1. Which of the following is the main differentiation between the small scale units and large scale units?
A. The amount of investment
B. The volume of output
C. The size of the unit area
D. The volume of sale
ANSWER:A.The amount of investment
SOLUTION :Small scale units are differentiated from large scale units on the basis of the amount of investment. Investment is a key factor because small scale units typically have less access to funding and resources than large scale units.
2. The creation of choice is done by _________ .
A. Scarcity of resources
B. Less choices
C. The urgency of needs
D. Abundance of resources
ANSWER:A.Scarcity of resources
SOLUTION:
According to Robbins, choice is created by scarcity of resources.
3. Which branch of economic theory is associated with the difficulty of resources allocation?
A. Econometrics
B. Microeconomic theory
C. Macroeconomic theory
D. None of the above
ANSWER : B. Microeconomic theory
SOLUTION:
Micro economics deals with the individual problems of production which involves cost and production function. Therefore, allocation of resources is a part of this branch.
4. Which option is a disadvantage for allocating resources that are utilising a market system?
A. Profits will be less
B. Impossible to stop the wastage of scarce resources
C. Notable unemployment may take place
D. Uneven distribution of income
ANSWER: D.Uneven distribution of income
SOLUTION:
Income will tend to be unevenly distributed.
5. Which of the following is a good indicator of the economic growth of a country?
A. Gross domestic product
B. Gross national product
C. Net domestic product
D. Net national product
ANSWER: A.Gross domestic product
SOLUTION:
A steady increase in Gross Domestic Product (GDP) is a widely used indicator of economic growth. GDP is the total value added by all resident producers in an economy. The growth rate of real GDP is often used as an indicator of the general health of the economy.
6. Which of the crops benefited the most as a result of the green revolution?
A. Rice
B. Wheat
C. Both a and b are correct
D. Both a and b are incorrect
ANSWER:C.Both a and b are correct
SOLUTION:
Food grains were the main beneficiaries of the green revolution. Crops like wheat and rice were developed to be high-yielding and disease-resistant, resulting in a significant increase in production. This led to a reduction in food shortages and a decrease in prices.
7. Which of the following statements is true about the central problem of an economy?
A. The central problem of an economy is what to produce
B. The central problem of an economy is how to produce
C. The central problem of an economy is for whom to produce
D. All of the above
ANSWER: D.All of the above
SOLUTION :
The central problem of an economy is the allocation of scarce resources to satisfy unlimited wants and needs. This problem arises because human wants are unlimited, while resources are finite.
8. Which of the following is true regarding the law of scarcity?
A. It states that the wants of a consumer will never be satisfied completely.
B. It indicates that the wants of a consumer will be satisfied in a socialistic system.
C. It is only for underdeveloped countries.
D. It is not for rich and developed countries.
ANSWER:A.It states that the wants of a consumer will never be satisfied completely.
SOLUTION:
It states that the wants of a consumer will never be satisfied completely.
9. Which of the following is not true about the planning commission of India?
A.The main aim of the planning commission is to ensure economic growth in the country
B. The main aim of the planning commission is to ensure equity in the country
C. The main aim of the planning commission is to ensure the conservation of resources in the country
D. The main aim of the planning commission is to ensure self-reliance in the country
ANSWER: C.The main aim of the planning commission is to ensure the conservation of resources in the country
SOLUTION:
The main aim of the planning commission is to ensure the conservation of resources in the country.
10. Which of the following statements about the Indian Economy is true during the Era of 1950-1990?
A. The abolition of intermediaries was a part of the industrial reforms in India
B. The abolition of intermediaries was a part of the external sector reforms in India
C. The abolition of intermediaries was a part of the land reforms in India
D. The abolition of intermediaries was a part of the banking reforms in India
ANSWER: C.The abolition of intermediaries was a part of the land reforms in India
SOLUTION:
The abolition of intermediaries was a part of the land reforms in India