introduction to micro economics section 7 Practice Questions Answers Test with Solutions & More Shortcuts
Introduction to Micro Economics PRACTICE TEST [8 - EXERCISES]
introduction to micro economics section 1
introduction to micro economics section 2
introduction to micro economics section 3
introduction to micro economics section 4
introduction to micro economics section 5
introduction to micro economics section 6
introduction to micro economics section 7
introduction to micro economics section 8
Question : 1 [SSC GL 2012]
Which activity is not included in production ?
a) Services done by a house-wife in her own house
b) Production of wheat by a farmer
c) Production of medicines by a company
d) Services given by a nurse in hospital
Answer »Answer: (a)
Services done by a house-wife in her own house are not included in production.
Question : 2 [SSC CPO 2005]
Operating Surplus arises in the
a) Enterprise Sector
b) Government Sector
c) Production for self-consumption
d) Subsistence farming
Answer »Answer: (b)
Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. It is the balancing item of the Generation of Income Account in the UNSNA.
It may be used in macroeconomics as a proxy for total pre-tax profit income, although entrepreneurial income may provide a better measure of business profits.
In UNSNA, “implicit (imputed) rents” on land owned by the enterprise and the “implicit (imputed) interest” chargeable on the use of the enterprise’s own funds are excluded from operating surplus.
Question : 3 [SSC CML 2000]
The situation in which total revenue is equal to total cost, is known as
a) perfect competition
b) monopolistic competition
c) equilibrium level of output
d) break-even point
Answer »Answer: (d)
In economics and cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".
A profit or a loss has not been made, although opportunity costs have been "paid", and capital has received the risk-adjusted, expected return.
Question : 4 [SSC DEO & LDC 2013]
A supply function expresses the relationship between
a) price and consumption
b) price and output
c) price and selling cost
d) price and demand
Answer »Answer: (b)
The supply function expresses the relationship between the total quantity supplied and the price received by all suppliers per unit of time, holding other factors constant. It illustrates the relationship between price and supply.
image
The diagram (Price is shown on the Y-axis and Quantity per day on the X-axis) shows that suppliers will produce quantity Q1 units of a good if the price they receive is P1.
As the price keeps decreasing, the quantity produced also keeps on decreasing. So though the supply function has to do with supply and price, it can be perceived to express the similar functional relationship between price and output (in terms of quantity that will be produced).
Question : 5 [SSC SO 2001]
When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will
a) contract
b) decrease
c) increase
d) remain the same
Answer »Answer: (c)
In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. The shift of a demand curve takes place when there is a change in any non-price determinant of demand, resulting in a new demand curve.
There is movement along a demand curve when a change in price causes the quantity demanded to change. When there is a change in an influencing factor other than price, there may be a shift in the demand curve to the left or to the right, as the quantity demanded increases or decreases at a given price.
For example, if there is a positive news report about the product, the quantity demanded at each price may increase, as demonstrated by the demand curve shifting to the right.
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Introduction to Micro Economics Shortcuts »
Click to Read...introduction to micro economics section 7 Online Quiz
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indian economy MCQ CATEGORIES
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» Introduction to Indian Economy
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» Planning, Economic Development & Five year Plans
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» National Income & Human Development Index
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» Agriculture Sector, Subsidy and Food Processing
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» Industries, Manufacturing & Service Sectors
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» Inclusive growth, Sustainable development and employment
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» Poverty & Unemployment
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» Introduction to Micro Economics
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» Introduction to Macro Economics
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» Macro fundamentals, GDP, Investment, Growth
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» Demand & Supply, Profit Loss, Inflation & Price Index
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» Fiscal Policy, Public Finance and Monetary Policy
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» Money Supply, Banking and Financial Institutions
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» Taxes Types, Methods & Budgeting Process
-
» Banking, Security Market & Insurance
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