Question : One of the following is "Labour" in economics.
Option 1: A musician performing for a benefit fund
Option 2: A painter working for his pleasure
Option 3: Reading a book as a hobby
Option 4: A mother teaching her son
Correct Answer: A musician performing for a benefit fund
Solution : The correct answer is A musician performing for a benefit fund.
In economics, a musician performing for a benefit fund is considered labour. In economics, labour refers to the physical and mental work that individuals put in to generate products and services. It can be done for money or for free, and it can be done for oneself or others. In the example of a musician performing for a benefit fund, the musician expends physical and mental energy to create good (music) consumed by others.
Answer laterQuestion : Fill in the blank with the most appropriate word.
Ram loves maths_____ his sister is interested in Economics.
Option 1: therefore
Option 2: whereas
Option 3: whether
Option 4: still
Correct Answer: whereas
Solution : The correct answer is option 2
Explanation
Let's examine the connotations of the conjunctions:
Therefore-in light of the
Whereas -In contrast to, or in comparison to, the fact that
Whether -expressing uncertainty or making a decision between options
Still - despite that; nonetheless
Whereas is characterized as a method of contrast or comparison which will be the best suited option for the above sentence.
Question : Normative economics deals with:
Option 1: Economic data analysis
Option 2: Objective and value-free analysis
Option 3: Economic policies and ethical judgments
Option 4: Economic theories and models
Correct Answer: Economic policies and ethical judgments
Solution : The correct answer is (c) Economic policies and ethical judgments.
Normative economics deals with the formulation and evaluation of economic policies, as well as making ethical judgments about economic outcomes. It involves analyzing economic issues from a normative or prescriptive perspective, considering subjective values and goals. Normative economics aims to provide recommendations or judgments on what should or ought to be done in the economic sphere.
Question : Comprehension:
In the following passage, some words have been deleted. Read the passage carefully and select the most appropriate option to fill in each blank.
Globalisation is not a new (1)_______. Traders travelled vast distances in ancient times to buy commodities that were (2) ______and expensive for sale in their homelands. The Industrial Revolution brought (3)_________ in transportation and communication in the 19th century that eased trade across borders. The think tank, Peterson Institute for International Economics (PIIE), states globalisation (4)________after World War I and nations moved toward (5)________ as they launched import taxes to more closely guard their industries in the aftermath of the conflict.
Select the most appropriate option to fill in the blank number 2.
Option 1: plentiful
Option 2: common
Option 3: preserved
Option 4: rare
Correct Answer: rare
Solution : The correct choice is the fourth option.
The sentence talks about traders travelling long distances to buy commodities that were not easily available or common in their homelands. The word rare fits in this context, indicating that the commodities were not commonly found or abundant in their homelands, hence motivating traders to travel for them.
The meanings of other options are as follows:
- Plentiful means abundance, or being easily available in large quantities.
- Common means frequently found or widespread.
- Preserved means to be kept in its original state or protected from harm or decay.
Question : Comprehension:
In the following passage, some words have been deleted. Read the passage carefully and select the most appropriate option to fill in each blank.
Globalisation is not a new (1)_______. Traders travelled vast distances in ancient times to buy commodities that were (2) ______and expensive for sale in their homelands. The Industrial Revolution brought (3)_________ in transportation and communication in the 19th century that eased trade across borders. The think tank, Peterson Institute for International Economics (PIIE), states globalisation (4)________after World War I and nations moved toward (5)________ as they launched import taxes to more closely guard their industries in the aftermath of the conflict.
Select the most appropriate option to fill in the blank number 4.
Option 1: trooped
Option 2: soared
Option 3: de-escalated
Option 4: stalled
Correct Answer: stalled
Solution : The correct choice is the fourth option.
The word stalled means to come to a stop or halt. In the context of globalisation, it implies that the progress or advancement of globalisation halted or stopped after World War I due to nations imposing import taxes and becoming more protective of their industries, restricting the free flow of goods and services across borders.
The meanings of other options are as follows:
- Trooped: This verb refers to moving or gathering together in groups, usually in a military sense.
- Soared: This word means to rise or increase rapidly and significantly.
- De-escalated: This term means to reduce the intensity or extent of something.
