Business, Trade and Commerce Test 20

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Business, Trade and Commerce Test 20

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Weekly Quiz Competition

Question 1
1 / -0

When Total Revenue equals Economic Costs, it means that the firm________________.

A
Has No-profits-No-Loss

B
Earns Normal Profits

C
Earns more than Normal Profits (i.e. Super -Normal Profits)

D
Incurs Looses in the accounting sense

Solution

Accounting profit is the monetary costs a firm pays out and the income a firm receive. It is the accounting profit, and it is higher than economic profit.
Accounting profit = total monetary revenue- total costs.
Economic profit is the monetary costs and opportunity costs a firm pays and the revenue a firm receives.The level of profit that occurs when total revenue is equal to total cost. This stage indicates that a firm is doing just as well as it would have if it had selected to use its income to produce a different product or struggle in a different industry.
Common profit is also known as zero monetary profit.

Thus, the correct option is B.
Question 2
1 / -0

An indifference curve slopes down towards right since more of one commodity and less of another result in.

A
Same satisfaction

B
Greater satisfaction

C
Maximum satisfaction

D
Decreasing expenditure

Solution

An indifference curve slopes down towards right since more of one commodity and less of another result same satisfaction to the consumer.
Question 3
1 / -0

Comforts lies between the.

A
Inferior goods and necessaries

B
Luxuries and inferior goods

C
Necessaries and luxuries

D
None of the above

Solution

Comforts lies between necessaries and luxuries because comforts refer to those goods which are not required for a happy living.
Question 4
1 / -0

In the book market, the supply of books will decrease if any of the following occurs except.

A
A decrease in the number of book publishers

B
A decrease in the price of the book

C
An increase in the future expected price of the book

D
An increase in the price of paper used

Solution

One is the case of movement(not shifting) and others are case of shifting of supply.
Question 5
1 / -0

A large Firm can offer better security to Bankers and obtain credit easily. This creates ________ for such Firm.

A
Internal Economies of Scale

B
Internal Diseconomies of Scale

C
External Economies of Scale

D
External Diseconomies of Scale

Solution

A large Firm can offer better security to Bankers and obtain credit easily. This creates Internal Economies of Scale for such Firms. Internal Economies of Scale generally causes the average cost to fall and the production gets increased. It is related to the internal factors of the business firm.
Question 6
1 / -0

Equity Offer through 'Differential Pricing Method' primarily refers to ________________________.

A
Government selling part of its Shares in one PSU to other PSUs

B
Government selling Shares of PSUs to Public Sector Financial Institutions and Banks

C
Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges

D
None of the above

Solution

Differential pricing refers to different prices functional in the market based on various factors such as geography, external environment or various reasons. This implies that there is one product in the market, but, different people need to pay different prices for it.
Cross holding method of Disinvestment refers to Government selling part of its Shares in one PSU to other PSUs. The term disinvestment is more popularly used where central/ state government sells its holdings of public sector companies. Disinvestment means selling of Public investment to a Private entrepreneur.
The correct option is B.
Question 7
1 / -0

Sale of a major portion of Government stake to a Strategic Buyer and also giving over the management control is called as ____________.

A
Strategic Sale

B
Cross Holding

C
Warehousing

D
Retaining Golden Share

Solution

When the government decides to transfer the ownership and control of a public sector entity to some other entity, either private or public, the process is called strategic disinvestment.
The Department of Investment and Public Asset Management which comes under the Finance Ministry defines Strategic disinvestment as follows: “Strategic disinvestment would imply the sale of a substantial portion of the Government shareholding of central public sector enterprises of up to 50%, or such higher percentage as the competent authority may determine, along with transfer of management control.”
The correct option is A.
Question 8
1 / -0

Maintaining Government's stake up to 26% in the PSU to protect its interest is called as ______________.

A
Strategic Sale

B
Cross Holding

C
Warehousing

D
Retaining Golden Share

Solution

Maintaining Government's stake up to 26% in the PSU to protect its interest is called as retaining Golden Share. Golden share is mostly held by the Government in the process of privatization of a Public Sector Undertaking. Golden share can be defined as a nominal share which has the capability to outvote all other shares.
Question 9
1 / -0

Quantitative Methods aim at influencing _______________________.

A
The end-use of credit in specific areas

B
The total volume of credit in the banking system

C
Both (a) and (b)

D
Neither (a) nor (b)

Solution

Quantitative Methods aim at influencing the total volume of credit in the banking system.Quantitative measures to control credit are also known as general measures. Quantitative instruments of control credit are those instruments which focus on overall supply of money in the economy. These measures are used in a manner such that overall supply of money in the economy is reduced during inflation and increased during deflation.
Question 10
1 / -0

In the context of Indian Economy, there may be a need for importing foodgrains in case of:

A
Balancing exports and imports of foodgrains.

B
Severe shortages of foodgrains due to drought, floods, etc.

C
Increase in the consumption of foodgrains

D
None of the above

Solution

In the context of Indian Economy, there may be a need for importing food grains in case of severe shortages of food grains due to drought, floods, etc.
To cope up with the shortage of food, Government of India imports food grains from abroad to sustain the food crisis in the domestic economy.

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Re-Attempt Weekly Quiz Competition

Business, Trade and Commerce Test 20

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Business, Trade and Commerce Test 20

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SHARING IS CARING

Question 1

Has No-profits-No-Loss

Earns Normal Profits

Earns more than Normal Profits (i.e. Super -Normal Profits)

Incurs Looses in the accounting sense

Solution

Question 2

Same satisfaction

Greater satisfaction

Maximum satisfaction

Decreasing expenditure

Solution

Question 3

Inferior goods and necessaries

Luxuries and inferior goods

Necessaries and luxuries

None of the above

Solution

Question 4

A decrease in the number of book publishers

A decrease in the price of the book

An increase in the future expected price of the book

An increase in the price of paper used

Solution

Question 5

Internal Economies of Scale

Internal Diseconomies of Scale

External Economies of Scale

External Diseconomies of Scale

Solution

Question 6

Government selling part of its Shares in one PSU to other PSUs

Government selling Shares of PSUs to Public Sector Financial Institutions and Banks

Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges

None of the above

Solution

Question 7

Strategic Sale

Cross Holding

Warehousing

Retaining Golden Share

Solution

Question 8

Strategic Sale

Cross Holding

Warehousing

Retaining Golden Share

Solution

Question 9

The end-use of credit in specific areas

The total volume of credit in the banking system

Both (a) and (b)

Neither (a) nor (b)

Solution

Question 10

Balancing exports and imports of foodgrains.

Severe shortages of foodgrains due to drought, floods, etc.

Increase in the consumption of foodgrains

None of the above

Solution

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