Tag: major definitions of economics

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Questions Related to major definitions of economics

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Which of the following is not the characteristic of human wants?

  1. Human wants are unlimited

  2. Wants are complementary

  3. Wants are competitive

  4. Wants are non-variable
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Human wants are unlimited and the resources to meet them are limited and have different uses. This gives rise to all the economic problems. 

Human wants are also complementary say for example the want for butter is complementary to the want of bread. Wants are also competitive as they need to be arranged in the order of priority. 
The most urgent wants need to be satisfied first. Wants are ever changing and variable. They change with the change in income, status, education, fashion, etc.
Thus, the correct option is D.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Consider the following statements:
Statement 1: Goods are those things which are tangible or intangible.
Statement 2: They satisfy human wants.
Which of the following are true?

  1. Only 1

  2. Only 2

  3. None

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

Goods are tangible things which imply they can be touched and seen. The intangible things satisfying human wants are termed as services. Goods also help in the satisfaction of human wants or needs.

Thus, the answer is B.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Status Symbol Commodity is associated with the name of ___________.

  1. Giffen

  2. Marshall

  3. Malthus

  4. Thorstein veblen
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Status Symbol Commodity is associated with the name of Thorstein Veblen. These are the luxury goods as the demand of such goods increases with increase in its price. This is a contradiction of the law of demand. Since Veblen identified the concept, hence they are also called Veblen goods.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

All of the goods which are scarce and limited in supply are called _______.

  1. luxury goods

  2. expensive goods

  3. capital goods

  4. economic goods
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Scarce goods which are limited in supply are known as economic goods as economics deals with the optimum utilization of scarce resources to its alternative uses.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Goods or services that are necessary for living are called ________.

  1. needs

  2. desires

  3. wants

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

The goods and services that are necessary for a living are called needs. Needs are the essential things that you need for survival, to live properly. Thus, it is important to satisfy these needs as if we don’t satisfy needs, we will not be able to live long. For example, when we are hungry, a need arises for food.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Goods or services those are not necessary for living are ________.

  1. needs

  2. desires

  3. wants

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

Goods or services those are not necessary for living are called wants. Goods and services that are necessary for living are called needs. Needs are the things which are necessary for survival however wants are additions to needs. For example: if one is hungry, he needs food. This is need. However if he wants to eat Dosa because he is hungry, this is called want.

Multiple choice economics ancient indian economic concepts goods, wealth and welfare major definitions of economics wealth, capital and money

Goods in the process of being produced  but not yet completed as finished goods are called ______________.

  1. work-in-progress inventory

  2. goods in floor inventory

  3. raw material consumed inventory

  4. in process inventory
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Work-in-progress inventory refers to items that have begun the production process but have not yet reached the stage of finished goods.