Question : Comprehension:
India is a diverse nation with many different cultures. Although some eating habits are considered staples of Indian cuisine, these habits may not be practiced by all the cultures of India. Cuisine differs across India's diverse regions as a result of variations in local culture, geographical location (proximity to the sea, desert, or mountains), and economics. It also varies seasonally, depending on which fruits and vegetables are ripe. Also, Middle Eastern and Central Asian influences have occurred in North Indian cuisine since the years of Mughal rule. Indian cuisine is still evolving as a result of the nation's cultural interactions with other societies.
Historical incidents such as foreign invasions, trade relations, and colonialism have played a role in introducing certain foods to the country. For instance, potato, a staple of the diet in some regions of India, was brought to India by the Portuguese, who also introduced chilies and breadfruit. Indian cuisine has shaped the history of international relations; the spice trade between India and Europe was the primary catalyst for Europe's Age of Discovery. Spices were bought from India and traded around Europe and Asia. Indian cuisine has influenced other cuisines across the world, especially those from Europe, the Middle East, North Africa, sub-Saharan Africa, Southeast Asia, the British Isles, Fiji, and the Caribbean.
Indian food is rich in flavor. However, spices do more than flavor a dish; they are also used to cool and warm the body during hot or cold weather. Yogurt is commonly used to flavor dishes or as a sauce to chill spicy dishes. Many Indian dishes are cooked in vegetable oil, but peanut oil is popular in northern and western India, mustard oil in eastern India, and coconut oil along the western coast, especially in Kerala. Gingelly (sesame) oil is common in the south since it imparts a fragrant, nutty aroma. In recent decades, sunflower, safflower, cottonseed, and soybean oils have become popular across India. Butter-based ghee, or deshi ghee, is used frequently, though less than in the past.
Based on the passage above, choose the correct option for the following question.
Question
According to the passage, choose the correct synonym of the word 'catalyst'.
Option 1: Micro
Option 2: Disregard
Option 3: Activator
Option 4: Animosity
Correct Answer: Activator
Solution : The correct option is the third option.
In the context of the passage, the term 'catalyst' is used to describe the spice trade between India and Europe as the primary factor or force that accelerated Europe's Age of Discovery. Similarly, an 'activator' serves as a synonym in this context, emphasising the idea of initiating or setting into motion a significant historical event.
Therefore, the meanings of the other words are:
- Micro: That depicts something extremely small, about things on a very small scale.
- Disregard: This means to pay no attention; to ignore or neglect.
- Animosity: This means to have strong hostility or antagonism; intense dislike or hatred.
Therefore, the most appropriate synonym for catalyst is activator.
Question : Statement 1: Positive economics deals with objective analysis and focuses on explaining economic phenomena as they are.
Statement 2: Normative economics involves subjective judgments and aims to prescribe what economic policies should be implemented.
Option 1: Statement 1 is true, and statement 2 is false.
Option 2: Statement 1 is false, and statement 2 is true.
Option 3: Both statements 1 and 2 are true.
Option 4: Both statements 1 and 2 are false.
Correct Answer: Both statements 1 and 2 are true.
Solution : The correct answer is (c) Both statements 1 and 2 are true.
Statement 1 is true: Positive economics deals with objective analysis and aims to explain economic phenomena as they are, without making value judgments or prescribing what should be.
Statement 2 is also true: Normative economics involves subjective judgments and seeks to prescribe what economic policies should be implemented based on value judgments about what is desirable or optimal.
Therefore, both statements are true and accurately describe the distinction between positive and normative economics.
Question : Gresham's law in economics relates to ___________.
Option 1: Supply and Demand
Option 2: Distribution of goods and services
Option 3: Consumption and Supply
Option 4: Circulation of currency
Correct Answer: Circulation of currency
Solution : The correct option is Circulation of currency
Gresham's law states that people will typically hoard or save the money that is viewed as being of higher quality (good money) and spend or circulate the value that is viewed as being of lower quality (bad money) if there are two forms of money in circulation and both are accepted at face value.
Question : "Economics is what it ought to be" - This statement refers to
Option 1: Normative economics
Option 2: Positive economics
Option 3: Monetary economics
Option 4: Fiscal economics
Correct Answer: Normative economics
Solution : The correct answer is Normative economics
Normative economics focuses on "what ought to be." It is built on perception. It makes no mention of facts and data. Usually, it communicates a value judgment. These statements express a viewpoint or a value assessment of what is or is not desirable. They have a prescriptive nature, are arbitrary, and frequently raise moral or ethical dilemmas. They are unfounded and devoid of supporting data. The words "ought" and "should" are frequently used in statements of this nature.
