#1
Which economic ideology emphasizes minimal government intervention in the economy?
Capitalism
ExplanationAdvocates for free market with limited government interference
#2
Who is considered the father of modern economics?
Adam Smith
ExplanationPioneered the concept of free market economics
#3
Which economic ideology advocates for the collective ownership of the means of production?
Socialism
ExplanationPromotes communal ownership of resources
#4
Which economist is known for his theory of 'The Invisible Hand'?
Adam Smith
ExplanationConcept of self-regulating markets guiding economic decisions
#5
Who coined the term 'Gross Domestic Product (GDP)'?
Simon Kuznets
ExplanationDeveloped methodology to measure national income
#6
Who developed the concept of 'Human Development Index (HDI)'?
Amartya Sen
ExplanationMeasure of overall societal well-being
#7
What is the primary goal of 'Monetary Policy'?
To control inflation and stabilize prices
ExplanationRegulating money supply to manage economic stability
#8
Which economic theory argues that government spending should increase during economic downturns?
Keynesian economics
ExplanationAdvocates for government intervention to stabilize economy
#9
What does 'Laissez-faire' economics advocate for?
Free market without government interference
ExplanationMinimal to no government involvement in economy
#10
What is the central idea behind the theory of Comparative Advantage in international trade?
Countries should focus on producing goods they can produce most efficiently
ExplanationEfficient allocation of resources across nations
#11
Who proposed the theory of 'Trickle-down economics'?
Milton Friedman
ExplanationBelief that benefits to wealthy trickle down to lower classes
#12
Which economic theory suggests that the money supply in an economy is the primary driver of economic activity?
Monetarism
ExplanationFocuses on controlling money supply for economic stability
#13
According to classical economics, what is the best way to achieve economic growth?
Free markets and minimal government intervention
ExplanationBelief in laissez-faire policies for prosperity
#14
Which economic theory emphasizes the importance of supply-side policies such as tax cuts and deregulation to stimulate economic growth?
Supply-side economics
ExplanationFocuses on incentivizing production for economic growth
#15
According to Marxist theory, what is the primary driver of historical change?
Economic factors
ExplanationEconomic conditions shape societal progress
#16
What is the main criticism of the Rational Expectations Theory in economics?
It assumes perfect knowledge and foresight among economic agents
ExplanationCritiqued for unrealistic assumptions about economic actors
#17
Who is associated with the theory of 'Creative Destruction' in economics?
Joseph Schumpeter
ExplanationConcept of innovation driving economic progress