Meaning and Scope of Economics

Economics is a science because it __________

• uses biological methods to study human behaviour

• uses scientific methods to study human behaviour

• uses research approach to study human behaviour

• uses experimental pedagogy to study human behaviour

Which of the following is not within the scope of economics

• Resource allocation

• Scarcity

• Building a successful business

• What production should take place

What is the fundamental economic problem faced by all countries?

• Inflation

• Unemployment

• Scarcity

• Economic recession

Which of the following is not a basic economic problem that an economy must strive to solve?

• Deciding what goods and services to produce

• Determining the most efficient method of production

• Deciding what ought to be the priority of the government

• Deciding for whom the production of goods should be produced

Primary sector production is concerned with

• The manufacturing of goods

• The provision of services

• The construction of buildings

• The extraction of natural resources

Which of the following is not a fundamental economic question?

• For whom production should take place?

• What production should take place?

• Why production should take place?

• How production should take place?

Microeconomics is concerned with...

• The operation of the economy as a whole

• How prices are determined in individual markets

• Adjusting taxes and interest rates to manage the economy

• The distribution of income and wealth in an economy

The gap between limited resources and unlimited wants is known as ______________.

• Demand

• Scarcity

• Supply

• Surplus

All of the following are examples of macro-economic principles except:

• National Income

• Inflation

• Unemployment

• Price

The study of the economy with a large scope. Looking at regional, national and global units.

• Macro-Economics

• Micro-Economics

• Economics

• Supply and Demand