Description : In a market economy equilibrium price is reached at (a) Point of interaction of aggregate demand and aggregate supply curve; (b) At the top of demand curve ; (c) Midpoint of demand curve ; (d) Midpoint of supply curve
Last Answer : (a) Point of interaction of aggregate demand and aggregate supply curve;
Description : What might happen to aggregate supply curve if there was a significant increase in the cost of foreign oil?
Last Answer : The aggregate supply curve shifts to the left as the price of key inputs rises, making a combination of lower output, higher unemployment, and higher inflation possible. When an economy experiences stagnant growth and high inflation at the same time it is referred to as stagflation.
Description : Pick up the correct statement from the following: (A) Continuous grading is not necessary for obtaining a minimum of air voids (B) The omission of a certain size of aggregate is shown by ... in concrete increases the workability but also increases the liability to segregation (D) All the above
Last Answer : Answer: Option D
Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above
Last Answer : Answer: D
Description : Which of these is not a determinant of aggregate supply (a) Quantity demanded ; (b) Price of the product under consideration ; (c) Relative price of other goods ; (d) Future expectations about prices
Last Answer : (a) Quantity demanded ;
Description : Name the curve which shows the quantity of products a seller wishes to sell at a given price level. (1) Demand curve (2) Cost curve (3) Supply curve (4) None of these
Last Answer : (3) Supply curve Explanation: The supply curve shows the relationship between the price of a good and the quantity supplied, holding constant the values of all other variables that affect supply. Each point on the curve shows the quantity that sellers would choose to sell at a specific price.
Last Answer : Supply curve
Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above
Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand
Description : Demand curve shifts downwards when (a) at the same price level demand falls (b) price increases and demand falls © price falls and demand also falls (d) at the same price level demand increases
Last Answer : © price falls and demand also falls
Description : If a firms cost of raw material increases then (a) Market price of the final product will also increase (b) Equilibrium level of quantity also increases ; (c) Marginal cost curve will shift upward (d) Marginal cost curve will shift downward
Last Answer : ; (c) Marginal cost curve will shift upward
Description : According to the law of demand, what happens when price increases? -Do You Know?
Last Answer : answer:
Description : The Keynesian consumption function shows a relation between - (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate
Last Answer : (3) aggregate consumption and aggregate income Explanation: According to Keynesian Theory of consumption, the current real disposable income is the most important determinant of consumption in the short run. It bases consumption on current income.
Description : Neoclassical economics concerns itself with the determination of various prices. In the branch of Microeconomics, economists are concerned with _________, while in Macroeconomics they consider _________ (a) Price ... prices: the aggregate price level ; (d) Costs to consumers: costs to producer
Last Answer : (c) Individual product prices: the aggregate price level ;
Description : The Keynesian consumption function shows a relation between (1) aggregate consumption and total population. (2) aggregate consumption and general price level. (3) aggregate consumption and aggregate income (4) aggregate consumption and interest rate
Last Answer : aggregate consumption and aggregate income
Description : Going from left to right on the aggregate demand curve, real GDP _____.?
Last Answer : rises as price level falls
Description : Laffer curve is related to (a) Tax rate and tax revenue. (b) Aggregate tax and aggregate non-tax revenue. (c) Total tax burden and total payment burden. (d) Total income and total expenditure.
Last Answer : (c) Total tax burden and total payment burden.
Description : If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be - (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity
Last Answer : (4) equal to unity Explanation: Any straight line supply curve passing through the origin has an elasticity of supply equal to 1. The different types of price elasticity of supply are listed below:
Description : Under increasing returns the supply curve is - (1) positively sloped from is to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis
Last Answer : (1) positively sloped from is to right Explanation: Supply curve, in economics, is a graphic representation of the relationship between product price and quantity of product that a seller is willing and ... i.e as the price of a commodity increases in the market, the amount supplied increases).
Description : A movement along the supply curve can be caused by a change in (a) Technology (b) Factor prices (c) The price of the good (d) All of these
Last Answer : (a) Technology
Description : What is the price at which the supply curve for a good and its demand curve intersect called?
Last Answer : Equilibrium price
Description : Demand curve remaining the same, if the supply curve shifts to the right then (a) Price and quantity move in the same direction (b) Price and quantity move in the opposite direction © Price and quantity remain unchanged (d) None of the above.
