The fixed cost on such factors of production which are neither hired nor bought by the firm is called - (1) social cost (2) opportunity cost (3) economic cost (4) surcharged cost

The fixed cost on such factors of production which are neither hired nor bought by the firm is called - (1) social cost (2) opportunity cost (3) economic cost (4) surcharged cost
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(1) social cost Explanation: Social cost is defined as a sum of the private cost and external costs. The social cost is generally not borne by an individual. It may be borne by entire society, city or even country. This is not a one-time cost like private cost. This cost is recurrent and it is very difficult to calculate due to the inclusion of external costs. The cost may result from an event, action, or policy changes. Social costs are not calculated whenever a seller sells any product or item to buyer. This cost is added up from the use of that product.
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The fixed cost on such factors of production which are neither hired nor bought by the firm is called (1) social cost (2) opportunity cost (3) economic cost (4) surcharged cost

Description : The fixed cost on such factors of production which are neither hired nor bought by the firm is called (1) social cost (2) opportunity cost (3) economic cost (4) surcharged cost

Last Answer : social cost

The resource-based perspective suggests that unique firm resources should be the starting point for developing successful strategies a) the business opportunity should be the starting point for developing successful strategiesb) unique firm resources should be the starting point for developing successful strategies.c) both business opportunity and unique firm resources should be the starting point for developing successful strategies.d) neither business opportunity nor unique firm resources should be the starting point for developing successful strategies.

Description : The resource-based perspective suggests that unique firm resources should be the starting point for developing successful strategies a) the business opportunity should be the starting point for ... nor unique firm resources should be the starting point for developing successful strategies.

Last Answer : unique firm resources should be the starting point for developing successful strategies.

Opportunity cost of production of a commodity is - (1) the cost that the firm could have Incurred when a different technique was adopted (2) the cost that the firm could have incurred under a different method of production (3) the actual cost incurred (4) the next best alternative output

Description : Opportunity cost of production of a commodity is - (1) the cost that the firm could have Incurred when a different technique was adopted (2) the cost that the firm could have incurred under a different method of production (3) the actual cost incurred (4) the next best alternative output

Last Answer : (4) the next best alternative output Explanation: The concept of opportunity cost is based on scar-city and choice. The opportunity cost of a commodity is the next best alternative commodity ... to produce alternative goods and services. If one commodity is produced another commodity is sacrificed.

Opportunity cost of production of a commodity is (1) the cost that the firm could have incurred when a different technique was adopted (2) the cost that the firm could have incurred under a different method of production (3) the actual cost incurred (4) the next best alternative output

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Last Answer : the next best alternative output

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Last Answer : (d) Price is less than average variable cost

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

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.

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

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

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Economic cost is the sum of________ a). Variable and fixed costs b). Variable, fixed and opportunity costs c). Fixed and opportunity costs d). Variable, fixed and marginal costs

Description : Economic cost is the sum of________ a). Variable and fixed costs b). Variable, fixed and opportunity costs c). Fixed and opportunity costs d). Variable, fixed and marginal costs

Last Answer : b). Variable, fixed and opportunity costs

Transfer earning or alternative cost is otherwise known as (1) Variable cost (2) Implicit cost (3) Explicit cost (4) Opportunity cost (economic cost)

Description : Transfer earning or alternative cost is otherwise known as (1) Variable cost (2) Implicit cost (3) Explicit cost (4) Opportunity cost (economic cost) 

Last Answer : Opportunity cost (economic cost)

he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are - (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs

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Last Answer : (3) Implicit costs Explanation: In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. It is ... instead of renting, selling or lending it. These are costs a business incurs without actually spending money.

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Last Answer :  Implicit costs

Enterpreneurial ability is a special kind of labour that - (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Description : Enterpreneurial ability is a special kind of labour that - (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Last Answer : (2) organizes the process of production Explanation: In economics, factors of production are the inputs to the production process. Factors of production' may also refer specifically to the 'primary factors', ... the other factors of production, land, labor, and capital, in order to make a profit.

Enterpreneurial ability is a special kind of labour that (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Description : Enterpreneurial ability is a special kind of labour that (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Last Answer : organizes the process of production

The opportunity cost of a factor of production is - (1) what it is earning in its present use. (2) what it can earn in the long period. (3) what has to be paid to retain it in its present use. (4) what it can earn in some other use.

Description : The opportunity cost of a factor of production is - (1) what it is earning in its present use. (2) what it can earn in the long period. (3) what has to be paid to retain it in its present use. (4) what it can earn in some other use.

Last Answer : (4) what it can earn in some other use. Explanation: The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between ... given limited resources. It is equivalent to what a factor could earn for the firm in alter-native uses.

If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.

Description : If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.

Last Answer : (a) constant opportunity cost

Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.

Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.

Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country

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Description : The opportunity cost of a factor of production is (1) what it is earning in its present use. (2) what it can earn in the long period. (3) what has to be paid to retain it in its present use. (4) what it can earn in some other use.

Last Answer : what it can earn in some other use.

