CTET Practice Test: Social Science - 4 - CTET & State TET MCQ

At Equilibrium, Demand=Supply Thus, 67500-18P=22500+12P P=45000/30 Equilibrium Price P =1500. 

Marginal cost is the change in the opportunity cost that arises when the quantity produced is incremented by one unit, that is, it is the cost of producing one more unit of a good. 
Total amount paid to 8 craftsman before demand of 9th craftsman = 8 ×400 
=3200 
Total amount paid to 9 craftsman after demand of 9th craftsman =9×450 
=4050 
Marginal cost=4050-3200 
=850 

​Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand is called Structural unemployment. 

Elasticity =% Change in quantity/%Change in price 
1.25 =X/6.4 
X = 6.4*1.25 
=8% 

Economic Profit=Accounting Profit- Implicit Cost 
60= Accounting Profit - 18.5 
Accounting Profit = 78.5 Crores.  

​If tea companies start using mechanised tea leave pickers then wages for manual tea leave pickers will fall. 

A minimum wage is creates a price ceiling below which the wage cannot legally go. 

The arc elasticity of demand can be calculated as: 
Arc Elasticity = [(Qd2 – Qd1) / midpoint Qd] ÷ [(P2 – P1) / midpoint P] 
Midpoint Qd = (Qd1 + Qd2)/2 = (4000 + 5000)/2 = 4500 
Midpoint Price = (P1 + P2)/2 = (75 + 90)/2 = 82.5 
% change in quantity demanded = (5000 – 4000)/4500 = 0.23 
% change in price = (90-75)/82.5 = 0.18 
Arc Elasticity of demand = 0.23/0.18 = 1.28. 

​Indian government is the biggest borrower in India and its prime lender is RBI. 

​The Parallel Economy (black money) will ruin the entire economic development of the country and adversely affect the monetary policy. 

National Income is one of the basic concepts in macro economics. National Income means the total income of the nation.The aggregate economic performance of the whole economy is measured by the National Income data. National Income refers to the total value of all final goods and services produced in the country during a period of 1 year. 

​A subsidy is an amount of money given directly to firms by the government to encourage production and consumption. 

Special Economic Zone (SEZ) concept was first introduced in China in the 1980s. The most successful SEZ in China, Sherizhen, has developed from a small village into a city with a population over 10 million within 20 years. Commerce Minister Mr Maran Had introduced SEZ concept in year 1997 for first times in India. 

​This theory has been given by JM Keynes. 

​Saving function is a mathematical relation between saving and income by the household sector, according to classical theory, saving is a function of the level of income. 

​The JB Say’s law of market has been given J B Say. Which stated as “supply creates its own demand.” 

​The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing. The Eight Core Industries comprise nearly 40.27% of the weight of items included in the Index of Industrial Production (IIP). 

French economist Leon Walras in his pioneering work Elements of Pure Economics in 1874 gave General Equilibrium theory. It attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.