Last Answer : (b) Price and quantity move in the opposite direction
Description : A shift outward in supply curve will result in equilibrium price (a) increasing and quantity increasing ; (b) increasing and quantity decreasing ; (c) decreasing and quantity increasing ; (d) decreasing and quantity decreasing
Last Answer : (c) decreasing and quantity increasing ;
Description : Which of the following statement is true (a) Monopolist are price takers ; (b) Monopoly firm earn abnormal profits; (c) A Monopoly firm faces straight demand line ; (d) Supply curve of a monopoly firm is positive sloped
Last Answer : (a) Monopolist are price takers ;
Description : The individual demand and supply curve of a product are Dx = 12-2px, Sx=3+5px, where Px stand for price and Dx and Sc respectively stands for quantity demanded and quantity supplie(d) If there are 5000 consumers and 1000 suppliers ... be the equilibrium price (a) `4 ; (b) `5 ; (c) `3 ; (d) `4.5
Last Answer : ; (c) `3 ;
Description : A positive sloped supply curve for a product represents (a) Supply will move with movement in the price in the opposite direction; (b) Supply will move with the movement in the price in the same direction; (c) Both ; (d) None
Last Answer : (b) Supply will move with the movement in the price in the same direction;
Description : Shift in supply curve is cause by (a) Change in citrus paribus conditions ; (b) Increase in price; (c) Decrease in price ; (d) Change in consumer income
Last Answer : (a) Change in citrus paribus conditions ;
Description : Supply curve passing through any point on Y axis(Price) will have elasticity (a) Less than 1 ; (b) More than 1 ; (c) Just One ; (d) Zero
Last Answer : (b) More than 1
Description : Long run supply curve of a constant cost industry is (a) Horizontal line at a price that is equal to the long run minimum average cost of production; (b) Horizontal line overlapping X axis ; (c) Vertical line at mid of X axis ; (d) Vertical line overlapping Y axis
Last Answer : (a) Horizontal line at a price that is equal to the long run minimum average cost of production;
Description : If the supply curve is a straight line passing through the origin, then the price elasticity of supply will be (1) less than unity (2) infinitely large (3) greater than unity (4) equal to unity
Last Answer : equal to unity
Description : Under increasing returns the supply curve is (1) positively sloped from left to right (2) negatively sloped from left to right (3) parallel to the quantity-axis (4) parallel to the price -axis
Last Answer : positively sloped from left to right
Description : Would a wage increase affect aggregate demand or supply?
Last Answer : I don’t know much about economics, but the third option is that the effects might cancel out, meaning no change.
Description : What is aggregate supply exceeds aggregate demand what is likely to result?
Last Answer : Need answer
Description : Concern about an international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply?
Last Answer : aggregate demand will decrease, lowering both real GDP and the price level
Description : Inflation occurs when aggregate supply is - (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : (2) less than aggregate demand Explanation: If the supply is less than the demand, the price will increase. Inflation, the persistent increase in the average price level, can be ... Translating this to the macro-economy suggests that inflation occurs when aggregate demand exceeds aggregate supply.
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 : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic
Last Answer : (b) If aggregate supply is completely inelastic
Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.
Last Answer : (b) A decrease in interest rate
Description : Given the supply quantity which is fixed an increase in aggregate demand will have direct impact on (a) Increase in GDP ; (b) Inflationary pressure ; (c) Greater employment opportunity; (d) More equitable distribution of income and wealth
Last Answer : (b) Inflationary pressure ;
Description : Market equilibrium of a commodity is determined by (a) Balancing of demand and supply position ; (b) Aggregate demand ; (c) Aggregate supply; (d) Government intervention
Last Answer : (a) Balancing of demand and supply position ;
Description : Inflation occurs when aggregate supply is (1) more than aggregate demand (2) less than aggregate demand (3) equal to aggregate demand (4) None of these
Last Answer : less than aggregate demand
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 Malthusian theory of population - (1) Population increases in geometric ratio, food supply increases in arithmetic ratio (2) Population increases in arithmetic ratio, food supply increases in ... (4) Population increases in a harmonic ratio, food supply increases in a arithmetic ratio
Last Answer : (1) Population increases in geometric ratio, food supply increases in arithmetic ratio Explanation: In his 1798 work, An Essay on the Principle of Population, Malthus ermined the relationship between population ... e. by the repeated addition of a uniform increment in each uniform interval of time).
Description : According to Malthusian theory of population (1) Population increases in geometric ratio, food supply increases in arithmetic ratio (2) Population increases in arithmetic ratio, food supply increases in ... (4) Population increases in a harmonic ratio, food supply increases in a arithmetic ratio
Last Answer : Population increases in geometric ratio, food supply increases in arithmetic ratio
Description : According to IS : 382-1963, a good aggregate should be (A) Chemically inert (B) Sufficiently strong (C) Hard and durable (D) All the above
Description : According to the rule of water cement ratio, the strength of concrete wholly depends upon. (a) The quality of cement. (b) The quality of cement mixed with aggregate. (c) The amount of water used in preparation of concrete mix. (d) All of the above
Last Answer : (c) The amount of water used in preparation of concrete mix.
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 : If Wilson Sporting Goods faces the classic demand curve characteristic for most products, as it raises the price of its tennis rackets, the: A)quantity demand goes down. B)demand remains constant. C)quantity demands increases.
Last Answer : A)quantity demand goes down.
Description : The elasticity of a demand curve with a constant slope (a) Increases at higher price ; (b) Decreases at higher price; (c) Increases at lower price ; (d) Remains constant
Last Answer : (a) Increases at higher price ;
Description : Strength of concrete increases with (A) Increase in water-cement ratio (B) Increase in fineness of cement (C) Decrease in curing time (D) Decrease in size of aggregate
Last Answer : (B) Increase in fineness of cement
Description : Which of the following statem Which of the following statements are true about an ents are true about anticipation inventory? ticipation inventory? a)Inventory increases during periods of light demand b ... c)Increase in anticipation inventory leads to increases in pipeline inventory d)Both a and b
Last Answer : d)Both a and b