EXCEL MINDS ACADEMIC GROUP, FACULTY OF MANAGEMENT SCIENCES

Which of the following best defines economics?

• The study of how to produce goods and services

• The study of how to allocate scarce resources

• The study of money and finance

• The study of government policies

What is considered the central problem of economics?

• Unemployment

• Scarcity

• Inflation

• Wealty distribution

Economics is divided into which two main branches?

• Microeconomics and Finance

• Microeconomics and Macroeconomics

• Public Economics and Private Economics

• Development Economics and Economic Theory

Which of these is an example of a microeconomic issue?

• National unemployment rates

• Inflation in the country

• Pricing decisions of a firm

• Government fiscal policy

What is the opportunity cost of a decision?

• The monetary cost incurred

• The next best alternative foregone

• The sum of all alternatives forgone

• The time spent in making the decision

A positive economic statement is:

• Prescriptive and opinion-based

• Descriptive and factual

• Related to economic planning

• Based on future predictions

What does the term "ceteris paribus" mean in economics?

• All things being constant

• Allowing for exceptions

• Considering external factors

• Taking risk into account

Which of the following is a normative economic statement?

• "Unemployment is at 6% this year."

• "The government should reduce taxes to boost growth."

• "Inflation has increased by 3%."

• "The price of gas has fallen in recent months."

Which of these is NOT a factor of production?

• Land

• Labor

• Capital

• Money

The study of aggregate economic variables like GDP and inflation is the focus of:

• Microeconomics

• Behavioral Economics

• Macroeconomics

• Macroeconomics