demand & supply, profit loss, inflation & price index section 3 MCQ Questions & Answers Detailed Explanation

Answer: (c)

When the prices of commodities, goods and services start declining consistently, the phenomenon is known as deflation.

Deflation is because of a fall in the aggregate level of demand. That is, there is a fall in how much the whole economy is willing to buy and the price for goods.

Negative Growth - It refers to a contraction in business sales or earnings. It is also used to refer to a contraction in a country’s economy as evidenced by a decrease in its GDP during any quarter of a given year.

Market Capitalism - An economic system that supports private enterprise within a free market, the means of production are privately owned.

Answer: (b)

Answer: (c)

Brent Crude is a major trading classification of sweet light crude oil that serves as a major benchmark price for purchases of oil worldwide. Brent Crude is extracted from the North Sea and comprises Brent Blend, Forties Blend, Oseberg and Ekofisk crudes.

The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum.

The index represents the average price of trading in the 25 days Brent Blend, the Forties, Oseberg, Ekofisk (BFOE) market in the relevant delivery month as reported and confirmed by the industry media.

Answer: (b)

When economic development takes place, specialisation increases. Economic development typically involves improvements in a variety of indicators such as literacy rates, life expectancy and poverty rates.

GDP does not take into account other aspects such as leisure time, environmental quality, freedom, or social justice; alternative measures of economic well-being have been proposed.

Answer: (d)

Answer: (c)

When marginal cost is less than average cost, average cost must be falling. When marginal cost exceeds average cost must be rising. The marginal cost and average cost curves are related to each other.