Value added is: a) the cost saving through production and marketing efforts within the firm. b) the value that a firm adds through the development of dynamic capabilities. c) the value that a firm adds to bought-in materials and services through outsourcing. d) the difference between the cost of inputs and the market value of outputs

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Last Answer : the difference between the cost of inputs and the market value of outputs

In an ordinary chemical plant, electrical installation cost may be about (A) 10-15% of purchased equipment cost (B) 3-10% of fixed capital investment (C) Either (A) or (B) (D) Neither (A) nor (B)

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Last Answer : © alternative cost

)If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - (1) 24 (2) 18 (3) 36 (4) 60

Description : )If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm - (1) 24 (2) 18 (3) 36 (4) 60

Last Answer : (3) 36 Explanation: The standard method of calculating average variable cost is to divide total variable cost by the quantity, illustrated by this equation : Average Variable Cost = Total Variable Cost/ Quantity of ... , Average Total Cost = 45000/2500 = 18 So Average Variable Cost = 54 - 18= 36

If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60

Description : If the average total cost is Rs. 54, total fixed cost is Rs. 45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm : (1) 24 (2) 18 (3) 36 (4) 60

Last Answer : 36

In the long run, which of the following factors of production is fixed? (a) capital (b) building © labour (d) none of the above

Description : In the long run, which of the following factors of production is fixed? (a) capital (b) building © labour (d) none of the above

Last Answer : (d) none of the above

How would the economy be affected if everyone holding stock neither bought nor sold shares for, say, a week?

Description : How would the economy be affected if everyone holding stock neither bought nor sold shares for, say, a week?

Last Answer : it would stay flat and sidewise. people would be going long term- then when it broke- there’d be lots of money to make

kalyan bought 16 types of rava of certain rupees. After a week, he sold 6 types of rava at 20%profit, 6types of rava with neither profit nor loss and 4 types at 10%loss. In this transaction, what is the profit %?

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Last Answer : Let CP of 16 types =x CP of 1 type= x/16 Sp of rice 20%=6x/16+6x/16*20/100=9x/20 Spof rice without profir or loss=6x/16=3x/8 Sp of rice at 10% loss= 4x/16-4x/16*10/100=9x/40 Total seling price=9x/20+3x/8+9x/40 = 42x/40 now profit%= [42x/40-x]/x *100 =5%

If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to an acceptable level. The action appropriate to permit the firm to perform the engagement would be to a. Dispose of the financial interest. b. Dispose of a sufficient amount of it so that the remaining interest is no longer material. c. Either a or b d. Neither a nor b

Description : If a firm, or a network firm, has a direct financial interest in an audit client of the firm, the self-interest threat created would be so significant no safeguard could reduce the threat to an acceptable ... that the remaining interest is no longer material. c. Either a or b d. Neither a nor b

Last Answer : Dispose of the financial interest

Mark the correct option: a) Surface mail items received from any country for delivery in India may be redirected to any place within India. b) First class mail surcharge or un surcharged are eligible for free redirection by air within India c) Surface mail received for delivery in India from any country not applying reduced charges for India may be redirected to another country by the surface mail without any charge for the redirection. d) All of the above are correct

Description : Mark the correct option: a) Surface mail items received from any country for delivery in India may be redirected to any place within India. b) First class mail surcharge or un surcharged are eligible ... by the surface mail without any charge for the redirection. d) All of the above are correct

Last Answer : d) All of the above are correct

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 comforts (2) When such increase is the result of an increase in agricultural production (3) When it is the result of an increase in the production of industrial goods (4) When such increase is the result of increased production of intoxicants

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.

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 (2) When such increase is the result of an increase in agricultural production (3) When it is the result of an increase in the production of industrial goods (4) When such increase is the result of increased production of intoxicants

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

In equilibrium, a perfectly competitive firm will equate - (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost

Description : In equilibrium, a perfectly competitive firm will equate - (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost

Last Answer : (4) marginal revenue with marginal cost Explanation: A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost ... marginal cost curve. The marginal cost curve is thus the perfectly competitive firm's supply curve.

In equilibrium, a perfectly competitive firm will equate (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost

Description : In equilibrium, a perfectly competitive firm will equate (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost

Last Answer : marginal revenue with marginal cost

As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as A)raw material. B)a processed component. C)a component part. D)a service. E)an industrial product.

Description : As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as A)raw material. B)a processed component. C)a component part. D)a service. E)an industrial product.

Last Answer : E)an industrial product.

