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 business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Problems of unemployment, illiteracy, etc. are studied under which branch of economics?

  1. Macroeconomics

  2. Microeconomics

  3. Wealth economics

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

Macro economics deals in the overall problems of the economy that involves the study of national aggregates. Problems of unemployment, illiteracy, etc are studied under macro economics since these include economy as a whole and not from the view point of an individual unit.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Which part of economics is also called Theory of Income and Employment?

  1. Macroeconomics

  2. Microeconomics

  3. Wealth economics

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

Macro economics deals with the study of economics as a whole and the study of collective or aggregate variables like national income and how they influence the whole economy. Theory of income and employment explains how aggregate demand and supply decide the level of income and employment in an economy as a whole. Thus, it is a part of macro economics.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Which economics deals with the study of behaviour of individual decision making units?

  1. Macroeconomics

  2. Microeconomics

  3. Wealth economics

  4. Monetary economics
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Microeconomics deals with the study of economics from the viewpoint of an individual unit and the study of individual variables and their relation with each other that influences a market place and its factors. 

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics
Economic problem arises due to the fact that ____________.

  1. resources are scarce

  2. human wants are unlimited

  3. resources have alternative uses

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

All economic problems arises due to unlimited human wants and limited resources. Moreover, these resources have alternative uses and wants keep on increasing each day. This economic problem is also known as problem of choice or the problem of allocating resources to alternative uses.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Microeconomics does not deal with the aggregate economy.

  1. True

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

Microeconomics deals with the aggregates of economic issues relating to small economic units. For example, market demand is the aggregation of individual demand.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Micro economics is concerned with ___________.

  1. consumer behaviour

  2. product pricing

  3. factor pricing

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Micro economics deals with the study of economics from the view point of individual unit. When economic problems are studied considering small economic units like an individual consumer, or an individual producer, we are referring to micro economics. 
Components of microeconomics:
1) Theory of consumer behaviour: This deals with the law of demand and consumer equilibrium.
2) Theory of producer behaviour: This deals with the law of supply and producer equilibrium.
3) Factor pricing: This refers to the determination of prices of factor of production in the factor market.
Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

Which of these is a part of micro economics?

  1. Factor Pricing

  2. National Income

  3. Balance of Payment

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

Factor pricing refers to the determination of the factors of production in the factor market. Microeconomics deals with the study of economics from the individual point of view. Thus factor pricing is a part of micro economics.

Multiple choice instruments of monetary policy and the reserve bank of india money and banking economics

Open market operations (OMOs) are related to _________.

  1. Fiscal policy

  2. Monetary policy

  3. Labour policy

  4. Agricultural policy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Open market operation (OMO) is related to the monetary policy by the central bank in which the bank deals in the sale and purchase of securities and bonds in the open market to control the supply of money in the economy. By selling the securities and bonds, the central bank soaks liquidity from the economy which controls the inflation in the economy by decreasing the purchasing power of the people and by buying the securities and bonds, the central bank releases liquidity which controls deflation in the economy by increasing the purchasing power of the people.

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.