want products located in the center of the circle. b. Low end customers want the ... . d. Performance customers prefer higher performance levels. e. Size customers want smaller size.
Last Answer : b. Low end customers want the newest technology at the cheapest price.