Description : In a free enterprise economy, resource allocation is determined by - (1) the pattern of consumers' spending (2) the wealth of the entrepreneurs (3) decision of the Government (4) the traditional employment of factors
Last Answer : (1) the pattern of consumers' spending Explanation: In a free market economy, resources are allocated through the interaction of free and self-directed market forces. This means that what to ... is determined by producers, and who gets the products depends upon the purchasing power of consumers.
Description : Consumer's sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer's expenditures influence the allocation of resources. (4) consumer goods are free from government control,
Last Answer : (1) consumers are free to spend their income as they like. Explanation: Consumer sovereignty means that buyers ultimately determine which goods and services remain in production. In unrestricted markets, ... to motivate producers. So ultimately it means how the consumers want to spend their incomes.
Description : In a Laissez-faire economy (1) the customers take all the decisions regarding production of all the commodities (2) the Government does not interfere in the free functioning of demand and ... of various commodities produced (4) the Government controls the allocation of all the factors of production
Last Answer : the Government does not interfere in the free functioning of demand and supply forces in the market
Description : The concept that under a system of free enterprise, it is consumers who decide what goods and services shall be produced and in what quantities is known as (1) Consumer Protection (2) Consumer’s Decision (3) Consumer Preference (4) Consumer’s Sovereignty
Last Answer : Consumer’s Sovereignty
Description : The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection
Last Answer : c) Stabilization
Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C
Last Answer : c. budget surplus of $1000
Description : One of the features of a free market economy is - (1) active state intervention (2) public ownership of factors of production (3) rationing and price control (4) consumer's sovereignty
Last Answer : (4) consumer's sovereignty Explanation: Consumer Sovereignty is one of the features of a free market economy. It refers to the assertion consumer preferences determine the production of goods and ... market performance is in fact responsive to the specific wants of the consumers within the system.
Description : One of the features of a free market economy is (1) active state intervention (2) public ownership of factors of production (3) rationing and price control (4) consumer’s sovereignty
Last Answer : consumer’s sovereignty
Description : A comprehensive spending pattern: A)shows the percentages of annual family expenditures allotted to general classes of goods and services B)indicates the annual amounts spent by families for ... discretionary income of consumers D)is used to determine the precise buying power of individuals
Last Answer : A)shows the percentages of annual family expenditures allotted to general classes of goods and services
Description : Consumer’s sovereignty means: (1) consumers are free to spend their income as they like. (2) consumers have the power to manage the economy. (3) consumer’s expenditures influence the alloca tion of resources. (4) consumer goods are free from government control.
Last Answer : consumers are free to spend their income as they like.
Description : Which one of the following is not a function of the central bank in an economy? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker's bank
Last Answer : (3) Controlling government spending Explanation: A central bank, reserve bank, or monetary authority is a public institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries.
Description : Which one of the following is not a function of the central bank in an economy ? (1) Dealing with foreign exchange (2) Controlling monetary policy (3) Controlling government spending (4) Acting as a banker’s bank
Last Answer : Controlling government spending
Description : The business development department of SIPCOT guides entrepreneurs in ______. A. applying for licences. B. approval on collaboration. C. allocation of scarce raw materials. D. All the above
Last Answer : D. All the above.
Description : Which one is not the main objective of Fiscal Policy in India? A. To increase liquidity in economy B. To promote price stability C. To minimize the inequalities of income and wealth D. To promote employment opportunities
Last Answer : A. To increase liquidity in economy
Description : 7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly ... unemployment rate is too high d. Full employment occurs when there is no frictional unemployment
Last Answer : b. Productivity is the United States grew very slowly between 1973 and 1996
Description : Elasticity of demand is the degree of responsiveness of demand of a commodity to a - (1) change in consumers' wealth (2) change in the price of substitutes (3) change in consumers' tastes (4) change in its price
Last Answer : (4) change in its price Explanation: The elasticity of demand, also known as price elasticity of demand, is the degree of responsiveness of demand to change in price. Its measure depends upon comparing ... demand is the ratio of percentage change in amount demanded to a percent-age change in price.
Description : Elasticity of demand is the degree of responsiveness of demand of a commodity to a (1) change in consumers’ wealth (2) change in the price of substitutes (3) change in consumers’ tastes (4) change in its price
Last Answer : change in its price
Description : The goal of a pure market economy is to best meet the desires of a. consumers b. companies c. workers d. the government
Last Answer : a. consumers
Description : Who benefits the most during the inflationary period? (1) corporate servants (2) creditors (3) entrepreneurs (4) government servants
Last Answer : (3) entrepreneurs Explanation: Inflation has the effect of redistributing income because prices of all factors do not decline in the same proportion. Entrepreneurs stand to gain more than wage ... groups. Speculators, hoarders, black marketers and smugglers gain on account of windfall profits.
Description : Who benefits the most during the inflationary period ? (1) corporate servants (2) creditors (3) entrepreneurs (4) government servants
Last Answer : entrepreneurs
Description : In a Capitalistic Economy, the prices are determined by : (1) Demand and Supply (2) Government Authorities (3) Buyers in the Market (4) Sellers in the Market
Last Answer : (1) Demand and Supply Explanation: Capitalism generally refers to economic system in which the means of production are largely or entirely privately owned and operated for a profit, structured on the ... and services lead to higher prices and lower demand for certain goods lead to lower prices.
