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1531EconomicsMedium

Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is?

ARs80,000

BRs70,000

CRs75,000

DRs30,000

Correct answer

D. Rs30,000

Explanation

The correct answer is Rs30,000.

1532EconomicsMedium

An extreme example of the consequences of ethnocentrism in the sense of ethnochauvinism is________?

Aethnic pluralism

B“ethnic cleansing”

Cassimilation

Dcultural relativity

Correct answer

B. “ethnic cleansing”

Explanation

The correct answer is “ethnic cleansing”.

1533EconomicsMedium

A firm owns long-lived property that is used by a firm in the Production of its income. What this property is called?

AFixed property

BProduction line

CUnmovable asset

DFixed asset

Correct answer

D. Fixed asset

Explanation

The correct answer is Fixed asset.

1534EconomicsMedium

In Planned economy’ Production and distribution of Wealth is under control of________?

AGovernment

BPrivate sector

CNone of the above

DBank

Correct answer

B. Private sector

Explanation

The correct answer is Private sector.

1535EconomicsMedium

Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant?

Aincome per capita in poor countries grows conditional upon foreign aid

Bincome per capita is the same regardless of poor or rich countries

Cincome per capita in poor countries grows faster than in rich countries

Dincome per capita in rich countries grows faster than in poor countries

Correct answer

C. income per capita in poor countries grows faster than in rich countries

Explanation

The correct answer is income per capita in poor countries grows faster than in rich countries.

1536EconomicsMedium

Why is the private ownership of property deemed beneficial?

ANone of the above

BIt is the American way

CGreed makes the world go around

Dkeeping up with the Joneses leads to success

Correct answer

A. None of the above

Explanation

The correct answer is None of the above.

1537EconomicsMedium

How much of the total area cultivated is under irrigation system?

A70%

B65%

C85%

D80%

Correct answer

A. 70%

Explanation

The correct answer is 70%.

1538EconomicsMedium

Possibility of negative events or changes in the business climate of country is called?

ACountry risk

BPolitical risk

CNational risk

DDomestic risk

Correct answer

B. Political risk

Explanation

The correct answer is Political risk.

1539EconomicsMedium

If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it?

Amaintained production at the current level

Bincreased production

Ctemporarily shut down.

Ddecreased production

Correct answer

B. increased production

Explanation

The correct answer is increased production.

1540EconomicsMedium

Economic growth can be shown by?

AA decision by the government to produce inside the production possibility frontier

BAn inward shift of the production possibility frontier

CAn outward shift of the production possibility frontier

DA movement along the production possibility frontier

Correct answer

C. An outward shift of the production possibility frontier

Explanation

The correct answer is An outward shift of the production possibility frontier.

Based on Mankiw Romer and Weil (1992) with conditional convergence holding fertility rates, education and government spending as a share of GDP constant?

Aincome per capita in poor countries grows conditional upon foreign aid

Bincome per capita is the same regardless of poor or rich countries

Cincome per capita in poor countries grows faster than in rich countries

Dincome per capita in rich countries grows faster than in poor countries

Correct answer

C. income per capita in poor countries grows faster than in rich countries

Explanation

The correct answer is income per capita in poor countries grows faster than in rich countries.

Economic growth can be shown by?

AA decision by the government to produce inside the production possibility frontier

BAn inward shift of the production possibility frontier

CAn outward shift of the production possibility frontier

DA movement along the production possibility frontier

Correct answer

C. An outward shift of the production possibility frontier

Explanation

The correct answer is An outward shift of the production possibility frontier.