WorksheetsBus. Eco_Ch1: Nature & Scope of Business Economics (SM 1 to 10)
Total questions: 10
Worksheet time: 5mins
Economists regard decision making as important because:
The resources required to satisfy our unlimited wants and needs are finite, or scarce
It is crucial to understand how we can best allocate our scarce resources to satisfy society’s unlimited wants and needs.
Resources have alternative uses.
All the above.
Business Economics is
Abstract and applies the tools of Microeconomics.
Involves practical application of economic theory in business decision making.
Incorporates tools from multiple disciplines.
(b) and (c) above.
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.
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.
Which of the following is a normative statement?
Planned economies allocate resources via government departments
Most transitional economies have experienced problems of falling output and rising prices over the past decade
There is a greater degree of consumer sovereignty in market economies than planned economies
Reducing inequality should be a major priority for mixed economies
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
local and state governments, but not the federal government
households and governments, but not business firms
Macroeconomics is also called——— economics
applied
aggregate
experimental
none of the above
An example of ‘positive’ economic analysis would be
an analysis of the relationship between the price of food and the quantity purchased
determining how much income each person should be guaranteed
determining the ‘fair’ price for food
deciding how to distribute the output of the economy
A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of
Macro-Economics.
Descriptive Economics
Micro-economics
Normative economics
Which of the following does not suggest a macro approach for India?
Determining the GNP of India.
Finding the causes of failure of ABC Ltd
Identifying the causes of inflation in India
Analyse the causes of failure of industry in providing large scale employment
