Economics as a Science

1.     The action of government to forgo road construction in order to provide more health facilities denotes

• A.   sound economic decision.

• B. opportunity cost.

• C. practicable government policy

• D. scale of preference.

2.   Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses". 'Ends' here refers to

• A.   resources.

• B. Wants

• C. Choice

• D. Output.

3.     Human wants are

• A.   limited

• B. Scarce

• C. Unlimited

• D. in grades

4.     Scarcity in Economics means that resources

• A.   are not enough to share among the producers of goods and services.

• B. needed to satisfy human wants are limited

• C.   are never enough to share among consumers of goods and services.

• D. required to meet our essential wants are unlimited

5.     Which of the following is an economic activity.

• A.   attending a town's meeting.

• B. a visit to the stadium

• C. payment of school fees

• D. arresting a petty thief

6.     Economics is best described as the study of

• A.   the wealth of nations.

• B. how man consumes his product

• C. how man provides for his needs

• D. the distribution of wealth

11.     Economists speak about 'opportunity cost' when a consumer

• A.   has the chance to minimize costs.

• B. has to forgo one thing in order to have another

• C. can equate his fixed costs with his variable costs

• D.   is able to save part of his income.

13.     Economics can be best defined as the study of

• A.   how to spend the family income efficiently.

• B. how to find minimum costs of production

• C. the interpretation of scarce resource resources and date

• D. how scarce resources can be used efficiently

7.     The study of Economics becomes necessary because of the

• A.   large population size of the world.

• B. scarcity of resource

• C. opportunity cost of goods and service

• D. need to satisfy every desire of man

8.     The concept of opportunity cost is also referred to as

• A.   social cost.

• B. real cost

• C.   fixed cost.

• D. variable cost