Ec Quiz

Assignment-1 (Quiz) - Results
Attempt 1 of 2
Written Oct 25, 2023 10:07 PM - Oct 25, 2023 10:13 PM
Released Feb 20, 2023 9:57 AM
Attempt Score 2 / 2 - 100 %

Overall Grade (Highest Attempt) 2 / 2 - 100 %
Question 1 0.4 / 0.4 points
When the price elasticity of demand is 0.58, it is called as_____________________.
perfectly elastic demand
relatively inelastic demand
relatively elastic demand
unitary elasticity of demand
Which of the following statement best describes Point Method?
Measures price elasticity of demand at different points on a demand curve.
Measures the effects of the substitution of one commodity for another
Responsiveness of demand or sales to change in advertising or other promotional expenses.

The demand for a product or service is affected by its price, the income of the individual, the price of
other substitutes, population, habit, etc.
The quantity demanded for the product changes by 80% when the price changes by 20%, the elasticity of
demand is equal to _____________________.
0.40
40
60
Which of the following are the two broad demand forecasting methods?
statistical methods and observation methods
survey methods and statistical methods
survey methods and observation methods
observation methods and interview methods
When the demand for status symbol goods increases with a rise in price and vice versa is known
as________________.
Veblen effect
Essential commodity effect
Giffen effect
Robert's effect
Done
Attempt 2 of 2
Written Dec 10, 2023 11:22 AM - Dec 10, 2023 11:28 AM

The desire backed by ability and willingness to buy a product/service is_________________.
law of demand
demand forecasting
Demand
elasticity of demand
Which of these is a practical application of income inelasticity of demand?
Helps in determining the rate of growth of the firm.
Helps in declaration of public utilities.

Helps in fixing the rate of taxes.
Helps in determining the terms of trade.
Demand is strengthened with a rise in price or weakened with a fall in price. This is stated by which
expression to the law of demand?
Fear of future rise in price

Giffen's paradox
Fear of shortage
Veblen's effect
For commodities such as tooth paste, soaps and talcum powder, the demand tends to be elastic. Which
determinant of price elasticity best describes this?
Number of uses for the commodity

Durability of the commodity
Existence of substitutes
Nature of the commodity
State whether the given statement is True or False.
Surplus of a good in a market increases its prices while shortage leads to fall in its prices.
True
False
Done
Attempt 1 of 2

The benefits, which arise to a firm when it produces more than one product jointly rather than producing
two items separately by two different business units is _______________________________.
Economies of scope
Diseconomies of scope
Economies of scale
Diseconomies of scale
The advantages or benefits that accrue to a firm as a result of increase in its scale of production are called
_____________________.
Measuring scale
Returns to scale
Economies of scale
The law of supply states that keeping all the other factors constant,
________________________________________.
when the price increases, supply for the goods decreases and vice versa
when the supply increases, the price for the goods increases and vice versa
when the price increases, supply for the goods increases and vice versa
when the supply increases, the price for the goods decreases and vice versa
Which of the following variable determines if the cost function will be cheaper in the long run and it would
be relatively costlier in the short run?
Production function
Period of time
Market prices of inputs
In the short period only ___________ factor inputs are changed.
variable
non-variable
Done
Attempt 2 of 2
Attempt Score 1.6 / 2 - 80 %

The difference between what we are prepared to pay and what we actually pay is________________________.
Cost
Producer's surplus
Consumer's surplus
Supply
Which of the following refers to the total monetary expenses (both explicit and implicit) incurred by the
producer in the process of transforming inputs into outputs?
Cost of business operations

Cost of output
Cost of anything
Cost of production
Question 3 0 / 0.4 points
Increase in supply will always lead to a decrease in equilibrium price.
True
False
Which of the following law states that, "as the quantity of only one factor input is increased to a given
quantity of fixed factors, beyond a particular point, the marginal, average and total output eventually
decline".
Law of supply
Law of returns to scale

Law of demand
Law of variable proportions
When marginal product is zero, total product will be :
lowest
highest
Done
Attempt 1 of 2
Released May 17, 2022 8:08 AM

Which one of the following is the Owners' utility function?
Market Share
Salaries
Power
Job security
Baumol's theory is famous for_________________.
Profit maximization
Sales maximization
Production maximization
Growth maximization
Which amongst these is an internal factor to decide on the pricing policy?
Elasticity of demand and supply

