Economy Free Mock Quiz 1

<–2/”>a >Specially designed mock Quiz for Indian economy for the systematic coverage of PSC Exam prelims syllabus and practice.
History Free Mock Quiz has 30 questions. If any issue is observed with answer students may comment below

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Economics is the study of how people make choices under conditions of scarcity. It is a social science that analyzes the production, distribution, and consumption of goods and Services. Economics also studies how governments and businesses interact with each other and with the rest of the world.

There are three main Economic Systems: capitalism, Socialism, and Communism. Capitalism is an economic system based on private ownership of capital and the means of production. Socialism is an economic system based on public ownership of capital and the means of production. Communism is an economic system based on the absence of private property and the equal distribution of wealth.

Economic Growth is the increase in the amount of goods and services produced by an economy over time. Inflation is a general increase in prices and a decrease in the purchasing power of Money. Unemployment is the Percentage of the labor force that is unemployed. Government intervention in the economy can take many forms, such as taxes, subsidies, and regulations.

Microeconomics is the study of the behavior of individual economic units, such as households and firms. It focuses on the factors that determine the prices of goods and services, the quantities of goods and services that are produced and consumed, and the distribution of income.

Macroeconomics is the study of the economy as a whole. It focuses on the factors that determine the level of economic activity, the rate of inflation, and the unemployment rate.

International economics is the study of the economic interactions between countries. It includes the study of international trade, Investment/”>Foreign Direct Investment, exchange rates, and Balance of Payments.

Economic Development is the process of improving the economic well-being of a country or region. It includes the reduction of POVERTY, the increase in economic growth, and the improvement of Human Development.

Poverty is the state of being poor. It is often defined as the lack of basic necessities, such as food, water, shelter, and clothing. Economic growth is the increase in the amount of goods and services produced by an economy over time. Human development is the process of improving the Quality Of Life for people. It includes the increase in life expectancy, the reduction in infant mortality, and the increase in Literacy rates.

Inequality is the state of being unequal. It can be measured in terms of income, wealth, or opportunity. Sustainable Development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Economics is a complex and fascinating subject. It is the study of how people make choices under conditions of scarcity. It is a social science that analyzes the production, distribution, and consumption of goods and services. Economics also studies how governments and businesses interact with each other and with the rest of the world.

Economics is important because it helps us understand how the world works. It can help us make better decisions about how to allocate our Resources. It can also help us understand the causes of economic problems, such as Poverty and Unemployment.

Economics is a constantly evolving field. New theories and ideas are being developed all the time. This makes economics a very exciting subject to study.

1. What is the difference between microeconomics and macroeconomics?

Microeconomics is the study of the behavior of individual economic agents, such as households and firms, while macroeconomics is the study of the economy as a whole.

2. What are the three main economic sectors?

The three main economic sectors are the Primary Sector, the Secondary Sector, and the Tertiary Sector. The primary sector is concerned with the extraction of Natural Resources, the secondary sector is concerned with the manufacturing of goods, and the tertiary sector is concerned with the provision of services.

3. What are the four main types of economic systems?

The four main types of economic systems are capitalism, socialism, communism, and mixed economies. Capitalism is an economic system in which the means of production are privately owned and operated for profit. Socialism is an economic system in which the means of production are owned and controlled by the state. Communism is an economic system in which all property is communally owned and there is no private property. Mixed economies are economies that combine Elements of capitalism and socialism.

4. What is the role of government in the economy?

The role of government in the economy can be divided into four main areas: providing public goods, regulating the economy, redistributing income, and stabilizing the economy. Public goods are goods that are non-rivalrous and non-excludable. Regulation is the process of setting rules and standards for businesses to follow. Income redistribution is the process of transferring income from one group of people to another. Stabilization is the process of keeping the economy on an even keel.

5. What is the difference between inflation and Deflation?

Inflation is a general increase in prices, while deflation is a general decrease in prices. Inflation can be caused by a number of factors, including an increase in the Money Supply, an increase in demand, or a decrease in supply. Deflation can be caused by a number of factors, including a decrease in the money supply, a decrease in demand, or an increase in supply.

6. What is the difference between a Recession and a depression?

A recession is a period of economic decline, while a depression is a severe recession. A recession is typically defined as two consecutive quarters of negative economic growth. A depression is typically defined as a recession that lasts for more than a year and is accompanied by high unemployment and a decline in economic activity.

7. What is the difference between a Trade Deficit and a trade surplus?

A trade deficit is when a country imports more goods and services than it exports, while a trade surplus is when a country exports more goods and services than it imports. A trade deficit can be caused by a number of factors, including a strong domestic economy, a weak foreign economy, or a depreciating currency. A trade surplus can be caused by a number of factors, including a weak domestic economy, a strong foreign economy, or an appreciating currency.

