Description : Capital formation in underdeveloped countries is a major bottleneck. The reason can be a. Small size of market with no incentive for investment b. Low level of income c. Demonstration effect d. All the above
Last Answer : d. All the above Capital formation refers to investment in tools, machinery, buildings etc. inequalities in the economy is also a reason behind this.
Description : Capital formation in underdeveloped countries is a major bottleneck. The reason can be A. Small size of market with no incentive for investment B. Low level of income C. Demonstration effect D. All the above
Last Answer : D. All the abov
Description : If saving exceeds investment, how will the national income? -Do You Know?
Last Answer : answer:
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 : According to Acceleration principle investment depends on change in the level of------ (a) rate of interest. (b) level of income. © price (d) saving.
Last Answer : (b) level of income.
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 : Gross Profit means - (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure
Last Answer : (4) Total receipts over total expenditure Explanation: In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting ... . Gross profit = Net sales (total receipts) - Cost of goods sold (total expenditure).
Description : Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices
Last Answer : (d) Impact of shortage of wheat production on wheat prices
Description : Gross Profit means (1) Total investment over total saving (2) Changes in methods of production (3) Changes in the form of business organisation (4) Total receipts over total expenditure
Last Answer : Total receipts over total expenditure
Description : Capital formation in an economy depends on - (1) Total Income (2) Tot al demand (3) Total savings (4) Total production
Last Answer : (3) Total savings Explanation: Capital formation refers to capital accumulation, referring to the total "stock of capital" that has been formed, or to the growth of this total capital stock. ... a measure of the amount by which the total physical capital stock increased during an accounting period.
Description : Capital formation in an economy depends on (1) Total Income (2) Total demand (3) Total savings (4) Total production
Last Answer : Total savings
Description : Which among the following statements is not true when there is an increase in interest rate in an economy? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return
Last Answer : (4) increase in capital return Explanation: Interest rate increase the cost of borrowing, which results in lesser investment activity and the purchase of consumer durables. In a low interest-rate ... . All of these factors raise output and employment as well as investment and consumer spending.
Description : Which from the following is not true when the interest rate in the economy goes up? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases
Last Answer : (4) Return on capital increases Explanation: The interest rate is the cost of demanding or borrowing loanable funds. Alternatively, the interest rate is the rate of return from supplying or lending loanable funds. ... rate per unit of time, which is why it is called the rate of return on capital.
Description : Which among the following statements is not true when there is an increase in interest rate in an economy ? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return
Last Answer : increase in capital return
Description : Which from the following is not true when the interest rate in the economy goes up ? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases
Last Answer : Return on capital increases
Description : During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%
Last Answer : ANSWER: C
Description : The opportunity cost of consumption is (a) Lack of capital formation for future ; (b) Greater investment ; (c) Full employment ; (d) Deflation
Last Answer : (a) Lack of capital formation for future ;
Description : Which of the following is Stock concept ? (a) Capital (b) Investment (c) Income (d) Profit
Last Answer : (a) Capital
Description : Which among the following method is used to calculate poverty in India? (a) Investment Method. (b) Capital Method. © Savings Method. (d) Income Method.
Last Answer : (d) Income Method.
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 : If all of the capacity on a production line is sold a. all remaining inventory is sold for half the average cost of production. b. a loss is written off on the income statement. c. Capstone ... company will receive a cash payment of 65% the original investment on capacity. e. all of the above.
Last Answer : e. all of the above.
Description : The additional capital used per unit of additional production is called a. Induced investment b. Autonomous investment c. Incremental COR d. None of the above
Last Answer : : c. Incremental COR COR refers to the number of units of capital required to produce one unit of output.
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 : The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost
Last Answer : (B) Working capital
Description : Capital in economics means (a) Factor of production ; (b) Fund brought in by the entrepreneur; (c) Investment in shares, bank deposits ; (d) All the above
Last Answer : (a) Factor of production ;
Description : An economy is in equilibrium when - (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended saving equals intended investment (4) intended investment exceeds intended savings
Last Answer : (3) intended saving equals intended investment Explanation: In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences ... and intended investment. An economy is in equilibrium when total savings equal total investment.
