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Test: Introduction To Economics - 1 - UPSC MCQ


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10 Questions MCQ Test Indian Economy for UPSC CSE - Test: Introduction To Economics - 1

Test: Introduction To Economics - 1 for UPSC 2024 is part of Indian Economy for UPSC CSE preparation. The Test: Introduction To Economics - 1 questions and answers have been prepared according to the UPSC exam syllabus.The Test: Introduction To Economics - 1 MCQs are made for UPSC 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Introduction To Economics - 1 below.
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Test: Introduction To Economics - 1 - Question 1

In Economics, a good is something which

Detailed Solution for Test: Introduction To Economics - 1 - Question 1

A good in economics is any object or product (factors of production) that is useful. A commodity is one kind of good. A good that cannot be used by consumers directly, such as an office building or capital equipment, can be called a good because it can be useful if it is sold.

So option A is correct.

Test: Introduction To Economics - 1 - Question 2

A resource is a

Detailed Solution for Test: Introduction To Economics - 1 - Question 2

A resource is good or a service because we can extract the resources from nature which can be used as a good .
Example: Cotton is obtained from nature which we wear as a cloth so it is a good.

So option C is correct.

Test: Introduction To Economics - 1 - Question 3

The central problems of an economy are due to

Detailed Solution for Test: Introduction To Economics - 1 - Question 3

Central problems arise in an economy due to scarcity of resources having alternative uses in relation to unlimited wants.

The Central Problem of all economies is scarcity.

Limited Resources + Unlimited Wants = Scarcity

Scarcity forces individuals, firms governments and societies to make choices.

So option D is correct.

Test: Introduction To Economics - 1 - Question 4

One or more persons living together and having a common budget is called:

Detailed Solution for Test: Introduction To Economics - 1 - Question 4

C: A household is a group of one or more people living together and sharing a common budget. A family is a type of household, but it specifically refers to a group of people related by blood or marriage living together in the same dwelling. An organization is a group of people working together to achieve a common goal, such as a business or non-profit. All commodities in a house refers to all the items or possessions in a house, but it is not a term that is used to describe a group of people living together.

So option C is correct.

Test: Introduction To Economics - 1 - Question 5

What distinguishes macroeconomic decision-makers from individual microeconomic agents?

Detailed Solution for Test: Introduction To Economics - 1 - Question 5

Macroeconomic policies are pursued by entities like the State and statutory bodies, which have public goals defined by law.

Test: Introduction To Economics - 1 - Question 6

What is the primary focus of macroeconomics?

Detailed Solution for Test: Introduction To Economics - 1 - Question 6

Macroeconomics primarily focuses on understanding the aggregate effects on the economy as a whole, including phenomena like inflation and unemployment.

Test: Introduction To Economics - 1 - Question 7

According to Adam Smith, what was the initial suggestion regarding the relationship between individual markets and the wealth of the country?

Detailed Solution for Test: Introduction To Economics - 1 - Question 7

Adam Smith suggested that if buyers and sellers in each market act in their own self-interest, the wealth and welfare of the country as a whole will be taken care of.

Test: Introduction To Economics - 1 - Question 8

What is the external sector's impact on the domestic economy?

Detailed Solution for Test: Introduction To Economics - 1 - Question 8

The external sector impacts the domestic economy not only through imports and exports but also through the flow of capital and various other ways.

Test: Introduction To Economics - 1 - Question 9

How did the Great Depression influence economic thinking?

Detailed Solution for Test: Introduction To Economics - 1 - Question 9

The Great Depression prompted a rethinking of the economy, challenging the classical tradition and leading to the emergence of macroeconomics.

Test: Introduction To Economics - 1 - Question 10

Why did Keynes depart from the classical tradition in his approach to economics?

Detailed Solution for Test: Introduction To Economics - 1 - Question 10

Keynes departed from the classical tradition in response to the Great Depression, aiming to theorize about long-lasting unemployment and examining the interdependence of different sectors in the economy.

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