Economics Unit 3.A Quiz

<p>Unit 4 (B)</p> Signup and view all the answers

<p>Unit 6 (C)</p> Signup and view all the answers

<p>Public Finance in India (B)</p> Signup and view all the answers

<p>Unit 10 (C)</p> Signup and view all the answers

<p>Individual firm and producer behavior (B)</p> Signup and view all the answers

<p>The entire economy and its aggregates (B)</p> Signup and view all the answers

<p>It addresses fluctuations in the overall price level. (A)</p> Signup and view all the answers

<p>Large aggregates and national statistics (B)</p> Signup and view all the answers

<p>The relative shares of income among factors like rent and wages (D)</p> Signup and view all the answers

<p>Focus on individual firms (A)</p> Signup and view all the answers

<p>Causes of underdevelopment and poverty (A)</p> Signup and view all the answers

<p>Mahalanobis growth model (A)</p> Signup and view all the answers

<p>The general price level and its fluctuations (B)</p> Signup and view all the answers

<p>Each additional unit of consumption provides less additional satisfaction. (B)</p> Signup and view all the answers

<p>Increasing consumption of a beloved hobby. (D)</p> Signup and view all the answers

<p>Marginal utility decreases. (A)</p> Signup and view all the answers

<p>When he hoards more money. (B)</p> Signup and view all the answers

<p>Consumption satisfaction may decrease below initial levels. (D)</p> Signup and view all the answers

<p>Marginal utility increases with increased stock of money. (D)</p> Signup and view all the answers

<p>Rational consumption. (B)</p> Signup and view all the answers

<p>After consuming a limited amount of the good. (B)</p> Signup and view all the answers

<p>To develop interest and stimulate thought processes (A)</p> Signup and view all the answers

<p>Activities in each chapter (B)</p> Signup and view all the answers

<p>Assign equal weightage to all topics (A)</p> Signup and view all the answers

<p>Stereotype questions (C)</p> Signup and view all the answers

<p>To provide proper understanding of the subject (B)</p> Signup and view all the answers

<p>To facilitate a graded knowledge building approach (D)</p> Signup and view all the answers

<p>Key economic terms (A)</p> Signup and view all the answers

<p>Statistics (A)</p> Signup and view all the answers

<p>Increasing, Decreasing (B), Decreasing, Fluctuating (D)</p> Signup and view all the answers

<p>Provision of employment (C), Maintaining internal law and order (D)</p> Signup and view all the answers

<p>Prof. Hugh Dalton (D)</p> Signup and view all the answers

<p>Fees and Fines (A)</p> Signup and view all the answers

<p>Direct Tax - Surplus Budget (C)</p> Signup and view all the answers

<p>Source of funds (B), Purpose of spending (C)</p> Signup and view all the answers

<p>Sales Tax (C), Value Added Tax (VAT) (D)</p> Signup and view all the answers

<p>Developmental expenditure (A)</p> Signup and view all the answers

<p>To maintain the official rate of exchange of rupee (C)</p> Signup and view all the answers

<p>For settling accounts between member banks (D)</p> Signup and view all the answers

<p>Setting commodity prices (B)</p> Signup and view all the answers

<p>Accepting deposits and granting loans (D)</p> Signup and view all the answers

<p>Offers liquidity to banks in financial difficulty (A)</p> Signup and view all the answers

<p>Debt Equity Ratio (C)</p> Signup and view all the answers

<p>To maintain stability and manage currency transactions (B)</p> Signup and view all the answers

<p>It exercises statutory control over commercial banks. (A)</p> Signup and view all the answers

A teaching approach where students actively build their understanding of the subject.

Learning using activities to engage students and foster understanding.

Create lessons with clear objectives that spark student interest.

Visual aids or other materials used to enhance lesson comprehension.

Units taught in a structured way, building on previous knowledge.

Learning concepts from different subjects together.

Assessment using specific criteria like observation and critical thinking.

Utilizing QR codes to access updated information.

The study of individual firms, producers, and markets.

The study of the overall economy, including its growth, employment, and inflation.

Study of how consumers make decisions about what and how much to buy.

