Surplus earned by a factor other than land in the short period of referred to as- (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent

Surplus earned by a factor other than land in the short period of referred to as- (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent
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(3) quasi-rent Explanation: Quasi-rent is the surplus which is received in the short period because of demand exceeding the supply by the man made factors besides land. It is an analytical term in economics, for the income earned, in excess of post-investment opportunity cost, by a sunk cost investment. In general, an economic rent is the difference between the income from a factor of production in a particular use, and either the cost of bringing the factor into economic use (Classical factor rent), or the opportunity cost of using the factor, where opportunity cost is defined as the current income minus the income available in the next best use.
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Surplus earned by a factor other than land in the short period of referred to as (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent

Description : Surplus earned by a factor other than land in the short period of referred to as (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent

Last Answer : quasi-rent

Why is rent earned by land even in the long run? (1) Land has original and indestructible power (2) Land is a man made factor (3) Its supply is inelastic in the short run (4) Its supply is inelastic in the long run

Description : Why is rent earned by land even in the long run? (1) Land has original and indestructible power (2) Land is a man made factor (3) Its supply is inelastic in the short run (4) Its supply is inelastic in the long run

Last Answer : (4) Its supply is inelastic in the long run Explanation: Rent accrues to land which is fixed in supply even in the longer run. It is permanent. In contrast to it is a quasi rent, introduced by Marshall, which is inelastic in the short run, but elastic in the longer run.

Why is rent earned by land even in the long run ? (1) Land has original and indestructible power (2) Land is a man made factor (3) Its supply is inelastic in the short run (4) Its supply is inelastic in the long run

Description : Why is rent earned by land even in the long run ? (1) Land has original and indestructible power (2) Land is a man made factor (3) Its supply is inelastic in the short run (4) Its supply is inelastic in the long run

Last Answer : Its supply is inelastic in the long run

Given competitive conditions, a firm in the long run earn (a) Quasi-rent (b) Pure-rent (c) Normal profit (d) Economic profit

Description : Given competitive conditions, a firm in the long run earn (a) Quasi-rent (b) Pure-rent (c) Normal profit (d) Economic profit

Last Answer : (c) Normal profit

Quasi-Rent arises from (a) Land (b) Labour (c) Capital (d) Factors whose supply in the short run is inelastic.

Description : Quasi-Rent arises from (a) Land (b) Labour (c) Capital (d) Factors whose supply in the short run is inelastic.

Last Answer : (c) Capital

‘Normal Profit’ means (a) Profit earned by the marginal firm in a normal year. (b) Minimum amount needed to keep a firm in the same business. (c) The payment made to marginal firm for its ability. (d) Surplus profit earned by the least efficient firm

Description : ‘Normal Profit’ means (a) Profit earned by the marginal firm in a normal year. (b) Minimum amount needed to keep a firm in the same business. (c) The payment made to marginal firm for its ability. (d) Surplus profit earned by the least efficient firm

Last Answer : (c) The payment made to marginal firm for its ability.

Quasi rent is a ______ phenomenon. (1) medium term (2) long term (3) short term (4) no time

Description : Quasi rent is a ______ phenomenon. (1) medium term (2) long term (3) short term (4) no time

Last Answer : (3) short term Explanation: Quasirent is a term in economics that describes certain types of returns to firms. It differs from pure economic rent in that it is a temporary phenomenon. It ... run, such as the granting of patents or other legal protections for intellectual property by governments.

Quasi rent is a_________ phenomenon. (1) medium term (2) long term (3) short term (4) no time

Description : Quasi rent is a_________ phenomenon. (1) medium term (2) long term (3) short term (4) no time

Last Answer : short term

Minimum payment to factor of production is called - (1) Quasi Rent (2) Rent (3) Wages (4) Transfer Payment

Description : Minimum payment to factor of production is called - (1) Quasi Rent (2) Rent (3) Wages (4) Transfer Payment

Last Answer : (4) Transfer Payment Explanation: In economics, factors of production are the inputs to the production process. There are three basic factors of production: land, labour, capital. The payment for use and ... to keep a factor of production in its present use. It is also known as opportunity cost.

Minimum payment to factor of production is called (1) Quasi Rent (2) Rent (3) Wages (4) Transfer Payment

Description : Minimum payment to factor of production is called (1) Quasi Rent (2) Rent (3) Wages (4) Transfer Payment

Last Answer : Transfer Payment

Which of these is/are not included in net domestic product at factor cost. (a) Wages or compensation of employees ; (b) Rent, interest, profits or operating surplus; (c) Mixed income ; (d) None

Description : Which of these is/are not included in net domestic product at factor cost. (a) Wages or compensation of employees ; (b) Rent, interest, profits or operating surplus; (c) Mixed income ; (d) None

Last Answer : (d) None

Economic rent refers to - (1) Payment made for the use of labour (2) Payment made for the use of capital (3) Payment made for the use of organisation (4) Payment made for the use of land

Description : Economic rent refers to - (1) Payment made for the use of labour (2) Payment made for the use of capital (3) Payment made for the use of organisation (4) Payment made for the use of land

Last Answer : (4) Payment made for the use of land Explanation: Rent refers to that part of payment by a tenant which is made only for the use of land, i.e., free gift of nature. The payment made by ... rent'. Economic rent is also called surplus because it emerges without any effort on the part of a landlord.

