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

occasionally poor

churning poor

always poor

usually poor

Answer: churning poor

Explanation:

Churning poor are those people who regularly move in or out of poverty. When they get employed or their harvest is good they are above the poverty line but when they are unemployed or in bad climatic years they are below the poverty line. Example seasonal workers or small farmers.


2. 'Income and employment theory' is the other name for which branch of Economics ?

International economics

Public finance

Microeconomics

Macroeconomics

Answer: Macroeconomics

Explanation:

Microeconomics is a branch of ecqonomics that studies the behaviour of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Macroeconomics is the branch of economics that studies the behaviour and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.


3. Which of the following is a tertiary economic activity ?

Farming

Trading

Hunting

Weaving

Answer: Trading

Explanation:

Primary economic activity involves getting raw materials from the natural environment like mining, farming and fishing. Secondary economic activity involves manufacturing like making cars and steel. Tertiary activities include providing services such as trade, transport, financial operations, business services, personal services, accommodation and food service activities, real estate, education, health etc.


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

finished goods

capital goods

work in progress

land

Answer: capital goods

Explanation:

Depreciation is an annual decrease in the price of a capital good over a year due to wear and tear and some other reasons.


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

threshing machine

money

tractor

land

Answer: money

Explanation:

Working Capital is current assets, which can be turned to cash in one year or less, minus current liabilities due within one year. Working capital measures financial liquidity, which is the ability to sell assets without disrupting normal business operations.


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

Paul Krugman

Gary Becker

Milton Friedman

david Ricardo

Answer: david Ricardo

Explanation:

David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country's workers are more efficient at producing every single goods than workers in other countries.


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

4

3

2

5

Answer: 3

Explanation:

They are three sectors in the Indian economy, they are; primary economy, secondary economy, and tertiary economy. In terms of operations, the Indian economy is divided into organized and unorganized. While for ownership, it is divided into the public sector and the private sector.


8. The Micro, Small and Medium Enterprises Development Act was passed in the year _____ ?

2006

2004

2008

2002

Answer: 2006

Explanation:

The Micro, Small and Medium Enterprises Development Act, 2006 ("Act") was enacted with a view to facilitate the promotion and development of micro, small and medium enterprises ("MSMEs") and to enhance the competitiveness between them.


9. For the calculation of the 'wholesale price index' in 2019, ____ is taken as the base year ?

2013-14

2014-15

2011-12

2012-13

Answer: 2011-12

Explanation:

2011-2012 was taken as the base year for the calculation of the ‘Wholesale price index 2019.


10. In _____ economies, all productive resources are owned and controlled by the government ?

dual

capitalist

mixed

socialist

Answer: socialist

Explanation:

A socialist economy is a system of production where goods and services are produced directly for use. In this type of economy there is less or no competition as the state is the only entrepreneur.

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