Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the following does not constitute the central problems of an economy ?

Options:

Whether to have more agricultural goods or to have more industrial products

Whether to use more labour or more machines

Whether to consume more of leisure or more of work related activity

Who gets how much of the goods that are produced in the economy ?

Correct Answer:

Whether to consume more of leisure or more of work related activity

Explanation:

The correct answer is option (3) : Whether to consume more of leisure or more of work related activity

Explanation : The central problems of an economy are typically considered to be what to produce, how to produce, and for whom to produce.

(A) Whether to have more agricultural goods or to have more industrial products: This relates to the "What to produce?" question, specifically the allocation of resources between different sectors of the economy. It is a central economic problem.

(B) Whether to use more labor or more machines: This pertains to the "How to produce?" question, which involves decisions about the mix of factors of production (labor and capital). It is also a central economic problem.

(C) Whether to consume more of leisure or more of work-related activity: This can be seen as a personal or social choice rather than a fundamental economic problem. It involves individual preferences regarding how time is allocated between leisure and work, but it is not typically considered one of the central economic problems.

(D) Who gets how much of the goods that are produced in the economy: This addresses the "For whom to produce?" question, which is indeed one of the central economic problems. It concerns the distribution of income and goods among individuals or groups in society.