If you are preparing for any government exam, then we would advise you to download this PDF and give a right direction to your study. 18. In accordance with the recommendations of the study team, the Fourth Plan gave a general direction to all public enterprises to aim at a rate of return of not less than 11-12 per cent. Long-run monopoly adjustments are of two types: If the monopolist operates on a single plant there may exist three possibilities – (i) If in the short-run the monopolist is incurring losses, he may make such adjustments in his plant as to stop losses in the long-run. This is the right time before the exam … For instance, the commissioning of the Tomboy project delayed by 3 years, Barony Refinery by 2 years and Antibiotic Factory at Hardware by 1 year. On the other hand, book costs, such as depreciation, do not require current cash payments. The exam should be completed in 2 hours. All these questions have been asked in previous year.This 1500+ Economics mcq Question & Answer PDF is very important for all exams Whether you are preparing for RRB NTPC, RRB GROUP D or SSC. 1500+ Economics Question & Answer PDF Download, In this session today, we have come with more than. Short-run demand refers to the demand with its immediate reaction to price changes, income fluctuations, etc. It leads to clash of interest because the monopoly buyer wishes to pay less price (M2P < M1S) and demands more quantity (OM2 > OM1) than what the seller monopolist is prepared to accept an offer. It is not in a position to take full advantage of the economies of scale due to the small size of the market for his product. The method of recruitment and training is also outdated and faulty. The price M2p is determined by the equality of B’s marginal cost with A’s potential supply curve MCA. It is only offered to candidates residing in Anglophone West African countries namely: Ghana, Gambia, Nigeria, Liberia and Sierra Leone and is written 2 times a year ( May/June and Nov/Dec). If the marginal cost is below the average variable cost, the latter will fall. The type of monopoly described above is simple or imperfect monopoly. However, under Dayabhaga system of Hindu Law which is prevailing in West Bengal, female members can become co-partners under certain circumstances. The male adult members can demand partition of the property of the JHF. But in the case of Joint Hindu Family business, only the Karta, the senior most member of the family, has the implied authority to manage the business and to bind the joint family business for all the acts done in the ordinary course of the business. ECONOMICS trial exam questions with stared answers 350 complete questions and anwers 2020 docs. While undertaking expansion, book costs do not come into the picture until the assets are purchased. WAEC ECONOMICS PAST QUESTION AND ANSWERS FOR 2020/2021. You can practice these questions before the exam. Candidates participating in WASSCE examination can now have access to the past questions of the examination on this page. Ans. All these have affected the efficiency and the rate of return on investment. Ans. 12. are some of the examples of capital goods. TOS4. The exam has 50 multiple choice objective questions to be answered along with other theory questions … Further, there is absence of proper materials and inventory management and also budgetary and inventory controls. Candidates will be required to answer four questions in all, choosing one question from Section A and any three questions from Section B. It implies that his profits are the maximum when he sells a very small output, only one unit at a very high price and in the process takes away the entire income of consumers. We, therefore, pass on to the study of price-output policies under simple or imperfect monopoly. It has already shown good results. Exam Question # Q.1. (b) Gandhian economy WAEC Economics Objective Questions… In any situation, the ultimate aim of the monopolist is to have maximum profits. This greatly affects the productive activity of the undertakings. As regards overheads, some costs are controllable and others are not. Direct material and direct labor costs are usually controllable. Some of the important problems of the public sector enterprises stated above have been analyzed here and if these problems could be tackled, certainly we can expect a much higher rate of return on the investment in the public undertakings. (d) None of the above, 13. 2. The Administrative Reforms Commission has observed that “a comparison of the forecast made in the detailed project report of various steel plants, fertilizer project, heavy electrical plant, etc., shows the actual staff strength is much in excess of that estimated in the project reports.”. Let get started with the Waec Past Questions and Answer . Every co-partner is guaranteed a “bare subsistence” irrespective of the extent of his contribution to the business. You can download Economics Objective Questions in English from www.examstocks.com. WAEC Questions and Answers for Economics 2021/2022. 