ECONOMICS QUARTER 1

Which of the following statements is TRUE?

• a. Economics is all about business management.

• b. Economics deals with money and banking activities.

• c. The main focus of economics is human’s choice.

• d. Politics and business sector are the major concerns of economics.

Which of the following is NOT an economic goal?

• a. Stability

• b. Equity

• c. Full employment

• d. Unified choice

Which of the following comprises the economic resources?

• a. Natural resources

• b. Man-made resources

• c. Both A and B

• d. None of the above

Who is the father of classical economics?

• a. Adam Smith

• b. Karl Marx

• c. Alfred Marshall

• d. Lionel Robbins

Many businesses and essential activities around the world were much affected by Covid-19 pandemic. Is the global phenomenon related to economics?

• a. No

• b. Yes

• c. Maybe

• d. None of these

Which of the following statements is TRUE?

• a. Applied economics focuses on the application of economic theory.

• b. Applied economics is a tool used only by the businesses.

• c. Applied economics is a tool used only by the public policy makers.

• d. The scope of applied economics is broader than economics.

Which of the statements is NOT TRUE about economic theory?

• a. It is used to analyze a certain economic situation.

• b. It can predict future economic phenomenon.

• c. It provides reasons why things happen.

• d. It is the only solution to the economic problem.

Which of the following statements does not describe an economic model?

• a. It is an empirical representation of economic theory.

• b. It describes the economic situation through equations, graphs, etc.

• c. It can predict future phenomenon.

• d. None of the above

What is positive economics?

• a. It is based on subjectivity.

• b. It uses value judgement based on opinions.

• c. It uses factual evidences.

• d. None of the above

What is normative economics?

• a. It is based on the subjectivity.

• b. It refers to an objective statement.

• c. It uses factual evidences.

• d. None of the above