How responsive quantity demanded is to changes in price.

Study of how producers make decisions about what and how much to produce.

Different structures of markets (e.g., perfect competition, monopoly).

The total income earned by all factors of production in an economy.

Government's role in the economy (taxation, spending, borrowing).

Macroeconomics analyzes the overall economy, focusing on things like national income, total employment, and inflation.

Aggregates are large economic measures like total output, overall employment, or the general price level.

Inflation theory explains how the general price level (average of all prices) changes and what causes it.

It analyzes the causes of economic growth and underdevelopment, suggesting strategies to improve living standards.

It analyzes how national income is distributed across different factors of production, such as wages, rent, interest, and profit.

Economic growth models help study strategies for accelerating economic development, like focusing on specific industries.

An economic growth model emphasizing development of basic heavy industries, like steel and energy, for sustainable growth.

Business fluctuations refer to the ups and downs in economic activity, including periods of growth and recession.

The principle that as a person consumes more of a good, the additional satisfaction (marginal utility) gained from each additional unit decreases.

A given commodity can satisfy only one specific need or desire of a person.

The additional satisfaction gained from consuming one more unit of a good.

The negative utility or dissatisfaction experienced when consuming more of a good beyond a certain point.

Circumstances where the law of diminishing marginal utility does not apply due to specific conditions.

Hobbies, like stamp collecting or reading, can defy the law of diminishing marginal utility because each additional unit (e.g., stamp, book) brings increased pleasure.

A miser's desire for money can lead to increasing marginal utility, meaning each additional rupee brings greater satisfaction. This violates the assumption of rationality.

The principle of diminishing marginal utility relies on certain assumptions, such as homogeneity (all units of the good are identical) and rationality (consumers make logical choices).

Economic fluctuations can be categorized as constant, increasing, decreasing, or fluctuating. Constant refers to a stable state, increasing signifies growth, decreasing indicates decline, and fluctuating represents ups and downs.

Obligatory government duties include providing employment opportunities, maintaining internal law and order, implementing welfare measures, and safeguarding national security. These functions are crucial for the smooth functioning of a nation.

Public finance is the branch of economics that studies the role of the government in the economy, including its revenue collection, spending, and debt management. It encompasses how governments finance their activities and the impact of those activities on the economy.

A direct tax is levied directly on the income or wealth of individuals and corporations. Examples include income tax, property tax, and capital gains tax.

An indirect tax is levied on goods and services, with the burden ultimately borne by consumers. Examples include sales tax, value-added tax (VAT), and excise duty.

Public finance focuses on government finances, revenue collection, and spending. Private finance pertains to the financial decisions of individuals and businesses. Key differences lie in the purpose, scope, and sources of funds.

Internal debt is borrowed from within the country, often from individuals or financial institutions. External debt is borrowed from external sources like international organizations or foreign governments.

Developmental expenditure aims to promote economic growth and development, such as infrastructure projects and education. Non-developmental expenditure covers essential services like defense, law enforcement, and administrative expenses.

The Reserve Bank of India (RBI) acts as the central bank, overseeing and regulating commercial banks. It requires all scheduled banks to maintain a specific amount of cash reserves with the RBI, controlling the money supply.

RBI holds and manages the country's foreign exchange reserves, aiming to keep the exchange rate of the rupee stable and ensuring it can buy and sell currencies of International Monetary Fund members.

RBI has the power to influence the amount of credit created by commercial banks. It uses tools like the bank rate, open market operations, and reserve ratios to control the money supply and inflation.

RBI acts as a central clearing house, settling accounts between its member banks. This ensures timely and efficient payments between banks.

RBI provides emergency liquidity to banks facing financial difficulties, preventing a systemic crisis in the banking system.

Commercial banks act as intermediaries between savers and investors. They accept deposits and grant loans, seeking profits while facilitating financial transactions in the country's economic system.

Commercial banks mobilize savings from the public and allocate those funds to various sectors of the economy through loans and investments, contributing to economic growth.

Commercial banks are classified as either scheduled or non-scheduled banks. Scheduled banks are governed by RBI regulations and have greater public trust.