Question 1

What is true for inductive method?

Accepted Answer

A) hypothetical 
B) empirical 
C) ignores experimentation 
D) static 
A) hypothetical 
B) empirical 
C) ignores experimentation 
D) static B

Question 2

Of the following economists who is considered as master of partial analysis?

Accepted Answer

A) Alfred Marshall 
B) A. C. Pigou 
C) J. M. Keynes 
D) J. S. Mill. 
A) Alfred Marshall 
B) A. C. Pigou 
C) J. M. Keynes 
D) J. S. Mill. A

Question 3

Which aspect of taxation involves normative economics?

Accepted Answer

A) the incidence of the tax 
B) the fairness of the tax 
C) the effect of the tax on incentives to work 
D) all of the above 
A) the incidence of the tax 
B) the fairness of the tax 
C) the effect of the tax on incentives to work 
D) all of the above B

Question 4

The fundamental problem faced by an economy is one of :

Accepted Answer

A) exchange 
B) decision making by the government 
C) economic welfare 
D) scarcity of resources and multiplicity of wants. 
A) exchange 
B) decision making by the government 
C) economic welfare 
D) scarcity of resources and multiplicity of wants.

Question 5

The word micro was first used in Economics by:

Accepted Answer

A) Keynes 
B) Ragnar Frisch 
C) J. R. Hicks 
D) Marshall 
A) Keynes 
B) Ragnar Frisch 
C) J. R. Hicks 
D) Marshall

Question 6

Which of the following definitions of Economics include the economic concept of 'scales of Preferences'?

Accepted Answer

A) wealth definition 
B) welfare definition 
C) scarcity definition 
D) growth definition 
A) wealth definition 
B) welfare definition 
C) scarcity definition 
D) growth definition

Question 7

The meaning of the word 'economic' is most closely associated with the word:

Accepted Answer

A) free 
B) scarce 
C) unlimited 
D) unrestricted 
A) free 
B) scarce 
C) unlimited 
D) unrestricted

Question 8

Which one of the following definition of Economics is associated with the name of Lionel Robbins?

Accepted Answer

A) welfare definition 
B) scarcity definition 
C) growth definition 
D) wealth definition 
A) welfare definition 
B) scarcity definition 
C) growth definition 
D) wealth definition

Question 9

State whether Economics is :

Accepted Answer

A) a positive science only 
B) neither a positive science 
C) a science but not art 
D) a science or an art depending on who uses economics and for what purpose. 
A) a positive science only 
B) neither a positive science 
C) a science but not art 
D) a science or an art depending on who uses economics and for what purpose.

Question 10

Which of the following embodies a more widely accepted definition of economics?

Accepted Answer

A) science of material welfare 
B) science of wealth 
C) a study of mankind in the ordinary business of life 
D) science of making choice. 
A) science of material welfare 
B) science of wealth 
C) a study of mankind in the ordinary business of life 
D) science of making choice.

Question 11

Microeconomics deals primarily with:

Accepted Answer

A) comparative statics, general equilibrium and positive economics 
B) comparative statics, partial equilibrium and normative economics 
C) dynamics, partial equilibrium and positive economics 
D) comparative statics, partial equilibrium and positive economics. 
A) comparative statics, general equilibrium and positive economics 
B) comparative statics, partial equilibrium and normative economics 
C) dynamics, partial equilibrium and positive economics 
D) comparative statics, partial equilibrium and positive economics.

Question 12

What is true for deductive method?

Accepted Answer

A) abstract 
B) realistic 
C) economic conditions assumed to be changing 
D) supported by historical school. 
A) abstract 
B) realistic 
C) economic conditions assumed to be changing 
D) supported by historical school.

Question 13

Which of the following is incorrect?

Accepted Answer

A) microeconomics is concerned primarily with the problem of what , how and for whom to produce 
B) microeconomics is concerned primarily with the economic behavior of individual decision making units when at equilibrium 
C) microeconomics is concerned primarily with the time path and processes by which one equilibrium position evolves into another 
D) microeconomics is concerned primarily with comparative statics rather than dynamics. 
A) microeconomics is concerned primarily with the problem of what , how and for whom to produce 
B) microeconomics is concerned primarily with the economic behavior of individual decision making units when at equilibrium 
C) microeconomics is concerned primarily with the time path and processes by which one equilibrium position evolves into another 
D) microeconomics is concerned primarily with comparative statics rather than dynamics.

Question 14

Which of the following statements has been drawn by inductive method?