Availability of substitutes and complements
Size of the market
Production costs
What is Equilibrium Price?
The quantity bought and sold at the equilibrium price
The price at which demand and supply are equal

Price which is determined by the forces of demand and supply in a short period where demand plays
a major role and supply plays a passive role
The price which is determined in the long run
Large number of sellers selling homogenous products to a large number of sellers, is an example of
_________________competition.
Monopolistic
Perfect
Oligopoly
Monopoly
Done
Attempt 2 of 2

The quantity bought and sold at the equilibrium price is called as:
Market price
Equilibrium price
Normal profit
Equilibrium output
Which one of the following is the primary characteristics of markets?
Product differentiation
Willingness and ability to buy and sell a commodity
Prevalence of a large number of buyers and sellers

Existence of sellers and buyers
The average revenue of the firm is 2000 and the Marginal revenue of the firm is 2500 by selling 20 units of
output, then the total revenue of the firm is_________________.
25000
200
40000
50000
In case of several small businesses, the owners do not want to share their powers with many new partners
and hence, they try to keep maximum powers in their hands. Which short-coming gets highlighted through
this criticism?
Significance of other managerial gains
Aversion to reduction in power

Ambiguous term
Official restrictions over profits of public utilities
Higher price can be charged to those who can afford to pay. Which policy does this statement reinforce?
Ability to pay
Ethical pricing
Long run welfare of the firm

Achieving a target return
Done
Attempt 1 of 2
Written Nov 18, 2023 8:38 PM - Nov 18, 2023 8:43 PM

The quantity measures at a specific point of time is_______________.
stock variable
independent variable
dependent variable
flow variable
The price discrimination of which of the following degree takes away entire consumer surplus?
Second
Third
Fourth
First
The Marginal revenue and average revenue are the same in Monopoly.
True
False
Which of the following refers to a market with a single buyer who buys the entire amount produced ?
Duopsony
Oligopoly
Monopsony
Duopoly
An index of prices paid by producers for their input is:
Producer Price Index (PPI)
Wage Index Number (WIN)

Wholesale Price Index (WPI)
Consumer Price Index (CPI)
Done
Attempt 2 of 2

_________________ variable expresses a quantitative relationship between two different variables at a

certain time.
dependent
Independent
Ratio
Stock
Which among the following costs are very important in monopolistic market?
Buying
Selling
Production
_________GNP at current prices depicts a misleading picture of economic performance.
Real
Nominal
_______ is a ratio of an increase in output or real income to an increase in capital.
Capital-output ratio
Capital input ratio
Saving-income ratio
Consumption-saving ratio
Deflator cannot be calculated for
Net National Product
Green National Product

Gross Domestic Product
Net Domestic Product
Done
Attempt 1 of 2
Written Dec 5, 2023 9:41 PM - Dec 5, 2023 9:45 PM

_________________ imply automatic changes in tax collections and transfer payments or public expenditure
programmes so that it may reduce the destabilising effect on aggregate effective demand.
Fiscal tool
Built-in stabilisers
Deficit financing
The term "accelerator" refers to :
Tool of economic analysis, which shows the effect of changes in consumption on induced
investment.
The functional relationship that exists between income and the level of consumption.
Tool of economic analysis, which explains the effects of investment on consumption.
The functional relationship between aggregate income and aggregate investment.
When the marginal efficiency of capital is greater than the rate of interest, then the private investment
_______________________.
decreases
is negative
increases
remains the same
Consumption function refers to
Same amount of consumption at different levels of income.
Different amounts of consumption at same level of income.

Different amounts of consumption at different levels of income.
Same amount of consumption at same level of income.
An increase in investment of $5 lakhs causes an increase in income of $25 lakhs, then the multiplier would
be_______________________.
50
20
0.5
Done
Attempt 2 of 2

Suppose total income increases from $10, 000 crore to $30,000 crore and total consumption increases
from $8000 crore to $20,000 crore, then, the MPC will be_______________________.
0.6
0.8
600
Which instrument of fiscal policy implies printing of fresh and new currency notes by the government by
running down the cash balances with the central bank?
Public debt policy
Public revenue
Public expenditure policy

