Basics of Economy

Question 1

Which of the following best describes the nature of Indian economy?

Answer 1

Mixed economy
Explanation: In India both the private and public sectors exist simultaneously which is a feature of mixed economy

Question 2

Which of the following economic activities employs the maximum number of people in india?

Answer 2

Agriculture

Question 3

Which of the following come under the Quaternary sector?

Answer 3

Information Technology

Question 4

The Micro, Small and Medium Enterprises Development Act was passed in the year_____.

Answer 4

2006

Question 5

Who among the following is also known as the founder of macroeconomics as a separate discipline?

Answer 5

John Maynard Keynes

Question 6

Based on economic activities, how many sectors are there in Indian economy?

Answer 6

They are three sectors in the Indian economy, they are; primary economy, secondary economy, and tertiary economy.

Question 7

What should be the investment of Micro enterprises in plant & machinery (Manufacturing Sector)?

Answer 7

Not more than twenty five lakh Explanation: A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.

Question 8

What is capital good?

Answer 8

The physical Asset that a company uses in the production process and manufacturing process and services Capital goods mainly consist of buildings, machinery, equipment, vehicles, and tools. Food and Clothing is not a capital income.

Question 9

Which Economist developed international trade theory in 1817 based on comparative advantage and specialisation ?

Answer 9

david Ricardo

Question 10

Which of the following activities is also referred to as ‘Gold Collar’ profession?

Answer 10

Quinary
Tertiary activities are classified into quaternary and quinary activities. Quinary, also known as ‘gold collar’ professions which represents special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, etc.

Question 11

For the calculation of the ‘wholesale price index’ in 2019, _____ is taken as the base year.

Answer 11

2011-2012

Question 12

For the calculation of the ‘wholesale price index’ in 2019, _____ is taken as the base year.

Question 13

In which year was the first Industrial Policy based on the mixed economy principle announced in India? The policy clearly demarcated the areas of operation of the public and private sectors.

Answer 13

1948

Question 14

Which of the following is working capital in the farming sector?

Answer 14

MOney

Question 15

In_____ economies, all productive resources are owned and controlled by the government.

Answer 15

Socialist

Question 16

Private ownership of the meSol of production is a feature of a ______ economy.

Answer 16

capitalist

Question 17

John Maynard Keynes, best known for his economic theories (Keynesian theories), hailed from which country?

Answer 17

England

Question 18

Depreciation is an annual allowance for the wear and tear of ______.

Answer 18

capital goods

Question 19

Which of the following is an economic system in which capital goods are owned by private individuals or businesses and the production of goods and services is based on supply and demand in the general market?

Answer 19

Capitalistic Economy

Question 20

An industrial economy is best defined as an economy whose 50% or more produce value comes from the _______ sector.

Answer 20

secondary

Question 21

Income and employment theory’ is the other name for which branch of Economics?

Answer 21

Macroeconomics

Question 22

_____ is defined as the study of
behavior of decision-making
individual units, such as consumers, resource owners and firms.

Answer 22

Microeconomics

Question 23

The concepts of wages, rent, interest and profit are studied under which branch of Economics?

Answer 23

Microeconomics

Question 24

People like small farmers and seasonal workers who regularly move in and out of poverty are categorised as ________.

Answer 24

churning poor

Question 25

An unexpected rise in sales of a product leads to ______

Answer 25

Unplanned decumulation of inventory
Unplanned accumulation of inventory refers to the unexpected increase in the stock of goods due to the fall in sales. Unplanned decumulation of inventory refers to the unexpected decrease in the stock of goods due to the rise in sales.