Description : A Black Market is a situation where in (1) Goods are loaded by the producers (2) Goods are sold secretly (3) Goods are sold at prices higher than what is fixed by the Government (4) Goods are made available
Last Answer : (2) Goods are sold secretly Explanation: Black market is the market in which illegal goods are traded. Goods acquired illegally take one of two price levels: (i) they may be cheaper than legal ... defining feature of black markets is that they have to be carried out secretly as they are illegal.
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 : What is dual pricing? (1) Wholesale price and Retail pricing (2) Pricing by agents and Pricing by retailers (3) Price fixed by Government and Price in open market (4) Daily prices and Weekly prices
Last Answer : (3) Price fixed by Government and Price in open market Explanation: Dual pricing is the practice of setting prices at different levels depending on the currency used to make the purchase. It may be ... on the market. This is also known as two-tier pricing and is common in many developing nations
Description : What is dual pricing? (1) Wholesale price and Retail pricing (2) Pricing by agents and Pricing by retaliers (3) Price fixed by Government and Price in open market (4) Daily prices and Weekly prices
Last Answer : Price fixed by Government and Price in open market
Description : Diamonds are priced higher than water because : (1) they are sold by selected firms with monopolistic powers. (2) their marginal utility to buyers is higher than that of water. (3) their total utility to buyers is higher than that of water. (4) consumers do not buy them at lower prices.
Last Answer : (2) their marginal utility to buyers is higher than that of water. Explanation: The water diamond paradox or puzzle was a mystery of Adam Smith who observed that the price of diamonds was much higher ... is very high and so consumers are willing to pay higher prices for diamond, than for water.
Last Answer : their marginal utility to buyers is higher than that of water.
Description : What is Value Added Tax (VAT)? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods
Last Answer : (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. Explanation: A value added tax (VAT) is a form of consumption tax. A VAT is like a sales tax in that ... under the single tax system based primarily or exclusively on one tax, typically chosen for its special properties.
Description : What is Value Added Tax (VAT) ? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods
Last Answer : A single tax that replaces State taxes like, surcharge, turnover tax, etc.
Description : Intermediaries sponsor their own brands because ________. A. private-label brands sell at higher volumes B. private-label brands are recognizable to the consumer as being widely available from many ... sold at lower prices yet generate a higher profit margin because of their lower cost structure
Last Answer : D. private-label brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure
Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy
Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.
Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy
Last Answer : the high rate of inflation prevailing in the economy
Description : Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services
Last Answer : (4) goods and services less cost of intermediate goods and services Explanation: Value added is an economic term to express the difference between the value of goods and the cost of materials or ... services by others. So it is of goods and services less cost of intermediate goods and services.
Description : Value-added means value of (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services
Last Answer : goods and services less cost of intermediate goods and services
Description : Why are the new tariffs causing U.S. domestic steel producers' stock prices to fall?
Last Answer : ~ ~ ~ ~ Wait wait wait, you listening to the Orange haired tax master ??
Description : Plant arid machinery are - (1) Producers' goods (2) Consumers' goods (3) Distributors' goods (4) Free goods
Last Answer : (1) Producers' goods Explanation: Plant and machinery are Producers' goods. Together with stocks and work in progress, these goods are collectively termed 'Capital'.
Description : Plant and machinery are (1) Producers’ goods (2) Consumers’ goods (3) Distributors’ goods (4) Free goods
Last Answer : Producers’ goods
Description : What caused prices for goods to rise so much after world war 1?
Last Answer : Need answer
Description : Administered prices are prices fixed by the government normally on the basis of ____________ 1. cost 2. margin of profit 3. cost plus a stipulated margin of profit 4. market forces 5. none of these
Last Answer : cost plus a stipulated margin of profit
Description : What measures were adopted by the producers in India to expand the market for their goods in the nineteenth century? -SST 10th
Last Answer : When Indian businessmen set up industries in the late 19 th century they avoided competing with Manchester goods in the Indian market.Since yarn was not an important part of British imports ... operated in India itself and when opportunities of investment in industries opened up, set up factories.
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 : One of the essential conditions of perfect competition is : (1) product differentiation (2) multiplicity of prices for identical products at any one time. (3) many sellers and a few buyers. (4) Only one price for identical goods at any one time.
Last Answer : (4) Only one price for identical goods at any one time. Explanation: The fundamental condition of perfect competition is that there must be a large number of sellers or firms. ... perfect competition, the control over price is completely eliminated because all firms produce homogeneous commodities.
Last Answer : Only one price for identical goods at any one time.
Description : Sellers market denotes a situation where : (1) commodities are available at competitive rates (2) demand exceeds supply (3) supply exceeds demand (4) supply and demand are evenly balanced
Last Answer : (2) demand exceeds supply Explanation: Seller's market is a market which has more buyers than sellers. High prices result from this excess of demand over supply. The opposite of the seller's market is the buyer's market, where supply greatly exceeds demand.
Last Answer : demand exceeds supply
Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.
Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above
Last Answer : (3) remain unchanged Explanation: Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue ... effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
Description : When aggregate supply exceeds aggregate demand - (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops
Last Answer : (3) inventories accumulate Explanation: Deflation sets in when aggregate supply exceeds aggregate demand. Recession sets in. This will lead to a buildup in stocks (inventories) and this sends a signal to ... Either way -there is a tendency for output to move closer to the current level of demand.
Description : Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
Last Answer : (1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to ... free economy, this situation would normally result in increase in prices and inflow of more goods.
Last Answer : remain unchanged
Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees
Last Answer : Reduction of consumption consequent to a rise in prices
Description : When aggregate supply exceeds aggregate demand (1) unemployment falls (2) prices rise (3) inventories accumulate (4) unemployment develops
Last Answer : inventories accumulate
Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : a fall in prices of output and resources
Description : 1) Which among the following could be said to be an 'Open Economy'? a) A nation that follows the doctrine of Free-market and Laissez-faire economics b) A nation that trades with other ... services and financial assets c) An economy that operates without government intervention d) None of the above
Last Answer : : b) A nation that trades with other nations in goods and services and financial assets
Description : Dumping refers to the sale of A)products in foreign markets that cannot be sold in the home market. B)products discontinued in the home market sold to a foreign market. C)products in foreign ... the home market. D)products in foreign markets that cannot pass safety standards in the home market.
Last Answer : D)products in foreign markets that cannot pass safety standards in the home market.
Description : Which is not added in the calculation of national income in India? (a) The value of goods and services. (b) The sold value of old fridge. © Services rendered by the housewives (d) Both (b) and (c)
Last Answer : (d) Both (b) and (c)
Description : Ad Valorem tax is levied - (1) according to value added by the Government. (2) according to value addition to a commodity (3) according to value given by producers (4) according to value added by the finance ministry
Last Answer : (3) according to value given by producers Explanation: An ad valorem tax (Latin for "according to value") is a tax based on the value of real estate or personal property. It is more ... difficulty with such taxation, especially in the case of tariffs, is in establishing a satisfactory value figure.
Description : Ad Valorem tax is levied (1) according to value added by the Government. (2) according to value addition to a commodity (3) according to value given by producers (4) according to value added by the finance ministry
Last Answer : according to value given by producers
Description : The term stagflation refers to a situation where - (1) growth has no relation with the change in prices (2) rate of growth and prices both are decreasing (3) rate of growth in faster than the rate of price increase (4) rate of growth is slower than the rate of price increase
Last Answer : (4) rate of growth is slower than the rate of price increase Explanation: In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows ... developed countries. For these countries, including the U.S., stag-nation increased the inflationary effects.
Description : The term stagflation refers to a situation where (1) growth has no relation with the change in prices (2) rate of growth and prices both are decreasing (3) rate of growth in faster than the rate of price increase (4) rate of growth is slower than the rate of price increase
Last Answer : rate of growth is slower than the rate of price increase
Description : State which of the following is correct? The Consumer Price Index reflects - (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy
Last Answer : (2) the extent of inflation in the prices of consumer goods Explanation: A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households ... , pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.
Description : Which of the following best defines price discrimination? a. charging different prices on the basis of race b. charging different prices for goods with different costs of production c. charging ... a certain product of given quality and cost per unit at different prices to different buyers
Last Answer : d. selling a certain product of given quality and cost per unit at different prices to different buyers
Description : State which of the following is correct ? The Consumer Price Index reflects : (1) the standard of living (2) the extent of inflation in the prices of consumer goods (3) the increasing per capita income (4) the growth of the economy
Last Answer : the extent of inflation in the prices of consumer goods
Description : Which statement explains why prices rise in a market?
Last Answer : There is excess demand in the market.?
Description : A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in ... is violated. (a) Money measurement (b) Conservatism (c) Consistency (d) None of these
Last Answer : (b) Conservatism
Description : GDP is defined as (a) The market value of all goods and services produced in the domestic economy during the year ; (b) Current value of all the capital goods produced in the country. ; (c) ... during the year. ; (d) All the capital goods and consumable goods produced and sold during the year
Last Answer : (a) The market value of all goods and services produced in the domestic economy during the year ;
Description : Net purchases plus freight-in determines a. cost of goods sold. b. cost of goods available for sale. c. cost of goods purchased. d. total goods available for sale.
Last Answer : c. cost of goods purchased.
Description : Gross profit for a merchandiser is net sales minus a. operating expenses. b. cost of goods sold. c. sales discounts. d. cost of goods available for sale.
Last Answer : b. cost of goods sold.
Description : A monopolist is able to maximise his profit when (a) his output is maximum (b) he charges higher prices (c) his average cost is minimum (d) his marginal cost is equal to marginal revenue
Last Answer : (d) his marginal cost is equal to marginal revenue
Description : Minimum support prices for major agricultural products are fixed by government a. After sowing b. In middle of crop period c. Before start of sowing season d. After harvesting
Last Answer : c. Before start of sowing season