Historical cost means the cost of a plant at a price originally paid for it. The other members of the family cannot question the authority of the Karta and their only remedy is to get the JHF dissolved by mutual agreement. The intersection of the supply and demand curves indicates what? For example, if the price of a machine at the time of purchase, say, in 2010 was Rs.15,000 and if the present price is Rs.85,000, the original cost of Rs.15,000 is the historical cost while Rs.85,000 is the replacement cost. What is the interdependence of macro and micro economics? Do you think it's recommendable for people willing to set up businesses in future? Autonomous consumption = R285 million. What is the multiplier effect in economics? Given each plant of the same size and of identical cost conditions, he will have each plant of that size where the long-run average cost curve LAC and the SAC curve touch each other at their minimum points. e) none of the a... Is asceticism related to economic systems? Which Tenets of the Marxian (socialism) School Became Lasting Contributions? What are the key principles and tenets that any educated person should know regarding the science of economics and their applicability in the world today? Education, Healthcare, etc)? You can learn and practice to improve your General Knowledge skills in Economics to improve your performance in various Exams like PSC, SSC, Bank and Govt Exams. Why do the Kardashians only date black guys? get as many as you want). Provide some examples. Explain. Suppose A is the single producer of bauxite, who sells it to B, who manufactures aluminium and sells it in a monopoly market. 7. Economists are particularly adept at understanding that people respond to: a. Take Study.com's short, multiple-choice quizzes. e. velocity of money. Browse through all study tools. Test your understanding with practice problems and step-by-step solutions. How to produce? Since independence, a large number of State enterprises have been established and the State has been facing the problems relating to their administration. China's new economic reforms brought new democratic elections to the country. State what are three abbreviations stand for: 1. Further, these undertakings continue to depend on deputationists from the cadre of civil servants for filling the middle- and top- level posts. 1. The form of economics most relevant to managerial decision-making within the firm is: a) macroeconomics. True or false? What principle of economics suggests that a smaller company is more efficient? I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible. In regards to economics, explain the term: payoff matrix. E. values. In the short- run, the question is whether competitors will follow suit; while in the long-run, entry of potential competitors, exploration of substitutes, and other complex and unforeseeable effects may follow. On the other hand, durable consumer goods are those which go on being used over a period of time, e.g., a car, a refrigerator, a ready-made shirt, an umbrella and an electric bulb. What guides economic activity in a market economy? b. A hypothetical model of a perfectly competitive industry provides the basis for appraising the actual working of economic institutions and organization in any economy. The owners of a small manufacturing concern have hired a vice president to run the company with the expectation that she will buy the company after five years. Explain. The distinction is important in a competitive situation. Maximize his/her own profits C. Maximize his/her own votes D. Maximize his/... Why is the concept of self-interest important in economics? What are the top five things to know about economics? First is in the direction of much greater co-ordination and integration. Solved examples with detailed answer description, explanation are given and it would be easy to understand The parliament has to see that – (a) the consumers are provided with quality goods and service at reasonable prices and (b) interest of labor is protected. The opportunity cost of producing a particular good refers to _____. Models allow us to study a simplified version of a complex world. Who an I ? All other trademarks and copyrights are the property of their respective owners. What is the definition of perfect goods in economics? Define treatment (D) as eq... Economic value is defined as: a. The family business is included in heritable property and is thus the subject of co-partenary interest. Pure monopoly “occurs when a producer is so producer is so powerful that he is always able to take the whole of all consumers’ incomes whatever the level of his output. What observations were made famous by Adam Smith in his book "The Wealth of Nations"? The information below relates to a closed economy without a government. Which of the following is consistent with an increase in the price level? What industry forces might cause a propitious niche to appear or disappear? iii. They should be run on business principles and there should not be interference by the Ministers on the pretext of regulating them. This form of business organization is losing ground with the gradual end of the Joint Hindu Family system. When buying a car from a dealership, to get the best bargain (a) Allow the dealership to make the first offer (b) Keep a cushion of bargaining space in the quoted price (c) Make a take it or leave... What is the concept of Aggregate consumption expenditures? Who first introduced the concept of 'multiplier'? If the business commenced by a person is carried on by male members of his family after his death, it is a case of