Description : Mark the correct option a) In case death of the one depositor of joint account holder , in the MIS account the account will be treated as single from the date of death of the account holder b ... amount is not withdrawn, the excess amount will carry the normal saving bank interest d) All the above
Last Answer : d) All the above
Description : In free economy the decision about investment, saving and consumption are decided by (a) Price mechanism ; (b) Central bank ;(c) Planning Commission ;(d) Finance budget
Last Answer : (a) Price mechanism
Description : Which of the following is tax saving investment? A. Fixed deposit B. Shares C. PPF D. Post office saving
Last Answer : Answer: C
Description : An economy is in equili-brium when (1) planned consumption exceeds planned saving (2) planned consumption exceeds planned investment (3) intended investment equals intended investment (4) intended investment exceeds intended savings
Last Answer : intended investment equals intended investment
Description : Financial interrelation ratio is equal to (a) Total issues / National income ; (b) Primary issues / Net capital formation; (c) Total issues / Net capital formation ; (d) Total stock of financial assets/Stock of fiscal assets
Last Answer : (c) Total issues / Net capital formation
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 : An increase in per capital income is not an indication of an increase in the economic welfare of the people - (1) When such increase is the result of an increased production action of ... the production of industrial goods (4) When such increase is the result of increased production of intoxicants
Last Answer : (4) When such increase is the result of increased production of intoxicants Explanation: An increase in per capita income due to increased production of intoxicants cannot be taken as economic ... population, include: GDP, literacy, access to health care, and assessments of environmental quality.
Description : An increase in per capital income is not an indication of an increase in the economic welfare of the people (1) When such increase is the result of an increased production of comforts ( ... production of industrial goods (4) When such increase is the result of increased production of intoxicants
Last Answer : When such increase is the result of increased production of intoxicants
Description : According to the classical system, saving is a function of - (1) Income (2) The interest rate (3) The real wage (4) The Price level
Last Answer : (1) Income Explanation: Saving function is a mathematical relation between saving and income by the household sector. This function captures the saving-income relation, the flip side of the consumption-income relation that forms one of the key building blocks for Keynesian economics.
Description : Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig
Last Answer : (1) Low rates of interest Explanation: Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. ... funds, CDs and bonds. Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.
Description : Saving is that portion of money income that is - (1) spent for development of Industries (2) not spent on consumption (3) spent on health and education (4) spent for consumer durables
Last Answer : (2) not spent on consumption Explanation: Saving is income not spent, or deferred consumption. In economics, it refers to any income not used for immediate consumption- consuming less out of a ... is the decision to defer consumption and to store this deferred consumption in some form of asset.
Description : The …………………………….. measurement method of national income aggregates all the money spent by private citizens, firms and the government within the year. (a) Expenditure ;(b) Income ; (c) Input ; (e) Saving
Last Answer : (a) Expenditure
Description : The relationship between aggregate consumption expenditure and aggregate income of household sector is known as ………………………. function. (a) Consumption ; (b) Saving ; (c) Expenditure ; (d) Income
Last Answer : (a) Consumption
Description : Saving is that portion of money income that is (1) spent for development of Industries (2) not spent on consumption (3) spent on health and education (4) spent for consumer durables
Last Answer : not spent on consumption
Description : According to the classical system, saving is a function of (1) Income (2) The interest rate (3) The real wage (4) The Price level
Last Answer : Income
Description : The monthly expenditure of Moorthy family was Rs 3120 during the first 4 months, Rs 3390 during the next 3 months and Rs 3618 during the last 5 months of a year. If the total saving during the year is Rs ... the average monthly income of moorthy family. A) Rs 3690 B) Rs 3785 C) Rs 3670 D) Rs 3875
Last Answer : Answer: A) Total expenditure during the year = Rs [3120 × 4 + 3390 × 3 + 3618 × 5] = Rs [12480+10170 +18090 ] = Rs 40740. Total income during the year = (40740 + 3540) = 44280. Average monthly income = (44280/12) = Rs3690. Hence, the average monthly income of moorthy family is 3690
Description : Economies of a firm are : (1) An increase in its profits (2) A reduction in its selling expenses (3) Its dominance of the market (4) Saving in it's production costs
Last Answer : (4) Saving in it's production costs Explanation: Economics of a firm includes how it combines labour and capital so as to lower the average cost of output, either from increasing, decreasing, or constant returns ... of a good or a service on a larger scale, yet with (on average) less input costs.
Description : Value added is: a) the cost saving through production and marketing efforts within the firm. b) the value that a firm adds through the development of dynamic capabilities. c) the value that a ... through outsourcing. d) the difference between the cost of inputs and the market value of outputs
Last Answer : the difference between the cost of inputs and the market value of outputs
Description : The ultimate aim to encourage the enterprise to save the energy , reduce the production cost and increase economic benefits is ____ A. Energy audit C. Energy saving B. Energy management D. Energy
Last Answer : Energy management
Description : Cryopreservation is a technique used for a) Crystallization of food b) Food packing c) Seed saving d) Preservation of excess production of vegetables
Last Answer : c) Seed saving
Description : Economies of a firm are : (1) An increase in its profits (2) A reduction in its selling expenses (3) Its dominance of the market (4) Saving in it’s production costs
Last Answer : Saving in it’s production costs