Description : Cost of production of the producer is given by: (1) sum of wages paid to labourers. (2) sum of wages and interest paid on capital. (3) sum of wages, interest, rent and supernormal profit. (4) sum of wages, interest, rent and normal profit.
Last Answer : (4) sum of wages, interest, rent and normal profit. Explanation: The following elements are included in the cost of production: (1) Purchase of raw machinery, (2) Installation of plant and machinery ... also added, (k) The normal profit of the entrepreneur is also included In the cost of production.
Last Answer : sum of wages, interest, rent and normal profit.
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.
Last Answer : Wages paid to workers
Description : The items of fixed cost are: a. Depreciation and labour b. insurance and repair c. Taxes and fuels d. Interest and housing
Last Answer : d. Interest and housing
Description : Fixed charges for a chemical plant does not include the (A) Interest on borrowed money (B) Rent of land and buildings (C) Property tax, insurance and depreciation (D) Repair and maintenance charges
Last Answer : D) Repair and maintenance charges
Description : GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.
Last Answer : (d) When subsidies exceeds indirect taxes.
Description : Which of the following is not a fixed cost? (1) Salaries of administrative staff (2) Rent of factory building (3) Property taxes (4) Electricity charges
Last Answer : (1) Salaries of administrative staff Explanation: Fixed costs arc business expenses that are not dependent on the level of goods or services produced by the business. They tend to be time- ... and are often referred to as overhead costs. The salaries of administrative staff are variable costs.
Description : . A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection
Last Answer : (b) Depreciation of the machinery
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
Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times
Last Answer : Answer: 4•06 times
Description : The people adopt through local leaders and constitute only 13.5% of the total population.
Last Answer : Ans. Early adopters
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.
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
Description : If variable part of annual cost on account of interest and depreciation on the capital outlay is equal to the annual cost of electrical energy wasted in the conductors, the total annual cost will be minimum and the ... (b) Ohm's law (c) Kirchhoffs law (d) Faraday's law (e) none of the above
Last Answer : (a) Kelvin's law
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 : Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate ... chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Last Answer : (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Description : Taxes are as certain as the death, because - (1) They constitute the major source of government revenue. (2) Government have no other source of revenue. (3) Most PSUs are run inefficiently. (4) Government has its own budget constraints.
Last Answer : (1) They constitute the major source of government revenue. Explanation: Benjamin Franklin's utterance, "In this world nothing can be said to be certain, except death and taxes," when applied ... draws on the actual inevitability of death to highlight the difficulty in avoiding the burden of taxes.
Description : Taxes are as certain as the death, because (1) They constitute the major source of government revenue. (2) Government have no other source of revenue. (3) Most PSUs are run inefficiently. (4) Government has its own budget constraints.
Last Answer : They constitute the major source of government revenue.
Description : Cost A2 + interest on value of owned capital assets (including land)
Last Answer : Ans. Cost B1
Description : Which of the following can be used for checking inflation temporarily? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : (2) Decrease in money supply Explanation: An open market operation (also known as OMO) is an activity by a central bank to buy or sell government bonds on the open market. India ... those in the other developed countries. Economists claim that an increase in money supply alone constitutes inflation.
Description : Which of the following can be used for checking inflation temporarily ? (1) Increase in wages (2) Decrease in money supply (3) Decrease in taxes (4) None of these
Last Answer : Decrease in money supply
Description : Value of out put and value added can be distinguished if we know: (1) the value of intermediate consumption (2) the value of net indirect taxes (3) the value of the sales (4) the value of consumption of fixed capital
Last Answer : (1) the value of intermediate consumption Explanation: Intermediate consumption is an accounting flow which consists of the total monetary value of goods and services consumed or used up as inputs in ... how it is exactly defined and estimated will importantly affect the size of the GDP estimate.
Last Answer : the value of intermediate consumption
Description : Do you have to have a judgement to garnish wages Someone owes me rent, but I don't want to go to court to collect.?
Last Answer : You can not have a judgement to garnish wages since you are not a major company, you will need to go to court to collect.
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.
