Problems of an Economy

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  • Q1

    Consider the following statements and identify the Wrong one.

    Marks:1
    Answer:

    Level of technical knowledge answers the question of “For Whom to produce?”

    Explanation:

    The level of technical knowledge answers the question of “how to produce?”. Different economies choose different techniques of production to achieve Efficiency.

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  • Q2

    ____________ producers are those producers, who are engaged in the small and large scale production of industrial goods.

    Marks:1
    Answer:

    Secondary

    Explanation:

    Secondary producers are those producers, who are engaged in the small and large scale production of industrial goods. Their activities are also called industrial and manufacturing activities.

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  • Q3

    “Natural wealth that helps in production process” is known as ___________.

    Marks:1
    Answer:

    Land

    Explanation:

    The land is known as the natural wealth that helps in the production process. The land is considered as a Factor of Production which is used to produce goods and services which is used to satisfy human wants.

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  • Q4

    The problem “What to Produce” means…

    Marks:1
    Answer:

    Both (a) and (b)

    Explanation:

    Resources are limited, thus every economy has to decide what commodities are to be produced and in what quantities.

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  • Q5

    ____________ is not the central problem of the economy.

    Marks:1
    Answer:

    "When to produce?"

    Explanation:

    When to Produce is not a central problem of the economy. The compulsion of making choices before societies are referred to as ‘central problems’. Three central problems are as follows:
    (i) What to Produce?
    (ii) How to Produce?
    (iii) For whom to Produce?

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