Nature And Scope Of Economics Flashcards
The word economics has been derived from “Oikonomos,” which is a word of the language:
(A) French
(B) Unani
(C) Latin
(D) Russian
The propounder of economics was:
(A) Robbins
(B) Marshall
(C) Adam Smith
(D) Keynes
Who said that economics is the science of wealth?
(A) Adam Smith
(B) Robbins
(C) Marshall
(D) Pigou
Who wrote the book named “An Enquiry into the Nature and Causes of the Wealth of Nations”?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Canon
In which year was the book “An Enquiry into the Nature and Causes of the Wealth of Nations” written?
(A) 1696
(B) 1776
(C) 1803
(D) 1825
Into how many parts did Professor Adam Smith divide his book “Wealth of Nations”?
(A) Two
(B) Three
(C) Four
(D) Five
The founder of the classical school of thought was:
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Keynes
Economics is a science:
(A) Political
(B) Spiritual
(C) Social
(D) Scientific
The founder of the new classical school of thought was:
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Keynes
Who wrote the book named “Principles of Economics”?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Cannon
In which year was the book “Principles of Economics” written?
(A) 1805
(B) 1890
(C) 1903
(D) 1915
Who said that economics is the science of material welfare?
(A) Adam Smith
(B) Marshall
(C) Ricardo
(D) Robbins
Who named economics as the science of mammon worship and dismal science?
(A) Marshall
(B) Keynes
(C) John Ruskin & Carlyle
(D) Pigou
Who separated economics from political science for the first time?
(A) Marshall
(B) Malthus
(C) Adam Smith
(D) Ricardo
Who wrote the book named “Nature and Importance of Economics”?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Keynes
Who named economics as the science of satisfying unlimited wants with limited means?
(A) Marshall
(B) Adam Smith
(C) Robbins
(D) Pigou
Whom did Marshall include in the definition of economics?
(A) Service of teachers
(B) People living in forests
(C) Trading professionals
(D) People living in caves
Who wrote the book named “The General Theory of Employment, Interest, and Money”?
(A) Robbins
(B) Pigou
(C) Keynes
(D) Cannon
Who is called the founder of the modern school of thought?
(A) Robbins
(B) Cannon
(C) Keynes
(D) Malthus
Which economist named economics as a neutral science?
(A) Pigou
(B) Keynes
(C) Robbins
(D) Marshall
Which economist is called the Aristotle of Economics?
(A) Marshall
(B) Keynes
(C) Adam Smith
(D) Malthus
Which statement is called the subject matter of economics?
(A) Problems of working individuals and their solutions
(B) Planning of increasing production
(C) Unlimited wants and limited means
(D) Solutions to problems of individuals living away from society
Economics, according to its scope, is:
(A) Science
(B) Art
(C) Science & Art
(D) Only positive science
Economics studies human behavior from:
(A) Individual angle
(B) Collective angle
(C) Individual & Collective angle
(D) Social angle
How many kinds of science are there?
(A) Two
(B) Three
(C) Four
(D) Five
Economic laws are:
(A) Definite and universal
(B) Of conditional nature
(C) Of moral nature
(D) Of political nature
Not acting upon economic laws:
(A) One gets punished
(B) The economy faces loss
(C) Only the people not acting face loss
(D) No one is influenced
Which laws cannot be predicted?
(A) Scientific laws
(B) Moral laws
(C) Economic laws
(D) Natural laws
Which characteristic is not found in economic laws?
(A) Not quantitative
(B) Cannot be predicted
(C) No punishment in case of going against the law
(D) Definite and universal
Here is your multiple-choice questionnaire, proofread and formatted correctly while keeping your wording intact:
Methods of deriving economic laws:
(A) Two
(B) Three
(C) Four
(D) Five
Deductive method of deriving economic laws:
• We move from particular conditions to general conditions.
• We move from general conditions to particular conditions.
• Stated in a general way.
• Different incidents are kept in view.
Inductive method of deriving economic laws:
(A) We move from general conditions to particular conditions.
(B) We move from particular conditions to general conditions.
(C) Facts are stated in a simple and easy way.
(D) Stated in a general way.
How many kinds of economics are there?
(A) Two
(B) Three
How many kinds of theoretical economics are there?
(A) Two
(B) Three
(C) Four
(D) Five
How many kinds of positive economics are there?