Last Answer : Demand and Supply
Description : The CPA shall not concurrently engage in any business or occupation which impairs his objectivity in rendering professional services or which is inconsistent with his practice or employment. This ... accountancy, or employed in a private enterprise, a government agency or an educational institution
Last Answer : All CPAs engaged in public accountancy, or employed in a private enterprise, a government agency or an educational institution
Description : What does the recent Chinese rebuke of individual wealth mean for the world economy?
Last Answer : Not an investor or an economist, but I have worked as a legal researcher for attorneys supporting business clients with interests in China and elsewhere in Asia. For whatever it's worth, ... likely a calculated attack aimed at bringing private business under party domination. Only time will tell.
Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.
Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.
Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : makes the monetary policies less effective
Description : Which of the following statements is/are not correct with respect to the Constant Mix Strategies' of asset allocation? I. Investors adopting these strategies tend to maintain an exposure to stocks that are in constant ... strategies. A. Only (I) above B. Only (II) above C. Only (III) above
Last Answer : C. Only (III) above
Description : The function of a government to fairly share the public's resources is known as a) Distribution function b) Allocation function c) Stabilization d) Protection
Last Answer : a) Distribution function
Description : The function of a government to provide goods that cannot normally be provided by market mechanisms between individual customers and producers, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection
Last Answer : b) Allocation function
Description : In an economy, the sectors are classified into public and private on the basis of - (1) employment conditions (2) nature of economic activities (3) ownership of enterprises (4) use of raw materials
Last Answer : (3) ownership of enterprises Explanation: The classical breakdown of all economic sectors is: primary, secondary and tertiary. However, on the basis of ownership, the sectors are: business sector, private sector (privately run businesses), public sector (state sector) and voluntary sector.
Description : Who is credited for the concept that there could be equilibrium in an economy at less than full employment also ? (a) J.B. Say (b) Keynes (c) Fisher (d) Milton Friedman
Last Answer : (a) J.B. Say
Description : Money is said to be neutral if (a) it affects the real variables of the economy. (b) it does not affect the real variables of the economy. (c) it affects only the production. (d) it affects both production & employment.
Last Answer : (b) it does not affect the real variables of the economy.
Description : Which of the following statement is inconsistent with Say's Law (a) The economy has flexible wages and prices. (b) The economy's level of investment solely depends on the level of income. © The ... produce at full employment level of output. (d) The economy has an environment of laissez faire .
Last Answer : (b) The economy’s level of investment solely depends on the level of income.
Description : In an economy, the sectors are classified into public and private on the basis of (1) employment conditions (2) nature of economic activities (3) ownership of enterprises (4) use of raw materials
Last Answer : ownership of enterprises
Description : In terms of consumer demand and spending behaviour, marketers are most interested in 1. wealth 2. consumer credit 3. disposable income 4. pretax income 5. high incomes
Last Answer : disposable income
Description : In terms of consumer demand and spending behaviour, marketers are most interested in: A)wealth VU Cafeteria B)consumer credit C)disposable income D)pretax income E)high incomes
Last Answer : C)disposable income
Description : Why are small businesses important to a country's economy? A. They give an outlet for entrepreneurs. B. They can provide specialist support to larger companies. C. They can be innovators of new products. D. All the above.
Description : Which of the following is not a feat tare of a capitalist economy? (1) Right to private property (2) Existence of competition (3) Service motive (4) Freedom of choice to consumers
Last Answer : (3) Service motive Explanation: Capitalism is an economic system in which each individual in his capacity as a consumer, producer, and resource owner is engaged in economic activity with a large ... of businessmen, farmers, producers, including that of wage-earners are based on the profit motive.
Description : Which of the following is not a feature of a capitalist economy? (1) Right to private property (2) Existence of competition (3) Service motive (4) Freedom of choice to consumers
Last Answer : Service motive
Description : 'Hire and Fire' is the policy of - (1) Capitalism (2) Socialism (3) Mixed Economy (4) Traditional Economy
Last Answer : (3) Mixed Economy Explanation: In capitalism, people may sell or lend their properly, and other people may buy or borrow them. In many countries with mixed economies (part capitalism and part socialism) there are laws ... we can buy or sell, or what prices we can charge, or whom we can hire or fire.
Description : ‘Hire and Fire’ is the policy of (1) Capitalism (2) Socialism (3) Mixed Economy (4) Traditional Economy
Last Answer : Mixed Economy
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 : In resource allocation, the resources are allocated to a project in order that the…...............are attained a. Goals b. Objectives c. Both a, b d. None of the above
Last Answer : c. Both a, b
Description : Which are the events concerning RAG can occur in a system: a. Request for a resource b. Allocation of a resource c. Release of resource d. Allof these
Last Answer : d. Allof these
Description : In _________, thereis no resource allocation for a packet. A) datagram switching B) circuit switching C) frame switching D) none of the above
Last Answer : datagram switching
Description : This strategy is an expression of desired strategic direction deliberately formulated & planned in terms of resource allocation, control systems, organizational structure etc. A. Intended strategy B. Realized strategy C. Emergent strategy D. None of these options are valid.
Last Answer : Intended strategy
Description : Resource Allocation is included in Strategy Formulation
Last Answer : True