Deficit financing
Which one of the following is NOT the instrument of fiscal policy?
deficit financing
change in margin requirements
public expenditure
public revenue
Identify the technical characteristics of Marginal propensity to consume(MPC) from the following.
MPC is greater than zero.
MPC goes down as income decreases.
MPC of the poor is lesser than that of the rich.
In the long-run, MPC is stable.
The combination of Marginal propensity to save and marginal propensity to consume

is_______________________.
>1
Zero
<1
Done
Attempt 1 of 2

Which one of the following is the feature of the prosperity stage?
explorations and exploitation of new sources of energy
an increase in the level of unemployment
a high level of output, income, employment, and trade
aggregate level of economic activity starts declining
Innovations are the source of business fluctuations". This statement is given by. _________________.
Prof. Hayek
Prof. Samuelson
Prof. Hawtrey
Prof. Schumpeter
Which one of the following is NOT the phase of the business cycle?
Resonance
Recovery
Prosperity
Boom
The statement “Prosperity digs its own grave” with respect to business cycles and business decisions is
TRUE for which type of economy?
Socialist economy
Capitalist economy
Communist economy
Which among the following is a positive effect of inflation?
Incomplete utilisation of resources
Decrease in the demand for money
Reduction in investment
Encourages entrepreneurship
Done
Attempt 2 of 2

Choose the correct cause of inflation from demand side.
Decrease in money supply
Increase in the level of savings
Increase in population growth
Increase in exports
According to Hawtrey’s Pure Monetary Theory of trade cycles, the main factor affecting the flow of money
supply is the credit creation by the banking system.
True
False
According to Prof. Hayek business cycles are caused by _________________.
Overinvestment and consequent underproduction
Overinvestment and consequent innovation
Overinvestment and consequent overproduction
Overinvestment and consequent changes in flow of money
__________ is the state of the economy where the value of money is rising or the prices are falling.
Deflation
Inflation
Inflammation
Stagflation
Any rise in price level before the point of full employment is called ______________.
Bottleneck inflation
Running inflation
Hyperinflation
Demand-pull Inflation
Done
Attempt 1 of 2
Written Sep 23, 2023 7:13 PM - Sep 23, 2023 7:26 PM

State whether the given statement is True or False.
Surplus of a good in a market increases its prices while shortage leads to fall in its prices.
True
False

Managerial Economics is the combination of micro and macroeconomics. Moreover, it consists

of______________________.
equal importance to micro and macro

more international economics
more micro and less macro

more macro and less micro
The desire backed by ability and willingness to buy a product/service is_________________.
demand forecasting
law of demand
Demand
elasticity of demand
When the demand for status symbol goods increases with a rise in price and vice versa is known
as________________.
Essential commodity effect

Giffen effect
Veblen effect
Robert's effect
Attempt 2 of 2
Written Sep 23, 2023 7:31 PM - Sep 23, 2023 7:42 PM

Which of the following statement best describes Demand Function?
Responsiveness of demand or sales to change in advertising or other promotional expenses.

Measures the effects of the substitution of one commodity for another
The demand for a product or service is affected by its price, the income of the individual, the price of
other substitutes, population, habit, etc.
Measures price elasticity of demand at different points on a demand curve.
Cross elasticity of demand is positive in the case of commodities which are______________.
dependent
Substitutes
Complementary
independent
In case of any change in price, the quantity demanded will be perfectly constant. This is supported by
which theory?
Relatively elastic demand

Relatively inelastic demand
Perfectly elastic demand
Perfectly inelastic demand

State whether True or False:

1. Price elasticity of demand is a technical term used by economists to explain the degree of
responsiveness of the demand for a product to a change in its price.
2. Elasticity of demand refers to the capacity of demand either to stretch or shrink to a given change in
price or non-price determinant.
1-False,2-True
1-True,2-True
1-True,2-False
1-False,2-False
Managerial Economics is the combination of micro and macroeconomics. Moreover, it consists

of______________________.
more macro and less micro

more international economics
equal importance to micro and macro
more micro and less macro

When the price elasticity of demand is 0.58, it is called as_____________________.
relatively inelastic demand

unitary elasticity of demand
perfectly elastic demand
relatively elastic demand
The law of demand states that keeping all the other factors constant,________________________.
when the demand increases, the price for the goods increases and vice versa
when the price increases, demand for the goods increases and vice versa
when the price increases, demand for the goods decreases and vice versa
when the demand increases, the price for the goods decreases and vice versa
Which one of the following is not a suitable method of demand forecasting should satisfy a few
broad economic criteria?
Accuracy
Rigidity
Simplicity
Plausibility
Done
The total cost incurred by the firm to produce given quantity of output is 9,378 and Total
variable cost is 7,149, then the total fixed cost is _______________.
2,029
2,329
2,199
2,229
lowest
highest
Increase in supply will always lead to a decrease in equilibrium price.

