Basics of Economy Flashcards
Which of the following best describes the nature of Indian economy?
Mixed economy
Explanation: In India both the private and public sectors exist simultaneously which is a feature of mixed economy
Which of the following economic activities employs the maximum number of people in india?
Agriculture
Which of the following come under the Quaternary sector?
Information Technology
The Micro, Small and Medium Enterprises Development Act was passed in the year_____.
2006
Who among the following is also known as the founder of macroeconomics as a separate discipline?
John Maynard Keynes
Based on economic activities, how many sectors are there in Indian economy?
They are three sectors in the Indian economy, they are; primary economy, secondary economy, and tertiary economy.
What should be the investment of Micro enterprises in plant & machinery (Manufacturing Sector)?
Not more than twenty five lakh Explanation: A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
What is capital good?
The physical Asset that a company uses in the production process and manufacturing process and services Capital goods mainly consist of buildings, machinery, equipment, vehicles, and tools. Food and Clothing is not a capital income.
Which Economist developed international trade theory in 1817 based on comparative advantage and specialisation ?
david Ricardo
Which of the following activities is also referred to as ‘Gold Collar’ profession?
Quinary
Tertiary activities are classified into quaternary and quinary activities. Quinary, also known as ‘gold collar’ professions which represents special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, etc.
For the calculation of the ‘wholesale price index’ in 2019, _____ is taken as the base year.
2011-2012
For the calculation of the ‘wholesale price index’ in 2019, _____ is taken as the base year.
In which year was the first Industrial Policy based on the mixed economy principle announced in India? The policy clearly demarcated the areas of operation of the public and private sectors.
1948
Which of the following is working capital in the farming sector?
MOney
In_____ economies, all productive resources are owned and controlled by the government.
Socialist
Private ownership of the meSol of production is a feature of a ______ economy.
capitalist
John Maynard Keynes, best known for his economic theories (Keynesian theories), hailed from which country?
England
Depreciation is an annual allowance for the wear and tear of ______.
capital goods
Which of the following is an economic system in which capital goods are owned by private individuals or businesses and the production of goods and services is based on supply and demand in the general market?
Capitalistic Economy
An industrial economy is best defined as an economy whose 50% or more produce value comes from the _______ sector.
secondary
Income and employment theory’ is the other name for which branch of Economics?
Macroeconomics
_____ is defined as the study of
behavior of decision-making
individual units, such as consumers, resource owners and firms.
Microeconomics
The concepts of wages, rent, interest and profit are studied under which branch of Economics?
Microeconomics
People like small farmers and seasonal workers who regularly move in and out of poverty are categorised as ________.
churning poor
An unexpected rise in sales of a product leads to ______
Unplanned decumulation of inventory
Unplanned accumulation of inventory refers to the unexpected increase in the stock of goods due to the fall in sales. Unplanned decumulation of inventory refers to the unexpected decrease in the stock of goods due to the rise in sales.
