General Awareness Questions Set 95 (Economics Terms)

 

General Awareness Questions on Economics Terms for upcoming bank and insurance exams SBI PO, IBPS PO/Clerk, RRB PO/Clerk, RBI, BoB, IPPB and other exams.

  1. What is the market structure called that is characterized by a single seller, selling a unique product in the market?
    A) Oligopoly
    B) Libor
    C) Monopoly
    D) Normation
    View Answer
    Option C
    Some Extra:
    Monopoly is when the production of a good or service with no close substitutes is carried out by a single firm with the market power to decide the price of its output.

  2. What is the term called for a market structure in which only a few sellers offer similar or identical products? (asked in IBPS PO Mains 2017)
    A) Offshore
    B) Libor
    C) Monopoly
    D) Oligopoly
    View Answer
    Option D
    Some Extra:
    Oligopoly is a market structure in which a small number of firms has the large majority of market share. An oligopoly is similar to a monopoly, except that rather than one firm, two or more firms dominate the market.

  3. What is the market structure called in which the market is dominated by a single buyer?
    A) Micropony
    B) Monopsony
    C) Monopcoly
    D) Microsony
    View Answer
    Option B
    Some Extra:
    A monopsonist has the market power to set the price of whatever it is buying (from raw materials to labour).
  4. What is the study of how households and firms make decisions and how they interact in markets called?
    A) Macroeconomics
    B) Welfare Economics
    C) Microeconomics
    D) Market Economy
    View Answer
    Option C
    Some Extra:
    Microeconomics is the study of the individual pieces that together make an economy; is the science of how people make decisions at the small scale.
    Microeconomics considers issues such as how households reach decisions about consumption and saving, how firms set a price for their output, whether privatisation improves efficiency, whether a particular market has enough competition in it and how the market for labour works.
  5. What is the study of economy wide phenomena, including inflation, unemployment, and economic growth called?
    A) Macroeconomics

    B) Welfare Economics
    C) Microeconomics
    D) Market Economy
    View Answer
    Option A
    Some Extra:
    Macroeconomics studies large-scale economic decisions. For example, a whole country’s economy (or, its economic output) is summarised by the GDP (gross domestic product). Many governments use macroeconomic ideas to decide how much tax to collect and what interest rates should be.
  6. What is the study of how the allocation of resources affects economic well being called?
    A) Supply Side Economics
    B) Welfare Economics
    C) Microeconomics
    D) Market Economy
    View Answer
    Option B
    Some Extra:
    Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level.

  7. What is the branch of economics that concentrates on measures to increase output of goods and services in the long run called?
    A) Free-market Economics
    B) True-cost Economics
    C) Microeconomics
    D) Supply Side Economics
    View Answer
    Option D
    Some Extra:
    Supply-side economics is a macroeconomic theory that argues economic growth can be most effectively created by lowering taxes and decreasing regulation.
  8. What is the term which refers to an economy where the government imposes few or no restrictions and regulations on buyers and sellers?
    A) Free-market Economy
    B) True-cost Economy
    C) Socialist Economy
    D) Command Economy
    View Answer
    Option A
    Some Extra:
    Free market refers to an economy where the government imposes few or no restrictions and regulations on buyers and sellers. In a free market, participants determine what products are produced, how, when and where they are made, to whom they are offered, and at what price—all based on supply and demand.
  9. What is the term which refers to a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale?
    A) Free-market Economy
    B) True-cost Economy
    C) Socialist Economy
    D) Command Economy
    View Answer
    Option D
    Some Extra:
    The command economy is a key feature of any communist society.
  10. What is the original economic system in which traditions, customs, and beliefs help shape the goods and the services the economy produces, as well as the rules and manner of their distribution called?
    A) Constitutional Economy
    B) Traditional Economy
    C) Socialist Economy
    D) Monetary Economy
    View Answer
    Option B
    Some Extra:
    Traditional economy is an original economic system in which traditions, customs, and beliefs help shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.

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