Economics: A Brief Overview
Economics: Key Points and Terms.(General knowledge)

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 Aldo..)

 

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:

 

•  What is, the name of the well known, economic concept, developed by “Adam Smith”?

Ans. The Invisible Hand;

 

• Who is ,the founder o”the Austrian School of Economics”?

Ans: -Carl Menger..

 

1. What is ,the name of the famous & popular ,economic concept, developed by “John Maynard Keynes”?

Ans: -The Multiplier Effect..

 

• 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.)

 

 

General knowledge Solved Questions for competitive examinations (Part -2)

 

31.  Explain the term; (perfect competition), in economics..

Ans.It is a market structure characterized ,by a large number of small firms, producing homogeneous products; ease of entry and exit, perfect information, and no market power..

32.  What is ,the term used;to describe the measure of the responsiveness of the quantity supplied of a good, to a change in its price.?

Ans. (Price elasticity of supply..)

33.  What is monetary policy..?

Ans. It refers to the actions taken, by a central bank, to manage the money supply, interest rates, and credit conditions, in the economy to achieve specific goals, such as; controlling inflation, or stimulating economic growth.,

34.  What economic concept, describes the maximum amount of a good ,or service, that consumers are willing ,and able to purchase at a given price.?

Ans. (Quantity demanded..)

35.  Describe the term: (marginal revenue) in economics..

Ans.It is the additional revenue generated, by selling one more unit of a good, or service..

36.  What is the term, for the percentage of the labor force, that is unemployed, and willing to work at prevailing wage rates.?

Ans.  (Unemployment rate..)

37.What is the term; (comparative advantage), in international trade.?

Ans. It, is the ability of a country, or entity to produce a good or service, at a lower opportunity cost, than another country or entity..

38.  What economic term; describes the situation, where the marginal cost of production equals the marginal revenue, from production,?

Ans. (Profit maximization.)

39.Explain the term; (moral hazard) in economics.

Ans.It refers, to the tendency of individuals or entities to take greater risks when they are insured against adverse outcomes, leading to inefficient, or risky behaviour..

40. What economic term, describes the phenomenon, where the total output of a group of individuals, firms, or nations is greater, than the sum of its individual parts, due to specialization, and trade.?

Ans. ( The principle of comparative advantage.)

41. Describe the term; (liquidity trap) in economics..

Ans.It (liquidity trap), occurs, when nominal interest rates, are very low; and monetary policy becomes ineffective; because individuals, and businesses hoard cash rather than invest ,or spend it..

42.  What is the term;used to describe a situation, where one person’s consumption of a good, does not reduce its availability to others.?

Ans. (Non-rivalrous consumption.)

43. Explain the term; (Giffen goods) in economics.

Ans. It ( Giffen goods), are rare goods for which demand increases, as the price rises, contrary to the law of demand, typically due to unique characteristics, or social status implications..

44.  What economic concept, describes the measure of the additional utility gained, from consuming one more unit of a good, or service?

Ans. (Marginal utility..)

45.  What is the term; (creative destruction)in economics.?

Ans. It, refers to the process, by which innovation, and technological advancement lead to the replacement of old industries, or products with new ones, ultimately driving economic growth, but causing disruption in the short term.

46.  What is the term, used to describe a situation, where a single entity ,or group of entities controls the entire supply of a critical resource, giving them significant market power,?

Ans. ( Monopsony..)

47. Details the term; (Pareto efficiency) in economics.

Ans. It, occurs ,when resources, are allocated in a way that no one can be made better off without making someone else worse off.

48.  What economic term, describes the situation, where the government intervenes in the market, to correct market failures, or achieve specific social, or economic objectives,?

Ans. (Interventionism..)

49.  Describe the term ;(tragedy of the commons) in economics.

Ans. (The tragedy of the commons), refers, to the depletion, or degradation of a shared environmental resource, when individuals, or groups act in their self-interest, and exploit the resource without regard for the long-term consequences..

 

50.  Who is often referred; to as the (father of modern economics), and wrote the seminal work, (An Inquiry into the Nature and Causes of the Wealth of Nations),?

Ans. (Adam Smith..)

51. Which economist, is known, as the (father of socialism) and authored (Das Kapital) and (The Communist Manifesto).?

Ans.( Karl Marx..)

52.  Who is ,regarde the (father of classical economics), and developed the theory of rent, wages, and profits in his work (Principles of Political Economy and Taxation),?

Ans.( David Ricardo..)

53.  Which economist, is called  the (father of modern macroeconomics0 and introduced the concept of (Keynesian economics) in his book (The General Theory of Employment, Interest, and Money),?

Ans. (John Maynard Keynes..)

54.  Who is known ,one of the (fathers of marginal utility) and developed the theory of marginal utility, in his work (Principles of Economics),?

Ans. (William Stanley Jevons.)

55.  Who is, regarded ,the (father of behavioural economics),and authored the bestselling book (Nudge: Improving Decisions About Health, Wealth, and Happiness),?

Ans. (Richard Thaler..)

56.  Which economist, is famous and popular,for his work on game theory ,and won the Nobel Prize, in Economics, in 1994,?

Ans.( John Nash..)

57.  Who is, regarded for his contributions, to the theory of rational expectations, and won the Nobel Prize, in Economics, in 2011,?

Ans.( Thomas Sargent..)

58.  Which economist, is called for his theory of comparative advantage, and is regarded, as one of the founders of classical economics,?

Ans. (David Ricardo..)

59. Who is, the Nobel Prize-winning economist, remembered for his work on development economics, particularly the theory of endogenous growth,?

Ans.( Paul Romer..)

60. Who is, regarded for his development of the (human capital theory); and his research on the economics of education,?

Ans.( Gary Becker..)

61.  Which economist, is given credit with developing the theory of rational expectations; and his work on the Phillips curve,?

Ans. (Robert Lucas Jr..)

62.  Who is, regarded for his contributions, to the field of environmental economics, particularly the concept of (sustainability),?

Ans. (Herman Daly.)

63.  Which economist, is remembered, one of the pioneers of modern monetary theory; and is intended for his work, on monetary policy rules,?

Ans. (Milton Friedman..)

64.  Who is , regarded for his work, on the theory of contracts, and agency theory, which examines the relationship; between principals; and agents in business relationships,?

Ans. (Oliver Hart..)

 

Learn more and more important tips about 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 Aldo..)

 

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..

 

1. What is ,the name of the famous & popular ,economic concept, developed by “John Maynard Keynes”?

 

Ans: -The Multiplier Effect..

 

• Who is, called  the father of “supply-side economics”.?

Ans: Robert Lucas;

 

 

In nutshell,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..