5. ii. 4. Economics is the study of how society uses its limited resources. The Waec economics answers 2020 exam questions can be viewed here. Examples of non-durable goods are sweets, bread, milk, a bottle of Coca-Cola, photoflash bulb, etc. It becomes vague when there is considerable product differentiation within the industry. But in a Joint Hindu Family business the liability of every member except that of the Karta is limited to his interest in the joint property. Economic theory and technique of economic … 1. He can do either of the two things. But in the case of Joint Hindu Family business there is no maximum limit to the number of members. Ans. Indeterminacy does not imply that there is no equilibrium position and no trade takes place. The paper shall last 2 hours for 80 marks. A hypothetical model of a perfectly competitive industry provides the basis for appraising the actual working of economic institutions and organization in any economy. (c) an Advisory body Q. (c) the public, private, joint and Cooperative sectors So, pure monopoly is only a theoretical Possibility. (b) Dr.Rajendra Prasad You can download the PDF after reading these questions. The distinction is important in a competitive situation. Karta may misuse his freedom for his personal benefits as other co-partners have no right to interfere in conducting business. The product has no close substitutes. In the case of partnership, women can become the members of the partnership business but in the case of Joint Hindu Family business only male members can become co-partners. The government, the minister concerned, and the Parliament interfere in the day-to-day working of these enterprises and due to this interference, it has become difficult for these undertakings to run on sound business principles. It is assumed that A regards B as one of the many buyers in a competitive market. In India, company form of organizations have been found favorable with the government as against the consensus of experts for public corporation. Whereas managerial economics is micro-economic in character economics is both macro-economic … (c) economy is about to collapse 8. This form of organization provides an opportunity to develop virtues of discipline, self-sacrifice, and co-operation. The allocation of shares of partners in the partnership business is determined by the mutual agreement, and change in the shares of partners can take place only with the mutual consent of all the partners. This is the right time before the exam to pay attention to your weak side. It Concerns An Application Of The Calculus Of Variations To Economics, But No Understanding Of Economic Theory Is Required. Average cost is the total cost divided by the total quantity produced. Consumer goods are further classified as durable and non-durable goods. Historical cost means the cost of a plant at a price originally paid for it. Download 1500+ Economics Question & Answer PDF, 300+ Best Current Affairs March 2020 PDF [Bilingual], 1500+ General Science One Liner In Hindi PDF, 450+ General Awareness Questions Asked In SSC CGL 2019 Exams PDF. Obviously, firms producing distant substitutes would be excluded from the purview of the industry. This leads to conflict between old and young members of the family and may result in the partition of the business. Nor is he affected by others. The reasons for favoring company form of organization are as follows – (i) the opportunity that it provides for attracting private investment, both domestic and foreign; and (ii) the executive arm of the government did not want the public to get the full information about the undertaking which is the case if it were a public corporation. This plant is, however, of less than the optimum size, for the monopoly firm is not producing at the lowest point of the LAC curve L. It has some excess capacity. (a) Max Muller A partnership is governed by the Indian Partnership Act, but a Joint Hindu Family business is governed by the Hindu Law. Share Your Word File Professionals, Teachers, Students and Kids Trivia Quizzes to test … Ans. Who is considered as the father of modern Indian economics? (d) Sarkaria Commission, 4. Both partnership and Joint Hindu Family business can be dissolved through mutual agreement. They should be run on business principles and there should not be interference by the Ministers on the pretext of regulating them. (d) democratic. In the case of Joint Hindu Family business registration is not at all compulsory. MCa is the marginal cost curve of the single seller A which cuts the MR curve at E. The seller monopolist would like to sell OM1 output at M1S price in order to maximize his profits. The National Development Council gets its administrative support from: (a) Planning Commission In conclusion a reference may be made to the policy proposed in the Fourth Five Year Plan in relation to the operation of public sector enterprises. It is the net effect on costs that is important, not just the costs directly avoidable by the contraction. A car or a refrigerator may provide fairly useful service for 10 to 15 years. MCQ quiz on Economics multiple choice questions and answers on Economics MCQ questions quiz on Economics objectives questions with answer test pdf. If the marginal cost first falls and then rises, it will be equal to the average variable cost at a point where the average variable cost is the minimum. Economists also are not unanimous in their opinion regarding the pricing policy of public enterprises. When this happens, the plans of individual units will become more purposeful and their operations efficient. Here we have come with a collection of 1500 questions from Economics section in English which is going to be very useful for you. iii. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Controllable and Non-Controllable Costs: The concept of responsibility accounting leads directly to the classification of cost as controllable. The Karta or Manager enjoys wide powers to borrow money, enter into contracts, mortgage or sell assets, or take any other action for the legitimate interest of the business. Whereas managerial economics is micro-economic in character economics is both macro-economic and micro-economic. Ans. Whereas managerial economics involves application of economic principles to the problems of the firm, Economics deals with the body of the principles itself. 