WorksheetsNATURE AND SCOPE OF BUSINESS ECONOMICS
Total questions: 20
Worksheet time: 10mins
1. In Economics, we use the term scarcity to mean;
Absolute scarcity and lack of resources in less developed countries.
Scarcity during times of business failure and natural calamities
Scarcity caused on account of excessive consumption by the rich.
Relative scarcity i.e. scarcity in relation to the wants of the society.
2. In every economic system, scarcity imposes limitations on
households, business firms, governments, and the nation as a whole.
households and business firms, but not the governments.
households and business firms, but not the governments.
local and state governments, but not the federal government.
3.. Ram: My corn harvest this year is poor.
Krishan: Don’t worry. Price increases will compensate for the fall in quantity supplied. Vinod: Climate affects crop yields. Some years are bad, others are good.
Madhu: The Government ought to guarantee that our income will not fall.
In this conversation, the normative statement is made by
RAM
KRISHAN
MADHU
VINOD
4.The managerial economics –
Is Applied Economics that fills the gap between economic theory and business practice
Is just a theory concept
Trains managers how to behave in recession
Provides the tools which explain various concepts
5. Profit motive is a merit of
Mixed Economy
Capitalism
Socialist
All of the above
6. Mr. Satish hired a business consultant to guide him for growth of his business. The consultant visited his factory and suggested some changes with respect to staff appointment, loan availability and so on. Which approach is that consultant using?
Macro Economics
Micro Economics
Both A & B
None of the above
7.Administered price refer to:
Price determined by the forces of demand and supply
Prices determined by an external authority which is usually the government
Prices determined by sellers in the market
None of the above
8.The meaning of the word “economic” is most closely connected with the word
Extravagant
Scarce
Unlimited
Restricte
9.State interference is maximum in
mixed economy
socialist economy
capitalist economy
None
10.A normative economics statement is
economic is a social science that studies human behavior
economics is not a social science that studies human behavior
the federal minimum wages should be raised to $4.50 per hour
the united states spends a $ 1 trillion on national defence
11.Opportunity costs are result of ________
scarcity
overproduction
technology obsolescence
abundance of resources
12.Which of the following statements regarding market economy is not true?
price plays a major role in a market economy
the government controls production and distribution of goods
consumers choose the goods they want
efficiency is achieved through the profit motive
13.In which type of economy gives do consumers and producers make their choices base
on the market forces of demand and supply?
open economy
controlled economy
command economy
market economy
14.Macro Economics is the study of ____________-
All aspects of scarcity
The national economy and the global economy as a whole.
Big business
The decisions of individual businesses and people.
15.Capital intensive technique would get chosen in a
Labour surplus economy where the relative price of capital is lower.
Capital surplus economy where the relative price of capital is lower.
Developed economy where technology is better.
Developing economy where technology is poor.
16.Which of the following is not one of the four central questions that the study of
economics is supported to answer?
Who produce what?
How are goods produced?
Who consume what?
When are goods produced?
17.The central problem in economics is that of
Comparing the success of command versus market economies.
Allocating scares resources in such a manner that society’s unlimited needs or
wants are satisfied in the best possible manner.
Guaranteeing the production occurs in the most efficient manners
Guaranteeing a minimum level of income for every citizen.
18.A capitalist economy uses _____________ as the principal means of allocation
resources.
Demand
Supply
efficiency
prices
19.The difference between positive and normative Economics
Positive Economics explains the performance of the economy while normative
Economics finds out the reasons for poor performance.
Positive Economics describes the facts of the economy while normative Economics
involves evaluating whether some of these are good or bad for the welfare of the
people.
Positive Economics describes the facts of the economy while positive Economics
involves evaluating whether some of these are good or bad for the welfare of the
people.
Positive economics prescribes while normative Economics describes
20. Which of the following is not a subject matter of Micro-economies.?
The price of mangoes
The cost of producing a fire truck for the fire department of Delhi, India.
The quantity of mangoes produced for the mangoes market
The national economy’s annual rate of growth.
