Description : Imputed gross rent of owner-occupied buildings is a part of - (1) capital formation (2) final consumption (3) intermediate consumption (4) consumer durable
Last Answer : (2) final consumption Explanation: The figure of final private consumption expenditure includes the imputed gross rent of owner-occupied dwellings, consumption of own-account production and payment by ... of production and hence an income and is also a part of final consumption expenditure.
Description : Imputed gross rent of owneroccupied buildings is a part of (1) capital formation (2) final consumption (3) intermediate consumption (4) consumer durable
Last Answer : final consumption
Description : Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment
Last Answer : (1) intermediate consumption Explanation: Intermediate consumption is an accounting concept which measures the value of the goods and services consumed as inputs by a process of production. It excludes fixed assets whose ... .g. bulk sugar) or completely used up (e.g. electric power, water, etc).
Description : Payment of water charges by the farmers to the govern-ment represents (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment
Last Answer : intermediate consumption
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 : Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods
Last Answer : (1) Final goods Explanation: All goods which are meant either (i) for consumption by consumers or (ii) for investment by firms are called final goods. They are finished goods, meant for final ... stages of production. Cars, television sets, cloth, food, machinery, equipments etc. are final goods.
Description : Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good
Last Answer : (1) an intermediate good Explanation: Intermediate goods are semifinished products are goods that are used as inputs in the production of oilier goods including final goods. It comprises material or ... , intermediate goods either become part of the final product, or are changed beyond recognition.
Last Answer : an intermediate good
Description : Goods which are meant either for consumption or for investment are called (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods
Last Answer : Final goods
Description : Which of the following is not deferred revenue expenditure? A. Heavy advertisement expenditure. B. Expenses incurred in removing the business to more convenient premises. C. Preliminary expenses. D. Depreciation on fixed assets.
Last Answer : D. Depreciation on fixed assets.
Description : A demand curve will not shift: (1) When only income changes (2) When only prices of substitute products change (3) When there is a change in advertisement expenditure (4) When only price of the commodity changes
Last Answer : (4) When only price of the commodity changes Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that ... only when there is a change in other determinants of demand, other than price of the commodity.
Description : Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states? (1) Expenditure Tax and Gift Tax (2) Additional Duties of Excise in lieu of Sales Tax (3) Stamps and Registration (4) Taxes on Advertisement
Last Answer : (4) Taxes on Advertisement Explanation: Apart from taxes levied and collected by the States, the Constitution has provided for the revenues for certain taxes on the Union List to be allotted ... exchanges and future markets; and Taxes on sale and purchase of newspapers and advertisements therein.
Description : Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states ? (1) Expenditure Tax and Gift Tax (2) Additional Duties of Excise in lieu of Sales Tax (3) Stamps and Registration (4) Taxes on Advertisement
Last Answer : Taxes on Advertisement
Last Answer : When only price of the commodity changes
Description : A large amount spent on special advertisement is– (A) Capital Expenditure (B) Revenue Expenditure (C) Revenue Loss (D) Deferred Revenue Expenditure
Last Answer : Answer: Deferred Revenue Expenditure
Description : Which of the following doesn't appear on the liabilities side of the balance sheet ? 1. Capital 2. Loans 3. Advertisement expenditure 4. Share capital 5. None of these
Last Answer : Advertisement expenditure
Description : Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a A. Capital expenditure B. Revenue expenditure C. Deferred revenue expenditure D. None of the above
Last Answer : C. Deferred revenue expenditure
Description : What are Capital goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumer goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above
Last Answer : : b) Goods such as tools, machinery, etc which are used to create final consumer goods
Description : For promotion under 4 P, which aspect is not taken into account ? 1. Advertisement 2. Sales Promotion 3. Sales Force 4. Public Relations 5. None of the above
Last Answer : None of the above
Description : In terms of goals for public relations, a hit is _____________ A. An advertisement that is successful B. A consumer promotions’ tie in with publicity C. Mention of the company’s name in a news story D. An advertising slogan with high recall
Last Answer : C. Mention of the company’s name in a news story
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
Description : Operating Surplus arises in the (1) Government Sector (2) Production for self-consumption (3) Subsistence farming (4) Enterprise Sector
Last Answer : Government Sector
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 : Daal is now being sold at Rs. 20/kg. During last month its rate was Rs. 16/kg. By how much percent should a family reduce its consumption so as to keep the expenditure fixed?
Last Answer : Answer: 20%.
Description : Chenna dhal is now being sold at Rs. 70 a kg. Last month, is rate was Rs. 80 per kg. By how much percent should a family reduce its consumption so as to keep the expenditure fixed? a)12.5 b)21.8 c)23 d)18
Last Answer : Answer: A Let a family's monthly consumption of chenna dhal be x kg. To keep the expenditure fixed, their consumption for this month should be 70x/80 = 7x/8. Reduction in consumption = x/8 = 12.5% of x
Description : A siuation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as - (1) Absolute Poverty (2) Relative Poverty (3) Urban Poverty (4) Rural Poverty
Last Answer : (1) Absolute Poverty Explanation: Absolute poverty is defined as a situation in which the individual's basic needs are not covered, in other words, there is a lack of basic goods and services ( ... shelter, education and information. It depends not only on income but also on access to services."
