Short Questions of Economics- Part II

TANMOY MUKHERJI INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherji

Advocate

Short Questions of Economics- Part ii

Tanmoy Mukherji

Advocate

101. What is aggregate demand?

Ans. Aggregate demand is the total demand for goods and services in an economy.

102. Define aggregate supply.       

Ans. Aggregate supply means total output supplied in an economy.

103. What is macroeconomics?    

Ans. Macroeconomics studies the economy as a whole.

104. Define microeconomics.        

Ans. Microeconomics studies individual economic units.

105. What is consumer equilibrium?

Ans.  Consumer equilibrium is the point where satisfaction is maximum.

106. Define indifference curve.     

Ans. An indifference curve shows combinations giving equal satisfaction.

107. What is budget line?      

Ans. Budget line shows purchasing capacity of consumers.

108. Define law of demand.  

Ans. Demand decreases when price increases.

109. What is law of supply?  

Ans. Supply increases with increase in price.

110. Define market equilibrium.  

Ans. Market equilibrium occurs when demand equals supply.

111. What is monopoly?        

Ans. Monopoly is a market with a single seller.

112. Define perfect competition. 

Ans. Market with many buyers and sellers.

113. What is oligopoly? 

Ans. Market dominated by few sellers.

114. Define monopolistic competition.

Ans. Market with many sellers selling differentiated products.

115. What is revenue?   

Ans. Revenue is income earned from sales.

116. Define total revenue.     

Ans. Total revenue = Price x Quantity sold.

117. What is average revenue?     

Ans. Revenue earned per unit sold.

118. Define marginal revenue.      

Ans. Additional revenue from selling one extra unit.

119. What is total cost?

Ans. Total expenditure incurred in production.

120. Define fixed cost.   

Ans. Cost that remains unchanged with output.

121. What is variable cost?   

Ans. Cost that changes with output.

122. Define marginal cost.     

Ans. Additional cost of producing one more unit.

123. What is average cost?

Ans. Cost per unit of production.

124. Define production function. 

Ans. Relationship between input and output.

125. What is short-run production?

Ans. Production period with fixed factors.

126. Define long-run production.

Ans. Production period where all factors are variable.

127. What is marginal product?    

Ans. Extra output from one extra unit input.

128. Define total product.     

Ans. Total output produced.

129. What is average product?     

Ans. Output per unit of input.

130. Define law of diminishing returns.        

Ans. Marginal output eventually decreases.

131. What is public good?     

Ans. Goods provided by government for all.

132. Define private good.      

Ans. Goods owned and consumed privately.

133. What is externality?       

Ans. Effect of economic activity on others.

134. Define positive externality.   

Ans. Beneficial effect on third parties.

135. What is negative externality?        

Ans. Harmful effect on third parties.

136. Define economic welfare.     

Ans. Overall wellbeing of society.

137. What is social cost?        

Ans. Private cost-plus external cost.

138. Define social benefit.     

Ans. Private benefit plus external benefit.

139. What is economic efficiency?        

Ans. Maximum output with minimum cost.

140. Define allocative efficiency.

Ans. Resources allocated optimally.

141. What is market failure?

Ans. Failure of market to allocate resources efficiently.

142. Define mixed economy.

Ans. Combination of public and private sectors.

143. What is planning commission?     

Ans. Former body for economic planning in India.

144. Define NITI Aayog.

Ans. Policy think tank replacing Planning Commission.

145. What is liberalisation?

Ans. Reduction of government controls.

146. Define privatisation.

Ans. Transfer of ownership to private sector.

147. What is globalization?

Ans. Worldwide economic integration.

148. Define FDI.      

Ans. Foreign Direct Investment by foreign companies.

149. What is disinvestment?

Ans. Government selling shares of PSUs.

150. Define PSU.    

Ans. Public Sector Undertaking owned by government.

151. What is capital market?

Ans. Market for long-term funds.

152. Define money market.  

Ans. Market for short-term funds.

153. What is share?        

Ans. Unit of ownership in a company.

154. Define debenture. 

Ans. Certificate acknowledging company debt.

155. What is stock exchange?

Ans. Market for buying and selling securities.

156. Define Sensex.        

Ans. Index of Bombay Stock Exchange.

157. What is NSE?  

Ans. National Stock Exchange of India.

158. Define investment.

Ans. Use of money to earn profit.

159. What is saving?      

Ans. Income not spent on consumption.

160. Define capital formation.      

Ans. Increase in capital stock.

161. What is economic infrastructure?

Ans. Facilities supporting economic activity.

162. Define social infrastructure. 

Ans. Facilities improving quality of life.

163. What is urbanization?   

Ans. Growth of urban population.

164. Define industrial policy.

Ans. Government policy for industrial growth.

165. What is agricultural marketing?

Ans. Sale and distribution of farm products.

166. Define MSP.   

Ans. Minimum Support Price for crops.

167. What is cooperative farming?       

Ans. Farmers farming jointly together.

168. Define food security.     

Ans. Availability of food to all people.

169. What is buffer stock?

Ans.  Reserve food grains maintained by government.

170. Define PDS.     

Ans. Public Distribution System.

171. What is inflationary gap?       

Ans. Excess demand causing inflation.

172. Define deflationary gap.         

Ans. Deficiency of demand causing unemployment.

173. What is full employment?     

Ans. Situation where all willing workers get jobs.

174. Define underemployment.    

Ans. Workers employed below capacity.

175. What is labour force?    

Ans. People willing and able to work.

176. Define workforce participation rate.    

Ans. Percentage participating in labour force.

177. What is demographic dividend?   

Ans. Economic growth due to young population.

178. Define dependency ratio.      

Ans. Ratio of dependents to workers.

179. What is census?     

Ans. Official population count.

180. Define population density.    

Ans. Population per square kilometre.

181. What is HDI?  

Ans. Human Development Index measuring development.

182. Define per capita income.     

Ans. Average income per person.

183. What is sustainable growth?

Ans. Growth without environmental damage.

184. Define pollution.    

Ans. Contamination harming environment.

185. What is renewable resource?        

Ans. Resource naturally replenished.

186. Define non-renewable resource.  

Ans. Resource exhausted after use.

187. What is climate change?        

Ans. Long-term change in climate patterns.

188. Define carbon emission.        

Ans. Release of carbon gases into atmosphere.

189. What is green economy?       

Ans. Environment-friendly economic system.

190. Define sustainable development.

Ans. Development protecting future generations.

191. What is digital economy?      

Ans. Economy based on digital technologies.

192. Define e-commerce.       

Ans. Online buying and selling.

193. What is fintech?     

Ans. Technology-based financial services.

194. Define UPI.     

Ans. Unified Payments Interface for digital payment.

195. What is financial inclusion?  

Ans. Access to banking for all people.

196. Define start-up.      

Ans. New business enterprise.

197. What is entrepreneurship?   

Ans. Ability to organize and manage business.

198. Define gig economy.      

Ans. Temporary and freelance work economy.

199. What is artificial intelligence economy?       

Ans. Economic system using AI technologies.

200. Define economic resilience.  

Ans. Ability of economy to recover from shocks.