8. What is the difference between a budget deficit and a budget surplus?

A budget deficit is when a government spends more money than it takes in, while a budget surplus is when a government takes in more money than it spends. A budget deficit can be caused by a number of factors, including a recession, a tax cut, or an increase in government spending. A budget surplus can be caused by a number of factors, including an economic boom, a tax increase, or a decrease in government spending.

9. What is the difference between a national debt and a national deficit?

The national debt is the total amount of money that a government owes, while the national deficit is the amount of money that a government spends in a given year that is more than the amount of money that it takes in. The national debt can be caused by a number of factors, including a budget deficit, a war, or a natural disaster. The national deficit can be caused by a number of factors, including a recession, a tax cut, or an increase in government spending.

10. What is the difference between gross domestic product (GDP) and gross national product (GNP)?

GDP is the total market value of all Final Goods and services produced within a country’s borders in a given year, while GNP is the total market value of all final goods and services produced by a country’s citizens, regardless of where they are located, in a given year. GDP is a measure of a country’s economic output, while GNP is a measure of a country’s economic activity.

Economy Free Mock Quiz 1

Which of the following is not a factor of production?
(A) Land
(B) Labor
(C) Capital
(D) Entrepreneurship
Which of the following is a characteristic of a command economy?
(A) Private ownership of property
(B) Central planning
(C) Free market competition
(D) Economic freedom
Which of the following is a characteristic of a Mixed Economy?
(A) Private ownership of property
(B) Central planning
(C) Free market competition
(D) Economic freedom
Which of the following is a characteristic of a market economy?
(A) Private ownership of property
(B) Central planning
(C) Free market competition
(D) Economic freedom
Which of the following is a characteristic of a traditional economy?
(A) Private ownership of property
(B) Central planning
(C) Free market competition
(D) Economic freedom
Which of the following is a type of economic system in which the government owns and controls all economic resources?
(A) Market economy
(B) Command economy
(C) Mixed economy
(D) Traditional economy
Which of the following is a type of economic system in which the government plays a limited role in the economy, allowing private businesses to operate freely?
(A) Market economy
(B) Command economy
(C) Mixed economy
(D) Traditional economy
Which of the following is a type of economic system in which the government owns and controls some economic resources, but also allows private businesses to operate?
(A) Market economy
(B) Command economy
(C) Mixed economy
(D) Traditional economy
Which of the following is a type of economic system in which the economy is based on customs and traditions that have been passed down for generations?
(A) Market economy
(B) Command economy
(C) Mixed economy
(D) Traditional economy
Which of the following is a factor of production that includes natural resources, such as land, water, and Minerals?
(A) Land
(B) Labor
(C) Capital
(D) Entrepreneurship
Which of the following is a factor of production that includes the physical and human resources used to produce goods and services?
(B) Labor
(C) Capital
(D) Entrepreneurship
Which of the following is a factor of production that includes the ability to organize and manage a business?
(A) Land
(B) Labor
(C) Capital
(D) Entrepreneurship
Which of the following is a type of economic growth that occurs when a country’s output of goods and services increases?
(A) Positive economic growth
(B) Negative economic growth
(C) Zero economic growth
(D) Stagflation
Which of the following is a type of economic growth that occurs when a country’s output of goods and services decreases?
(A) Positive economic growth
(B) Negative economic growth
(C) Zero economic growth
(D) Stagflation
Which of the following is a type of economic growth that occurs when a country’s output of goods and services remains the same?
(A) Positive economic growth
(B) Negative economic growth
(C) Zero economic growth
(D) Stagflation
Which of the following is a period of time characterized by high inflation, high unemployment, and low economic growth?
(A) Stagflation
(B) Recession
(C) Depression
(D) Hyperinflation
Which of the following is a period of time characterized by a decline in economic activity, as measured by a decrease in gross domestic product (GDP)?
(A) Stagflation
(B) Recession
(C) Depression
(D) Hyperinflation
Which of the following is a period of time characterized by a severe decline in economic activity, as measured by a decrease in GDP of more than 10%?
(A) Stagflation
(B) Recession
(C) Depression
(D) Hyperinflation
Which of the following is a period of time characterized by an extremely high rate of inflation, as measured by an increase in the consumer price index (CPI) of more than 50% per year?
(A) Stagflation
(B) Recession
(C) Depression
(D) Hyperinflation
Which of the following is a measure of the Average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?
(A) Consumer price index (CPI)