Description : Demand in Economics means : (1) Aggregate demand (2) Market demand (3) Individual demand (4) Demand backed by purchasing power
Last Answer : Demand backed by purchasing power
Description : A desire culminates into demand or effective desire only when it is backed by (a) Purchasing power ; (b) Willingness of spend money ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : Under flexible exchange rate system, the exchange rate is determined by - (1) the Central Bank of the country (2) the forces of demand and supply in the foreign exchange market (3) the price of gold (4) the purchasing power of currencies
Last Answer : (2) the forces of demand and supply in the foreign exchange market Explanation: A floating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to ... by the foreign-exchange market through supply and demand for that particular currency relative to other currencies.
Description : Under flexible exchange rate system, the exchange rate is determined by (1) the Central Bank of the country (2) the forces of demand and supply in the foreign exchange market (3) the price of gold (4) the purchasing power of currencies
Last Answer : the forces of demand and supply in the foreign exchange market
Description : A want becomes a demand only when it is backed by the - (1) Ability to purchase (2) Necessity to buy (3) Desire to buy (4) Utility of the product
Last Answer : (1) Ability to purchase Explanation: Need," "Want," and "Demand" are the three key concepts of marketing. Needs are the basic human requirements. These needs become wants when they are directed to specific ... a weekend break in the Caribbean, but only a few people are willing and able to buy one.
Description : A want becomes a demand only when it is backed by the (1) Ability to purchase (2) Necessity to buy (3) Desire to buy (4) Utility of the product
Last Answer : Ability to purchase
Description : Neoclassical economics concerns itself with the determination of various prices. In the branch of Microeconomics, economists are concerned with _________, while in Macroeconomics they consider _________ (a) Price ... prices: the aggregate price level ; (d) Costs to consumers: costs to producer
Last Answer : (c) Individual product prices: the aggregate price level ;
Description : Macroeconomics is a study of economics that deals with which 4 major factors: a) households, firms, government, and demand-supply b) households, firms, government and external sector c) firms, government, free-market, and regulations d) none of the above
Last Answer : b) households, firms, government and external sector
Description : The term "market" in Economics means - (1) A central place (2) Presence of competition (3) Place where goods are stored (4) Shops and super bazars
Last Answer : (1) A central place Explanation: The most important defining characteristic of a market in economics is that it allows buyers and sellers to exchange any type of goods, services and ... place is so called because it is centrally located to maximize accessibility from the surrounding region.
Description : The term “market” in Economics means (1) A central place (2) Presence of competition (3) Place where goods are stored (4) Shops and super bazars
Last Answer : A central place
Description : Demand of commodity mainly depends upon - (1) Purchasing will (2) Purchasing power (3) Tax policy (4) Advertisement
Last Answer : (2) Purchasing power Explanation: The demand of commodity mainly stems from the consumption capacity of the buyer. Demand is equal to desire plus ability to pay plus will to spend. Demand for a commodity depends upon number of factors called Determinants.
Description : Demand of commodity mainly depends upon– (1) Purchasing will (2) Purchasing power (3) Tax policy (4) Advertisement
Last Answer : Purchasing power
Description : Would a wage increase affect aggregate demand or supply?
Last Answer : I don’t know much about economics, but the third option is that the effects might cancel out, meaning no change.
Description : Inflation occurs when aggregate supply is - (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : (2) less than aggregate demand Explanation: If the supply is less than the demand, the price will increase. Inflation, the persistent increase in the average price level, can be ... Translating this to the macro-economy suggests that inflation occurs when aggregate demand exceeds aggregate supply.
Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.
Description : When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops
Last Answer : (3) inventories accumulate Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to ... Either way -there is a tendency for output to move closer to the current level of demand.
Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above
Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand
Description : Which of the following does not cause a shift in aggregate demand ? (a) Consumption (b) Government expenditure (c) Investment (d) Prices
Last Answer : (d) Prices
Description : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic
Last Answer : (b) If aggregate supply is completely inelastic
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : If an increase in investment leads to a bigger increase in national income (a) Accelerator (b) Aggregate demand © Monetarism (d) Multiplier
Last Answer : (d) Multiplier
Description : The cost of borrowing is equal to marginal propensity to consume. 21. Investment is (a) An injection that increases aggregate demand (b) An withdrawal that increases aggregate demand © An injection that decreases aggregate demand (d) An withdrawal that decreases aggregate demand
Last Answer : a) An injection that increases aggregate demand
Description : An increase in consumption at any given level of income will lead to (a) Higher aggregate demand. (b) An increase in exports. © A fall in taxation revenue. (d) A decrease in import spending.
Last Answer : (a) Higher aggregate demand.
Description : In explaining the level of unemployment, Keynes emphasized,- (a) Changes in technology. (b) Aggregate demand. © Inflationary expectations. (d) Lending by financial institutions.
Last Answer : (b) Aggregate demand.
Description : Inflation occurs when aggregate supply is (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : less than aggregate demand
Description : When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops
Last Answer : inventories accumulate
Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : a fall in prices of output and resources
Description : In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve
Last Answer : (a) Point of interaction of aggregate demand and aggregate supply curve;
Description : Market equilibrium of a commodity is determined by (a) Balancing of demand and supply position ; (b) Aggregate demand ; (c) Aggregate supply; (d) Government intervention
Last Answer : (a) Balancing of demand and supply position ;
Description : Aggregate net value of the output in one year is the - (1) National income at factor cost (2) Gross Domestic Product at market prices (3) Net. National Product at market prices (4) Gross National Product at market prices
Last Answer : (3) Net. National Product at market prices Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in ... at market price, Net national product at market price=Gross national product at market priceDepreciation.
