Tag: major economic problems

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Questions Related to major economic problems

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

The corruption creates ____________.

  1. Political inequality

  2. Social inequality

  3. Economic inequality

  4. Religious inequality
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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.

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

Poverty leaves a positive effect on the life and health of man.

  1. True

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

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.

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

Economic resources are ____________.

  1. Unlimited

  2. Limited in supply and use

  3. Limited in supply but have alternative uses

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

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. 

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

India has been witnessing high rate of inflation because __________.

  1. public expenditure and money supply both are continuously increasing.

  2. the agricultural and industrial sectors have not performed adequately.

  3. both agricultural and administered prices have been hiked.

  4. all of the above.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Since last two decades, the money supply in India is increasing due to development in the economy which increases the purchasing power of an individual due to which aggregate demand increases which leads to increase in public expenditure on consumption of goods and services.
Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

The central problems of an economy is ___________.

  1. what to produce

  2. how to produce

  3. for whom to produce

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

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:

  • What to produce? Consumer goods or capital goods?
  • How to produce? Using labour or capital intensive techniques?
  • 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

What is environmental crisis?

  1. When there is too much pollution

  2. When there is excessive deforestation

  3. When the environment is unable to perform the vital life sustenance function

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

An environmental crisis occurs when the environment's capacity to support life and provide essential resources is severely compromised.

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.