Basic Concepts of Economics Questions with Solutions
This topic covers the basic ideas of economics: microeconomics and macroeconomics, demand and supply, elasticity, utility and consumption, production and costs, types of markets (perfect competition, monopoly, oligopoly and monopolistic competition), and types of economies. Questions usually test definitions and laws, such as the law of demand, the law of diminishing marginal utility, and the difference between a monopoly and an oligopoly. Be clear about cases such as Giffen goods, which break the law of demand. Adam Smith, author of 'The Wealth of Nations' (1776), is known as the father of economics. Practise the basic economic concepts questions below, written in the style of the general awareness sections of exams such as SSC, banking, railways, CUET GAT, MAH CET and CLAT. Each question comes with a detailed explanation that adds related facts, so every question helps you revise more than one point.
- Q1.
Receipts of the government that either create a liability or reduce its financial assets are called:
A. Revenue receiptsB. Non-tax revenueC. Tax receiptsD. Capital receiptsmediumAsked in SSC +1View solution › - Q2.
The Indian economy is best described as a:
A. Capitalist economyB. Traditional economyC. Socialist economyD. Mixed economyeasyAsked in SSC +2View solution › - Q3.
The action of a government selling or liquidating its stake in an asset or a public sector enterprise is called:
A. DisinvestmentB. DeregulationC. NationalisationD. DevaluationeasyAsked in SSC +1View solution › - Q4.
The Industrial Policy Resolution of 1956 classified industries into how many categories?
A. FourB. TwoC. FiveD. ThreemediumAsked in SSC +1View solution › - Q5.
The surplus of a farmer's output over and above his own family's consumption, which he can sell in the market, is called:
A. Consumer surplusB. Producer surplusC. Marketable surplusD. Buffer stockmediumAsked in SSC +1View solution › - Q6.
What is the name for a period of sustained economic decline?
A. RecessionB. StagnationC. DepressionD. DeflationmediumAsked in MAH LLB 3 Year CET 2026View solution › - Q7.
In microeconomics, what does 'PPF' stand for?
A. Public Provident FundB. Production Possibility FrontierC. Price Policy FrameworkD. Primary Production FactormediumAsked in SSCView solution ›