Description : The investment by government to create socio-economic infrastructure is a. Induced investment b. Autonomous investment c. Incremental COR d. None of the above
Last Answer : b. Autonomous investment Autonomous investment is made by the government. Welfare rather than profit is the primary objective here.
Description : Which of the following is least likely to be part of the calculation of the terminal- year incremental net cash flow for an energy-related expansion project? A. An initial working capital ... Disposal/reclamation costs C. Capitalized expenditures D. Salvage value of any sold or disposed assets
Last Answer : D. Salvage value of any sold or disposed assets
Description : By whom was the autonomous investment separated from induced investment? (1) Schumpeter (2) Malthus (3) Joan Robinson (4) Adam Smith
Last Answer : (1) Schumpeter Explanation: Under his concept of creative destruction, Schunipeter distinguished between two types of investment that he called induced and autonomous. Induced investment arose from the ... Saving up constituted the part of out-put that is withheld from investment and consumption.
Description : The value of investment multiplier relates to - (1) change in income due to change in autonomous investment. (2) change in autonomous investment due to change in income. (3) change in income due to change in consumption. (4) change in the income due to change in induced investment.
Last Answer : (2) change in autonomous investment due to change in income. Explanation: The term investment multiplier refers to the concept that any increase in public or private investment spending has a ... . The investment multiplier tries to determine the financial impact for a public or private project.
Description : By whom was the autonomous investment separated from induced investment ? (1) Schumpeter (2) Malthus (3) Joan Robinson (4) Adam Smith
Last Answer : Schumpeter
Description : The value of investment multiplier relates to (1) change in income due to change in autonomous investment. (2) change in autonomous investment due to change in income. (3) change in income due to change in consumption. (4) change in the income due to change in induced investment.
Last Answer : change in autonomous investment due to change in income.
Description : Consider the following statements and identify the right ones. i. COR is relatively low in labour intensive sectors. ii. COR will be high in capital intensive sectors iii. Both iv. None
Last Answer : iii. Both
Description : 'Marginal efficiency of capital' is - (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested
Last Answer : (1) expected rate of return on new investment Explanation: The volume of investment depend upon the following two factors: (1) rate of interest: and (2) marginal efficiency of capital. Before ... partly on expectations of future yields and partly on the actual price of the capital good concerned.
Description : ‘Marginal efficiency of capital’ is (1) expected rate of return on new investment (2) expected rate of return of existing investment (3) difference between rate of profit and rate of interest (4) value of output per unit of capital invested
Last Answer : expected rate of return on new investment
Description : 1. Which of the following concepts represents the extra revenue a firm receives from the services of an additional unit of a factor of production? a. total revenue b. marginal physical product c. marginal revenus product d. marginal revenue
Last Answer : c. marginal revenus product
Description : Capital : Output Ratio of a measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output
Last Answer : (2) the amount of capital invested per unit of output Explanation: Capital output ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency to be ... its resources in lieu of capital to boost its output; hence the resulting capital output ratio is low.
Description : Capital output ratio of a commodity measures - (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output
Last Answer : (2) the amount of capital invested per unit of output Explanation: Capital Output Ratio is the ratio of capital used to produce an output over a period of time. This ratio has a tendency ... order to increase the output. When countries use their natural resources instead of capital then COR reduces.
Description : Capital output ratio of a commodity measures (1) its per unit cost of production (2) the amount of capital invested per unit of output (3) the ratio of capital depreciation to quantity of output (4) the ratio of working capital employed to quantity of output
Last Answer : the amount of capital invested per unit of output
Description : What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation
Last Answer : d) Depreciation
Description : Consider the following statements and identify the right ones. A. COR is relatively low in labour intensive sectors. B. COR will be high in capital intensive sectors C. Both D. None
Last Answer : C. Both
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 : The demand for a product is 25 units when the price is `10, however the demand rises to 26 when the price is reduced to `9.9 per unit. The marginal revenue from production and sale of additional unit from 25 to 26 is (a) `7.4 ; (b) `(16) ; (c) `10 ; (d) `257.6
Last Answer : (a) `7.4 ;
Description : Pick out the wrong statement. (A) Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes (B) A cost index is merely a number for a given year ... butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
Last Answer : (D) Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary
Description : Which of the following occurs when labour productivity rises? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right
Last Answer : (4) The labour demand curve shifts to the right Explanation: As labour productivity increases, the production function shifts up and simultaneously the labor demand curve shifts out and right. At ... , the production function shifts up and simultaneously the labor demand curve shifts out and right.
