Economics Interview Questions and Answers

1 :: How best to define economics?

Economics is usually defined as the problem of how best to distribute limited resources, limited because wants are characterized as unlimited, but common sense tells us that rather than limited resources, there is an abundance of resources. The difference is one of perspective and this is core to any alternative understanding of economics. If wants are the focus, then of course resources are limited by definition, but if minimum needs or essentials are used as the foundation, then resources are seen to be abundant. The difference is between a description and an explanation. A focus on wants or desires describes a market situation, while a focus on essentials or needs allows an explanation of choices to begin.

Is This Answer Correct?    14 Yes 2 No

2 :: Does Europe the USA or China have the largest economy?

1- Europe (remember Italy, French, UK and Germany are 4 world's power) 2- USA 3- China.

2006 GDP Figures from the CIA World Fact book, in Trillions of dollars, purchasing power parity:

European Union: 13.080

United State: 13.060

China: 10.210

Prior to 2005, and probably back to 1942, the United State surpassed the EU.

Is This Answer Correct?    3 Yes 7 No

3 :: What currency was used in the 1700s?

This depends on the country. Most currencies, however, were based on gold and silver.

In America, in the 13 colonies, tobacco was mostly used as a type of currency.

Is This Answer Correct?    3 Yes 2 No

4 :: Why do some people believe that a mixed economic system solves basic economic problems?

It is because both the private sector and public sector have a say in answering the basic economic questions, thus, there will be a degree of high efficiency (due to the private sector involvement) and social welfare too (due to the public sector involvement).

It allows the Government to intervene when the economy faces market failure. The mixed economic system allows markets to operate freely until it fails to allocate resources efficiently, after this, the government agencies, such as the EU Competition Commission, are able to correct for these failures. If this had been a completely free economic system, Government agencies would not have the means of power to be able to intervene.

Is This Answer Correct?    2 Yes 1 No

5 :: Should Newspapers and book publishers convert to electronic publishing over paper publishing as their primary product?

NO! Only a fraction of the world’s people has access to computers or the energy needed to operate them. How would a deaf-mute access literary works?

Is This Answer Correct?    3 Yes 1 No