PV Narasimha Rao is referred to as the “father” of modern Indian Economics for the introduction of the free market reforms during his tenure. If he fixes his output at OA, then price OP to be paid for that is also decided by the customers. Suppose the demand for consumer goods expands. While formulating a price policy for public enterprises, the administrators have to bear in mind many complex considerations such as generation of surplus for reinvestment, nature of demand for the products, purchasing power of consumers, policy of the State, attainment of the optimum level of production, competition from private enterprise and from foreign producers, availability of substitutes, etc. This is a brief economics practice quiz. Share Your Word File For discussion join SSC GROUP and Railway Group. (d) an Autonomous Corporation, 6. (b) J.B. Kripalan (d) all controls are removed. Economics Questions and Answers - Discover the eNotes.com community of teachers, mentors and students just like you that can answer any question you might have on Economics For example, coal can be stored indefinitely. According to Chamberlin, pure competition means “competition unalloyed with monopoly elements,” whereas perfect competition involves “perfection in many other respects than in the absence of monopoly”. In partnership the death of a partner dissolves the partnership, but the Joint Hindu Family business is not affected by the death of a co-partner. This practice test is for reviewing on your economics knowledge. It is gratifying to note that recently it has been decided to create industrial management service for staffing enterprises in public sector. This is the right time before the exam to pay attention to your weak side. Adam Smith is known as the father of Economics. Where marginal cost falls, total cost will be rise at a declining rate; on the other hand, where marginal cost is rises, total cost will rise at an increasing rate. (b) a Government department (c) economy is about to collapse You can attempt it as often as you like. As “Karta” enjoys full freedom in conducting family business, he can take quick business decisions and also can run the business without interference by others. It becomes vague when there is considerable product differentiation within the industry. His price is determined by his demand curve, once he selects his output level. The price M2p is determined by the equality of B’s marginal cost with A’s potential supply curve MCA. The salary and wage scale of the personnel of these undertakings are comparatively low than private sector undertakings and due to this capable people are not available. 7. A controllable cost may be defined as one which is reasonably subject to regulation by the executive with whose responsibility that cost is being identified. (b) Directive Principles of State policy 4. Cambridge economics test - Der absolute Gewinner unserer Tester. However, under Dayabhaga system of Hindu Law which is prevailing in West Bengal, female members can become co-partners under certain circumstances. Ans. Principles of Economics Chapter Exam Instructions. (c) the public, private, joint and Cooperative sectors From 2020, we have made some changes to the wording and layout of the front covers of our question papers to reflect the new Cambridge International branding and to make instructions clearer for candidates - learn more . (c) holds the rank of a cabinet minister Ans. You can also download them and prepare. The growth rate of agricultural production was negative in the: (a) First Plan The first four conditions relate to pure competition while the remaining three conditions are also required for the existence of perfect competition. The seller monopolist on his part would wish to sell a smaller quantity OM1 at a higher price OM2. Choose the response that is correct or that best answers the question. Since the elasticity of the firm’s average revenue curve is equal to one, total outlay on the firm’s product will be the same at every price. A study of the above table reveals the following points: 1. 14. Who is the Deputy Chairman of Planning Commission? No one can study for 8 hours a day. The relationship among total cost, average cost, and marginal cost is shown in Table 3.1. They are also called single use goods. CIMA BA1 exam questions test is a 2-hour computer-based certification exam containing 60 objective test question. Naturally, his intention would be to pay a low price M2P and buy a larger quantity OM2 of bauxite. You can download the PDF after reading these questions. For example, at an output of 13 units, the average cost is the lowest at Rs.48 where the marginal cost is also Rs.48. Bilateral monopoly refers to a market situation in which a single producer faces a single buyer. You can practice these questions before the exam. The product has no close substitutes. Economics, Questions, Exam Questions and Answers on Economics. 4. Sales of non-durables are made largely to meet current demand which depends on current conditions. Choose your answers to the questions and click 'Next' to see the next set of questions. 