Tag: economics

Questions Related to economics

Which of the following can be treated as a characteristic of economic wants?
1. Even if satisfied, the wants have a tendency to re-emerge.
2. With the passage of time, the wants tend to increase in number and in variety.
Select the correct answer from the options given below -

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

  1. 1 only

  2. 2 only

  3. Both 1 & 2

  4. Neither 1 nor 2

Show answer
Correct Option: C
Explanation:

Human wants are unlimited, so there is always a tendency that human wants get re-emerge even after the satisfaction is achieved on the consumption of the commodity as the wants keep on increasing after a passage of time and consumer also start demanding more variety of that commodity in order to achieve higher utility. 

The "means" available for satisfaction of wants are ______________.

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

  1. Sufficient

  2. Limited

  3. Either (A) or (B)

  4. Unlimited

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Correct Option: B
Explanation:

Economics aims at the satisfaction of unlimited want by the way of efficient and effective methods to put the limited resources extracted from earth into an ideal way so that even if the means available for satisfaction of wants is limited we can still satisfy them to the maximum level.

Human wants may be classified into ______________________.

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

  1. Economic wants & non-economic wants

  2. Economic wants & unsatisfied wants

  3. Satisfied wants & non-economic wants

  4. Plain wants & economic wants

Show answer
Correct Option: A
Explanation:

Human wants refers to the demands of humans in order to satisfy themselves.

Some wants results in monetary gain for the people who are demanding it known to be as economic wants whereas some wants are for the welfare of other people which is called non-economic wants.

Wants are ______________.

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

  1. Limited

  2. Unlimited

  3. Sufficient

  4. Adequate

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Correct Option: B
Explanation:

Maslow need hierarchy states that human wants are unlimited. As one want is met, it gives rise to other wants that are there in the hierarchy. Therefore, human wants are never ending because the world is very dynamic and humans try to adjust themselves into it. 

In deciding "What to produce", the economy should focus on the production of:

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

  1. Capital Goods only

  2. Consumer Goods only

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: C
Explanation:

An economy will require an optimal proportion of consumer and capital goods in order to be sustainable in the long run. If too much focus is put into producing consumer goods, the future consumption and growth will be limited as capital goods are required in the production of consumer goods. If too much focus is put into producing capital goods, the current consumption will be limited.

An economy which uses all its resources on production of _____________ , cannot provide for future growth prospects.

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

  1. capital goods only

  2. consumer goods only

  3. Both (a) and (b)

  4. Neither (a) nor (b)

Show answer
Correct Option: B
Explanation:

An economy will require an optimal proportion of consumer and capital goods in order to be sustainable in the long run. If too much focus is put into producing consumer goods, the future consumption and growth will be limited as capital goods are required in the production of consumer goods. If too much focus is put into producing capital goods, the current consumption will be limited.

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

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

  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)

Show answer
Correct Option: C
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.  

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

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

  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)

Show answer
Correct Option: C
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. 

Veblen good is ____________.

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

  1. good of status

  2. consumed by very high income group

  3. like diamond

  4. any of the above

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Correct Option: A
Explanation:

Veblen goods are those good which holds some status in the society. It is believed that if price of such goods rises then the quantity demanded also increases.  

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

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

  1. Voluntary Savings

  2. Compulsory Savings

  3. Forced Savings

  4. None of the above

Show answer
Correct Option: A
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.