Which of the following can cause oil glut in the International market?
Excess demand over supply
Under-capacity utilization
Excess supply over demand
Economic boom
Correct answer is C
Oil glut is a Market situation where the supply of a good or service far exceeds its demand, usually resulting in a substantial fall in its price.
Population growth is determined by_______?
Dependency ratio
Labour force
Per capita
Net migration
Correct answer is D
Fertility, mortality and migration are principal determinants of population growth.Population change depends on the natural increase changes seen in birth rates and the change seen in migration. Changes in population size can be predicted based on changes in fertility (births), mortality (deaths) and migration rates.
A government budget proposing to spend more than its expected revenue in a year will create_______?
Opportunity for combating inflation
Depression in the economy
Shortage in money supply
Opportunity for full employment
Correct answer is D
When the government spends more than it collects, a budget deficit exists.
A country's terms of trade can be improved by________?
Revaluation of currency
Collective bargaining
Reducing demand for imported goods
Imposing lower export duties
Correct answer is C
A country can purchase more imported goods for every unit of export that it sells when its TOT improves. An increase in the TOT can, therefore, be beneficial because the country needs fewer exports to buy a given number of imports. To improve the terms of trade, imports have to be reduced to atleast match up exports.
Consumers allocate their resources based on the ______?
Law of diminishing marginal utility
Value in use and value in exchange principle
Law of returns to scale
Diamond and water paradox
Correct answer is B
Value-in-exchange: It is the amount of goods and services which we may obtain in the market in exchange of a particular thing. In other words, it is the price of a particular good which can be sold and bought in the market.
Value-in-use is the net present value (NPV) of a cash flow or other benefits that an asset generates for a specific owner under a specific use.