Critical Thinking Skills Quiz Template

2.

A market situation when many firms sell similar but not identical products is termed as

Perfect competition
Imperfect competition
Monopolistic competition
Oligopoly

Correct Answer

A. Monopolistic competition

Explanation

Monopolistic competition refers to a market situation where there are many firms selling similar but not identical products. In this type of competition, each firm has some control over the price and quality of its product, but there is still some level of competition from other firms. This market structure is characterized by product differentiation, meaning that firms try to distinguish their products through branding, advertising, or other means. As a result, firms in monopolistic competition have some degree of market power, but there is still enough competition to prevent them from being true monopolies.

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3.

Timothy Donald Cook, popularly known as Tim Cook, is the Chief Executive Officer (CEO) of which of these companies?

Google
Twitter
Amaazon
Apple

Correct Answer

A. Apple

Explanation

Timothy Donald Cook, also known as Tim Cook, is the CEO of Apple. This means he is the highest-ranking executive in the company and is responsible for making major decisions, setting the company's strategy, and overseeing its operations. Cook took over as CEO of Apple in 2011, succeeding Steve Jobs. Under his leadership, Apple has continued to innovate and release successful products such as the iPhone, iPad, and Apple Watch.

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4.

**The Goods and Services Tax was proposed by a task force, whose president was**

Vijay Kelkar
Arun Jaitly
Narsimham
Montek Singh Ahluwalia

Correct Answer

A. Vijay Kelkar

Explanation

The correct answer is Vijay Kelkar. Vijay Kelkar was the president of the task force that proposed the Goods and Services Tax (GST). The GST is a comprehensive indirect tax that was implemented in India to replace multiple taxes such as excise duty, service tax, and value-added tax. Kelkar's role as the president of the task force highlights his involvement in the formulation and recommendation of the GST to the Indian government.

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5.

According to John Maynard Keynes, employment depends upon

Aggregate demand
Aggregate supply
Effective demand
Rate of interest

Correct Answer

A. Effective demand

Explanation

According to John Maynard Keynes, employment depends on effective demand. Effective demand refers to the total spending by households, businesses, and the government in an economy. Keynes argued that when there is insufficient effective demand, businesses will not invest and hire workers, leading to unemployment. Therefore, to stimulate employment, it is necessary to increase effective demand through policies such as government spending or reducing interest rates to encourage borrowing and spending.

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6.

SMERA Limited, a popular body in the financial world, is a full service

Asset Financing Company
Asset Management Company
Credit Information Bureau
Credit Rating Agency

Correct Answer

A. Credit Rating Agency

Explanation

SMERA Limited is a popular body in the financial world and is known for its expertise in credit ratings. A credit rating agency is responsible for assessing the creditworthiness of individuals, companies, and governments by analyzing their financial stability and ability to repay debts. SMERA Limited, being a credit rating agency, provides independent and reliable credit ratings to help investors and lenders make informed decisions about lending money or investing in various entities.

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7.

**The Bank of Nova Scotia operating as Scotiabank is headquartered in**

Toronto, Canada
Stockholm, Sweden
Geneva, Switzerland
Glasgow, Scotland

Correct Answer

A. Toronto, Canada

Explanation

Scotiabank is headquartered in Toronto, Canada. This information can be inferred from the statement "The Bank of Nova Scotia operating as Scotiabank is headquartered in Toronto, Canada."

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8.

Under increasing returns the supply curve is

Positively slopped from left to right
Negatively slopped from left to right
Parallel to the quantity axis
Parallel to the price-axis

Correct Answer

A. Negatively slopped from left to right

Explanation

Under increasing returns, the supply curve is negatively sloped from left to right. This means that as the quantity of a good or service increases, the price at which it is supplied decreases. This is because as production increases, economies of scale are achieved, resulting in lower average costs of production. As a result, producers are willing to supply more quantity at lower prices, leading to a downward sloping supply curve.

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9.

Which one of the following is not an assumption in the law of demand?

There are no changes in the taste and preferences of consumers
Income of consumers remains constant
Consumers are affected by demonstration effect
There are no changes in the price of substitute goods

Correct Answer

A. Consumers are affected by demonstration effect

Explanation

The assumption in the law of demand is that consumers are not affected by the demonstration effect. The law of demand states that as the price of a good or service increases, the quantity demanded decreases, assuming all other factors remain constant. The demonstration effect refers to the influence of others' consumption choices on an individual's preferences and demand. Therefore, if consumers are affected by the demonstration effect, it means that their preferences and demand can be influenced by others, which contradicts the assumption of the law of demand.

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10.

SBI Life Insurance Limited is a joint venture life insurance company of state Bank of India (SBI) and

HDFC life Insurance Company
Life Insurance Corporation of India
BNP Paribas Cardif
ICICI Prudential Life Insurance Company

Correct Answer

A. BNP Paribas Cardif

Explanation

SBI Life Insurance Limited is a joint venture life insurance company of State Bank of India (SBI) and BNP Paribas Cardif. This means that BNP Paribas Cardif is one of the partners in the joint venture, along with SBI. Therefore, BNP Paribas Cardif is the correct answer as it is one of the companies involved in the joint venture with SBI to form SBI Life Insurance Limited.

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Critical Thinking Skills Quiz Template

**Indian multinational steel making company Tata Steel Limited is headquartered in**

Quiz Preview

A market situation when many firms sell similar but not identical products is termed as

Timothy Donald Cook, popularly known as Tim Cook, is the Chief Executive Officer (CEO) of which of these companies?

**The Goods and Services Tax was proposed by a task force, whose president was**

According to John Maynard Keynes, employment depends upon

SMERA Limited, a popular body in the financial world, is a full service

**The Bank of Nova Scotia operating as Scotiabank is headquartered in**

Under increasing returns the supply curve is

Which one of the following is not an assumption in the law of demand?

SBI Life Insurance Limited is a joint venture life insurance company of state Bank of India (SBI) and