Accepted Answer

A) a consumer will buy from the cheapest market 
B) all businessmen wish to buy at low price and sell at high price 
C) a private firm will try to maximize its profits 
D) the larger the stock of money with a person, the lower is the utility that he 
A) a consumer will buy from the cheapest market 
B) all businessmen wish to buy at low price and sell at high price 
C) a private firm will try to maximize its profits 
D) the larger the stock of money with a person, the lower is the utility that he

Question 15

Which of the following statements is most closely associated with general equilibrium analysis?

Accepted Answer

A) everything depends on everything else 
B) the equilibrium price of a factor depends on the balancing of the forces of demand and supply for that factor 
C) the equilibrium price of a good or service depends on the balancing of the forces of demand and supply for that good or service 
D) none of these 
A) everything depends on everything else 
B) the equilibrium price of a factor depends on the balancing of the forces of demand and supply for that factor 
C) the equilibrium price of a good or service depends on the balancing of the forces of demand and supply for that good or service 
D) none of these

Question 16

A hypothesis is tested by:

Accepted Answer

A) the realism of its assumptions 
B) the lack of realism of its assumptions 
C) its ability to predict accurately an outcome that follows logically from the assumptions 
D) none of these 
A) the realism of its assumptions 
B) the lack of realism of its assumptions 
C) its ability to predict accurately an outcome that follows logically from the assumptions 
D) none of these

Question 17

The curve showing the possibilities of production of desired good is known as:

Accepted Answer

A) indifference curve 
B) production possibility curve 
C) revealed preference curve 
D) none of these 
A) indifference curve 
B) production possibility curve 
C) revealed preference curve 
D) none of these

Question 18

Production possibilities curve does not show:

Accepted Answer

A) what to produce 
B) how to produce 
C) for whom to produce 
D) productive potential under conditions of underemployment 
A) what to produce 
B) how to produce 
C) for whom to produce 
D) productive potential under conditions of underemployment

Question 19

Who of the following emphasized the normative aspect of Economics as a science?

Accepted Answer

A) the english classical school 
B) Lionel Robbins 
C) the german historical school 
D) none of these. 
A) the english classical school 
B) Lionel Robbins 
C) the german historical school 
D) none of these.

Question 20

Microeconomics studies the decision making behavior of:

Accepted Answer

A) society as a whole 
B) an individual or household 
C) a group of individuals 
D) economy as a whole 
A) society as a whole 
B) an individual or household 
C) a group of individuals 
D) economy as a whole

What is true for inductive method?

Of the following economists who is considered as master of partial analysis?

Which aspect of taxation involves normative economics?

The fundamental problem faced by an economy is one of :

The word micro was first used in Economics by:

Which of the following definitions of Economics include the economic concept of 'scales of Preferences'?

The meaning of the word 'economic' is most closely associated with the word:

Which one of the following definition of Economics is associated with the name of Lionel Robbins?

State whether Economics is :

Which of the following embodies a more widely accepted definition of economics?

Microeconomics deals primarily with:

What is true for deductive method?

Which of the following is incorrect?

Which of the following statements has been drawn by inductive method?

Which of the following statements is most closely associated with general equilibrium analysis?

A hypothesis is tested by:

The curve showing the possibilities of production of desired good is known as:

Production possibilities curve does not show:

Who of the following emphasized the normative aspect of Economics as a science?

Microeconomics studies the decision making behavior of:

Economics and Social Science

Economic Concepts and Principles in Business Operations

Production, Costs, and Demand Analysis

Demand Analysis and Utility Theory in Economics

Economics: Demand, Supply, and Market Equilibrium

Supply and Demand Elasticity

Filters

Exam 1: Economics: Definitions, Methods, and Concepts

What is true for inductive method?

Of the following economists who is considered as master of partial analysis?

Which aspect of taxation involves normative economics?

The fundamental problem faced by an economy is one of :

The word micro was first used in Economics by:

Which of the following definitions of Economics include the economic concept of 'scales of Preferences'?

The meaning of the word 'economic' is most closely associated with the word:

Which one of the following definition of Economics is associated with the name of Lionel Robbins?

State whether Economics is :

Which of the following embodies a more widely accepted definition of economics?

Microeconomics deals primarily with:

What is true for deductive method?

Which of the following is incorrect?

Which of the following statements has been drawn by inductive method?

Which of the following statements is most closely associated with general equilibrium analysis?

A hypothesis is tested by:

The curve showing the possibilities of production of desired good is known as:

Production possibilities curve does not show:

Who of the following emphasized the normative aspect of Economics as a science?

Microeconomics studies the decision making behavior of:

Economics and Social Science

Economic Concepts and Principles in Business Operations

Production, Costs, and Demand Analysis

Demand Analysis and Utility Theory in Economics

Economics: Demand, Supply, and Market Equilibrium

Supply and Demand Elasticity

Filters