3. “Price formation in the case of isolated exchange”, as stated by Edge worth, “is essentially an indeterminate problem, which is not soluble because there is an undecidable opposition of interests as each aims at the maximization of his money gain.” The second relates to the case of a single producer selling a raw material product to a single buyer who is also a monopolist in selling the finished product. ( E00196464 ) This practice test covers material presented in the various parts, while the PDF file provides a set of questions that test your understanding of the material presented. In Fig. It leads to clash of interest because the monopoly buyer wishes to pay less price (M2P < M1S) and demands more quantity (OM2 > OM1) than what the seller monopolist is prepared to accept an offer. Narasimha Rao was part of Vande Matram movement in late 1930s is known as the father of Indian Economics. Thus even a pure monopolist with no rivals at all cannot fix both price and output at the same time. 17. The Administrative Reforms Commission has observed that “a comparison of the forecast made in the detailed project report of various steel plants, fertilizer project, heavy electrical plant, etc., shows the actual staff strength is much in excess of that estimated in the project reports.”. Economics is the study of how society uses its limited resources. Answers in a pinch from experts and … 2018 ECONOMICS EXAM 2 SECTION A – continued SECTION A – Multiple-choice questions Instructions for Section A Answer all questions in pencil on the answer sheet provided for multiple-choice questions. All the questions are in English and we will bring it in Hindi soon. Thus son, grandson, and great grandson become joint owners of ancestral property by reason of their birth in the family. Nevertheless, they have thrown some light on the nature of problems and have given some valuable suggestions. The need for autonomy of management for State enterprise has been emphasized by E.C.A.F.E. ii. Seminar as well as by other experts’ committees, which were constituted to examine the working of public enterprises. ‘Inter alia’ it implies that the monopolist cannot influence the price-output policies of other firms. Ans. All these questions have been asked in previous year.This 1500+ Economics mcq Question & Answer PDF is very important for all exams Whether you are preparing for RRB NTPC, RRB GROUP D or SSC. (c) Mixed economy In the case of Joint Hindu Family business registration is not at all compulsory. Look under ‘Past Examination Resources’ and filter by exam year and series. Like the single plant monopoly, the multi-plant monopoly adjustment in the long-run may be followed by quantity and price changes. These goods are used in the production of other goods. Of course, the lengths of time for which they can go on being used vary to a good deal. The Karta has control over the income and expenditure of the family and is the custodian of the surplus, if any. 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. When marginal cost is lower than the average cost, average cost will fall; for example, up to 12 units of output as shown in Table 3.1. vi. (d) unspecified in any special list. The government has already established a holding company, Steel Authority of India Ltd. (SAIL), to administer the steel units in the public sector. Lack of proper production planning in these undertakings has resulted in the under-utilization of capacities leading to heavy losses. If the Karta has misappropriated the funds of the business, he has to compensate the other co-partners to the extent of their share in the joint property. However, it is necessary for parliament to allow a certain amount of flexibility in regard to control to be exercised from time to time. The price-quantity situation is thus indeterminate and will lie somewhere between M1S and M2P price and OM1 and OM2 quantity. It implies that producing beyond the optimum output will lead to higher per unit cost. (b) Dr.Rajendra Prasad The “Karta” exercises full control over the entire business, and other co-partners have no right to interfere in the management of business, so this hampers the initiative and enterprise of individuals. (c) in the Concurrent List Rent would then replace depreciation and interest. Ans. MCQ quiz on Economics multiple choice questions and answers on Economics MCQ questions quiz on Economics objectives questions with answer test pdf. Every co-partner is guaranteed a “bare subsistence” irrespective of the extent of his contribution to the business. 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. For instance, the commissioning of the Tomboy project delayed by 3 years, Barony Refinery by 2 years and Antibiotic Factory at Hardware by 1 year. But in the case of Joint Hindu Family business, only the Karta, the senior most member of the family, has the implied authority to manage the business and to bind the joint family business for all the acts done in the ordinary course of the business. 4. Economics Past Questions. 64 4. 2. The differentiation between a consumer good and a capital good is based on the purpose for which it is used, rather than, the good itself. 