True
False
The advantages or benefits that accrue to a firm as a result of increase in its scale of production
are called _____________________.
Returns to scale
Measuring scale
Economies of scale
Which of the following refers to the total monetary expenses (both explicit and implicit) incurred
by the producer in the process of transforming inputs into outputs?
Cost of anything
Cost of output
Cost of production
Done
When cost is expressed in terms of physical or mental efforts put in by a person in the making
of a product, it is called as:
Opportunity cost
Implicit cost
Real cost
Future cost
The Responsiveness or sensitiveness of supply to a given change in the price is called as

__________________________.
supply
supply forecasting
law of supply
elasticity of supply
The difference between what we are prepared to pay and what we actually pay
is________________________.
Consumer's surplus
Cost
Supply
Producer's surplus
Which of the following variable determines if the cost function will be cheaper in the long run
and it would be relatively costlier in the short run?
Market prices of inputs
Production function
Period of time
Revenue which could have been earned by employing that goods or service in some other
alternative uses is __________________.
Average revenue
Marginal revenue
Total revenue
Opportunity cost
Done
Attempt 1 of 2

Which of the following refers to the total monetary expenses (both explicit and implicit) incurred by the
producer in the process of transforming inputs into outputs?
Cost of production

Cost of anything
Cost of output
The advantages or benefits that accrue to a firm as a result of increase in its scale of production are called
_____________________.
Returns to scale
Economies of scale
Measuring scale
highest
lowest
The difference between what we are prepared to pay and what we actually pay is________________________.
Supply
Consumer's surplus
Producer's surplus
Cost
The __________________ means the price determination of all the goods and factors will be mutual and
simultaneous. Thus, it explains a multi market equilibrium position.
Partial equilibrium approach
General equilibrium approach

Attempt 2 of 2

The law of supply states that keeping all the other factors constant,
________________________________________.
when the price increases, supply for the goods decreases and vice versa
when the supply increases, the price for the goods increases and vice versa
when the price increases, supply for the goods increases and vice versa
when the supply increases, the price for the goods decreases and vice versa
Costs, which directly and proportionately increase, or decrease with the level of output is produced: -
___________________.
Variable revenue
Average fixed cost
Fixed cost
Variable cost
Supplementary cost is also known as:
Future cost
Variable cost
Economic cost
Fixed cost
In the short period only ___________ factor inputs are changed.
variable
non-variable
Which of the following law states that, "as the quantity of only one factor input is increased to a given
quantity of fixed factors, beyond a particular point, the marginal, average and total output eventually
decline".
Law of returns to scale
Law of variable proportions

Law of supply
Law of demand
Price which is determined by the forces of demand and supply in a short period where demand
plays a major role and supply plays a passive role is called:
Equilibrium output
Normal profit
Market price
Equilibrium price
The managerial discretion theory is advocated by _________________.
Marris
Cyert and March

W Baumol
Williamson
Which model helps in predicting the reasonable behaviour of a firm with more accuracy?
Basic objective of traditional economic theory

Most realistic prediction of price-output behaviour
Necessary for survival
Firm is not a charitable institution
Which amongst these is an internal factor to decide on the pricing policy?
Elasticity of demand and supply

Availability of substitutes and complements
Production costs
Size of the market
A firm sells a product at a higher price in the initial stage and then lowers the price, this is an
example for _________________.
Bundle pricing
Penetration pricing
Monopoly pricing
Price skimming
Done
The difference between Total Revenue and Total cost is_________________.
Marginal Revenue
Marginal cost
Average Revenue
Profit
Which one of the following is the Owners' utility function?
Market Share
Power
Job security
Salaries
The average revenue of the firm is 2000 and the Marginal revenue of the firm is 2500 by selling
20 units of output, then the total revenue of the firm is_________________.
40000
50000
200
25000
What is Equilibrium Price?
The price which is determined in the long run

