Q1. Who is considered as the father of economics?

• A) Alfred Marshall
• B) Adam Smith
• C) David Ricardo
• D) Esther Duflo

Answer: (B) Adam Smith

Adam Smith was an 18th-century Scottish philosopher. He is considered the father of modern economics. He published “The Wealth of Nations” in 1776.

Q2. Name the economist who gave the theory of “Comparative Advantage.”

• A) Adam Smith
• B) David Ricardo
• C) Thomas Robert Malthus
• D) Amartya Sen

Answer: (B) David Ricardo

David Ricardo was a classical economist best known for his theory on wages and profit, the labor theory of value, the theory of comparative advantage, and the theory of rents.

Q3. What was the comparative advantage theory of David Ricacrdo?

• A) When a country can produce a good or service at a lower opportunity cost than another country.
• B) Pursuit of self-interest, division of labor, and freedom of trade.
• C) A theory of free-market capitalism directly opposed to government intervention.
• D) A theory centers on entrepreneurship, knowledge, innovation and technological advancement.

Answer: (A) When a country can produce a good or service at a lower opportunity cost than another country.

Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners.

Q4. __________ is the migration of health personnel in search of a better standard of living and quality of life, higher salaries, access to advanced technology, and more stable political conditions in different places worldwide.

• A) Immigration
• B) Emigration
• C) Brain Drain
• D) Mass Exodus

Answer: (C) Brain Drain

“Brain drain” is a term used to describe the large-scale migration of skilled human capital that causes a country to lose its innovative capabilities and limits its economic growth.

Q5. ________ implies that sustainable development should take a holistic approach towards notions of progress and give equal importance to non-economic aspects of wellbeing.

• A) National Happiness Index
• B) Psychological Wellbeing Index
• C) Living Standards Index
• D) Community Vitality Index

Answer: (A) National Happiness Index

Gross National Happiness (GNH), sometimes called Gross Domestic Happiness (GDH), it provides a way for the country to understand and enact progress based on the society's value of happiness.

Q6. What type of economy is followed in India?

• A) Traditional Economy: Economic system based on goods, services, and work, all of which follow certain established trends.
• B) Command Economy: A dominant centralized authority – usually the government – that controls a significant portion of the economic structure.
• C) Market Economy: Economic system based on the concept of free markets.
• D) Mixed Economy: Economic system that combine the characteristics of the market and command economic systems.

Answer: (D) Mixed Economy: Economic system that combine the characteristics of the market and command economic systems.

A mixed economic system is a system that combines aspects of both capitalism and socialism. This means that some industries are controlled by private businesses and individuals, while other industries are controlled by the government.

Q7. People who regularly move in and out of poverty (for example small farmers and seasonal workers). The occasionally poor are rich most of the time but may sometimes have a patch of bad luck are called ______

• A) Chronic poor
• B) Churning poor
• C) Transient poor
• D) Non-poor

Answer: (B) Churning poor

The churning poor are the people who go in and out of poverty (for example, small farmers and seasonal workers).

Q8. _______ is the study of the behavior of individuals and firms in making decisions such as consumers, resource owners, and firms.

• A) Macroeconomics
• B) Neo-classical economics
• C) Microeconomics
• D) Monetarist economics

Answer: (C) Microeconomics

Microeconomics is the study of the behavior of individuals and firms in making decisions such as consumers, resource owners, and firms.

Q9. Who is called the father of macroeconomics?

• A) Alfred Marshall
• B) John Maynard Keynes
• C) Adam Smith
• D) Leon Walras

Answer: (B) John Maynard Keynes

Macroeconomics as a modern discipline began with the publication of John Maynard Keynes's General Theory of Employment, Interest, and Money where he offered a new theory of economics that evolved into Keynesian economics.

Q10. Which of the following activities is also referred to as the 'Gold Collar' profession?

• A) Primary
• B) Secondary
• C) Quinary
• D) Quaternary

Answer: (C) Quinary

Quinary activities are services that focus on the creation, re-arrangement, and interpretation of new and existing ideas; data interpretation, and the use and evaluation of new technologies. Gold Collar Worker: Refers to highly-skilled knowledgeable people such as doctors, lawyers, scientists, and also young, low-wage workers who also get parental support.