Economics chapter 1

A capitalist economy uses __________________ as the principal means of allocating resources.

• Demand

• Supply

• Efficiency

• Prices

Which of the statements below is correct?

• 1. Microeconomics is primarily concerned with the overall economy.

• Individual markets are the focus of macroeconomics.

• Governments do not have any control over market prices.

• 1. When economists study a market’s price, their main goal is to figure out why the price is what it is and how it might change.

Operation Research, Statistics, Mathematics & Theory of Decision - Making has close connection with______________

• Pure Economics

• Business Economics

• Econometrics

• None of the above

Application of quantitative technique like, linear programming, Capital budgeting, Breakeven analysis are the components of __________ Economics

• Micro

• Macro

• Business

• All of the above

The Law of scarcity-

• Does not apply to rich/developed countries

• Applies only to the less developed countries

• Implies that Consumer’s wants will be satisfied in a socialistic system

• Implies that consumer wants will never be completely satisfied

Business Economics is “________ in approach” as it not only deals with theory but tackles

• Positive

• Normative

• Pragmatic

• Inductive

Theory of capital & investment decisions, risk & uncertainty are the parts of ________ Economics applied to operational issues:

• Micro

• Macro

• Both

• None

Right of private property is found in –

• Socialism

• Capitalism

• Mixed economy

• All of the above

Which of the following refer to the micro economic aspects from a national angle :

• Per capita income of the country

• Capital-output ratio in steel industry

• Income from the railways

• All of the above

Which of the following falls under Micro Economics

• National income

• Factor pricing

• General price level

• National saving and investment