3. Given each plant of the same size and of identical cost conditions, he will have each plant of that size where the long-run average cost curve LAC and the SAC curve touch each other at their minimum points. This is so at an output level of 12 units where the marginal cost and the average variable cost are equal to Rs.33. (c) secondary sector But outsiders cannot become members of the JHF. A correct answer scores 1; an incorrect answer … OBJECTIVE. If he cannot, he will have to stop production altogether (ii) He may have a plant larger than the optimum size. The various experts’ committees that were constituted to advise the government on the management of State enterprises have given divergent and over-contradictory views. This post of Economics GK Questions for Competitive Exams … Sales of durables, on the other hand, add to the stock of existing goods that are still serviceable and are subject to repetitive use. How can I download Economics Objective Questions in English? In pure monopoly one firm produces and sells a product which has no substitutes. Since independence, a large number of State enterprises have been established and the State has been facing the problems relating to their administration. This resulted in strikes and lockouts leading to fall in output and increase in the cost of production. Today, 3 to 4 questions are seen from the Economics section in every compitetive exam. (b) primary sector To maximize his profits the buyer monopolist will have a curve MCB marginal to the MCA curve to meet his demand curve D at B. A JHF comes into existence by the operation of law. They know that the maintenance of rolling stock and permanent way can be postponed for some time. Economics Questions and Answers Test your understanding with practice problems and step-by-step solutions. Average cost is equal to total cost divided by the number of units produced. It is being replaced either by sole proprietorship or partnership firm. Those costs which must be incurred in order to continue operations of the firm are urgent costs – for example, the costs of materials and labor which must be incurred if production is to take place. Economics is a science that deals with the production, distribution, and consumption of goods and services. Which of the following is not one of the 10 principles of economics… Ask any economics question and an expert will answer it in as little as 30 minutes. On the other hand, the term company demand denotes the demand for the products of a particular company, e.g., demand for steel produced by TISCO. All these questions have been asked in previous year. 7. For example, at an output of 5 units, the total cost is initial cost to which the firm is committed irrespective of the quantity produced. Naturally, his intention would be to pay a low price M2P and buy a larger quantity OM2 of bauxite. Become a part of our community of millions and ask any question that you do not find in our Economics Q&A library. For example, for an output of 11 and 12 units, the marginal cost rises, but the average cost falls. (d) Lal Bahadur Shastri, (a) Socialistic economy The deputy chairman of the Planning Commission: [UP PCS 1994], (a) is the Prime Minister He would thus be prepared to pay M2P price for OM2 quantity. Home Expected Questions for Forthcoming Exams Multiple Choice Questions for Economics with Answers Multiple Choice Questions for Economics with Answers ExamGuru 10:33 PM. The term industry demand is used to denote the total demand for the products of a particular industry, e.g., the total demand for steel in the country. Managerial Economics is the study of economics theories, logic and tools of economic analysis that are used in the process of business decision making. 7. Scarcity in economics … We have also attached some more study material below. Littauer Center 1805 Cambridge Street Cambridge, MA 02138 Phone (617) 495-2144 Fax (617) 495-7730 ‘Take off stage’ in an economy means: [CBI 1990], (a) steady growth begins These enterprises have incurred huge expenses for the provision of amenities to the employees and townships to accommodate them. (d) Rajiv Gandhi. (c) Industrial Policy of 1948 Ans. According to Chamberlin, pure competition means “competition unalloyed with monopoly elements,” whereas perfect competition involves “perfection in many other respects than in the absence of monopoly”. Old furniture can go on being used almost indefinitely so long as it is properly looked after. From the managerial point of view, mere industry demand is not enough. On the one hand, he has the monopoly of buying bauxite and on the other, of selling aluminium. Due to several mistakes, flaws, and omissions in project planning, many of the public enterprises take longer time to complete, which results in increasing the cost of the project and considerable delay in their completion. The Karta can borrow funds for conducting the business but the other co-partners are liable only to extent of their share in the business. Part 1 – Practice Questions … If the marginal cost is higher than the average variable cost, the latter must be rising. These exams are from Professor William Wheaton's course, 14.01 Principles of Microeconomics from Fall 2007, and are used with permission. The salary and wage scale