Description : Which of the following occurs when labour productivity rises ? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right
Last Answer : The labour demand curve shifts to the right
Description : The addition to total cost by producing an additional unit of out-put by a firm is called - (1) Variable cost (2) Average cost (3) Marginal cost (4) Opportunity cost
Last Answer : (3) Marginal cost Explanation: The addition to total cost by producing an additional unit of output by a firm is called Marginal cost. Average cost is the total cost of producing a given output divided by that output.
Description : The addition to total cost by producing an additional unit of output by a firm is called (1) Variable cost (2) Average cost (3) Marginal cost (4) Opportunity cost
Last Answer : Marginal cost
Description : If an industry is characterized by economies of scale then - (1) barriers to entry are not very large (2) long run unit costs of production decreases as the quantity the firm produces increases (3) ... of the large scale operation (4) the costs of entry into the market are likely to be substantial
Last Answer : (2) long run unit costs of production decreases as the quantity the firm produces increases Explanation: In microeconomics, economies of scale are the cost advantages that an enterprise obtains due to expansion ... in unit cost as the size of a facility and the usage levels of other inputs increase.
Description : If an industry is characterised by economies of scale then (1) barriers to entry are not very large (2) long run unit costs of production decreases as the quantity the firm produces increases (3) ... of the large scale operation (4) the costs of entry into the market are likely to be substantial
Last Answer : long run unit costs of production decreases as the quantity the firm produces increases
Description : Bread and butter, car and petrol are examples of goods which have - (1) composite demand (2) joint demand (3) derived demand (4) autonomous demand
Last Answer : (3) derived demand Explanation: Derived demand is a term in economics, where demand for one good or service occurs as a result of the demand for another intermediate/final good or service. This may occur ... must be mined for coal to be consumed. As the demand for coal increases, so does its price.
Description : Where is Wildlife Institute of India (WII) which is an autonomous institution under the Ministry of Environment Forest and Climate change based? a. Leh, Jammu & Kashmir b. Darjeeling, West Bengal c. Shimla, Himachal Pradesh d. Dehradun, Uttarakhand
Last Answer : d. Dehradun, Uttarakhand
Description : Bread and butter, car and petrol are examples of goods which have (1) composite demand (2) joint demand (3) derived demand (4) autonomous demand
Last Answer : derived demand
Description : Capital budgeting decisions are based on: A. Incremental profit B. Incremental cash flows C. Incremental assets D. Incremental capital
Last Answer : B. Incremental cash flows
Description : The basic capital budgeting principles involved in determining relevant after-tax incremental operating cash flows require us to . A. include sunk costs, but ignore opportunity costs B. include ... C. ignore both opportunity costs and sunk costs D. include both opportunity and sunk costs
Last Answer : B. include opportunity costs, but ignore sunk costs
Description : In proper capital budgeting analysis we evaluate incremental cash flows. A. accounting B. operating C. before-tax D. financing
Last Answer : B. operating
Description : ___________ can be used as a standard to measure the efficiency of an economy 1. Cash reserve ratio 2. Exchange rate ratio 3. Incremental capital output ratio 4. Profit ratio 5. None of these
Last Answer : Incremental capital output ratio
Description : You may recover the incremental capital cost used to purchase a __________ air conditioner. a) Lower star c) Higher star b) Higher power d) Lower power
Last Answer : Higher star
Description : An increase in per capital income is not an indication of an increase in the economic welfare of the people - (1) When such increase is the result of an increased production action of ... the production of industrial goods (4) When such increase is the result of increased production of intoxicants
Last Answer : (4) When such increase is the result of increased production of intoxicants Explanation: An increase in per capita income due to increased production of intoxicants cannot be taken as economic ... population, include: GDP, literacy, access to health care, and assessments of environmental quality.
Description : An increase in per capital income is not an indication of an increase in the economic welfare of the people (1) When such increase is the result of an increased production of comforts ( ... production of industrial goods (4) When such increase is the result of increased production of intoxicants
Last Answer : When such increase is the result of increased production of intoxicants
Description : Which of the following best defines price discrimination? a. charging different prices on the basis of race b. charging different prices for goods with different costs of production c. charging ... a certain product of given quality and cost per unit at different prices to different buyers
Last Answer : d. selling a certain product of given quality and cost per unit at different prices to different buyers
Description : Motorization of an alternator is undesirable because _____________. A. the alternator will be damaged B. it puts an additional load on the bus C. high voltage pulses are induced in the bus D. all of the above
Last Answer : Answer: B
Description : Milrinone is best used: A. In a patient of mild CHF B. As an additional drug alongwith conventional therapy to tide over crisis in refractory CHF C. For long-term maintenance therapy of CHF D. To suppress digitalis induced arrhythmias
Last Answer : B. As an additional drug alongwith conventional therapy to tide over crisis in refractory CHF
Description : The introduction of interpoles in between the main pole improves the performance of d.c. machines, because (A) The interpole produces additional flux to augment the developed torque. (B) The flux waveform is ... armature is removed. (D) A counter e.m.f. is induced in the coil undergoing commutation.
