Economy MCQ

Economy MCQ is one of the most important topic of the Competetive exams like UPSC, SSC, Railways , states and central exams. Here we are going to discus about Economy mcq with details which will be helpful for the aspirants

Question No. 1. Which of the following statements best describes the difference between ‘ Econmics’ and ‘ economy’ ?

A.Economics is the study of the money, while economy is the study of the trade .

B. Economy is the theoretical study of choices and resources allocation while economy is the practical implication of this theories in a specific regions .

C. Economics refers to the the only national level while economy refers to the the only individual level

.D. There is no differences the terms are synonymous .

Answer : Economy is the theoritical study of choices and resources allocation while economy is the practical implication of this theries in a specific regions .

Details : Economics is the defined as the study of how scarce resources used to meet infinite demands often referred to as the “study of choices ” . Its encompasses the theories and concepts like micro and macro economics . On the other hand Economy is the implementation or action of these theories in real-life settings such as the Indian Economy , US Economy .

Question No. 2. Micro vs. Macro Economics

In economic terminology , “Price Theory ” and “Income Theory” are alternative names for which respective branches ?

A.Macroeconomics and Microeconomics

B. Public Finance and Private Finance

C. Primary Sector and Tertiary Sector

D. Microeconomics and Macroeconomics

Answer : Microeconomics and Macroeconomics

Microeconomics deals with individual entities, households , and firms , it is commonly referred to as Price Theory while Macroeconomics looks at the economy as a whole, including national income and aggregate output and is thus Known as Income Theory .

Economy MCQ :

Question No. 3 .Economic System and thinkers

The concepts of the ‘Invisible Hand “is associated with which economic thinker and system ?

A. Karl Marx and Socialism

B. john Maynard Keynes and Mixed Economy

C. Adam Smith and Capitalism

D. Rishabh and the Indian Economy

Answer ;Adam Smith and capitalism

Adam Smith considered considered the Father of Modern Economics , introduced the idea of the invisible Hand within a Capitalist( Market )Economy . This concept Suggests that when individuals pursue their own interests a market machanism naturally balances supply and demand bringing the system into equilibrium without government.