of the personnel of these undertakings are comparatively low than private sector undertakings and due to this capable people are not available. It may be noted here that within an industry, the products of one manufacturer can be substituted by products of another manufacturer even though the products themselves might be differentiated by brand names. The “Karta” exercises full control over the entire business, and other co-partners have no right to interfere in the management of business, so this hampers the initiative and enterprise of individuals. Find helpful Economics questions and answers on Chegg.com. 7. (b) Finance Commission Dr. Reed Neil Olsen - Practice Exam Questions Economics 165 - Principles of Microeconomics. For example, if electricity rates are reduced, in the short-run, existing users of electrical appliances will make greater use of these appliances ultimately leading to a still greater demand for electricity. If he fixes OP price, then the level of output OA to be sold is determined by his customers. The pure monopolist takes all consumers’ incomes all the time.”. However, it is necessary for parliament to allow a certain amount of flexibility in regard to control to be exercised from time to time. Determination of demand for these goods has to take into consideration the replacement investment and expansion of the industry. It has never existed and will never exist. 5. Though the real world does not fulfill the condition of perfect competition, yet perfect competition is studied for the simple reason that it helps us in understanding the working of an economy, where competitive behaviour leads to the best allocation of resources and the most efficient organization of production. i. The relationship among total cost, average cost, and marginal cost is shown in Table 3.1. (c) Third Plan His price-output policy does not influence firms in other industries. Before publishing your Articles on this site, please read the following pages: 1. The cross elasticity of demand with every other product is zero. For example, at an output of 13 units, the total cost is Rs.624. There can be no objection to parliament’s control of State enterprises in which huge public funds are involved. Sales of non-durables are made largely to meet current demand which depends on current conditions. An industry demand schedule represents the relation of the price of the product to the quantity that will be bought from all the firms. For managing the units efficiently, there is need to run them on business principles and further they should be given a large measure of autonomy in the day-to-day administration. I have prepared Free Economics Questions and Answers blog to increase your Economics … Thus even a pure monopolist with no rivals at all cannot fix both price and output at the same time. 1500+ Economics Question & Answer PDF Download: Economics is very important for every competitive exams in these days. National Development Council was set up in: 2. The relation of the individual company’s sales to its price should be determined by the industry demand schedule. The board of directors appointed to various public undertakings are nominated by the government, mostly from the government officials of the various departments The Estimates Committee has felt that these directors cannot play any useful role. Ans. (c) Fundamental Duties In the third case, if the monopolist tries to install a plant larger than this optimum scale plant, he will lose instead of gaining more by producing a larger output. 10. Some of the advantages of Joint Hindu Family firm are as follows: 1. Thus he faces the industry demand curve, his firm being an industry itself. Perfect competition is often distinguished from pure competition, but they differ only in degree. What is more important is the company’s share in the total industry demand and the relationship between the two, as also the relationship between the company’s share of the demand and that of the competing firms. Professionals, Teachers, Students and Kids Trivia Quizzes to test … In the case of partnership firm, a minor cannot become a full-fledged partner, but in the case of the Joint Hindu Family business even a minor becomes a co­partner from the moment of his birth. If the marginal cost first falls and then rises, i.e., the marginal cost curve is U-shaped, the marginal cost will be equal to the average cost at a point where the average cost is the minimum. Seminar as well as by other experts’ committees, which were constituted to examine the working of public enterprises. Thus, economics gives the simplified model, whereas managerial economics modifies and enlarges it. 70% of working population of India is engaged in: (a) public sector (d) increasing collaboration with non-resident Indians, 5. As against the above advantages, the Joint Hindu Family firm suffers the following disadvantages: 1. (c) Administrative Reforms Commission Accordingly, he builds the plant by adjusting its scale of plant in the long run, the monopoly firm has been able to sell more at a lower price and earn larger profits than in the short-run. It is estimated that the average investment in township accounts to about 20% of the cost of a project. The various reasons that have contributed for over-capitalization are the inadequate planning, surplus capacity, delays in construction, heavy investment on housing and labour welfare, and bad location of projects. Has the monopoly of buying bauxite and on the one hand, book costs can reduced. 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