Economics | Study Mode

Join Discuss Share Question Share to WhatsApp
Question 1
A
greater than one but less than 
B
zero 
C
negative 
D
positive 
E
infinity 
Explanation.
Share Answer The higher the price of commodity ,A the higher the quantity Demanded of commodity B (A.5 substitute). Hence the cross elasticity is positive.(D)

Correct Option:
D
Join Discuss Share Question Share to WhatsApp
Question 2
A
rent 
B
profit 
C
interest 
D
gain 
E
moratorium 
Explanation.
Share Answer Moratorium is an inducement or grace received without actually working for it. (E)

Correct Option:
E
Join Discuss Share Question Share to WhatsApp
Question 3
A
tax increase 
B
budget surplus 
C
increase in unemployment 
D
wage increase 
E
increase in labour supply 
Explanation.
Share Answer An increase in wage will increase the purchasing power of consumers and invariably the aggregate demand, it will tend to increasing price level(inflation)if not matched with increase in production. (D)

Correct Option:
D
Join Discuss Share Question Share to WhatsApp
Question 4
A
its yield is based on profits 
B
its yield is fixed rate of interest 
C
it has no redemption date 
D
there is a voting when interest is paid 
E
its interest is variable 
Explanation.
Share Answer Debenture is a loan to the company and it a attract a fixed of interest as usual. (B)

Correct Option:
B
Join Discuss Share Question Share to WhatsApp
Question 5
A
wages and salaries of public servants 
B
students bursaries and scholarship 
C
profit of international 
D
income of self employed person 
E
rents on property 
Explanation.
Share Answer Student bursaries and scholarships are transfer income which is excluded Natona income computation under income approach .(B)

Correct Option:
B
Join Discuss Share Question Share to WhatsApp
Question 6
A
increase 
B
fall 
C
first fall but increase later 
D
remain unchanged 
E
change noticeably 
Explanation.
Share Answer If the price of a particular commodity is reduced quantity demanded will increase gradually and the total revenue will first fall and increase later. Ans C

Correct Option:
C
Join Discuss Share Question Share to WhatsApp
Question 7
A
a reduction in total demand 
B
an increase in government spending 
C
an increase in money supply to banks 
D
an increase in aggregate demand 
E
an increase in money supply relative to demand 
Explanation.
Share Answer Generally, fall in total demand will cause the price to fall, and t will fall persistently if not carefully checked . (A)

Correct Option:
A
Join Discuss Share Question Share to WhatsApp
Question 8
A
stock brokers 
B
sleeping partners 
C
part-time investors 
D
ordinary partners 
E
debenture holders 
Explanation.
Share Answer Sleeping partners are partners that contributes to the smooth running of the business but does not participate in the day-to-day activities of business. (B)

Correct Option:
B
Join Discuss Share Question Share to WhatsApp
Question 9
A
government 
B
board of directors 
C
management 
D
shareholders 
E
owners 
Explanation.
Share Answer A sole proprietorship business is owned, managed, and financed by an individual owner, thus decisions are made by the owners.(E)

Correct Option:
E
Join Discuss Share Question Share to WhatsApp
Question 10
A
middle income group 
B
higher income group 
C
lower earning group 
D
people falling between the middle and higher income group 
E
top few richest people in an economy 
Explanation.
Share Answer The lower earning group usually from the group of final consumers and all burden of tax are shifted on them. (C)

Correct Option:
C
Next Page
Question Map
Quiz link
Share Economics with your friends
Share to WhatsApp Share Quiz CBT mode Study mode copy link