Test: Business Economics - 4

Nearly __________ percent of working population is engaged in the service sector.

Who expressed the view that "Economics should be neutral between ends"?

When ________________________, we know that the firms are earning just normal profits.

A situation of employment in which a person is apparently employed but his contribution to the production is almost nil is called ________ unemployment.

Suppose a department store has a sale on its silverware. If the price of a place-setting is reduced from Rs. 300 to Rs. 200 and the quantity demanded increases from 3,000 place-settings to 5,000 place-settings, what is the price elasticity of demand for silverware? (use Arc elasticity)

Directions: Use the given table to answer the question.

Q. What will be the total output when 2 hours of labour is employed?

Find the tax which is direct tax among the following

The average product of labour is maximised when marginal product of labour

Which of the following conditions is satisfied when a consumer is in equilibrium?

If the local pizzeria raises the price of a medium pizza from Rs. 60 to Rs. 100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is

What implication does resource scarcity have for the satisfaction of wants?

Directions: Read the following paragraph and answer the question.

In 1940, Hitler`s air force bombed Rotterdam, a beautiful city in Holland. Twenty five thousand homes, 1200 factories, 69 schools and 13 hospitals were destroyed. Nearly 75,000 people became homeless and 1000 people died. 35 % of the port was gutted by the German army.
If immediately after the war, Rotterdam rebuilt its port with the help of most up to date cranes, docks and cargo handling technology. By the end of the reconstruction, ships were loading and unloading faster and at lower cost than any where in the world. It became more efficient than it was before the destruction. This means

Directions: Read the following paragraph and answer the question.

In 1940, Hitler`s air force bombed Rotterdam, a beautiful city in Holland. Twenty five thousand homes, 1200 factories, 69 schools and 13 hospitals were destroyed. Nearly 75,000 people became homeless and 1000 people died. 35 % of the port was gutted by the German army.

Q. The above destruction would mean

Under ____________ market condition, firms make normal profits in the long run.

Directions: Use the table below to answer the question.

Q. The marginal cost of the sixth unit of output is

Directions: Use the table below to answer the question.

Q. The average fixed cost of two units of output is

Which is of the following statements is correct?

In order to control credit

According to the Planning Commission, a person is said to be below poverty line, if he is earning less than ___________ per capita per month for urban areas and less than ____________ per capita per month for rural areas.

Directions: Read the following figure and answer the question.

Q. Unemployment or underemployment of one or more resources is illustrated by production at point

Directions: Use the table to answer the question.

Q. What is the average product of the first three hours of labour?

Price-taking firms, i.e., firms that operate in a perfectly competitive market, are said to be "small" relative to the market. Which of the following best describes this smallness?

__________ unemployment may result when some workers are temporarily out of work while changing job.

Which of the following pairs of goods is an example of substitutes?

What is India`s rank in world population?

Directions: Use the information given in the table below to answer the following question.

Production Possibilities:

Q. According to Table 2, the opportunity cost of increasing Good A`s production from 2 to 4 units is equal to

Which of the following statements is correct?

The industrial sector faced the process of retrogression and deceleration during

As a result of the New Industrial Policy, 1991

Consumer surplus means

In a free market economy, when consumers increase their purchase of a good and the level of ________________ exceeds ______________ then prices tend to rise.

The Tenth Plan aims at achieving a growth rate of _______________ in the industrial sector.

Directions: Study the following figure and answer the question.

Q. Which of the following would not move the PPF for this economy closer to point W?

Directions: Use the following table to answer the question.

Q. Given the data in the table, as one moves from successively from point A to points B, C, D, E and F, the opportunity cost of Good A

A discount store has a special offer on CDs. It reduces their price from Rs. 150 to Rs. 100. Suppose the store manager observes that the quantity demanded increases from 700 CDs to 1,300 CDs. What is the price elasticity of demand for CDs?(use arc elasticity)

Directions: Use the following table to answer the question.

Q. What is the marginal product of the third hour of labour?

In the production of wheat, all of the following are variable factors that are used by the farmer except

India has the _________ largest scientific and technical manpower in the world.

Suppose that a sole proprietorship is earning total revenues of Rs. 1,00,000 and is incurring explicit costs of Rs. 75,000. If the owner could work for another company for Rs. 30,000 a year, we would conclude that

A firm encounters its "shutdown point" when

Directions: Use Table 2 to answer the question.

Table 2:
Production Possibilities

Q. According to Table 2, the opportunity cost of increasing one unit of Good B from 10 units to 18 units is

The unsustainable levels of government deficits in the late 80`s can be attributed to

About ________ percent of the sick units in India are small units.

Directions: Study the given table and answer the following question.

Q. Diminishing marginal returns start to occur between units

In describing a given production technology, the short run is best described as lasting

Larger production of ____________ would lead to higher production in future.

Service sector accounted for nearly ______________ percent of exports (2004-05).