Tag: objectives of economic planning in india

Questions Related to objectives of economic planning in india

In addition to three central problems of an economy, the additional problem(s) raised by the modern economists is/are _______.

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

  1. the resources are fully utilized or not

  2. how efficient is the production and distribution system

  3. whether the capacity to produce or grow is increasing or is static

  4. all of the above

Show answer
Correct Option: D
Explanation:

The central problems of an economy is of high importance but while solving those problems there are many problems which come as derivative problems like whether resources are fully utilized or not on using the present techniques, whether goods are produced and evenly distributed which does not create economic divide, whether the economy is growing in terms of new resources and technology that increases production. 

Due to scarcity of resources one must _______.

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

  1. take rational economic decisions

  2. trade off between different alternative use of  resources

  3. use resources efficiently

  4. all of the above

Show answer
Correct Option: D
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. 

_______ is the root of all economic problems.

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

  1. Diversity

  2. Unlimited wants

  3. Scarcity

  4. Abundance

Show answer
Correct Option: C
Explanation:

The basic root of economic problems arises from the fact that resources are limited and wants are unlimited thus the resources are scarce. Society must now choose what to produce, how to produce and for whom to produce. 

By scarcity of productive resources we mean ______.

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

  1. limited supply

  2. restricted supply

  3. non existence of supply

  4. fixed supply

Show answer
Correct Option: A
Explanation:

Scarce resources refers to the resources which 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. 

During deflation_____.

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

  1. the purchasing power of money increases

  2. the purchasing power of money decreases

  3. the purchasing power of money remains constant

  4. the purchasing power of money fluctuates

Show answer
Correct Option: A
Explanation:

During deflation the purchasing power of money will increase. 

Deflation impacts consumers positively in the short term but negatively in the long term. In the short term, deflation essentially increases the purchasing power of consumers as prices fall. Consumers can save more money as their income increases relative to their expenses. This also alleviates debt burdens as consumers are able to deleverage.

Who defined mixed economy as "Mixed economy is that economy in which both public and private institutions exercise economic control".

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

  1. Samuelson

  2. Anatol Murad

  3. Adam Smith

  4. JR Hicks

Show answer
Correct Option: A

Trees help in reducing the pollution of our environment. Lakhs of trees are planted by people in the month of July every year. The occasion is called ______________.

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

  1. forest Conservation Day

  2. plantation month

  3. Van Mahotsav

  4. wildlife week

Show answer
Correct Option: C
Explanation:

(c).  Lakhs of trees are planted by people in the month of July every year. The occasion is called Van Mahotsav.

Which of the following is not a central problem of a society?

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

  1. What to produce

  2. How to produce

  3. For whom to produce

  4. When to produce

Show answer
Correct Option: D
Explanation:

The central problems of production deals with production of necessary commodities using scarce means of resources. Therefore, "when to produce" is not a central problem as it is assumed that goods are demanded throughout the year because of unlimited human wants. 

One country enjoys a comparative advantage over the other in producing oil when _______________.

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

  1. it has more oil than the other country

  2. it can produce oil at a lower opportunity cost than the other country

  3. it does not need to import oil

  4. it wants to export as much oil as possible

Show answer
Correct Option: B
Explanation:

One country enjoys a comparative advantage over the other in producing oil when it can produce oil at a lower opportunity cost than the other country .The country enjoys a greater advantage over other countries if the opportunity cost of producing oil in that country is less than others.

Central problem for every economy includes ________.

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

  1. Market

  2. What to produce?

  3. Competition

  4. None of the above

Show answer
Correct Option: B
Explanation:

Central problem for every economy includes: What to produce?

Production, distribution and disposition of goods and services are the basic economic activities of life. In the course of these activities, every society has to face scarcity of resources. Because of this scarcity, every society has to decide how to allocate the scarce resources.

It leads to following Central Problems that are faced by every economy:

1. What to produce?

2. How to produce?

3. for whom to produce?

These problems are called central problems because these are the most basic problems of an economy and all other problems revolve around them.