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

In the decision of "how to produce", what must the economy decide on?

  1. Types of goods to be produced.

  2. Quality of goods to be produced.

  3. Consumer goods and capital goods.

  4. Method of production.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The question for "How to produce?" is faced by the economy. Here they should consider both labour intensive techniques as well as capital intensive techniques depending upon the available resources in the economy.

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

The central problem in economics is that of:

  1. Comparing the success of command versus market economies.

  2. Guaranteeing that production occurs in the most efficient manner.

  3. Guaranteeing a minimum level of income for every citizen.

  4. Allocating scarce resources in such a manner that society's unlimited needs or wants are satisfied, so as to maximise utility.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Economics is the study that establishes an effective relationship between unlimited wants and the availability of scarce resources to overcome the economic problem of limited resources so that all the unlimited wants are satisfied, so as to achieve maximum utility by the use of scarce resources. 

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

Which of these is not a major economic problem in India?

  1. Over-population.

  2. Poverty.

  3. Unemployment.

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

Over-population is one of the biggest problem of Indian which give rise to many other economic problems like poverty as many people are not able to attain a comfortable lifestyle due to scarce resources and unemployment because due to overpopulation and limited jobs people remain unemployed. 

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

The signs of crisis which created the need for Economic Reforms in 1991 were ________________.

  1. Low Forex Reserves

  2. Huge National Debt

  3. Inflation

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
The signs of crisis which created the need for Economic Reforms in 1991 were:
a) Low Forex Reserves
b) Huge National Debt
c) InflationDuring 1991, Indian Government adopted New Economic Policy which emphasized liberalization, privatization and globalization. During 1991, the economic crisis arose due to many economic problems as the government was facing high fiscal deficit due to rising current account deficit which acted as two spiral rate which lead to heavy inflation in the economy. 
Multiple choice economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

Scarcity can be avoided by limiting ______________.

  1. needs

  2. wants

  3. resources

  4. wants and needs
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In economics, sustainable development is given the upmost priority as it refers to fulfilment of current economic needs of the people without sacrificing the ability of the future generation to need their needs but if the scarce resources will be consumed in large amount then future generation will not be able to meet their needs and it will result in slower economic growth. Therefore, scarcity can only be cured by limiting needs and wants. 

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

In Economics, the 'central economic problem' means __________.

  1. consumers do not have as much money as they would wish

  2. there will always be a certain level of unemployment

  3. resources are not always allocated in an optimum way

  4. output is restricted to the limited availability of resources
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The central problems of an economy deals in the production of goods as resources are scarce so there is need to answer some questions where it is decide that :

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

The cost of one thing in terms of the alternative given up is known as ______.

  1. opportunity cost

  2. real cost

  3. actual cost

  4. deferred cost
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The cost of the next best alternative foregone is termed as opportunity cost. Opportunity cost, in terms of production of a commodity refers to the resources which the producer has to sacrifice in terms of the next best alternative which could have been produced using them, in order to produce every unit of the given commodity.

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

Opportunity costs are a result of __________.

  1. scarcity

  2. overproduction

  3. technology obsolescence

  4. abundance of resources
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The cost of the next best alternative foregone is termed as opportunity cost. Opportunity cost, in terms of production of a commodity refers to the resources which the producer has to sacrifice in terms of the next best alternative which could have been produced using them, in order to produce every unit of the given commodity.
Therefore, opportunity cost is a result of scarcity of resources in the economy.

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

Multiple choice question:

Which of the following is not concerned with the problem of choice?

  1. Excessive income

  2. Alternative use of resources

  3. Unlimited wants

  4. Limited (scarce) resources
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When there is excessive income in the economy then a large part of it is spent on consumption of goods and services and its a human tendency that human needs are unlimited, so when the selection is done between various commodities in the market it is very difficult for all the consumers to decide the product being rational so they face problems inchoosing the product.  

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

Which of the following is the cause of economic insecurity?

  1. Poverty.

  2. Unemployment.

  3. Fall in real wages.

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

Economic insecurity describes the risk of financial loss faced by workers and households as they encounter the changeable events of social life. Our re-considerations suggest a four-part structure for studying the distribution and trend in these economic risks. 

First is that a centre on households captures the micro-level risk pooling that can smooth income flows and stabilize economic well-being. 

Second, insecurity is related to income instability and the risk of downward mobility into poverty. 

Third, difficult events such as unemployment, family closure, or poor health commonly trigger income losses. 

Fourth, the belongings of difficult events are explanatory by insurance relationships provided by government programs, employer benefits, and the familiar maintain of family. 

The correct option is D.