Which one is more appropriate for cost of retained earning? A. Weighted Average cost of capital B. Opportunity cost to the firm C. Expected rate of return by the investor D. None of the above

Description : Which one is more appropriate for cost of retained earning? A. Weighted Average cost of capital B. Opportunity cost to the firm C. Expected rate of return by the investor D. None of the above

Last Answer : B. Opportunity cost to the firm

One mole feed of a binary mixture of a given composition is flash vaporised at a fixed P and T. If Raoult's law is obeyed, then changing the feed composition would effect (A) The product composition but not the fraction vaporised (B) The product composition as well as the fraction vaporised (C) The fraction vaporised but not the product composition (D) Neither the product composition nor the fraction vaporised

Description : One mole feed of a binary mixture of a given composition is flash vaporised at a fixed P and T. If Raoult's law is obeyed, then changing the feed composition would effect (A) ... The fraction vaporised but not the product composition (D) Neither the product composition nor the fraction vaporised

Last Answer : (C) The fraction vaporised but not the product composition

The fuel ratio of a coal is (A) The ratio of its percentage of fixed carbon to that of volatile matter (B) Helpful in estimation of its rank (C) Both (A) and (B) (D) Neither (A) nor (B)

Description : The fuel ratio of a coal is (A) The ratio of its percentage of fixed carbon to that of volatile matter (B) Helpful in estimation of its rank (C) Both (A) and (B) (D) Neither (A) nor (B)

Last Answer : (C) Both (A) and (B)

Justify the statement. A gas neither has a fixed shape nor a fixed volume.

Description : Justify the statement. A gas neither has a fixed shape nor a fixed volume.

Last Answer : Gas molecules possess large intermolecular spaces therefore the cohesive forces between them are insignificant. This is why a gas has no fixed shape or volume

According to the Indian Constitution, which one is not included in the fundamental right to equality? (1) Equality before law (2) Social equality (3) Equality of opportunity (4) Economic equality

Description : According to the Indian Constitution, which one is not included in the fundamental right to equality? (1) Equality before law (2) Social equality (3) Equality of opportunity (4) Economic equality

Last Answer : (4) Economic equality Explanation: Economic equality is not mentioned in fundamental rights.

A unit price elastic demand curve will touch - (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis

Description : A unit price elastic demand curve will touch - (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis

Last Answer : (2) neither price axis, nor quantity axis Explanation: Unit elastic refers to an elasticity alternative in which any percentage change in price cause an equal percentage change in quantity. In other ... However, the unit price elastic demand curve does not touch either price axis or quantity axis.

The field capacity of a soil depends upon a. Capillary tension in soil b. Porosity of soil c. Both (a) and (b) d. Neither (a) nor (b)

Description : The field capacity of a soil depends upon a. Capillary tension in soil b. Porosity of soil c. Both (a) and (b) d. Neither (a) nor (b)

Last Answer : c. Both (a) and (b)

In a pure market economy, which of the following is a function of the price? I. provide information to sellers and buyers , II. provide incentives to sellers and buyers a. I only b. II only c. both I and II d. neither I nor II

Description : In a pure market economy, which of the following is a function of the price? I. provide information to sellers and buyers , II. provide incentives to sellers and buyers a. I only b. II only c. both I and II d. neither I nor II

Last Answer : c. both I and II

Demand curve can be derived from the law of diminishlng marginal utility on which of the following assumptions? (i) Utility can be measured in quantitative terms (ii) Utility of money is constant Of these statements: A.Only (i) is true B.Both (i) and (ii) are true C.Only (ii) is true D.Neither (i) nor (ii) is true

Description : Demand curve can be derived from the law of diminishlng marginal utility on which of the following assumptions? (i) Utility can be measured in quantitative terms (ii) Utility of money is constant Of these statements: A.Only ... ) and (ii) are true C.Only (ii) is true D.Neither (i) nor (ii) is true

Last Answer : B.Both (i) and (ii) are true

Keynesian analysis is (a) A short run analysis. (b) Long run analysis. © Both short and long run analysis. (d) Neither short nor long run analysis.

Description : Keynesian analysis is (a) A short run analysis. (b) Long run analysis. © Both short and long run analysis. (d) Neither short nor long run analysis.

Last Answer : (a) A short run analysis.

Which of the following statement is incorrect,- In simple Keynesian model,- (a) MPC+MPS=1 (b) APC+ APS=1 © Both (a) and (b) (d) Neither (a) nor (b).

Description : Which of the following statement is incorrect,- In simple Keynesian model,- (a) MPC+MPS=1 (b) APC+ APS=1 © Both (a) and (b) (d) Neither (a) nor (b).

Last Answer : (d) Neither (a) nor (b).

Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Description : Marginal Propensity to Consume is (a) Increase in consumption due to one unit increase in income. (b) Total consumption divided by total income. © Both (a) and (b). (d) Neither (a) nor (b).

Last Answer : (a) Increase in consumption due to one unit increase in income.

A unit price elastic demand curve will touch (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis

Description : A unit price elastic demand curve will touch (1) both price and quantity axis (2) neither price axis, nor quantity axis (3) only price axis (4) only quantity axis

Last Answer : neither price axis, nor quantity axis

Why is the law of diminishing marginal returns true? a. specialization and division of labor b. spreading the average fixed cost c. limited capital d. all factors being variable in the long-run

Description : Why is the law of diminishing marginal returns true? a. specialization and division of labor b. spreading the average fixed cost c. limited capital d. all factors being variable in the long-run

Last Answer : c. limited capital

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).

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

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.