Description : Aggregate net value of the output in one year is the (1) National income at factor cost (2) Gross Domestic Product at market prices (3) Net National Product at market prices (4) Gross National Product at market prices
Last Answer : Net National Product at market prices
Description : Full convertibility of a rupeee means - (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Last Answer : (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply Explanation: The full convertibility of the Indian currency means ... governmental control. Presently, the issue of capital account convertibility is in the discussion stage.
Description : Full convertibility of a rupeee means (1) purchase of foreign exchange for rupees freely (2) payment for imports in terms of ruppes (3) repayment of loans in terms of rupees (4) determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Last Answer : determination of rate of exchange between rupee and foreign currencies freely by the market forces of demand and supply
Description : Government securities are considered liquid because they are - (1) backed by the Government treasury (2) convertible into other types of saving deposits (3) quickly and easily marketable (4) stable in value
Last Answer : (3) quickly and easily marketable Explanation: Liquid Asset is an asset that can be converted into cash quickly and with minimal impact to the price received. In a liquid market, ... free highly liquid financial instruments, which market participants are more willing to transact and take positions.
Description : Government securities are considered liquid because they are (1) backed by the Government treasury (2) convertible into other types of saving deposits (3) quickly and easily marketable (4) stable in value
Last Answer : quickly and easily marketable
Description : Can supply-side economics resolve a demand-side economic problem?
Last Answer : answer:@ETpro, in researching your links (and doing a little more research on my own), I found it interesting that both demand-side and supply-side supporters reach as far back as James Hamilton (first US ... short, you have the Great Society of LBJ. Too bad that was derailed by the war in Vietnam
Description : In economics, what is it called when reduced demand cause prices to go up?
Last Answer : They could be trying to “re-brand” the commodity into a veblen good, angling for more affluent customers who care more about status than overpaying. Hope this helps.
Description : 'Gresham's Law' in Economics relates to (1) supply and demand (2) circulation of currency (3) consumption of supply (4) distribution of goods and services
Last Answer : (2) circulation of currency Explanation: Gresham's law is an economic principle that states: "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave ... will flood into circulation." It is commonly stated as: "Bad money drives out good."
Description : In the terminology of economics and money demand, the terms M3 and M4 are also known as : a) Short money b) Long money c) Broad money d) Narrow money
Last Answer : c) Broad money
Description : ) In the terminology of economics and money demand, the terms M1 and M2 are also known as : a) Short money b) Long money c) Broad money d) Narrow money
Last Answer : d) Narrow money
Description : ________ are financial markets for the buying and selling of long-term debt or equity-backed securities. A. Bullion Market B. Capital Market C. Money Market D. All of the Above E. None of the Above
Last Answer : B. Capital Market Explanation: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc
Description : Underwriting in terms of shares means 1. Agreeing to purchase shortfall of shares in a company in case of undersubscription 2. Selling shares at a discount 3. Purchasing property at less than market price 4. a and b 5. None of these
Last Answer : Agreeing to purchase shortfall of shares in a company in case of undersubscription
Description : Which terns is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? (1) GDP (2) GPN (3) OMP (4) GNP
Last Answer : (4) GNP Explanation: Gross National Product (GNP) is defined as "the market value of all goods and services produced in one year by labour and property supplied by the residents of a country. It is ... ), defined as "the value of all final goods and services produced in a country in I year."
Description : 1) Which among the following could be said to be an 'Open Economy'? a) A nation that follows the doctrine of Free-market and Laissez-faire economics b) A nation that trades with other ... services and financial assets c) An economy that operates without government intervention d) None of the above
Last Answer : : b) A nation that trades with other nations in goods and services and financial assets
Description : Which term is used in economics for the market value of all goods and services in one year by labour and properly supplied by the residents of the country? (1) GDP (2) GPN (3) OMP (4) GNP
Last Answer : GNP
Description : If the demand curve confronting an individual firm is perfectly elastic, then firm is A.Price taker B.Adjust output C.Adjust price D.All of these Answer Repor
Last Answer : A.Price taker
Description : In Economics, production means - (1) manufacturing (2) making (3) creating utility (4) farming
Last Answer : (3) creating utility Explanation: All factors of production like land, labour, capital and entrepreneur are required in combination at a time to produce a commodity. Production means creation or an ... 'inputs' or 'resources') are any commodities or services used to produce goods and services.
Description : In Economics, production means (1) manufacturing (2) making (3) creating utility (4) farming
Last Answer : creating utility
Description : Market demand curve for a commodity is a (a) Horizontal summation of all the individual demand curve for that product (b) Summation of demand curve of competitive products (c) Demand curve of average demand and price of previous six months (d) Projected demand schedule for next three months
Last Answer : (a) Horizontal summation of all the individual demand curve for that product
Description : Market demand curve for a commodity is (a) Horizontal summation of the individual demand curve for the commodity; (b) Summation of individual demand curve for 3 years; (c) Demand curve of complementary goods ; (d) Demand curve of supplementary goods
Last Answer : (a) Horizontal summation of the individual demand curve for the commodity;