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

The issue of "for whom to produce" deals with __________..

  1. how to distribute and share the national product

  2. shares of different people in the total output of goods & services

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The problem of “whom to produce” relates to the distribution of available resources in the economy.

It also includes the contribution of the people in the total output and income of the economy.  

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

The problem of "What to produce" covers the issue relating to:

  1. What goods are to be produced

  2. What qualities of goods are to be produced

  3. Both (a) and (b)

  4. Neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Due to the basic economic problem of scarcity, it is essential to choose which of the unlimited human wants and needs will be fulfilled by using the limited resources. This choice is usually made collectively by each economy, the laws of demand govern what people want and then the laws of supply aim to match it at an equilibrium seeking to make a profit. Thus the "what to produce?" takes into account what goods will be produced and how much of the good will be produced. 

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

If Willingness to Save is higher, the level of ________ will be higher.

  1. Voluntary Savings

  2. Compulsory Savings

  3. Forced Savings

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

Voluntary savings are funds that individuals or organizations may willingly deposit or Withdraw. For your clients, the condition of an intended savings product means that: They can save money in a safe place to meet emergency and consumption. Required savings are those that individuals and institution are forced to make as per government rules. 

Thus, the correct option is A.

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

An inferior commodity is one which is consumed in smaller quantities when the income of consumer ________.

  1. becomes nil

  2. remains the same

  3. falls

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

The price of inferior goods are very cheap and usually associated with low levels of income. So when the consumer's income rises they try to consume normal good and when there income decreases they consume inferior goods. 

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

The supply of a good refers to the _________.

  1. Actual production of the good

  2. Total existing stock of the good

  3. Stock available for sale

  4. Amount of the good offered for sale at a particular price per unit of time
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The supply of a good refers to the amount of the good offered for sale at a particular price per unit(period) of time.

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

As per the concept of increasing marginal opportunity cost, under the PPF theory, it can be interpreted that to produce more units of good X, ____________ of good Y have to be sacrificed.

  1. increasing units

  2. constant units

  3. decreasing units

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

The slope of the curve i.e. marginal opportunity cost which states that for production of every successive unit of butter we need to sacrifice more and more of guns because resource are use specific.