Tag: economics

Questions Related to economics

Suppose, one dealer has sent some goods to another dealer for Sales on Approval Basis. In absence of any confirmation even after 6 months, it will be treated as:

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

  1. Sales Return

  2. Deemed Supply of Goods

  3. Purchase return

  4. None of the Above

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Correct Option: B

The factor which does not cause any increase in demand for Goods and Services is ______________.

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

  1. Reduction in taxation

  2. Increase in exports

  3. Increase in population

  4. Hoarding/Malpractices of goods

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Correct Option: B
Explanation:

Increase in exports does not cause any increase in demands of goods and services.

Which is a not comfort want?

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

  1. Furniture

  2. Fan

  3. Air-Conditioner

  4. Cycle

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Correct Option: D
Explanation:

Any society requires basic commodities like food, clothing and shelter. Air-Conditioner, furniture, and fan among the given options are examples of luxurious goods and cycle is necessity.

Which of the following is an economic good?

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

  1. Sunshine

  2. Air

  3. Rainfall

  4. A bottle of water

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Correct Option: D
Explanation:

Goods are divided as free goods and economic goods. Free goods are those goods which are free of cost and economic goods are available for a particular price. Among the given options, sunshine, rainfall and air are examples of free goods and a bottle of water is an example of economic good.

Choose the incorrect statement.

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

  1. Wants are recurring

  2. Wants are variable

  3. Wants are limited

  4. Wants are gradable

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Correct Option: C
Explanation:

Among the given options, the incorrect option is the statement which says that the ‘wants are limited’. In fact, wants are unlimited but resources to satisfy all human wants are not sufficient. Hence, we can say that the wants are unlimited but resources are limited.

Which of the following comes under luxury want?

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

  1. Fan

  2. Education

  3. Gold Jewellery

  4. Cycle

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Correct Option: C
Explanation:

Basic needs are those needs which are necessary for survival of a human being. Food clothing and shelter fall under this category. Among the given options, fan, education and cycle are essentials or comforts required. Gold jewelry falls under luxury goods. 

A refrigetor operating in a chemist shop is an example of ________.

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

  1. free goods

  2. final goods

  3. producer's goods

  4. consumer's goods

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Correct Option: C
Explanation:

Chemist will keep the medicines and other things which are to be stored below the room temperature and thus the refrigerator in a chemist shop is a producer's good as it helps to satisfy human wants indirectly.

Human wants are _______.

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

  1. unjustifiable

  2. unlimited

  3. undefined

  4. limited

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Correct Option: B
Explanation:

Human wants are unlimited. This means that they are never ending and can never be fully satisfied. Since wants keep on adding, all of them cannot be satisfied due to limited resources. As soon as one want gets satisfied, another one emerges. 

_______ refers to market where services of factors of production are brought and sold.

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

  1. Goods Market

  2. Factor market

  3. Road side kiosks

  4. Super Bazar

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Correct Option: B
Explanation:

In economics, factor market refers to the the market where factors of production ,namely land,labour,capital entrepreneurship -are brought and sold.

Goods which exhibit negative income-demand relationship are called ________.

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

  1. Giffen goods

  2. inferior goods

  3. normal goods

  4. luxury goods

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Correct Option: B
Explanation:

Inferior goods refer to those goods which possess an inverse relation between income of a consumer and demand of that particular good,that is, when there is a rise in income of the consumer,the demand of that particular good falls.For example,coarse grains..