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

In Economics, the 'central economic problem' means __________.

  1. consumers do not have as much money as they would wish

  2. there will always be a certain level of unemployment

  3. resources are not always allocated in an optimum way

  4. output is restricted to the limited availability of resources
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The central problems of an economy deals in the production of goods as resources are scarce so there is need to answer some questions where it is decide that :

  • ·         What to produce? Consumer goods or capital goods?
  • ·         How to produce? Using labour or capital?
  • ·         For whom to produce? Rich people or poor people?

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

The cost of one thing in terms of the alternative given up is known as ______.

  1. opportunity cost

  2. real cost

  3. actual cost

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

The cost of the next best alternative foregone is termed as opportunity cost. Opportunity cost, in terms of production of a commodity refers to the resources which the producer has to sacrifice in terms of the next best alternative which could have been produced using them, in order to produce every unit of the given commodity.

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

Opportunity costs are a result of __________.

  1. scarcity

  2. overproduction

  3. technology obsolescence

  4. abundance of resources
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The cost of the next best alternative foregone is termed as opportunity cost. Opportunity cost, in terms of production of a commodity refers to the resources which the producer has to sacrifice in terms of the next best alternative which could have been produced using them, in order to produce every unit of the given commodity.
Therefore, opportunity cost is a result of scarcity of resources in the economy.

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

Multiple choice question:

Which of the following is not concerned with the problem of choice?

  1. Excessive income

  2. Alternative use of resources

  3. Unlimited wants

  4. Limited (scarce) resources
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When there is excessive income in the economy then a large part of it is spent on consumption of goods and services and its a human tendency that human needs are unlimited, so when the selection is done between various commodities in the market it is very difficult for all the consumers to decide the product being rational so they face problems inchoosing the product.  

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

Which of the following is the cause of economic insecurity?

  1. Poverty.

  2. Unemployment.

  3. Fall in real wages.

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

Economic insecurity describes the risk of financial loss faced by workers and households as they encounter the changeable events of social life. Our re-considerations suggest a four-part structure for studying the distribution and trend in these economic risks. 

First is that a centre on households captures the micro-level risk pooling that can smooth income flows and stabilize economic well-being. 

Second, insecurity is related to income instability and the risk of downward mobility into poverty. 

Third, difficult events such as unemployment, family closure, or poor health commonly trigger income losses. 

Fourth, the belongings of difficult events are explanatory by insurance relationships provided by government programs, employer benefits, and the familiar maintain of family. 

The correct option is D.

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

The most serious economic problem in India is ___________.

  1. unemployment

  2. rising population

  3. poverty

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

The most serious economic problems in India are:

1)Unemployment- High unemployment indicates the economy is operating below full capacity and is inefficient; this will lead to lower output and incomes. The unemployed are also unable to purchase as many goods, so will contribute to lower spending and lower output. A rise in unemployment can cause a negative multiplier effect.

2) This economic problem of rising population leads to poverty, lack of free medical assistance, lack of social security and bad living conditions. Excessive population leads to working institutions dysfunctionality and makes all plans to improve a country’s infrastructure, medical assistance facilities and social welfare initiatives ineffective. This includes the Indian Government which has struggled to enact reforms over the past 69 years since independence. 

3) The direct effects of poverty are hunger, malnutrition and susceptibility to diseases. These have been identified as huge problems across the world. ... The growth of population in India is way beyond the growth in economy and the gross result is such that the poverty figures have remained more or less constant.

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

Multiple Choice Question:

The opportunity cost of $100kg$ of rice produced on a land which can also produce $80$ tonnes of wheat is _____________.

  1. $100kg$ of wheat

  2. $80$ tonnes of wheat

  3. $8,000$ tonnes of wheat

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

Opportunity cost of production of a commodity refers to the resources which have to be sacrifice in terms of the next best alternative which could have been produced using the same resources.
Therefore, the next best alternative which could be produced on the piece of land mentioned here is 80 tonnes of wheat, which is sacrificed for the production of 100 kg of rice.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems
The problem of 'what to produce' relates to ______________.

  1. the choice of technique

  2. distribution of income

  3. market value of the goods and services

  4. the choice of goods and services
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The central problem of "what to produce?" which is faced by the economy where the economy decides the goods that need to be produced in the economy whether consumer or capital goods to satisfy human wants to keep in mind the available resources and state of technology in the economy.
Hence, D is the correct option.

Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems
Which of the following is related to the problem 'how to produce'?

  1. Factorial distribution of income.

  2. The choice of technique.

  3. The choice of product.

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

The question for "How to produce?" is faced by the economy they should consider both labour intensive techniques as well as capital intensive techniques depending upon the availability of resources in the economy.

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

Multiple choice question:

In which of the following situations, does scarcity arise?

  1. Supply of resources $>$ Demand for resources

  2. Supply of resources $<$ Demand for resources

  3. Supply of resources $=$ Demand for resources

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

Scarcity of resources refers to the situation where resources are limited in quantity and have alternative uses in production of various commodities. So the problem of these scarce resources is reflected in the aggregate supply of the economy which is also limited owing to limited source of inputs and unlimited demands as human wants are unlimited.