5. (b) imperative An industry demand schedule represents the relation of the price of the product to the quantity that will be bought from all the firms. (b) Karl Marx They should be run on business principles and there should not be interference by the Ministers on the pretext of regulating them. The death of a member does not dissolve the business or the family. Some of the important problems of the public sector enterprises stated above have been analyzed here and if these problems could be tackled, certainly we can expect a much higher rate of return on the investment in the public undertakings. From the managerial point of view, mere industry demand is not enough. His price-output policy does not influence firms in other industries. Ans. Further, these undertakings continue to depend on deputationists from the cadre of civil servants for filling the middle- and top- level posts. We have also attached some more study material below. Sample Reports. 7. 1500+ Economics Question & Answer PDF Download, In this session today, we have come with more than. Ans. Thus, economics gives the simplified model, whereas managerial economics modifies and enlarges it. (d) Jawaharlal Nehru. (c) Third Plan Karta may misuse his freedom for his personal benefits as other co-partners have no right to interfere in conducting business. The board of directors appointed to various public undertakings are nominated by the government, mostly from the government officials of the various departments The Estimates Committee has felt that these directors cannot play any useful role. The Nature of Economics. Ask any economics question and an expert will answer it in as little as 30 minutes. The same as equilibrium supply B. This is exemplified in Table 3.1 up to 11 units of output. Escapable costs are costs that can be reduced due to a contraction in the activities of a business enterprise. It is the net effect on costs that is important, not just the costs directly avoidable by the contraction. This is a specifically stated objective of government policy, which has yet to be attained. However, projection of the industry demand is the first step in forecasting company’s sales. In a Joint Hindu Family business, every co-partner enjoys equal share in the family business but the share of each member may fluctuate; it increases with the death of an existing co-partner and diereses with the birth of a new one. 18. The strategy of Rolling plan was adopted during the Prime Ministership of: [Railways 1994], (a) Lal Bahadur Shastri If the marginal cost first falls and then rises, i.e., the marginal cost curve is U-shaped, the marginal cost will be equal to the average cost at a point where the average cost is the minimum. The term industry demand is used to denote the total demand for the products of a particular industry, e.g., the total demand for steel in the country. principles of economy Econ 203 PE. In this connection we may note that the Administrative Reforms Commission’s Study Team on Public Undertakings recommended that our public enterprises should pursue a pricing policy that ensures not merely that the cost is covered but also the financial requirements of other developmental plans of the country can be financed through their surpluses. Professionals, Teachers, Students and Kids Trivia Quizzes to test … The questions in a test can be viewed one at a time or all at once. A beginning has already been made in this corporation, the Hindustan Steel Limited, Fertilizer Corporation, and the Harvey Electrical Limited. Test Description Sample Test Questions. 9. 1. ‘Take off stage’ in an economy means: [CBI 1990], (a) steady growth begins 8. Solving Previous year question papers for Class 12 Economics is the best strategy to prepare for Class 12 exams. (b) Finance Commission When this happens, the plans of individual units will become more purposeful and their operations efficient. The National Development Council gets its administrative support from: (a) Planning Commission biz/ed Economics Question Bank Durable goods are necessarily durable but not all non-durable goods are perishable. They are called co-partners in interest. But a Joint Hindu Family business is the creation of law; the members of the joint family become co-partners by virtue of their status. Whereas managerial economics involves application of economic principles to the problems of the firm, Economics deals with the body of the principles itself. The liability of the Karta is unlimited and the creditors of the firm can recover their debts even by selling the Karta’s personal properties. (c) Indira Gandhi This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Short-run demand refers to the demand with its immediate reaction to price changes, income fluctuations, etc. Topic: Scarcity, Opportunity Costs, and Basic Economic Questions: The Production Possibility Model: The … Ans. At the beginning of each study, period review the last thing you studied for 10 minutes. They represent just three of the different kinds of final assessment questions used by different faculties. The demand curve for his product is, therefore, relatively stable and slopes downward to the right, given the tastes and incomes of his customers. Indeterminacy does not imply that there is no equilibrium position and no trade takes place. Exam Question # Q.1. Getting perfect score in Class 12 examinations is a dream of every student as it always helps in future and helps to get good rank in school. 4. 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