Tag: economic reconstruction

Questions Related to economic reconstruction

The economy of Britain crumbled after the First World War. Identify the factor which did not contribute to the above.

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

  1. Strengthening of domestic markets in colonies.

  2. Industrialization of China.

  3. Stiff competition from Us, Germany, Japan.

  4. Huge wage structure in colonies.

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Correct Option: C

Assume there are four families in a country. The average per capita income of these families is Rs. 5000. If the income of three families is Rs. 4000, Rs. 7000 and Rs. 3000 respectively, what is the income of the fourth family?

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

  1. Rs. 7500

  2. Rs. 3000

  3. Rs. 2000

  4. Rs. 6000

  5. Rs. 9000

Show answer
Correct Option: D
Explanation:

Total income of four families $= 5000 * 4 = 20000$

Total income of three families $= 4000 + 7000 + 3000 = 14000$

Income of the fourth family $= 20000 – 14000 =  6000$

Evading taxation is a corruption.

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

  1. True

  2. False

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Correct Option: A
Explanation:

Evading taxation, that is, avoiding to give tax to the government is a corruption. For example, we can find the bribery results in a reduction in sales reported for taxes.

Which of the following is not considered production in Economics?

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

  1. Tilling of soil by farmers

  2. Singing a song before friends

  3. Construction of Canal by laborers

  4. Painting a picture for sale

Show answer
Correct Option: B
Explanation:

Production is a process of merging various material inputs and irrelevant inputs in order to make something for consumption. It is the action of creating output, a good or service which has the value and contribution to the beneficial of the individuals. Tiling of soil by friends, construction of canal by laborers, Painting a picture for sale are considered in the production of economics. 

A person who is not gainfully employed is called an unemployed person.

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

  1. True

  2. False

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Correct Option: A
Explanation:

A person who is not gainfully employed, that is, a person who is not paid in monetary terms or in kind in return of his work, is known as an unemployed person since he cannot contribute in the GDP of a country.

The corruption creates ____________.

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

  1. Political inequality

  2. Social inequality

  3. Economic inequality

  4. Religious inequality

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Correct Option: C
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.

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

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

  1. True

  2. False

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Correct Option: B
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.

Economic resources are ____________.

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

  1. Unlimited

  2. Limited in supply and use

  3. Limited in supply but have alternative uses

  4. Unproductive

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Correct Option: C
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. 

India has been witnessing high rate of inflation because __________.

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

  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.

Show answer
Correct Option: A
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.

The central problems of an economy is ___________.

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

  1. what to produce

  2. how to produce

  3. for whom to produce

  4. all the above

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Correct Option: D
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