Tag: supply

Questions Related to supply

When a transaction is processed online, how can the merchant verify the customer's identity?

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. use secure sockets layers

  2. use secure electronic transactions

  3. use electronic data interchange

  4. use financial electronic data interchange

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Correct Option: B

The reservation price for flowers is low.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. True

  2. False

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Correct Option: A
Explanation:

The reservation price for flowers are likely to stay low due to higher production and it has to be consumed in a short span of time otherwise it will be rotted.

Indian financial system has provisions for the transfer of resources from the center to the states; the important means of resource transfer are _________________.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. devolution from the central taxes

  2. grant-in-aids for different purposes

  3. loans of short and long term periods

  4. All of the above

Show answer
Correct Option: D

Prices under price mechanism are determined by the ____________.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. market forces of demand and supply

  2. government as well as firms

  3. producers alone

  4. factors of production

Show answer
Correct Option: A
Explanation:

In price mechanism, prices of commodities in the market are determined by the forces of demand and supply that generates open competition in the market which leads optimum distribution of goods and services. 

Forces of demand and supply operate within the framework of a market.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa which generates within the framework of a market. 

___________ markets are those markets where factor services are bought and sold.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. Factor

  2. Service

  3. Production

  4. None of the above

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Correct Option: A
Explanation:

Factor market refers to those market where factor services i.e. factors of production like capital, land, labour, and entrepreneurship are bought and sold against some factor payments like interest, rent, wages, and profit.

Price mechanism operates in a ___________ economy

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. socialist

  2. free-enterprise

  3. mixed

  4. none of the above

Show answer
Correct Option: B
Explanation:

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa. Therefore for price mechanism to operate, the market should be free from all types of interventions. 

In a free-market economy, the services of ___________ are available only at some price.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. government

  2. factors of production

  3. housewives

  4. none of the above

Show answer
Correct Option: B
Explanation:

In a free market economy, prices of commodities in the market are affected by the forces of demand and supply that generates open competition in the market which leads to optimum allocation and utilization of resources because the prices of the factor of production depends upon the demand and supply of the commodities produced by it. 

______________ is the mechanism in which prices play a key role in directing the activities of producers, consumers and resource suppliers.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. Price mechanism

  2. Market mechanism

  3. Production mechanism

  4. Demand-supply mechanism

Show answer
Correct Option: A
Explanation:

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa. It also regulates the supply of resources in the economy as more resources are supplied if there is more demand for the commodity produced using it. 

Forces of demand and supply operate within the framework of a/an __________.

economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

  1. economy

  2. market

  3. nation

  4. government

Show answer
Correct Option: B
Explanation:

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand by the consumer sector i.e demand will increase if price decreases and vice-versa which generates within the framework of a market.