Last Answer : Ans: D Counter e.m.f is produced, it neutralizes the reactive emf.
Description : The communicated knowledge in a classroom is considered as (A) non-pervasive treasure (B) limited judgement (C) autonomous virtue (D) cultural capital
Last Answer : (D) cultural capital
Description : In a business, raw materials, components, work in progress and finished goods are jointly regarded as - (1) capital stock (2) inventory (3) investment (4) net worth
Last Answer : (2) inventory Explanation: 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 ... of the primary sources of revenue generation and subsequent earnings for the company's shareholders/owners.
Description : In accounting terms, what constitutes the 'closing stock'? (1) Net Investment (2) Gross Investment-Capital Losses (3) Opening Stock-Capital Losses (4) Opening Stock + Net Investment - Capital Losses
Last Answer : (4) Opening Stock + Net Investment - Capital Losses Explanation: Closing stock refers to the goods remaining un-sold during the year. It includes finished products, raw materials, or work in progress ... with the following calculation: Opening stock + Purchases - Closing stock = Cost of goods sold.
Description : Who defined investment as "the construction of a new capital asset like machinery or factory building"? (1) Hansen (2) J.M. Keynes (3) Harrod (4) J.R. Hicks
Last Answer : (2) J.M. Keynes Explanation: Investment expenditure refers to the creation of new assets i.e. an addition to the stock of existing capital assets. According to Keynes investment demand depends upon ... the rate of interest (IR). Investment demand decreases with the increase in the rate of interest.
Description : Investment is equal to : (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of the above
Last Answer : (2) gross total of all capital assets minus wear and tear Explanation: Capital formation is frequently thought of as a measure of total "investment", in the sense of that portion of ... concept that includes investment in all kinds of capital assets, whether physical property or financial assets.
Description : According to Keynes, business cycles are due to variation in the rate of investment caused by fluctuations, in the - (1) Marginal efficiency of capital (2) Marginal propensity to save (3) Marginal propensity to consumption (4) Marginal efficiency to investment
Last Answer : (1) Marginal efficiency of capital Explanation: According to Keynes' General Theory of Employment, Interest, and Money,' business cycles are caused by variations in the rate of investment ... efficiency of capital. Marginal efficiency of capital means the expected profits from new investments.
Description : Investment is equal to - (1) gross total of all types of physical capital assets (2) gross total of all capital assets minus wear and tear (3) stock of plants, machines and equipments (4) None of these
Last Answer : (2) gross total of all capital assets minus wear and tear Explanation: Investment" is a broader concept that includes investment in all kinds of capital assets, whether physical property or financial assets. In ... out the loss in capital value of assets used due to wear & tear, obsolescence, etc.
Description : Which among the following has the least possibility of globalization? (1) selection of labour force (2) location of capital works (3) to manage resources for investment (4) increase in infrastructure
Last Answer : (2) location of capital works Explanation: Globalization can affect the labor market by increasing capacity of developing countries to create new opportunities for work and production ... in proper shape. A welldeveloped infrastructure is an indispensable condition for faster globalization.
Description : Capital formation in underdeveloped countries is a major bottleneck. The reason can be a. Small size of market with no incentive for investment b. Low level of income c. Demonstration effect d. All the above
Last Answer : d. All the above Capital formation refers to investment in tools, machinery, buildings etc. inequalities in the economy is also a reason behind this.
Description : Which of the following is Stock concept ? (a) Capital (b) Investment (c) Income (d) Profit
Last Answer : (a) Capital
Description : Which among the following method is used to calculate poverty in India? (a) Investment Method. (b) Capital Method. © Savings Method. (d) Income Method.
Last Answer : (d) Income Method.
Description : Keynesian theory of investment is known as ----- (a) Marginal Efficiency of Capital Theory. (b) Marginal Efficiency of Investment Theory. © Optimum Stock of Capital Theory. (d) Actual Stock of Capital Theory.
Last Answer : (b) Marginal Efficiency of Investment Theory.