Economics · General Awareness

Economics Concepts and Theories

1,710 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 ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Human wants may be classified into ______________________.

  1. Economic wants & non-economic wants

  2. Economic wants & unsatisfied wants

  3. Satisfied wants & non-economic wants

  4. Plain wants & economic wants
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Human wants refers to the demands of humans in order to satisfy themselves.

Some wants results in monetary gain for the people who are demanding it known to be as economic wants whereas some wants are for the welfare of other people which is called non-economic wants.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Which one of the following is incorrect?

  1. There are limited wants.

  2. Means are scarce.

  3. Resources have alternative uses.

  4. Economics is a science.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Human wants are unlimited and resources are limited which leads to problem of choice. Thus the statement, 'there are limited wants' - is incorrect.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

"All that have got value are called wealth" is the statement of _____.

  1. Adam Smith

  2. J.M. Keynes

  3. Marshall

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

John Maynard Keynes, was a British economist. His ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and is widely considered to be one of the most influential economists of the 20th century and the founder of modern macroeconomics.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Wealth is  _______________ welfare.

  1. Synonymous of

  2. Only a means to

  3. Antonymous of

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

According to Marshall's definition, wealth is only a means to welfare. Marshall pointed out that for economics, wealth is not an end in itself but it is only a means to an end; the end being the promotion of human welfare. Thus, according to Marshall, wealth is only a secondary thing, it is man and his ordinary business of life which is the primary object of economic study. In fact, Marshall tried to make the study of economics an engine of social betterment.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

__________ defined economics as a "study of Economic welfare which is that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money".

  1. A C Pigou

  2. JN Keynes

  3. A. Lincoln

  4. Samuelson
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

AC Pigou defined economics as a "study of Economic welfare which is that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money". He gave more importance to the study of man than to wealth. Thus it focused more on human welfare and social science. 

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

In economics wealth is the stock of all those material and immaterial objects which _______.

  1. are transferable

  2. have utility

  3. are scarce

  4. all the three
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
1) Wealth are transferable. For example, money is a part of wealth and can be transferred fro one place to another.
2) Material and immaterial objects possess some kind of power of satisfying wants of the human beings. Therefore, wealth has utility.
3) Wealth are the scarce resources but human wants are unlimited.
Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Adam Smith considered Economics as:

  1. Science of Wealth

  2. Science of Material Well-being

  3. Science of Choice-making

  4. Science of Growth and Development
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to Adam Smith who was a Scottish economist, economics is the science of wealth which means that economics aims at generating wealth both individually and for the nation as a whole. 

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Which of these Economics did not consider Economics as Science of Wealth?

  1. Adam Smith

  2. J B Say

  3. Alfred Marshall

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

Alfred Marshall placed a greater emphasis on welfare rather than wealth, in his Principle of Economics" book published in 1890. Marshall defines economics as “a study of men as they live and move and think in the ordinary business of life.”

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

J B Say considered Economics as:

  1. Science of Wealth

  2. Science of Material Well-being

  3. Science of Choice-making

  4. Science of Growth and Development
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

J B Say was a French economist who described economics as the science of wealth as he believed that economics is the study of creation of wealth.  

Multiple choice organisation of commerce and management the nature of the indian economy part 2 industrial revolution in india subsidies, industrial policy and trade policy cottage and small scale industries

Retrogression is a phenomenon in which  ________.

  1. growth of elite oriented consumption goods is higher than goods which satisfy the need of mass of the people.

  2. growth of elite oriented goods is lesser than the goods which satisfy mass needs

  3. both the above rates are equal

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

Retrogression in this context refers to a situation where the growth of luxury or elite-oriented consumption goods outpaces the growth of essential goods needed by the masses.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

Seawater, fresh air, etc are regarded in Economics as _________.

  1. giffen goods

  2. inferior goods

  3. free goods

  4. normal goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Sea water,fresh air,etc are regarded as free goods in economics as these are natural resources and hence these are the free gifts of nature.These resources also possess unlimited availability.

Multiple choice economics how does production take place? natural resources- air, water and land land land,labour, capital and entrepreneur production mechanism

Land in economics, means __________.

  1. material and non-material goods on the surface of earth

  2. minerals under the surface of earth

  3. all natural resources available to man for producing wealth

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

In economics, land is defined broadly as all natural resources provided by nature that are used in the production of wealth. This includes surface land, minerals, and other natural gifts.