Introduction To Economics (Statistics)

Question 1

Who said economics is the science of wealth?

Answer 1

Adam Smith

Question 2

Who gave the scarcity definition?

Answer 2

Lionel Robbins

Question 3

Who gave wealth definition?

Answer 3

Adam Smith

Question 4

Who gives the welfare definition?

Answer 4

Alfred Marshall

Question 5

Growth oriented definition has given by?

Answer 5

Samuelson

Question 6

Economics has been derived from the two greek words ____ and ______

Answer 6

Oikos (house) and Nemein (to mange)

Question 7

Wealth in economics refers to?

Answer 7

It refers to those goods which satisfy human wants

Question 8

What was Adam Smith interested in studying?

Answer 8

He was mainly interested in studying the ways by which the wealth of all nations could be increased

Question 9

According to Marshall, economics is the study of man and it inquires what?

Answer 9

It enquires, how a person gets his income and how he uses it

Question 10

The scarcity definition is based on?

Answer 10

1. Unlimited wants
2. Scarcity of resources
3. Alternative uses

Question 11

What is scarcity?

Answer 11

Scarcity refers to situation when resources are not enough to satisfy all the wants of its people

Question 12

The basic reason for existence of economic problems is

Answer 12

Scarcity

Question 13

Economics is concerned with?

Answer 13

Economics is concerned with the selection of resources under conditions of scarcity

Question 14

Economic problems do not always arise from scarcity. They may also arise due to______ and the example is_____

Answer 14

Abundance of goods. The great depression of 1930s in USA.

Question 15

According to Samuelson, economics is the study of how man and society choose ,with or without money ______

Answer 15

To employ scarce resources, which could have alternative uses. To produce various commodities, overtime, and distribute them for the consumption of now and the future.

Question 16

What are the key points of the growth oriented definition?

Answer 16

1. Resource allocation
2. Sustainability.
3. Social and welfare perspective

Question 17

What do you mean by positive economics?

Answer 17

Positive economics deals with what economic problems are and how they are actually solved

Question 18

Give two examples of positive economics

Answer 18

1. India is overpopulated.
2. Prices are rising.

Question 19

What is normative economics?

Answer 19

Normative economics deals with what ought to be or how economic problems should be solved

Question 20

Give two examples of normative economics

Answer 20

1. India should be less populated.
2. Prices should not rise.

Question 21

Economics can be considered an art because it requires _________ for practical application of laws

Answer 21

Human imagination

Question 22

What are economic activities?

Answer 22

Economic activities referred to those activities which are undertaken to earn a living

Question 23

What are non-economic activities?

Answer 23

Activities which are not concerned with the creation of money or wealth. They are inspired by sentimental reasons and are performed out of love, sympathy, etc

Question 24

What are the three main economic activities?

Answer 24

1. Consumption.
2. Production.
3. Distribution.

Question 25

What are the four factors of production?

Answer 25

1. Land.
2. Labour.
3. Capital.
4. Entrepreneur.

Question 26

Land is unlimited in supply, true or false?

Answer 26

False

Question 27

Land is a fixed factor of production. True or false?

Answer 27

True

Question 28

Which factor of production varies in quality?

Answer 28

Labour(skilled and unskilled)

Question 29

What is capital?

Answer 29

Man-made resources used to produce goods and services. Ex: machinery, tools, buildings, technology etc

Question 30

Entrepreneurship is the ____

Answer 30

Ability to organise land, labour, and capital to produce goods and services

Question 31

What are the rewards or returns of the four factors of production?

Answer 31

Land - rent
Labour - wages
Capital - interest
Entrepreneur- profit

Question 32

Consumption is an economic activity which deals with ______

Answer 32

Use of goods and services for the satisfaction of human wants

Question 33

Distribution is that economic activity, which studies _______

Answer 33

How income generated is distributed among the factors of production