Economics - Chapter I

Economics is the study of how humans make decisions in the face of scarcity.

• True

• False

The word ‘Economics’ was derived from the Greek words ‘Oikos’.

• True

• False

Adam Smith, who is also regarded as father of economics.

• True

• False

Alfred Marshall (1842-1924) became one of the most influential economists of his time.

• True

• False

Lionel Robbins challenged the traditional view of the nature of economic science.

• True

• False

Scarcity is central to economic theory.

• True

• False

Economics as a subject came into being with the publication of very popular book in 1776, written by

• Alfred Marshall

• Adam Smith

• Lionel Charles Robbins

• None of them

A book published in 1932 titled “Nature and Significance of Economic Science” written by

• Adam Smith

• Alfred Marshall

• Lionel Charles Robbins

• None of them

The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units—that is, firms and households.

• Microeconomics

• Macroeconomics

The branch of economics that examines the economic behavior of aggregates—income, employment, output, and so on—on a national scale.

• Macroeconomies

• Microeconomics