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."
Description : Investment and savings are kept equal through a change in the level of - (1) Consumption (2) Investment (3) Government expenditure (4) Income
Last Answer : (1) Consumption Explanation: Desired savings are kept equal to desired investment by responses to interest rate changes. Savings identity or the savings investment identity is a concept in ... brings savings and investment into balance without any intention by business to increase investment.
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 : A situation where we have people whose level of income is not sufficient to meet the minimum consumption expenditure is considered as (1) Absolute Poverty (2) Relative Poverty (3) Urban Poverty (4) Rural Poverty
Last Answer : Absolute Poverty
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 : Keynes’s psychological law of consumption
Description : Investment and savings are kept equal through a change in the level of (1) Consumption (2) Investment (3) Government expenditure (4) Income
Last Answer : Consumption
Description : Which of the following relations always holds true? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment
Last Answer : (2) Income = Consumption + Saving Explanation: Consumers do one of two things with their disposable income: They save it or they spend it. So Income = Consumption + Saving.
Description : Which of the following relations always holds true ? (1) Income = Consumption + Investment (2) Income = Consumption + Saving (3) Saving = Investment (4) Income = Consumption + Saving + Investment
Last Answer : Income = Consumption + Saving
Description : The goods that are used as raw material for further production are known by which name: (a) Final goods (b) Material goods (c) Intermediate goods (d) Consumer goods
Last Answer : (c) Intermediate goods
Description : Intermediate goods are not included to calculate the final output because: a) they do not have value b) they have unknown value c) their value is included in final goods so they are not added to avoid the problem of double counting d) none of the above
Last Answer : : c) their value is included in final goods so they are not added to avoid the problem of double counting
Description : Why is the headline of a print advertisement such a critical component of the copy? A)It determines the final layout design. B)It is often the only part of the advertisement that is read. C)It takes up the most space. D)It links the copy to the signature. E)It links the artwork to the signature.
Last Answer : B)It is often the only part of the advertisement that is read.
Description : What does a Leasing Company provide? (1) Machinery and capital equipment on hire (2) Legal guidance in establishing an enterprise (3) Office accommodation on hire (4) Technical consultancy and experts for a fee
Last Answer : (1) Machinery and capital equipment on hire Explanation: Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, ... . Leasing provides opportunities to use available money to operate assets that can make more money over time.
Description : What does a Leasing Company provide ? (1) Machinery and capital equipment on hire (2) Legal guidance in establishing an enterprise (3) Office accommodation on hire (4) Technical consultancy and experts for a fee
Last Answer : Machinery and capital equipment on hire
Description : Preparation of butter, ghee by a household for their own use is a part of : (1) own-account production (2) household capital formation (3) industrial production (4) consumption
Last Answer : (4) consumption Explanation: The processing of agricultural products; the production of grain by threshing: the production of flour by milling; the curing of skins and the production of leather ... production of baskets and mats; etc, come under processing of primary commodities for own consumption.
Description : Preparation of butter, ghee by a household for their own use is a part of : (1) own-account production (2) household capital formation (3) industrial production (4) consumption (
Last Answer : consumption
Description : What are consumption goods? a) Goods used for consumption in the production process b) Goods such as tools, machinery, etc which are used to create final consumption goods c) Goods and services that are consumed fully when purchased by the consumers d) None of the above
Last Answer : : c) Goods and services that are consumed fully when purchased by the consumers
Description : ______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements. A. Production budget B. Cash budget C. Capital expenditure budget D. None of the above
Last Answer : B. Cash budget
Description : The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation
Last Answer : (4) capital depreciation Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of ... equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence.
Description : An indifference curve measures the same level of - (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : (2) Satisfaction from two commodities Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent ... of various points showing different combinations of two goods providing equal utility to the consumer
Description : The sale proceeds of Government Bonds come under the budget head of - (1) Revenue Receipts (2) Current Expenditure (3) Capital Outlay (4) Capital Receipts
Last Answer : (4) Capital Receipts Explanation: Capital receipts are the funds received into the businesses that are not part of the operating activities of the establishment. Capital receipts primarily include external ... furniture, investment (long term) etc., which shall not be occurring all the time.
Description : Effective demand depends on - (1) capital-output ratio (2) output-capital ratio (3) total expenditure (4) supply price
Last Answer : (4) supply price Explanation: Effective Demand is "the demand in which the consumer are able and willing to purchase at conceivable price" simply saying if the product price is low more ... Function or Price and Aggregate Supply Function or Price to explain the determination of effective demand.
Description : The sale proceeds of Government Bonds come under the budget head of (1) Revenue Receipts (2) Current Expenditure (3) Capital Outlay (4) Capital Receipts
Last Answer : Capital Receipts
Description : An indifference curve measures the same level of (1) Output from two factors (2) Satisfaction from two commodities (3) Satisfaction from Income and Capital (4) Satisfaction from expenditure and savings
Last Answer : Satisfaction from two commodities