JHF. Define the term 'absolute advantage' in economics and illustrate with an example. All rights reserved. They satisfy the consumers’ wants directly. The scientific method and the tools of economics are useful in examining a. only how individuals make decisions. This is exemplified in Table 3.1 at output levels of 13, 14, and 15 units. A system in which private citizens own the factors of production? The purpose of economics is to provide a way to think. Explain, again using an example or mathematical model as you prefer. In Triffins words, “Pure monopoly is that where the cross-elasticity of demand of the monopolist’s product is Zero.” The monopolist has absolutely no rivals. Which of the three industries (perfect competition, monopolistic competition, monopoly) can sustain long-run economic profit? Economics Exam Questions | Economics Exam Answers. a... Jeremy Bentham argued that every act was morally valuable to the extent that is resulted in happiness. a) Dollars become more valuable, and interest rates rise. Economists A. disagree about the costs of moderate inflation. In accordance with the recommendations of the study team, the Fourth Plan gave a general direction to all public enterprises to aim at a rate of return of not less than 11-12 per cent. What is environmental and natural resource economics? When economists describe "a market," they mean A. a place where stocks and bonds are traded. People can be inconsistent over time. This greatly affects the productive activity of the undertakings. 5. In 2001 Joseph E. Stiglitz won the Nobel prize for his work on ... ? Where the marginal cost is greater than the average cost, the average cost will rise; for example, for outputs at 14 and 15 units. What are the main things to remember about elasticity, supply and demand, tax incidence, government controls on the market, and economic theories? Explain the word "empowerment" as it relates to economics. 1. b) Economists study the management of scarce resources. Parliamentary control over the State undertakings is exercised by the methods such as – (a) questions in parliament, (b) debates on the annual grants of the various ministers, (c) Annual reports on the government companies, and (d) Public Accounts Committee and the Estimates Committee reports. The policy is linked with action proposed in two separate directions. Agree or disagree with this statement and explain your reasoning. PV = 2. Get help with your economics homework! From the managerial point of view, mere industry demand is not enough. When this happens, the plans of individual units will become more purposeful and their operations efficient. How much time do you think the streets will need to be closed al... How do societal values influence a country's economic policies? b) Dollars become more valuable, and interest rates fall. Compare the neoclassical theory of the firm in perfect competition with the post- Keynesian theory of the firm. The random trivia question is the best way to challenge yourself to know about the knowledge. The labor theory of value is most often associated with which school of econimics ? 4. What is the difference between macroeconomics and economics? In the equation M V = P Y, the variable M stands for the a. median rate of inflation. The death of a member does not dissolve the business or the family. a. economic quantity discount model b. economic production quantity model c. basic economic order quantity... Keynesian economics and neoclassical economics have been challenging, attacking, and refuting one another ever since his General Theory from 1936. a) outline the basic dispute between them b) expla... A researcher measures the following correlation between cost of produce and number of units sold. In conclusion a reference may be made to the policy proposed in the Fourth Five Year Plan in relation to the operation of public sector enterprises. A. Explain. He would thus be prepared to pay M2P price for OM2 quantity. A(n) is defined as a significant decline in economic activity spread across the economy, lasting more than a few months. Thus, a cost which is uncontrollable at one level of responsibility may be regarded as controllable at some other, usually higher level. Laws, b. Since human wants are unlimited and available resources are limited, what will a rational consumer do? Economics Quiz Questions with Answers for General Knowledge and Gk. Due to several mistakes, flaws, and omissions in project planning, many of the public enterprises take longer time to complete, which results in increasing the cost of the project and considerable delay in their completion. b. the government of a nation, city, or county.... Economists view (blank) as the ultimate scarce resource. There are more answers than there are vocabu... What is the role of self-interest in economics? Ans. A. opportunity costs B. scarcity C. specialization D. comparative advantage E. absolute advantage. How do you see economics relate to you in your own life? You have enough funds budgeted to purchase 400 gray... Why economics matters? Keynesian A. In each of the following, indicate which of the four essential economic activities is taking place. Write down the definition of the following economic terms: Flow, Write down the definition of the following economic terms: Stock. Perfect information problem. How do Rousseau and Malthus agree or disagree with Adam Smith's concept of the invisible hand? [El---r O-----], What organisation is located on Threadneedle Street ? Members of the family are taught to work not only for their own benefit but also for the benefit of entire family without being selfish.