Economics · General Awareness

Economics Concepts and Theories

1,657 Questions

Review fundamental and advanced economics concepts through this structured question bank. The topics include macroeconomics, fiscal policy, international trade theories, and economic regulation. These questions are ideal for candidates preparing for civil services and other administrative competitive examinations.

Macroeconomics fundamentalsInternational trade theoriesFiscal policy debatesEconomic regulationLabor theory of value

Economics Concepts and Theories Questions

Multiple choice economics consumption and investment functions determinants of consumption function and savings function production, consumption, saving and economic units ex ante and ex post

The consumption function depends on _______________.

  1. interest

  2. savings

  3. wealth

  4. income
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Consumption function refers to the standard equation of consumption which defines the relationship between consumption and income where consumption value can be derived at each level with the use of income value. 

C= c+ bY where c=autonomous consumption, b= marginal propensity to consume, and Y= income.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

The general pattern of increase or decrease in economics or social phenomena is shown by:

  1. Seasonal trend

  2. Cyclical trend

  3. Secular trend

  4. Irregular trend
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

$\Rightarrow$  The general pattern of increase or decrease in economics or social phenomena is shown by : $Secular\, trend$.

$\Rightarrow$  Term tendency of the time series to move in an upward or down ward direction. It indicates how on the whole, it has behaved over the entire period under reference.
$\Rightarrow$  These are result of long-term forces that gradually operate on the time series variable. A general tendency of a variable to increase, decrease or remain constant in long term.
$\Rightarrow$  Secular trend is be long-term tendency of the time series to move on upward or downward direction. It indicates how on the whole behaved over the entire period under reference.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In economics, _______ is a period where all factors/inputs are variable.

  1. long run

  2. short run

  3. very short period

  4. none of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.

Multiple choice economics laws of returns - returns to a factor and returns to scale production and costs production function producer behaviour and supply total product, average product and marginal product production and law of variable proportions production return to scale and cobb douglas function land land,labour, capital and entrepreneur how does production take place?

In economics, ________ is a period where some factor inputs are fixed, while the others are variable.

  1. long run

  2. short run

  3. very long period

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The short run, as economists use the phrase, is characterized by at least one fixed factor of production so the proportion of inputs can be changed, the law of variable proportion will only operate in the short run. It is in the long run all factors are variable as producers have enough time to organize all factor inputs in the appropriate proportions to achieve the minimum efficient scale.

Multiple choice botany sustainable development with equity sustainable management conservation sustainable development

Value of a resource depends upon

  1. Quantity of resource

  2. Quality of resource

  3. Type of society and its needs

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The resources are the substances which can be harnessed for the production of energy. The value of the resource depends on the quantity and the quality. The quantity describes the amount of the resource which is present on the Earth and available for use. The quality is the form in which the resource can is present and needs to be transformed so that it can be used. The metals are obtained as ores and should be purified to pure quality for use. The value depends on the type and the need of society. When there is more population residing in a society, the requirement will be more and the value of the resource will increase. 

Thus, the correct answer is option D. 

Multiple choice historical tools and life of people in britain life in britain in the twentieth century history

_______ involve controlling the economy by limiting how much money it is available to spend.

  1. Financial Policies

  2. Economist Policies

  3. Monetarist Policies

  4. Federal Policies
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
  • Monetarist policies involve controlling the economy by limiting how much money it is available to spend.
  • Rising prices, high unemployment and slow economic growth were some issues in Britain when Margaret Thatcher became the Prime minister. She was determined to reverse this with her monetarist policies.
Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

___________ refers to the amount of money which must be exchanged for a unit of a commodity.

  1. Value

  2. Utility

  3. Price

  4. Goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Power of commodity which can command to exchange itself with the other good is called the Value of product. Usually a product is valued by the money. And this money with which a product is valued is called its price.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

Which of the following is not a main approaches to Pricing of commodities.

  1. Classical Ecoomists

  2. Australian approach

  3. Marshall approach

  4. Neo-classical economist
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Classical, Marshallian, and Australian approaches are recognized frameworks in economic pricing theory. Neo-classical is a broad school of thought rather than a specific 'approach to pricing' in the context of commodity pricing literature.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

A capitalist economy uses_____as the principal means of allocating resources.

  1. Demand

  2. Supply

  3. Efficiency

  4. Prices
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In a capitalist economy, personal gains are given more preference than social welfare. Therefore, allocating of resources takes place on the basis of what value it will yield after production and this done through prices.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

Prices rate is determined on the basis of demand and supply, such kind of an economy is?

  1. Market driven economy

  2. Closed economy

  3. Seller driven economy

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The demand and supply of a commodity prevails in the market, so if their are changes in the price of the commodity due to change in its demand and supply in the market then it is said that market influences the price rate in the economy.

Multiple choice computer and ms office mathematical methods for economics economics

Mathematical Economics is the integration of _________________.

  1. Graphs and Economics

  2. Mathematics and Economics

  3. Economics and Equations

  4. Economics and Statistics
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mathematical economics is the application of mathematical methods to represent theories and analyze problems in economics. By convention, these applied methods are beyond simple geometry, such as differential and integral calculus, difference and differential equations, matrix algebra, mathematical programming, and other computational methods.

Multiple choice history the industrial revolution from capitalism to imperialism industrial revolution and inventions industrial revolution and its effects

As economists, we refer to the doctrine that holds that government should leave economic affairs primarily to the market as:

  1. Capitalism

  2. Laissez-faire

  3. Communism

  4. Dormez-vous
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Laissez-Faire is the French term for free trade. It is a system in which the government doesn't interfere much in the economy of the country and leaves its functioning to the market. Thus, Laissez-Faire is the right answer.

Multiple choice business economics and quantitative methods public economics components of budget and budgetary procedure government budget and taxation government budget and economy

_____________ economists believed that the policy of balanced budget may not always be suitable for the economy.

  1. Classical

  2. Modern

  3. Neo-classical

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The classical economist advocated and proposed the concept of balanced where according to them, a balanced budget refers to a budget where the government expenditure and government revenue are equal and there is no surplus budget or deficit budget in the economy. They believed that for some types of economies the policy of balanced budget may not be suitable.