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.Management Sciences
Category: Economics Mcqs
According to the classical economists, the only gainers from growth would be ?
A. landlords
B. peasants
C. The army
D. politicians
The Keynesian remedy for unemployment is to ?
A. decrease aggregate demand
B. reduce tax rates or lower interest rates
C. decrease government spending
D. decrease private consumption and investment
In a free market?
A. government intervenes
B. government plan production
C. government interferes
D. Prices adjust to reconcile scarcity and desires
The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?
A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic
B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time.
C. This a very good way to raise revenue both in the short term and in the long term, because there are no substitutes for cigarettes.
D. No tax revenue can be raised in this way because sellers of cigarette will just lower their price by the amount of the tax and therefore, the price of cigarettes to consumers will not change
All of the following factors can affect the attractiveness of a market segment EXCEPT ?
A. the presence of many strong and aggressive competitors
B. the likelihood of government monitoring
C. actual or potential substitute products
D. the power of buyers in the segments
An increase in the price of beef providers information which ?
A. provides no information because prices in a market system are managed by planning boards.
B. tells consumers to buy less pork
C. tells producers to produce more beef.
D. tells consumers to buy more beef.
Sana values a pair of blue jeans at Rs400. If the price is Rs350 Sana buys the jeans and generates consumer surplus of Rs50 Suppose a tax is placed on blue jeans that causes the price of blue jeans to rise to Rs450 Now sana chooses not to buy a pair of?
A. the deadweight has demonstrated
B. the ability-to-pay principle
C. the benefits principle
D. horizontal equity
E. The administrative burden of a tax.
What was the yield of wheat in 2010-11 ?
A. 2237 kgs/hec
B. 2314 kgs/hec
C. 2217 kgs/hec
D. 2247 kgs/hec
Starting from a balanced budget, for a given tax rate, an increasing in income will cause the government budget to ?
A. move into surplus
B. move into deficit
C. remain unchanged
D. None of the above above
Current anti-poverty programs discourage work because ?
A. benefits are reduced at such a high rate when recipients earn more income that there is little or no incentive to work once one is receiving benefits.
B. in order to be eligible for benefits a recipient cannot have a job
C. they make recipients more comfortable than most middle-class citizens.
D. anti-poverty programs attract naturally lazy people to begin with.
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