Price which is determined by the forces of demand and supply in a short period where demand plays a
major role and supply plays a passive role
The price at which demand and supply are equal
The quantity bought and sold at the equilibrium price
In case of several small businesses, the owners do not want to share their powers with many
new partners and hence, they try to keep maximum powers in their hands. Which short-coming
gets highlighted through this criticism?
Ambiguous term
Aversion to reduction in power

Significance of other managerial gains
Official restrictions over profits of public utilities
Done
Attempt 1 of 2

The quantity bought and sold at the equilibrium price is called as:
Equilibrium output
Equilibrium price
Market price
Normal profit
Which model helps in predicting the reasonable behaviour of a firm with more accuracy?
Firm is not a charitable institution
Basic objective of traditional economic theory
Most realistic prediction of price-output behaviour
Necessary for survival
Baumol's theory is famous for_________________.
Profit maximization
Sales maximization
Growth maximization
Production maximization
A firm sells a product at a higher price in the initial stage and then lowers the price, this is an example for
_________________.
Bundle pricing
Monopoly pricing
Price skimming
Penetration pricing
The difference between Total Revenue and Total cost is_________________.
Profit
Marginal Revenue
Marginal cost
Average Revenue
Attempt 2 of 2

Price which is determined by the forces of demand and supply in a short period where demand plays a
major role and supply plays a passive role is called:
Market price
Equilibrium price
Equilibrium output
Normal profit
Higher price can be charged to those who can afford to pay. Which policy does this statement reinforce?
Ability to pay
Long run welfare of the firm
Ethical pricing
Achieving a target return
Which one of the following is NOT the Managers' utility function?
Job security
Market Share
Salaries
Power
The average revenue of the firm is 2000 and the Marginal revenue of the firm is 2500 by selling 20 units of
output, then the total revenue of the firm is_________________.
40000
200
50000
25000
Which one of the following is the primary characteristics of markets?
Willingness and ability to buy and sell a commodity
Product differentiation
Prevalence of a large number of buyers and sellers
Existence of sellers and buyers

Nominal
Real
True
False

Capital input ratio
Saving-income ratio
State whether the given statement is true or false.
Under monopoly, a single seller controls the entire market and has the power to control supply
and price.
True
False
_________________ variable expresses a quantitative relationship between two different variables

at a certain time.
Ratio
Stock
dependent
Independent
Done
Market, where there are a large number of buyers and a single seller is __________________.
Monopoly
Monopolistic
Oligopoly
Perfect competitive
Deflator cannot be calculated for
Green National Product

Gross Domestic Product
Net National Product
Net Domestic Product
Large number of sellers selling differentiated products to a large number of buyers is an

example for ______________competition.
Perfect
Monopolistic
Oligopoly
Monopoly
A firm enjoys super-normal profit when the Average revenue is more than______________.
total revenue
average profit
total cost
average cost
Depending on __________________, a seller may charge a higher price, for those customers who
occupy higher positions and have a higher social status and a lower price for others.
Different uses of the same commodity

Social and/or professional status of the buyer
Geographical area
Personal differences
Done
Attempt 1 of 2

The price discrimination of which of the following degree takes away entire consumer surplus?
Third
Fourth
First
Second
When we divide total savings by total income we get _________________.
Average propensity to consume

Marginal propensity to consume
Average propensity to save

Marginal propensity to save
True
False
State whether the given statement is true or false.
Under monopoly, a single seller controls the entire market and has the power to control supply and price.
True
False
Collusion based on oral agreement leads to the creation of what is called as :
Cartels
Gentlemen's Agreement
Collusion
Centralised cartels
Attempt 2 of 2

_________________ variable expresses a quantitative relationship between two different variables at a

certain time.
Independent
dependent
Stock
Ratio
Which among the following costs are very important in monopolistic market?
Buying
Selling
Production
Which of the following refers to a market with a single buyer who buys the entire amount produced ?
Duopoly
Duopsony
Oligopoly
Monopsony
Real
Nominal
Capital input ratio
Saving-income ratio
When the marginal efficiency of capital is greater than the rate of interest, then the private
investment _______________________.
remains the same
increases
is negative
decreases
An increase in investment of $5 lakhs causes an increase in income of $25 lakhs, then the
multiplier would be_______________________.
20
50
0.5
The actual or realized investment is known as:

Gross investment
Net investment
Ex-ante investment
Ex-post investment
The investment, which is independent of the level of income, is called_______________________.
Induced investment
Autonomous investment
Individual investment
Private investment
When we divide total consumption by total income we will get_______________________.
Marginal propensity to save
Marginal propensity to consume
Average propensity to save
Average propensity to consume
Done
Suppose total income increases from $10, 000 crore to $30,000 crore and total consumption
increases from $8000 crore to $20,000 crore, then, the MPC will be_______________________.
0.8
0.6
600
Choose the correct law that states ,supply creates its own demand?
Fundamental law of consumption

Fundamental law of Demand
Say's law of markets
Psychological law of consumption

is_______________________.
Zero
>1
<1
Identify the technical characteristics of Marginal propensity to consume(MPC) from the

following.
In the long-run, MPC is stable.