Economic rent refers to (1) Payment made for the use of labour (2) Payment made for the use of capital (3) Payment made for the use of organisation (4) Payment made for the use of land

Description : Economic rent refers to (1) Payment made for the use of labour (2) Payment made for the use of capital (3) Payment made for the use of organisation (4) Payment made for the use of land

Last Answer : Payment made for the use of land

Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security

Description : Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security

Last Answer : (4) Employee's contribution to social security Explanation: A transfer payment is a oneway payment of money for which no money, good, or service is received in exchange. Governments ... payments include welfare (financial aid), social security, and government making subsidies for certain businesses

Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security

Description : Transfer payments include : (1) Gifts received from a friend (2) rent free accommodation by the employer (3) net factor income from abroad (4) Employee's contribution to social security 

Last Answer : Employee's contribution to social security 

The records of exports and imports in goods and services and transfer payments is known as a) Current account b) Budget surplus c) Economic leakage d) degree of openness

Description : The records of exports and imports in goods and services and transfer payments is known as a) Current account b) Budget surplus c) Economic leakage d) degree of openness

Last Answer : a) Current account

Economic rent does not arise when the supply of a factor unit is - (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic

Description : Economic rent does not arise when the supply of a factor unit is - (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic

Last Answer : (2) Perfectly elastic Explanation: Economic rent in the sense of surplus over transfer earnings arise when the supply of the factor units is less than perfectly elastic or not perfectly elastic. When ... , at a given price or remuneration, the entrepreneur can engage any number of factor units.

Any factor of production can earn economic-rent, when its supply will be - (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above

Description : Any factor of production can earn economic-rent, when its supply will be - (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above

Last Answer : (2) Perfectly inelastic Explanation: Economic rent is the revenue that can be earned from the land or other natural resource for which there is a fixed supply - as economists like to say, the supply ... inelastic, the amount of its supply does not depend on any income that the resource can produce.

Any factor of production can earn economic-rent, when its supply will be (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above

Description : Any factor of production can earn economic-rent, when its supply will be (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above

Last Answer : Perfectly inelastic

Economic rent does not arise when the supply of a factor unit is (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic

Description : Economic rent does not arise when the supply of a factor unit is (1) Perfectly inelastic (2) Perfectly elastic (3) Relatively elastic (4) Relatively inelastic

Last Answer : Perfectly elastic

The incomes of Indians working abroad are a part of - (1) domestic income of India (2) income earned from Abroad (3) net domestic product of India (4) gross domestic product of India

Description : The incomes of Indians working abroad are a part of - (1) domestic income of India (2) income earned from Abroad (3) net domestic product of India (4) gross domestic product of India

Last Answer : (3) net domestic product of India Explanation: Domestic Product is the ross money value of all final goods and services produced in the domestic territory of a country during a year. National Product ... by the normal residents of a country during a year. It includes net factor income from abroad.

The incomes of Indians working abroad are a part of (1) domestic income of India (2) income earned from Abroad (3) net domestic product of India (4) gross domestic product of India

Description : The incomes of Indians working abroad are a part of (1) domestic income of India (2) income earned from Abroad (3) net domestic product of India (4) gross domestic product of India

Last Answer : net domestic product of India

Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining after deducting all costs excluding taxes (C) The ratio of immediately available cash to the total current liabilities is known as the cash ratio (D) Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Description : Pick out the wrong statement. (A) Gross revenue is that total amount of capital received as a result of the sale of goods or service (B) Net revenue is the total profit remaining ... indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

Last Answer : (C) Working capital turnover ratio = sales/net working capital

Indian agriculture is typically characterised as - (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Description : Indian agriculture is typically characterised as - (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Last Answer : (3) land scarce, labour surplus economy Explanation: The labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ... Japan, South Korea, and Taiwan are similar to India in being land scarce and labor surplus.

Indian agriculture is typically characterised as (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Description : Indian agriculture is typically characterised as (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Last Answer :  land scarce, labour surplus economy

The remuneration of the entrepreneur in production is - (1) Pure profit (2) Gross profit (3) Net profit (4) Super-normal profit

Description : The remuneration of the entrepreneur in production is - (1) Pure profit (2) Gross profit (3) Net profit (4) Super-normal profit

Last Answer : (3) Net profit Explanation: Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship. An entrepreneur is a person who combines the other factors ... commodities on the basis of demand, looking after efficient distribution) from the gross profit.

