Tag: economics of planning

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Questions Related to economics of planning

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

All our wants can be satisfied because resources get discovered every day.

  1. True

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

All our wants cannot be satisfied. This is because the resources are scarce and do not get discovered every day. Due to the less amount of resources available, the demands of the huge growing population cannot satisfied. 

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

The most important economic problem is that the resources used to satisfy our wants are limited in supply.

  1. True

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

The most important economic problem is the scarcity of resources. The resources that are used to satisfy our wants are limited in supply. Due to this problem all the wants and desires of a man cannot be fulfilled as the wants are never-ending. This requires the efficient use of resources.

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

Scarcity of resources leads to _______.

  1. unsatisfactory human wants

  2. evaluation of alternative uses of scarce resources

  3. both A and b

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Scarcity of resources leads to both unsatisfactory wants and evaluation of alternative uses of these resources. The resources present in the economy are limited whereas the human wants are never ending and unlimited. Due to this all wants cannot be fulfilled. Hence, they remain unsatisfied. Not only this, the resources also have alternative uses. This means that they can be put to various uses. Thus it becomes important to put the resource in the best use so that they can be used efficiently. 

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

Scarcity of resources effects ________________.

  1. Households

  2. Business firms

  3. Governments

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

Scarcity of resources effects households, business firms, governments and even individuals. The main problem of economics is the scarcity of resources which affects everyone. The needs and wants of households remain unsatisfied. The businesses and governments don’t have enough resources for their operations. Due to this problem, it is necessary that we use these resources efficiently. 

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

Which of the following is a central problem of every economy?

  1. Abundance of resources

  2. Scarcity of economic resources

  3. Moral and ethical values

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

‘Scarcity of economics’ is the central 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 of 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

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.