General knowledge questions/answers about Basic Economics For competitive examinations.
A to Z Information about Economics:–Economics ,is the study, of how people allocate scarce resources for production; distribution, and consumption, both individually, and collectively. The field of economics, is connected with ,and has ramifications on many others; such as politics, government, law, and business..
Lets Learn Brief but Caughty and Fatty Information about Major Economics Subject :
A. Which, personality of world,is regarded as the founder of modern economics,?
Ans. Adam Smith..
B. Who is ,considered the father of economics,?
Ans. Adam Smith-, (Father of Capitalism Also..)
C. What is, the name of “Adam Smith’s” popular book that laid the foundation for modern economics,?
Ans. The Wealth of Nations; (1776);
D. Who is ,the founder, of Marxist economics,?
Ans. : Karl Marx;
E. What is ,the name of “John Maynard Keynes” popular & famous book ,that revolutionized macroeconomic thought,?
Ans. The General Theory of Employment, Interest and Money (“1936”)
F. Who is ,called the father of, microeconomics,?
Ans. : Alfred Marshall:
G. What is, the name of the well known, economic concept, developed by “Adam Smith”?
Ans. The Invisible Hand;
H. Who is ,the founder o”the Austrian School of Economics”?
Ans: -Carl Menger..
I. What is ,the name of the famous & popular ,economic concept, developed by “John Maynard Keynes”?
Ans: -The Multiplier Effect..
J. Who is, called the father of “supply-side economics”.?
Ans: Robert Lucas;
1. What is, the economic principle, that states individuals, or entities allocate resources, to maximize their utility,?
Ans. The principle of rational self-interest.,
2. What is, the term, used to describe the total value of all goods, and services produced, within a country’s borders, in a specific time period,?
Ans. Gross Domestic Product; (GDP)..
3. In economics, what does the law of supply state,?
Ans. The law of supply states, that as the price of a good, or service increases, the quantity supplied by producers, also increases, and vice versa; assuming all other factors remain constant.,
4. What term, describes the measure of responsiveness of the quantity demanded, of a good to a change in its price,?
Ans. Price elasticity of demand.,
5. What is inflation,?
Ans. Inflation, is the rate, at which the general level of prices, for goods, and services, is rising, leading to a decrease in the purchasing power of money.,
6. Define opportunity cost.,
Ans. Opportunity cost, is the value of the next best alternative, that must be forgone, when a decision is made, to allocate resources toward a particular choice.,
7. What economic system, relies on private ownership of the means of production, and free market principles,?
Ans. Capitalism.,
8. What is the term, used to describe, the total value of a country’s exports minus the total value of its imports, over a given period,?
Ans. Trade surplus.,
9. What is a recession,?
Ans. A recession, is a significant decline, in economic activity across the economy, lasting for a sustained period; typically marked, by a decrease in GDP, employment, and trade.,
10. What is fiscal policy,?
Ans. Fiscal policy refers, to the use of government spending, and taxation to influence the economy’s performance.,
11. What is, the term used to describe, the rate at which one currency can be exchanged for another,?
Ans. Exchange rate.,
12. Define monopoly in economics.,
Ans. A monopoly, is a market structure, where a single seller, or producer controls the entire supply of a good, or service; giving them significant market power.,
13. What does the term ,(invisible hand) refer to in economics,?
Ans. The concept introduced by Adam Smith, in economics, suggesting that individuals’ self-interested actions, in free markets can lead to positive social outcomes, as if guided by an invisible hand,.
14. What is, the term for the percentage of the labor force, that is unemployed, and actively seeking employment,?
Ans. Unemployment rate.,
15. Define the law of demand.,
Ans. The law of demand states, that, all else being equal, as the price of a good, or service increases, the quantity demanded decreases and vice versa.
16. What is, the term, used to describe the total market value of all final goods, and services produced within a country in a given period of time,?
Ans. Gross National Product; (GNP).
17. What is, the difference between a recession, and a depression,?
Ans. A recession, is a significant decline in economic activity, while a depression, is a prolonged, and severe recession characterized, by high unemployment; low consumer confidence and overall economic hardship.
18. What is, the economic concept, that describes, the condition where resources are limited compared to the unlimited wants ,and needs,?
Ans. Scarcity.,
19. Define oligopoly in economics.,
Ans. An oligopoly, is a market structure characterized by a small number of large firms dominating the industry, often leading to limited competition, and interdependence among the firms.,
20. What is, the term, for the measure of the overall level of prices in the economy,?
Ans. Price level ,or inflation rate.,
21. What economic term, describes, the total value of a nation’s goods, and services produced within, its borders, including income earned, by foreign residents?
Ans. Gross National Income; (GNI).
22. Define comparative advantage, in international trade..
Ans. Comparative advantage refers, to the ability of a country, or entity to produce goods, or services, at a lower opportunity cost than another country or entity..
23. What is, the term used, to describe, the study of how individuals, and societies allocate scarce resources, to satisfy unlimited wants,?
Ans. Economics..
24. Define, the term, “elasticity of supply” in economics.
Ans. Elasticity of supply measures, how responsive the quantity supplied of a good, or service, is to a change in its price..
25. What is, the term, for the interest rate set by the central bank, that influences, other interest rates in the economy,?
Ans. The policy rate, or central bank rate..
26. Define fiscal deficit..
Ans. Fiscal deficit occurs, when a government’s total expenditures exceed the revenue ,that it generates, excluding money, from borrowings..
27. Define the term (opportunity cost) in economics.
Ans. Opportunity cost, refers to the value of the next best alternative; that must be foregone, when a decision is made, to allocate resources toward a particular choice.
28. What is ,the term, for the monetary policy tool used, by central banks to influence the money supply, and interest rates, in the economy?
Ans. Open market operations..
29. Define the term (marginal cost) in economics.
Ans. Marginal cost, is the additional cost incurred, by producing one more unit of a good or service..
30. What economic term, describes, the measure of the responsiveness of the quantity demanded of a good, to a change in consumers’ income?
Ans. Income elasticity of demand.
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