Nature and Scope of Economics Quiz 3 – Punjab Meritorious School Preparation Portal

Welcome to your 12th Oct Nature and Scope of Economics Quiz 3 CBT TEST

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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

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.

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.

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.

Business Economics is

Abstract and applies the tools of Microeconomics.

Incorporates tools from multiple disciplines.

(b) and (c) above.

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

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.

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.

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

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