17. The concept of economic efficiency primarily implies A. obtaining the maximum output from available resources at the lowest possible cost B. equity in the distribution of the nation's wealth C. producing without waste D. the limited wants-unlimited resources dilemma 18. Which of the following problems arises where there are more than one technically possible methods of production? A. Where to produce B. For whose to produce C. How to produce D. What to produce 19. The problem of how to produce in a free market economy is best solved by A. using capital-intensive method of production B. consulting experts to provide answer to the problem C. choosing the production technique that has the lowest cost D. adopting labour-intensive method of production 20. The basic economic problem of for whom to produce focuses on how to A. address the issue of rapid rural-urban drift B. resolve the problems associated with trade C. resolve which member of the society's needs should be met D. employ more people to produce goods and services 21. The economic problem of what to produce in the society depends on A. human beings B. needs and wants of the people C. resource allocation D. scarce resources 22. The basic economic problem of what to produce is mainly concerned with A. distribution of goods and services B. optimum productivity of factors C. production technique. D. resource efficiency 23. The following are basic economic problems of any society EXCEPT A. efficient use of resources B. for whom to produce C. how to produce D. where to produce 24. Methods of production in Economics are broadly classified as A. capital and labour intensive B. capitalist and socialist C. direct and indirect D. industrial and agricultural 25. In whom of the following economic systems is the consumer referred to as "The King"? A. Planned economy B. Mixed economy C. Traditional economy D. Free market economy
Answer (1)
Let's go through each of the questions one by one:
The concept of economic efficiency primarily implies:
Option A is correct: A. obtaining the maximum output from available resources at the lowest possible cost . Economic efficiency means using resources in such a way that the production of goods and services is maximized while minimizing waste and costs.
Which of the following problems arises where there are more than one technically possible methods of production?
Option C is correct: C. How to produce . This issue involves choosing between different production methods to determine the most efficient or cost-effective way of creating goods and services.
The problem of how to produce in a free market economy is best solved by:
Option C is correct: C. choosing the production technique that has the lowest cost . In a free market, producers often opt for methods that minimize costs to remain competitive and profitable.
The basic economic problem of for whom to produce focuses on how to:
Option C is correct: C. resolve which member of the society's needs should be met . This problem deals with distribution decisions, determining which segments of society will benefit from the goods and services produced.
The economic problem of what to produce in the society depends on:
Option B is correct: B. needs and wants of the people . Production decisions are typically guided by what consumers demand or need, as this will affect the allocation of resources.
The basic economic problem of what to produce is mainly concerned with:
Option A is correct: A. distribution of goods and services . This decision involves determining which goods and services should be produced to meet the needs of society.
The following are basic economic problems of any society EXCEPT:
Option D is correct: D. where to produce . While location is important, traditional economic problems focus on allocation and resource use instead.
Methods of production in Economics are broadly classified as:
Option A is correct: A. capital and labour intensive . These methods refer to the primary factors utilized in production, whether requiring more equipment (capital) or human labor.
In which of the following economic systems is the consumer referred to as "The King"?
Option D is correct: D. Free market economy . In a free market, consumer preferences and choices drive demand, effectively "ruling" over what is produced.
