General Economics Quiz Questions With Answers

GNP stands for Gross National Product. This term refers to the total value of all goods and services produced by the residents of a country, both domestically and abroad, within a specific time period. It includes the value of goods and services produced by the country's citizens or companies, regardless of their location. GNP is an important economic indicator that helps measure the overall economic performance and productivity of a nation.

GDP stands for Gross Domestic Product, which is a measure of the total value of all goods and services produced within a country's borders in a specific time period. It is an important indicator of a country's economic health and is used to compare the economic performance of different countries. The other options mentioned in the question are incorrect and do not accurately represent the meaning of GDP.

Adam Smith is considered the father of modern economics because of his groundbreaking work in the field. His book "The Wealth of Nations" published in 1776 laid the foundation for modern economic theory. Smith introduced the concept of the invisible hand, which suggests that individuals pursuing their own self-interest can unintentionally benefit society as a whole. He also emphasized the importance of free markets, specialization, and division of labor in driving economic growth. Smith's ideas had a significant influence on subsequent economists and continue to shape economic thought today.

Alfred Marshall focused on the standard supply and demand graph. This means that he emphasized the use and analysis of the graphical representation of the relationship between the quantity of a good or service supplied by producers and the quantity demanded by consumers. Marshall believed that this graph was a crucial tool in understanding market dynamics and determining equilibrium prices. By studying the intersection of the supply and demand curves on the graph, Marshall aimed to explain the behavior of both producers and consumers in the market.

The question asks about a central problem of an economy, and the correct answer is "where to produce." This refers to the decision-making process of determining the most suitable locations for production activities. While "what to produce," "how to produce," and "for whom to produce" are all central problems of an economy, they focus on the allocation of resources, production methods, and distribution of goods and services respectively. "Where to produce" specifically addresses the geographical aspect of production, considering factors such as proximity to raw materials, labor availability, market accessibility, and transportation costs.

Lionel Robbins explained the relationship between ends and scarce means. In his book "An Essay on the Nature and Significance of Economic Science," Robbins defined economics as the study of human behavior in relation to unlimited wants and scarce resources. He emphasized that individuals have unlimited wants or ends, but the means to fulfill those wants are limited or scarce. This concept forms the basis of economic analysis, as it explores how individuals allocate scarce resources to satisfy their various ends.

Adam Smith wrote his first book, "The Wealth of Nations," on March 9, 1776.

Sir Ragnar Frisch coined the terms micro and macro economics in 1933.

Sidney Alexander is the correct answer because he is the one who gave the absorption approach theory. Adam Smith is known for his contributions to classical economics, Alfred Marshall is known for his work on neoclassical economics, and B Soderston is not known for any significant contributions to economic theory. Therefore, the correct answer is Sidney Alexander.

The correct answer is Harvey Leibenstein. The critical minimum effort theory is associated with Leibenstein, who was an American economist. This theory suggests that firms may not always operate at their most efficient level due to factors such as imperfect information, inertia, and organizational slack. Leibenstein argued that firms may continue to operate inefficiently even when there are potential gains from doing so, leading to a critical minimum level of effort. This theory highlights the importance of understanding the various factors that can affect a firm's level of effort and efficiency.