The remuneration of the entrepreneur in production is (1) Pure profit (2) Gross profit (3) Net profit (4) Super-normal profit

Description : The remuneration of the entrepreneur in production is (1) Pure profit (2) Gross profit (3) Net profit (4) Super-normal profit

Last Answer : Net profit 

According to Modern Theory of Rent, rent accrues to - (1) capital only (2) any factor (3) labour only (4) land only

Description : According to Modern Theory of Rent, rent accrues to - (1) capital only (2) any factor (3) labour only (4) land only

Last Answer : (2) any factor Explanation: Modern theory of rent does not confine itself to the reward of only land as a factor of production as was the case in the classical Ricardian theory of rent. Rent in ... can arise in respect of any other factor of production. i.e., labour, capital and entrepreneurship.

Rent is a factor payment paid to - (1) land (2) restaurant (3) building (4) factory

Description : Rent is a factor payment paid to - (1) land (2) restaurant (3) building (4) factory

Last Answer : (1) land Explanation: Factor Payments refer to payments made to scarce resources, or the factors of production (labour, capital, land, and entrepreneurship), in return for productive services. Wages ... of capital rent is the services for land, and profit is the factor payment to entrepreneurship.

According to Modern Theory of Rent, rent accrues to (1) capital only (2) any factor (3) labour only (4) land only

Description : According to Modern Theory of Rent, rent accrues to (1) capital only (2) any factor (3) labour only (4) land only

Last Answer : any factor

Rent is a factor payment paid to (1) land (2) restaurant (3) building (4) factory

Description : Rent is a factor payment paid to (1) land (2) restaurant (3) building (4) factory

Last Answer : land

Economic profit or normal profit is the same as - (1) optimum profit (2) accounting profile (3) maximum profit (4) net profit

Description : Economic profit or normal profit is the same as - (1) optimum profit (2) accounting profile (3) maximum profit (4) net profit

Last Answer : (4) net profit Explanation: Normal profit or economic profit is an economic condition occurring when the difference between a firm's total revenue and total cost is equal to zero. Simply put, normal ... occurs when revenues are greater than costs, and not equal, as in the case of normal profit.

Economic profit or normal profit is the same as : (1) optimum profit (2) accounting profile (3) maximum profit (4) net profit

Description : Economic profit or normal profit is the same as : (1) optimum profit (2) accounting profile (3) maximum profit (4) net profit

Last Answer : net profit

The net factor income earned within the domestic territory of a country must be equal to (a) Net Domestic Product at factor cost ; (b) Net Domestic Product at market price; (c) Net National Product at market price ; (d) Personal income.

Description : The net factor income earned within the domestic territory of a country must be equal to (a) Net Domestic Product at factor cost ; (b) Net Domestic Product at market price; (c) Net National Product at market price ; (d) Personal income.

Last Answer : (a) Net Domestic Product at factor cost ;

Which of the following statements is correct? (1) Most workers will work for less than their reservation wage. (2) The reservation wage is the maximum amount any firm will pay for a worker. (3) Economic rent is the difference between the market wage and the reservation wage. (4) Economic rent is the amount one must pay to enter a desirable labour market.

Description : Which of the following statements is correct? (1) Most workers will work for less than their reservation wage. (2) The reservation wage is the maximum amount any firm will pay for a worker. (3) ... reservation wage. (4) Economic rent is the amount one must pay to enter a desirable labour market.

Last Answer : (3) Economic rent is the difference between the market wage and the reservation wage. Explanation: The difference between the actual market wage and the reservation wage is called economic rent. Therefore ... per-son becomes unemployed (The Goals of Macroeconomic Policy by Martin Prachowny. p. 58).

Which of the following statements is correct ? (1) Most workers will work for less than their reservation wage. (2) The reservation wage is the maximum amount any firm will pay for a worker. (3) Economic rent is the difference between the market wage and the reservation wage. (4) Economic rent is the amount one must pay to enter a desirable labour market.

Description : Which of the following statements is correct ? (1) Most workers will work for less than their reservation wage. (2) The reservation wage is the maximum amount any firm will pay for a worker. (3) ... reservation wage. (4) Economic rent is the amount one must pay to enter a desirable labour market. 

Last Answer :  Economic rent is the difference between the market wage and the reservation wage.

