Economics Practice Quiz 35

Q1.What is a key characteristic of the public sector's purpose?

A. Its sole purpose is to earn profits B. It aims to provide services at the highest possible cost C. Its purpose is not just to earn profits D. It focuses only on luxury services

Q2.How do governments primarily raise money to meet expenses on services rendered by the public sector?

A. Through donations from private companies B. By issuing corporate bonds C. Through taxes and other ways D. By selling public assets

Q3.Why do governments spend on activities that the private sector might not provide at a reasonable cost?

A. To compete with private companies B. To ensure maximum profit generation C. Because these activities need large sums of money beyond private capacity and are needed by society as a whole D. To reduce the overall tax burden

Q4.Which of the following is NOT typically considered an example of a public facility that governments undertake due to heavy spending and the need for universal availability?

A. Construction of roads B. Providing irrigation through dams C. Generating electricity D. Operating private luxury resorts

Q5.Why might the private sector be reluctant to provide certain facilities like roads or railways?

A. Lack of technical expertise required for such projects. B. Difficulty in collecting money from thousands of users and charging high rates. C. Government regulations making it unprofitable for private entities. D. Preference for short-term, high-profit ventures over long-term infrastructure.

Q6.What is the primary reason mentioned for the government's intervention in producing and supplying electricity at affordable rates to industries?

A. To generate revenue for the government through electricity sales. B. To ensure that small-scale units do not shut down due to high production costs. C. To promote competition among private electricity providers. D. To reduce the overall energy consumption in the country.

Q7.How does the Government of India support both farmers and consumers regarding essential food grains?

A. By providing subsidies directly to consumers for purchasing food grains. B. By buying wheat and rice at a fair price from farmers and selling it at a lower price through ration shops. C. By encouraging private companies to manage food grain distribution. D. By setting minimum support prices without direct procurement.

Q8.What is one way of classifying economic activities mentioned in the text?

A. Based on the size of the company (small, medium, large). B. Based on whether the activity relates to the primary, secondary, or tertiary sectors. C. Based on the geographical location of the activity (urban, rural). D. Based on the type of ownership (sole proprietorship, partnership, corporation).

Q9.According to data for India over the last thirty years, which sector contributes the most to GDP, and which sector accounts for the most employment?

A. Primary sector contributes most to GDP; Secondary sector accounts for most employment. B. Secondary sector contributes most to GDP; Tertiary sector accounts for most employment. C. Tertiary sector contributes most to GDP; Primary sector accounts for most employment. D. Tertiary sector contributes most to GDP; Secondary sector accounts for most employment.

Q10.Besides primary, secondary, and tertiary sectors, what is another classification of economic activities mentioned in the text?

A. Public and private enterprises. B. Organized and unorganized sectors. C. Agricultural and industrial activities. D. Export-oriented and import-substituting industries.

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Economics Practice Quiz 35