MPC is greater than zero.
MPC goes down as income decreases.

MPC of the poor is lesser than that of the rich.
State whether the given statement is True/False.

Direct controls can be more discriminatory than monetary and fiscal
controls.
True
False
Done
Attempt 1 of 2

When the economy is facing the problem of inflation which of the following measure will help to regulate
the inflation?
Contractionary monetary policy and contractionary fiscal policy
expansionary monetary policy and expansionary fiscal policy
Contractionary monetary policy and elastic fiscal policy
Contractionary monetary policy and expansionary fiscal policy
Which one of the following is NOT the instrument of fiscal policy?
change in margin requirements
public revenue
deficit financing
public expenditure
Choose the correct law that states ,supply creates its own demand?
Fundamental law of consumption
Psychological law of consumption
Fundamental law of Demand
Say's law of markets
Consumption function refers to
Same amount of consumption at different levels of income.
Different amounts of consumption at same level of income.
Same amount of consumption at same level of income.
Different amounts of consumption at different levels of income.
Suppose total income increases from $10, 000 crore to $30,000 crore and total consumption increases
from $8000 crore to $20,000 crore, then, the MPC will be_______________________.
600
0.8
0.6
6
Attempt 2 of 2


is_______________________.
Zero
<1
>1
Which instrument of fiscal policy implies printing of fresh and new currency notes by the government by
running down the cash balances with the central bank?
Public revenue
Public expenditure policy
Deficit financing
Public debt policy
The term "accelerator" refers to :
Tool of economic analysis, which shows the effect of changes in consumption on induced
investment.
Tool of economic analysis, which explains the effects of investment on consumption.
The functional relationship between aggregate income and aggregate investment.
The functional relationship that exists between income and the level of consumption.
The ratio between the net change in consumption expenditure and the induced investment is
called_______________________.
Consumption expenditure
Acceleration Co-efficient
Multiplier
Investment expenditure
An increase in investment of $5 lakhs causes an increase in income of $25 lakhs, then the multiplier would
be_______________________.
20
50
0.5
An excess of anticipated expenditure over available output at a base price is

called_________________.
stagflation
inflationary gap
recession
prosperity
Which of the following is NOT a remedial measure to control business cycles.

Indirect measures
Monetary measures
Fiscal measures
Physical measures
According to Prof. Hawtrey_________ are mainly responsible for creating business fluctuations in
an economy.
changes in government expenditure
changes in the flow of money
changes in production and investment
changes in innovation
Who was the first person to identify the inverse relationship between the rate of unemployment
and the rate of increase in money wages?
Philips
Keynes
Coulborn
Lipsey
According to Hawtrey’s Pure Monetary Theory of trade cycles, the main factor affecting the flow
of money supply is the credit creation by the banking system.
True
False
Done
Running inflation
Hyperinflation
_______explains the relationship between inflation and unemployment.
Keynesian curve
Phillips curve
Python curve
prosperity curve

__________ is the state of the economy where the value of money is falling or the prices are
rising.
Deflation
Inflation
Stagflation
Inflammation
Innovations are the source of business fluctuations". This statement is given by.
_________________.
Prof. Samuelson
Prof. Hawtrey
Prof. Schumpeter
Prof. Hayek
Attempt 1 of 2

Running inflation
Hyperinflation

Which one of the following is the feature of the prosperity stage?
aggregate level of economic activity starts declining
a high level of output, income, employment, and trade
explorations and exploitation of new sources of energy
an increase in the level of unemployment
State whether the given statement is True/False,
Inflationary gap occurs when aggregate demand exceeds the available supply and deflationary gap occurs
when aggregate demand is less than the aggregate supply.
True
False
Identify the phase of trade cycle wherein there will be an artificial and temporary prosperity in an economy.
Depression phase
Recovery phase
Prosperity phase
Boom phase
Attempt 2 of 2

