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 business organisation management - nature, significance and scope management as an art, science and profession management as art, science and profession comparison of business, profession and employment levels and functions of management management functions functions and levels of management

Which of the following is social science?

  1. Economics

  2. Sociology

  3. Psychology

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

Economics, sociology, and psychology are all branches of social science that study human behavior and societal structures.

Multiple choice business organisation management - nature, significance and scope management as an art, science and profession management as art, science and profession comparison of business, profession and employment levels and functions of management management functions functions and levels of management

Which of the following is social science?

  1. Economics

  2. Sociology

  3. Psychology

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

Economics, sociology, and psychology are all branches of social science that study human behavior and societal structures, which are highly relevant to management.

Multiple choice economics employment: growth, informalisation and other issues measures to alleviate unemployment unemployment measures unemployment and employment generation

Whether a big population is an asset or a liability depends upon economy to economy (True/False) 

  1. True

  2. False

  3. Can't say

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

A large population can be an asset if it is skilled, healthy, and productive, or a liability if it lacks resources and employment opportunities. Therefore, its impact depends on the economic conditions and human capital development of the country.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

The prosperity encourages and enhances the saving but depression reduces the saving of people.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The prosperity of a country helps to provide the citizens with more investment channels and thus people tend to save more but during depression period of an economy ,market sinks down and falls into a low -equilibrium trap which results in less investment,less savings and low rate of capital formation.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

The saving by individuals depends more or less upon ___________.

  1. ability (or power) to save

  2. willingness (or desire) to save

  3. opportunity to save

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

Individual saving is influenced by the ability to save (income level), the willingness to save (psychological factors), and the opportunity to save (availability of banking or investment channels). Therefore, all these factors contribute to the total saving.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Who create the savings from an economic point of view?

  1. Individuals

  2. Banks

  3. Markets

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

From an economic perspective, savings are the portion of income not consumed by individuals. While banks and markets facilitate the process, the act of saving originates with the individual.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Which of the following statements is correct?

  1. Robbins defined economics in the form of welfare economics.

  2. The law of demand is always true.

  3. All capital is wealth, but all wealth is not capital.

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

Capital is a part of wealth which can be utilized for supplementary production of wealth. Hence, all money/wealth is not said to be capital, but only that which is engrossed in generation of more income.
Law of demand has certain exceptions. While, Robbins defined economics under the scarcity approach.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

For the purpose of Capital Formation, which of the following create "Savings" in an economy?

  1. Individuals or Households

  2. Business Enterprises

  3. Government

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

Savings in an economy are generated by various sectors, including households, business enterprises (retained earnings), and the government (budgetary surpluses). All these sectors contribute to the pool of funds available for capital formation.

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

A perfect market is?

  1. A Real concept

  2. A Psychological concept

  3. A Relative concept

  4. Only a theoretical concept
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A perfect market is an idealized economic model that does not exist in reality, as real-world markets always have imperfections like transaction costs, information asymmetry, or barriers to entry.

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

In the economic sense, market means.

  1. Place of business

  2. Merchandise

  3. The demand for a commodity

  4. A social institution
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In economics, a market is not just a physical location, but the set of arrangements where buyers and sellers interact, primarily defined by the demand for a commodity.

Multiple choice commercial studies concept of market and marketer meaning and importance of marketing meaning and definition of market introduction to marketing marketing environment meaning and definition of marketer role of marketing

Concept of market was totally absent in.

  1. Self-sufficient stage

  2. Barter stage

  3. Production oriented stage

  4. Sales oriented stage
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In the self-sufficient stage, individuals produced everything they needed for themselves, meaning there was no surplus to trade and thus no market.

Multiple choice britain and the world the beginnings of empire history

Emergence of laissez-faire trade system can be traced to the writings of _____________. 

  1. Alfred Marshall

  2. David Ricardo

  3. Paul Samuelson

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

Adam Smith, in his work 'The Wealth of Nations' (1776), provided the intellectual foundation for laissez-faire economics and free trade.

Multiple choice

The pattern in which goods and services move in an economy is?

  1. Square Sharing

  2. Market Economy

  3. Specialization

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

The circular flow model represents how goods, services, and money move continuously through different sectors of an economy, such as households and businesses. This continuous loop shows the interdependence of buyers and sellers.