Tag: major economic problems
Questions Related to major economic problems
The corruption creates ____________.
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Political inequality
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Social inequality
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Economic inequality
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Religious inequality
Economic inequality is the unequal distribution of income and opportunity between different groups in society. Corruption plays a very important role in creating economic inequality. Education, at all levels, enhancing skills, and training policies can be used alongside social assistance programs to help people out of poverty and to reduce inequality.
Poverty leaves a positive effect on the life and health of man.
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True
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False
Poverty brings a harmful effect on the standard of living of the citizen's of a country. People become unhealthy and malnourished due to lack of proper nutrition. Hence, the above mentioned statement is false. Poverty leaves a negative effect on the life and health of man.
Economic resources are ____________.
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Unlimited
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Limited in supply and use
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Limited in supply but have alternative uses
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Unproductive
Resources which are used for economic activities are called as economic resources. Human life depends on the consumption of various materials which are made up of the resources available on earth. examples : soils, minerals, water ,etc. These resources are finite in number.
India has been witnessing high rate of inflation because __________.
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public expenditure and money supply both are continuously increasing.
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the agricultural and industrial sectors have not performed adequately.
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both agricultural and administered prices have been hiked.
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all of the above.
The central problems of an economy is ___________.
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what to produce
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how to produce
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for whom to produce
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all the above
The central problems of an economy deals with the allocation of its scarce uses, having alternative uses, for production of goods. The central problems are outlined as:
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What to produce?
Consumer goods or capital goods?
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How to produce? Using
labour or capital intensive techniques?
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For whom to produce?
Rich people or poor people
Parallel economy refers to ___________________.
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traditional economy
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black money economy
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agricultural-based economy
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socialist economy
What is environmental crisis?
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When there is too much pollution
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When there is excessive deforestation
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When the environment is unable to perform the vital life sustenance function
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None of these
In addition to three central problems of an economy, the additional problem(s) raised by the modern economists is/are _______.
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the resources are fully utilized or not
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how efficient is the production and distribution system
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whether the capacity to produce or grow is increasing or is static
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all of the above
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 _______.
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take rational economic decisions
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trade off between different alternative use of resources
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use resources efficiently
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all of the above
‘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.
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Diversity
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Unlimited wants
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Scarcity
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Abundance
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.