WorksheetsNature and Scope of Business Economics
Total questions: 40
Worksheet time: 20mins
The term Economics is derived from a
Latin Word
Greek Word
Russian Word
Indian Word
Micro economics deals primarily with
Comparative statics, general equilibrium and positive economics
Comparative statics, partial equilibrium and normative economics
Dynamics, partial equilibrium and positive economics
Comparative statics, partial equilibrium and positive economics
Micro economic approach is
Total
Individualistic
Aggregative
None of the above
Micro economics approaches the study of economics from the view point of
Individual or specific markets
World Markets
Economy wide effects
The national economy
Which of the following is concerned with micro economics
The size of national output
The level of employment
Change in the general level of prices
None of the above
Since micro economics splits up the entire economy into smaller parts for the purpose of intensive study, it is also known as
Slicing method
Bulldozer method
Micro - macro method
Micro foundation of macro method
The expansion of micro economics into other social sciences has caused economics to be called as the
Imperialist social science
Queen of social science
Traditional social science
Inter disciplinary social science
Which one of the following is not true?
Micro economics is the study of the allocation of scarce resources
Economists use models to make testable predictions
Individuals, governments, and firms use micro economic models and predictions in decision making
Micro economics is often called income theory to emphasize the important role that prices play
Micro analysis deals with the
Allocation of resources of the economy as between production of different goods and services
Determination of prices of goods and services
Behavior of individual decision makers
All of the above
Micro economics theory studies how a free enterprise economy determines:
The price of goods
The price of services
The price of economy resources
All of the above
Which is not a study under micro economics?
Consumer
producer
Firm
General Employment
Economists regard decision making as important because:
The resources required to satisfy our unlimited wants and needs are finite, or scarce.
It is critical to understand how we can best allocate our scarce resources to satisfy society's unlimited wants and needs
Resources have alternative uses
All of the above
Business Economics is
Abstract and applies the tools of Micro economics
Involves practical application of economic theory in budiness decision making
Incorporate tools from multiple disciplines
(b) and (c) above.
Which of the following is not within the scope of Business Economics?
Capital Budgeting.
Risk Analysis.
Business Cycles.
Accounting Standards
Which of the following statements is incorrect?
Business economics is normative in nature.
Business economics has a close communication with statistics.
Business Economist need not worry about macro variables.
Business Economics is also called Managerial Economics
Which of the Following statement is incorrect?
Micro economics is primarily concerned with the problem of what, how and when to produce.
Micro economics is primarily concerned with the economic behavior of individual decision making units when at equilibrium.
Micro economics is primarily concerned with the time, path and process by which one equilibrium position evolves into another.
Micro economics is primarily concerned with comparative statics rather than dynamics.
In Economics, we use the term scarcity to mean;
Absolute scarcity and lack of resources in less developed countries.
Relative scarcity i.e. scarcity in relation to the wants of the society.
Scarcity during times of business failure and natural calamities.
Scarcity caused on account of excessive consumption by the rich
which of the following is not the subject matter of Business economics?
Should our firm be in this business?
How much should be produced and at price should be kept?
How will the product be placed in the market?
How should we decrease unemployment in the economy?
Find the correct match :
An inquiry into the nature and causes of the wealth of the nation : A.C.Pigou.
Science which deals with wealth: Alfred Marshall.
Economics is the science which studies human behavior as a relationship between end and scarce means which have alternative uses: Robins.
The range of our inquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with the measuring rode of money: Adam Smith.
State the correct answer:
The law of scarcity:
does not apply to rich, developed countries.
applies only to the less developed countries.
implies that consumers wants will be satisfied in a socialistic system.
implies that consumers wants will never be completely satisfied.
Who expressed the view that "Economics is neutral between end"?
Robbins
Marshall
Pigou
Adam smith
What implication(s) does resource scarcity have for the satisfaction of wants?
Not all wants can be satisfied.
We will never be faced with the need to make choices.
We must develop ways to decrease our individual wants.
The discovery of new natural resources is necessary to increase our ability to satisfy wants.
Rational decison making requires that:
one's choices be arrived at logically and without error.
one's choices be consistent with one's goals.
one's choices never vary.
one make choices that do not involve trade - offs.
Consider the following and decide which, if any, economy is without scarcity:
The pre- independent Indian economy, where most people were farmers.
A mythical economy where everybody is a billionaire.
Any economy where income is distributed equally among its people.
None of the above.
Adam smith book "An Enquiry Into the Nature and Causes of Wealth of Nations" was published in
1576
1874
1776
1930
Marshall defines economics as
The study of mankind in the ordinary business of life
The study of human behaviour as a relationship between ends and scarce resources
An Enquiry into the Nature and Causes of wealth of Nations
None of these
"Economics is the Science which studies human behaviour as a relationship between ends and scarce means which have alternative uses" - These lines are attributed to
Samuelson
Lionel Robbins
Robertson
Marshall
Robbins definition is superior to the earlier definitions because
(i) It is more scientific
(ii) It Takes into account all types of human wants, material or non-material, as well as of all types of persons whether living in society or not.
(iii) It widened the scope of economics
(iv) It is a positive science
of these
i and ii are correct
ii and iii are correct
ii and iv are correct
All are correct
Economics is "On the one side, a study of wealth; and on the other, and more important side, part of a study of man". This is stated by
Adam Smith
Alfred Marshall
Robbins
Samuelson
In economics 'Ends' refers to
Human wants
Scarcity
Surplus
Alternative uses
(A) There is similarity between Robbins's definition and Samuelson's definition
(B) Samuelson's definition is not only dynamic in content; it is also wider in scope.
Of these
A is true, but B is false
A is false, but B is true
Both A and B are true
Both A and B are false
Match List I and II and choose the correct answer using the codes given below
List I (Economist) List II (Definition)
A. Adam Smith 1. Welfare
B. Marshall 2. Wealth
C. Robbins 3. Growth
D. Samuelson 4. Scarcity
A-2, B-1, C-4, D-3
A-2, B-3, C-1, D-4
A-1, B-2, C-3, D-4
A-4, B-3, C-2, D-1
Match list I and list II and choose the correct answer using the codes given below
List I (Economist) List II (Book)
A. Adam Smith 1. Economics
B. Marshall 2. Wealth of nations
C. Robbins 3. Nature and
Significance of Economic
Science
D. Samuelson 4. Principles of Economics
A-2, B-1, C-4, D-3
A-2, B-4, C-3, D-1
A-1, B-2, C-3, D-4
A-4, B-3, C-2, D-1
Economics has been called a 'Science of Choice ' because
The human wants are unlimited, so choice making is essential
Economics is a Social science
Economics is a Study of material welfare
Economics is a Study of man and choice
Pigou was an ardent supporter of
Wealth definition
Welfare definition
Scarcity definition
Growth definition
The most prominent members of the Neo-classical school of economics is
Adam Smith
Milton Friedman
Lucas
Alfred Marshall
"Economics is what economists do" was remarked by
Marshall
Jacob Viner
Keynes
Adam Smith
Which one of the following is correctly matched?
Wealth of Nations - Marshall
Principles of Economics - Crowther
Ten Great Economists - J. A. Schumpeter
An Outline of Money - J.M. Keynes
"Economics is the oldest of the arts, newest of the sciences, indeed the Queen WsociaJ sciences". This is remarked by
Haberler
Hicks
Jacob Viner
Samuelson
Which of the following definitions of economics includes the economic concept of ' scale of preferences'?
Wealth defintion
Welfare definition
Scarcity definition
None of the above