Pick out the wrong statement. (A) Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity) (B) Return on equity = profit after tax/net worth (C) Working capital turnover ratio = sales/net working capital (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Description : Pick out the wrong statement. (A) Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity) (B) Return on equity = profit after tax/net worth (C) Working ... /net working capital (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Last Answer : (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

In the case of quasi permanent Government Servants who wish to revert to parent department /Office within a period of two years then the government servant will be appointed to the post of -------------- a. the post held by him prior to his joining the new department b the present post he occupied c. None of these

Description : In the case of quasi permanent Government Servants who wish to revert to parent department /Office within a period of two years then the government servant will be appointed to the post of ---------- ... him prior to his joining the new department b the present post he occupied c. None of these

Last Answer : a. the post held by him prior to his joining the new department

The excess of price a person is to pay rather than forego the consumption of the commodity is called - (1) Price (2) Profit (3) Producers' surplus (4) Consumer's surplus

Description : The excess of price a person is to pay rather than forego the consumption of the commodity is called - (1) Price (2) Profit (3) Producers' surplus (4) Consumer's surplus

Last Answer : (3) Producers' surplus Explanation: Producer Surplus' is an economic measure of the difference between the amount that a producer of a good receives and the minimum amount that he or she would be ... or surplus amount, is the benefit that the producer receives for selling the good in the market.

The excess of price a person is to pay rather than forego the consumption of the commodity is called (1) Price (2) Profit (3) Producers’ surplus (4) Consumer’s surplus

Description : The excess of price a person is to pay rather than forego the consumption of the commodity is called (1) Price (2) Profit (3) Producers’ surplus (4) Consumer’s surplus

Last Answer : Producers’ surplus

Which of the following are not fixed costs? (1) Rent on land (2) Municipal taxes (3) Wages paid to workers (4) Insurance charges

Description : Which of the following are not fixed costs? (1) Rent on land (2) Municipal taxes (3) Wages paid to workers (4) Insurance charges

Last Answer : (3) Wages paid to workers Explanation: In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time-related, such ... paid in wages, can often be varied, so this type of labour cost is a variable cost.

Which of the following are not fixed costs? (1) Rent on land (2) Municipal taxes (3) Wages paid to workers (4) Insurance charges

Description : Which of the following are not fixed costs? (1) Rent on land (2) Municipal taxes (3) Wages paid to workers (4) Insurance charges

Last Answer :  Wages paid to workers

A country’s Current Account: A. Balance equals the change in its net foreign wealth. B. Balance equals the change in its foreign wealth. C. Surplus equals the change in its foreign wealth. D. Deficit equals the change in its foreign wealth. E. None of the above.

Description : A country’s Current Account: A. Balance equals the change in its net foreign wealth. B. Balance equals the change in its foreign wealth. C. Surplus equals the change in its foreign wealth. D. Deficit equals the change in its foreign wealth. E. None of the above.

Last Answer : A. Balance equals the change in its net foreign wealth.

A currency whose exchange rate is influenced by the government is a/an - (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency

Description : A currency whose exchange rate is influenced by the government is a/an - (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency

Last Answer : (2) Managed Currency Explanation: Managed currency refers to currency whose ex-change rate is not determined by the free-market forces of demand and supply but instead by the government's intervention through the country's central bank.

)A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency

Description : )A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency

Last Answer : (1) Soft currency Explanation: Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments ... set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar

Consumer's surplus is the highest in the case of: (1) durable goods (2) luxuries (3) comforts (4) necessities

Description : Consumer's surplus is the highest in the case of: (1) durable goods (2) luxuries (3) comforts (4) necessities

Last Answer : (4) necessities Explanation: Consumer surplus is the difference between the price consumers would be prepared to pay and the actual market price.

The expenses on advertising is called - (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Description : The expenses on advertising is called - (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Last Answer : (4) Selling cost Explanation: Selling cost is total cost of marketing, advertising, and selling a product. It differs from the production cost which is incurred to produce goods. Selling cost influences the commercial desire to purchase a commodity,

The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (1) Consumer's Surplus (2) Producer's Surplus (3) Landlord's Surplus (4) Worker's Surplus

Description : The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (1) Consumer's Surplus (2) Producer's Surplus (3) Landlord's Surplus (4) Worker's Surplus

Last Answer : (1) Consumer's Surplus Explanation: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay ... price, then they are getting more benefit from the purchased product than they spent to buy it.

The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption

Description : The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption

Last Answer : (4) Keynes's psychological law of consumption Explanation: Keynes defined Psychological Law of Consumption in terms of, "The fundamental psychological law, upon which we are entitled to depend with great ... consumption as their income increases but not by as much as the increase in the income."

Operating Surplus arises in the - (1) Government Sector (2) Production for self consumption (3) Subsistence farming (4) Enterprise Sector

Description : Operating Surplus arises in the - (1) Government Sector (2) Production for self consumption (3) Subsistence farming (4) Enterprise Sector

Last Answer : (1) Government Sector