Description : Minimum payment to factor of production is called (1) Quasi Rent (2) Rent (3) Wages (4) Transfer Payment
Last Answer : Transfer Payment
Description : Depreciation is equal to — (1) Gross national product —Net national product (2) Net national product —Gross national product (3) Gross national product —Personal income (4) Personal income — Personal taxes
Last Answer : (1) Gross national product -Net national product Explanation: Net national product at market price is the market value of the output of final goods and services produced at current price in ... we get net national product at market price. So depreciation = Gross National ProductNet National Product,
Description : The difference between GNP and NNP equals - (1) corporate profits (2) personal taxes (3) transfer payments (4) depreciation
Last Answer : (4) depreciation Explanation: Gross National Product [GNP) is the gross value of all the final products without deducting the depreciation of fixed capital. Net National Product (NNP) is the value of ... a period of one year. The difference between the GNP and NNP is equal to Capital depreciation.
Description : NDP does not include (a) Payments made for income taxes ; (b) Depreciation allowances ; (c) Undistributed profits; (d) The value added from intermediate goods.
Last Answer : (b) Depreciation allowances ;
Description : The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies
Last Answer : (c) Net foreign income from abroad
Description : Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation
Last Answer : (a) NNP at market price – NDP at market price ;
Description : Depreciation is equal to — (1) Gross national product — Net national product (2) Net national product — Gross national product (3) Gross national product — Personal income (4) Personal income — Personal taxes
Last Answer : Gross national product — Net national product
Description : Which of the following is a Real A/c? a) Building A/c b) Capital A/c c) Shyam A/c d) Rent A/c
Last Answer : a) Building A/
Description : Which of the following is the biggest head of non-plan expenditure of Government of India? (1) Interest payments (2) Subsidies (3) Defence (4) Salaries and Wages
Last Answer : (1) Interest payments Explanation: The central government expenditure itself is divided into two parts -plan expenditure and non-plan expenditure. Non Plan Expenditure is money that's spent on ... etc. Interest Payments and Debt Servicing comprise more than 30 per cent of this expenditure.
Description : Salary under section 17(1) of the Income Tax Act, 1961 does not include _____. a) wages b) pension c) interest d) gratuity
Last Answer : interest
Description : A multistage sales tax with credit for taxes paid on business purchases.
Last Answer : Ans. VAT
Description : The market which is permanent in nature
Last Answer : Ans. Secular market
Description : Cost B1 + rental value of owned land and rent paid by leased in land
Last Answer : Ans. Cost B2
Description : Cost A1 + rent paid for based in land
Last Answer : Ans. Cost A2
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
Description : Which of the following is deducted from GNP to arrive at NNP? (1) Depreciation (2) Interest (3) Tax (4) Subsidy
Last Answer : (1) Depreciation Explanation: If we subtract the depreciation charges from the gross national product, we get net national product at market price. Net national product at market price=Gross national product at market priceDepreciation.
Description : The depreciation method which reduces the value of a machine by equal amount each year during the useful life is known as a) Estimated method b) constant percentage method c) compound interest method d) straight line method
Last Answer : d) straight line method
Description : __________ of depreciation calculation does not take into account the interest on investments. (A) Present worth method (B) Sinking fund method (C) Sum of the years-digits method (D) All (A), (B) and (C)
Last Answer : (C) Sum of the years-digits method
Description : ________ of depreciation calculation accounts for the interest on investment. (A) Straight line method (B) Declining balance (C) Both (A) and (B) (D) Neither (A) nor (B)
Last Answer : D) Neither (A) nor (B)
Description : Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest
Last Answer : (C) At breakeven point, NSR is more than the total production cost
Description : An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from ... cost (B) Depreciation by sinking fund method (C) Discrete compound interest (D) Cash ratio
Last Answer : (B) Depreciation by sinking fund method
Description : A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years ... method will be Rs. (A) 40,096 (B) 43,196 (C) 53,196 (D) 60,196
Last Answer : D) 60,196
Description : Operating profit of a chemical plant is equal to (A) Profit before interest and tax i.e., net profit + interest + tax (B) Profit after tax plus depreciation (C) Net profit + tax (D) Profit after tax
Last Answer : (A) Profit before interest and tax i.e., net profit + interest + tax (B) Profit after tax plus depreciation
Description : What is the relation between fiscal deficit (FD) and primary deficit (PD)? a) PD = FD - Depreciation b) PD = FD - Interest payments c) FD = PD - Interest payments d) FD = PD - Depreciation
Last Answer : PD = FD - Interest payments