An excess of anticipated expenditure over available output at a base price is called_________________.
prosperity
recession
inflationary gap
stagflation
_______explains the relationship between inflation and unemployment.
Python curve
Keynesian curve
prosperity curve
Phillips curve
The statement “Prosperity digs its own grave” with respect to business cycles and business decisions is
TRUE for which type of economy?
Socialist economy
Capitalist economy
Communist economy
According to Prof. Hawtrey_________ are mainly responsible for creating business fluctuations in an
economy.
changes in the flow of money
changes in government expenditure
changes in innovation
changes in production and investment
__________ is the state of the economy where the value of money is rising or the prices are falling.
Inflation
Stagflation
Deflation
Inflammation

The quantity demanded for the product changes by 80% when the price changes by 20%, the
elasticity of demand is equal to _____________________.
60
4
0.40
40
In which among the following ,case elasticity is equal to unity?
Relatively elastic demand

Relatively inelastic demand
Unitary elastic demand
Perfectly inelastic demand
Demand is strengthened with a rise in price or weakened with a fall in price. This is stated by
which expression to the law of demand?
Veblen's effect
Fear of future rise in price
Giffen's paradox
Fear of shortage
When the amount of money spent on buying a product is either too small or too big, demand
tends to be inelastic. Which price elasticity of demand best describes this?
Range of prices
Possibility of postponing the use of commodity
Proportion of expenditure on the commodity

Level of income of the people
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Assignment-1 (Quiz) - Results

Written Oct 25, 2023 10:07 PM - Oct 25, 2023 10:13 PM

Released Feb 20, 2023 9:57 AM

Attempt Score 2 / 2 - 100 %

Question 1 0.4 / 0.4 points

When the price elasticity of demand is 0.58, it is called as_____________________.

perfectly elastic demand

relatively inelastic demand

relatively elastic demand

unitary elasticity of demand

Question 2 0.4 / 0.4 points

Which of the following statement best describes Point Method?

Measures price elasticity of demand at different points on a demand curve.

Measures the effects of the substitution of one commodity for another

Responsiveness of demand or sales to change in advertising or other promotional expenses.

Question 3 0.4 / 0.4 points

Question 4 0.4 / 0.4 points

statistical methods and observation methods

survey methods and statistical methods

survey methods and observation methods

observation methods and interview methods

Question 5 0.4 / 0.4 points

Essential commodity effect

Written Dec 10, 2023 11:22 AM - Dec 10, 2023 11:28 AM

Released Feb 20, 2023 9:57 AM

Attempt Score 2 / 2 - 100 %

Question 1 0.4 / 0.4 points

The desire backed by ability and willingness to buy a product/service is_________________.

Question 2 0.4 / 0.4 points

Which of these is a practical application of income inelasticity of demand?

Helps in determining the rate of growth of the firm.

Helps in declaration of public utilities.

Question 3 0.4 / 0.4 points

Fear of future rise in price

Question 4 0.4 / 0.4 points

Number of uses for the commodity

Question 5 0.4 / 0.4 points

State whether the given statement is True or False.

Written Oct 27, 2023 9:55 PM - Oct 27, 2023 10:00 PM

Released Feb 20, 2023 9:58 AM

Attempt Score 2 / 2 - 100 %

Question 1 0.4 / 0.4 points

Question 2 0.4 / 0.4 points

Question 3 0.4 / 0.4 points

Question 4 0.4 / 0.4 points

Question 5 0.4 / 0.4 points

In the short period only ___________ factor inputs are changed.

Written Dec 10, 2023 11:32 AM - Dec 10, 2023 11:34 AM

Released Feb 20, 2023 9:58 AM

Attempt Score 1.6 / 2 - 80 %

Question 1 0.4 / 0.4 points

Question 2 0.4 / 0.4 points

Cost of business operations

Question 3 0 / 0.4 points

Increase in supply will always lead to a decrease in equilibrium price.

Question 4 0.4 / 0.4 points

Law of returns to scale

Question 5 0.4 / 0.4 points

When marginal product is zero, total product will be :

Written Oct 30, 2023 10:14 PM - Oct 30, 2023 10:16 PM

Released May 17, 2022 8:08 AM

Attempt Score 2 / 2 - 100 %