Tag: economic reconstruction

Quizzes (7) Questions (82)

Questions Related to economic reconstruction

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The three fundamental questions of economics are  ______.

  1. when, for whom, and how

  2. how, what, and for whom

  3. who, how, and when

  4. what, who, and why
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The three fundamental questions of economics are:

1.      How to produce: it talks about the techniques that should be used to produce goods and services that are required by the people.

2.      What to produce: it talks about the things that should be produced with the limited resources that are available in the economy.

3.      For whom to produce: it talks about the selection of the category of people for whom the goods are to be produced. More for the rich, less for the poor or less for the rich and more for the poor. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The problem of economics arises from which of the following reasons?

  1. Unlimited wants

  2. Scarcity of resources

  3. Resources having alternative uses

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

D.All of the above 

Economic Problem - The problem of choice, like an individual, also applies to the society as a whole. Thus, for an economy, economic problem is the problem of resource allocation. An economic problem exists whenever scarce means are used to satisfy alternative ends.

Causes of Economic Problem - Unlimited Wants, Limited or scarcity of Resources, Alternative use of resources.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

Which of the following refers directly to the concept of scarcity?

  1. population explosion

  2. unlimited human wants

  3. limited resources

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

‘Scarce means’ is the fundamental problem of economics. It means that the resources in the world are limited whereas the wants of a man are unlimited and never-ending. Due to this, the resources are always insufficient to satisfy all human wants and needs. Apart from being scarce, the resources have alternative uses as well. Thus, it becomes extremely important to use the resources in the most effective and efficient manner.  

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

When we say scarcity we refer to ________.

  1. scarcity of productive resources

  2. scarcity of consumable goods

  3. scarcity of human capital

  4. scarcity of funds
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When we say scarcity, we refer to the scarcity of productive resources. It is the limited supply of productive resources that constitutes the central problem. The wants of people are unlimited and thus these scarce resources are unable to fulfill all the demands of the economy. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The basic economic questions that every society must address include which of the following?

  1. what, how, and for whom

  2. where, when, and why

  3. which, why, and what

  4. when, how, and which
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The three fundamental questions of economics are:

1.      How to produce: it talks about the techniques that should be used to produce goods and services that are required by the people.

2.      What to produce: it talks about the things that should be produced with the limited resources that are available in the economy.

3.      For whom to produce: it talks about the selection of the category of people for whom the goods are to be produced. More for the rich, less for the poor or less for the rich and more for the poor. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The central problem of how to produce is resolved by _________.

  1. demand and supply of factor inputs

  2. demand and supply of goods

  3. relative prices and availability of factors of production

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

The central problem of how to produce is resolved by the relative prices and availability of factors of production. This problem refers to the selection of technique to be used for production of goods and services. Thus when we know the prices and availability of factors of production, we can identify the techniques that should be used to produce a particular combination of goods and services. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The questions like what? how? and for whom? arise due to the existence of ______.

  1. scarcity of resources

  2. capitalism

  3. government control

  4. inequality of income distribution
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The economic problems of what, how and for whom to produce arises because the resources in the economy are scarce. The resources present in the economy are limited but the demand for them is unlimited. Due to this, wants of people remain unsatisfied. As a result, goods are not available and the economic problems related to the allocation of distribution of resources arises. 

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The central problem of an economy of 'what to produce' is an alternative problem of ________________.

  1. allocation of resources

  2. what to consume and what not to consume

  3. selection of factor of production

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

What to produce is an alternative problem of allocation of resources. It talks about the things that should be produced with the limited resources that are available in the economy. Thus it is important that you allocate these resources to various uses in an efficient manner. So that the maximum output can be achieved.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

______ is not a central problem of a society.

  1. What to produce

  2. How to produce

  3. For whom to produce

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

The three fundamental questions of economics are:

1.      How to produce: it talks about the techniques that should be used to produce goods and services that are required by the people.

2.      What to produce: it talks about the things that should be produced with the limited resources that are available in the economy.

3.      For whom to produce: it talks about the selection of the category of people for whom the goods are to be produced. More for the rich, less for the poor or less for the rich and more for the poor. 

Hence, we see that when to produce is not a central problem.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The three basic economic questions do not include ______.

  1. what?

  2. for whom?

  3. where?

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

The three fundamental questions of economics are:

1.      How to produce: it talks about the techniques that should be used to produce goods and services that are required by the people.

2.      What to produce: it talks about the things that should be produced with the limited resources that are available in the economy.

3.      For whom to produce: it talks about the selection of the category of people for whom the goods are to be produced. More for the rich, less for the poor or less for the rich and more for the poor. 

So where to produce is not a central problem.