FUNDAMENTALS OF COMMERCE UNIT-2

Contents

#1. National income accounting measures the value of:

#2. What does the price elasticity of supply measure?

#3. Which of the following is NOT included in the calculation of GDP?

#4. In a monopolistic competition market, products are:

#5. The law of supply states that, all else being equal:

#6. Who is known for defining macroeconomics as the study of the economy as a whole, including factors like inflation, unemployment, and economic growth?

#7. If a consumer continues to consume a good even when the marginal utility is zero, what can be inferred?

#8. Which of the following is a limitation of GDP as a measure of economic well-being?

#9. Gross National Product (GNP) includes:

#10. Macroeconomics often studies the relationships between:

#11. What is the primary goal of calculating GNP?

#12. In economics, luxury cars, high-end fashion, and fine dining are often classified as:

#13. The study of fiscal policy, monetary policy, and international trade policy is part of:

#14. In the long run, what happens to the number of firms in a perfectly competitive industry if firms are earning economic profits?

#15. In the short run, if a perfectly competitive firm's marginal cost is greater than its marginal revenue, the firm should:

#16. What are complementary goods?

#17. If a 5% increase in the price of smartphones leads to a 10% decrease in the quantity demanded, what is the price elasticity of demand?

#18. In which market structure do firms engage in strategic pricing and are interdependent in their decision-making?

#19. When a percentage change in price leads to more than percentage change in quantity demand is called _____:

#20. In a perfectly competitive market, what happens if a firm tries to charge a price higher than the market price?

#21. Which of the following represents the total income earned by all factors of production in an economy?

#22. Which of the following is a characteristic of perfect competition?

#23. Which of the following is a microeconomic concept?

#24. What is marginal utility?

#25. In a perfectly competitive market, which of the following is true?

#26. If a good is considered a superior good, what happens to its demand when consumer incomes increase?

#27. What does microeconomics study?

#28. What is a key characteristic of perfect competition?

#29. Which of the following is a key feature of the income approach to measuring GDP?

#30. Which market structure typically results in the highest level of consumer choice and the lowest prices?

#31. In which market structure do firms engage in non-price competition, such as advertising and product differentiation?

#32. In perfect competition, what determines the price of the product?

#33. Which of the following types of elasticity represents a situation where a percentage change in price leads to a larger percentage change in quantity demanded?

#34. What is the price elasticity of demand for a perfectly elastic demand curve?

#35. The income elasticity of demand measures:

#36. In the short run, a perfectly competitive firm will maximize profit when it produces the quantity where:

#37. If a country's GDP grows by 3% from one year to the next, which of the following statements is true?

#38. If the income elasticity of demand for a good is negative, it suggests that the good is:

#39. Macroeconomics focuses on studying:

#40. If the price of a product increases by 10%, and the quantity demanded decreases by 5%, what is the price elasticity of demand?

#41. If the price elasticity of supply is greater than 1, the supply is considered:

#42. What is elasticity of demand?

#43. Which law of economics states that as a consumer consumes more units of a good, the additional satisfaction (marginal utility) from each successive unit will decrease?

#44. Which of the following is NOT a characteristic of perfect competition?

#45. If firms in a perfectly competitive market are earning economic profits in the long run, what will happen to the price in the industry?

#46. In the expenditure approach to calculating GDP, which component represents spending by businesses on capital goods like machinery and equipment?

#47. If the cross-price elasticity of demand for two goods is positive, it indicates that these goods are:

#48. If the price elasticity of supply is less than 1, the supply is considered:

#49. Who is known for the concept of the "invisible hand" in supply and demand?

#50. Which of the following is a component of GNP?

Finish

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