Basic Economic Concepts

JKSSB Panchayat Account Assistant · General Economics · 15 practice questions with answers and explanations: 4 Easy, 6 Medium, 5 Hard.

Sample questions

Sample Easy question 1

What does 'scarcity' refer to in economics?

  1. The limited availability of resources relative to unlimited wants
  2. A surplus of goods that cannot be sold at the existing price
  3. A tax levied by the government on goods that are in short supply
  4. A situation in which resources are available in unlimited quantities
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Answer: A. Scarcity is the fundamental economic problem of limited resources versus unlimited human wants.

Sample Medium question 2

Which of the following is a stock variable rather than a flow variable?

  1. Consumption expenditure
  2. Wealth
  3. National income
  4. Exports
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Answer: B. A stock is measured at a point in time (wealth, capital). Income, consumption and exports are flows measured over a period.

Sample Hard question 3

What is a 'mixed economy'?

  1. An economy combining elements of both market and government-planned systems
  2. An economy in which all production is carried out by private firms for profit
  3. An economy in which all production is owned and planned by the government
  4. An economy in which the government plays no role in any economic activity
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Answer: A. A mixed economy blends free-market mechanisms with government regulation and intervention.

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