#1
What is the basic economic problem?
Scarcity
ExplanationEconomic problem arises from unlimited wants and limited resources.
#2
In commerce, what does the term 'ROI' stand for?
Return on Investment
ExplanationROI measures the profitability of an investment.
#3
What is the law of diminishing marginal utility in economics?
The satisfaction decreases with each additional unit consumed
ExplanationConsumers experience diminishing satisfaction with each additional unit of a good.
#4
What is the primary goal of monetary policy?
Controlling inflation
ExplanationMonetary policy aims to regulate the money supply and inflation.
#5
What is the role of the World Trade Organization (WTO) in international trade?
Promoting fair and open trade practices
ExplanationWTO fosters global trade by establishing fair rules.
#6
Which of the following is a microeconomic concept?
Price Elasticity of Demand
ExplanationMicroeconomics studies individual economic units like consumers and firms.
#7
What is the formula for calculating Gross Domestic Product (GDP)?
Consumption + Investment + Government Spending + (Exports - Imports)
ExplanationGDP measures the total economic output of a country.
#8
Which of the following is a function of central banks in the financial system?
Regulating commercial banks
ExplanationCentral banks oversee and regulate financial institutions.
#9
What is the purpose of a SWOT analysis in business?
Assessing internal strengths and weaknesses
ExplanationSWOT analysis evaluates internal factors affecting a business.
#10
What is the primary function of the Securities and Exchange Board of India (SEBI)?
Regulating the stock market
ExplanationSEBI oversees and regulates securities markets in India.
#11
In accounting, what does the term 'depreciation' refer to?
Allocation of the cost of an asset over its useful life
ExplanationDepreciation spreads the cost of an asset over its lifespan.
#12
Which economic system relies on the forces of supply and demand to determine prices and allocate resources?
Market Economy
ExplanationMarket economy operates based on free market principles.
#13
What is the Phillips Curve in economics used to analyze?
Unemployment and Inflation
ExplanationIt illustrates the inverse relationship between unemployment and inflation.
#14
What is the concept of 'opportunity cost' in economics?
The value of the best alternative forgone
ExplanationOpportunity cost represents the next best alternative given up.
#15
In international trade, what does the term 'balance of payments' refer to?
The overall financial position of a country with the rest of the world
ExplanationIt accounts for a country's economic transactions with other nations.
#16
What is the concept of 'elasticity' in economics?
The responsiveness of quantity demanded to a change in price
ExplanationElasticity measures the sensitivity of demand to price changes.
#17
In commerce, what is the role of a 'merchandiser'?
Buying and selling goods for profit
ExplanationMerchandisers manage the buying and selling of products.