Tag: objectives of economic planning in india

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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
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. 

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

Due to scarcity of resources one must _______.

  1. take rational economic decisions

  2. trade off between different alternative use of resources

  3. use resources efficiently

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

_______ is the root of all economic problems.

  1. Diversity

  2. Unlimited wants

  3. Scarcity

  4. Abundance
Reveal answer Fill a bubble to check yourself
C Correct answer
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. 

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

By scarcity of productive resources we mean ______.

  1. limited supply

  2. restricted supply

  3. non existence of supply

  4. fixed supply
Reveal answer Fill a bubble to check yourself
A Correct answer
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. 

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

During deflation_____.

  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
Reveal answer Fill a bubble to check yourself
A Correct answer
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.

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

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

  1. Samuelson

  2. Anatol Murad

  3. Adam Smith

  4. JR Hicks
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Paul Samuelson is widely credited with defining a mixed economy as one where both public and private sectors coexist and exercise control.

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

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 ______________.

  1. forest Conservation Day

  2. plantation month

  3. Van Mahotsav

  4. wildlife week
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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

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

Which of the following 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 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. 

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

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

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

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

Central problem for every economy includes ________.

  1. Market

  2. What to produce?

  3. Competition

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