Effects of an Open Economy

Q.

The supply chain concept originated in what discipline?

1. marketing

2. operation

3. logistics

4. production

Q.

A country which does not trade with other countries is called:

1. None of the above

2. Independent

3. Open

4. Closed

Q.

The allocated function is performed by

Q.

Are the concepts of demand for domestic goods and domestic demand for goods the same?

Q.

Which of the following is true about an open economy?

1. Consumers can now consume more

2. Producers can hire more workers

3. Banks can expand lending activities

4. Producers can produce more

Q.

Name our major trading partners at the time of independence and at present.

Q. An indifference curve slopes downwards to the right as this implies that consumer is indifferent between:

1. More of one commodity and same amount of another
2. None of the above
3. Less of one commodity and same amount of another
4. Greater amount of both the commodities

Q. The key aspect of an open economy is .

1. more choices
2. greater area
3. more diversity
4. more recognition

Q. The U.S. economy, which uses a combination of markets and government to allocate resources, is best considered as ___________.

1. Pure market economy
   
2. Socialism
3. Capitalism
4. Market based capitalism

Q.

Suppose US based ABC Corp hires workers from India. Which linkage is it part of for an open economy?

1. Financial markets

2. Factor markets

3. Consumption

4. None of the above

Q. What is consumption function?

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

1. Same satisfaction
2. Greater satisfaction
3. Maximum satisfaction
4. Decreasing expenditure

Q.

The ability to choose between foreign and domestic goods is a part of ___ linkage.

1. None of the above

2. Financial markets

3. Factor markets

4. Consumption

Q. Intersection between aggregate demand and aggregate supply curves determines the point of _______ demand.

1. joint
2. composite
3. complementary
4. effective

Q. Chicken and fish are substitutes. If the price of chicken increases, the demand for fish will.

1. Increases or decreases but the demand curve for chicken will not change
2. Increases and the demand curve for fish will shift rightwards
3. Not change but there will be a movement along the demand curve for fish
4. Decreases and the demand curve for fish will shift leftwards

Q. The ability to choose between foreign and domestic goods is a part of linkage.

1. financial market
2. factor market
3. exchange
4. consumption

Q.

The ability to choose between stocks in India and stocks in the US for investment is a part of ___linkage.

1. Consumption

2. Financial markets

3. Factor markets

4. None of the above

Q.

Which of the following is a key aspect of an open economy?

1. None of the above

2. More diversity

3. More choices

4. Greater area

Q. Business as an entrepreneurial hub is one of the major drivers identified by ________________.

1. innovative Start-ups
2. the Expert Committee on Innovation & Entrepreneurship
3. None of the above
4. incubation policy

Q. Market demand curve for a commodity is ___________.

1. the demand curve of an individual as expressed in the market
2. obtained by adding together the demand curves of all the individuals in the market
3. non-existent
4. none of the above

Q. An open economy is any country that does not trade financial assets with another country.

1. True
2. False

Q. Product market linkage refers to the linking of domestic goods market and international goods market.

1. False
2. True

Q. Consumer price index is suitable for -

Q. The supply curve for perishable commodities is __________.

1. Elastic
2. Inelastic
3. Perfectly elastic
4. Perfectly inelastic

Q. Which of these is not a determinant of cost of production?

1. Plant size
2. Scale of production
3. Consumer tastes and preferences
4. Input prices

Q. Answer in detail.
Give an idea about the subjective factors determining consumption function.

Q. In an open economy, banks can expand their lending activities.

1. False
2. True