(A) Two
(B) Three
(C) Four
(D) Five
Which is not studied in microeconomics?
(A) Theory of consumer behavior
(B) Theory of money
(C) Price theory
(D) Theory of distribution of wealth
Which is not studied in macroeconomics?
(A) National income
(B) Price theory
(C) Money and banking
(D) Public finance
Economics is basically divided into two parts:
(A) Micro and macroeconomics
(B) Theoretical and applied economics
(C) Micro and applied economics
(D) Welfare and applied economics
Who are included in welfare economists?
(A) Ricardo and J.S. Mill
(B) Robbins and Keynes
(C) Cannon and Pigou
(D) Malthus and Keynes
Points of Robbins’ definition are:
(A) Two points
(B) Four points
(C) Economic points
(D) Practical points
When was Professor Robbins’ book “Nature and Importance of Economics” written?
(A) 1915
(B) 1932
(C) 1934
(D) 1937
Who said that you cannot become a good citizen if you have no economist with you?
(A) Marshall
(B) Pigou
(C) Keynes
(D) Voton
Who said that economics has the place of intellectual religion?
(A) Cannon
(B) Pigou
(C) Durban
(D) Robbins
*In which year did Keynes write his book “General Theory of Employment, Interest, and Money”?
(A) 1929
(B) 1931
(C) 1934
(D) 1936
To which area of England did Adam Smith belong?
(A) Wales
(B) Scotland
(C) Ireland
(D) London
Economics is concerned with the attainment of material requisites:
(A) Robbins
(B) Marshall
(C) Pareto
(D) Senior
Who is the father of economics?
(A) Marshall
(B) Malthus
(C) Adam Smith
(D) Cannon
Who said that economics is the science of unlimited wants and limited means?
(A) Adam Smith
(B) Marshall
(C) Pigou
(D) Robbins
*Who wrote the book “General Theory of Employment, Interest, and Money”?
(A) Marshall
(B) Pigou
(C) Adam Smith
(D) Keynes
Who gave economics the status of a positive science?
(A) Marshall
(B) Robbins
(C) Cannon
(D) Pareto
Which economist said that economics cannot be separated from morality?
(A) Marshall
(B) Robbins
(C) Adam Smith
(D) Voton
Which economist said that an abundance of definitions has pressed the neck of economics?
(A) Adam Smith
(B) Robbins
(C) Keynes
(D) Pigou
*Which book is named “Bible of Capitalism”?
(A) Wealth of Nations
(B) Das Kapital
(C) Principles of Economics
(D) General Theory of Employment, Interest, and Money
Which economist introduced economics as a science for the first time?
(A) Adam Smith
(B) Pigou
(C) Robbins
(D) Marshall
Which laws are framed by parliament?
(A) State laws
(B) Moral laws
(C) Economic laws
(D) Scientific laws
Which laws are definite and universal?
(A) Economic laws
(B) State laws
(C) Moral laws
(D) Scientific laws
Who said that economics is a positive science?
(A) Adam Smith
(B) Marshall
(C) Robbins
(D) Keynes
State laws are of:
(A) Regional nature
(B) International nature
(C) Country nature
(D) Local nature
Which laws reflect religion or society?
(A) Economic laws
(B) Scientific laws
(C) State laws
(D) Moral laws
Economic problems arise because human wants:
(A) Do not exist
(B) Are limited
(C) Are unlimited
(D) Are essential
The goods which are directly consumed by humans are called:
(A) Consumer goods
(B) Capital goods
(C) Industrial goods
(D) Agricultural goods
The non-material activities that satisfy human wants indirectly are called:
(A) Goods
(B) Services
(C) Satisfaction
(D) Matter
Who introduced macroeconomics?
(A) Marshall
(B) N.W. Senior
(C) J.M. Keynes
(D) Ricardo
In which kind of economics is the aggregate behavior of the economy reviewed?
(A) Theoretical
(B) Applied
(C) Micro
(D) Macro
The conditions which are kept constant for the application of economic laws are called:
(A) Changes
(B) Assumptions
(C) Limitations
(D) Theories
Which school of thought adopted the deductive method to derive economic laws?
(A) Classical school of thought
(B) Neo-classical school of thought
(C) Keynesian school of thought
(D) Historical school of thought
Which school of thought adopted the inductive method to derive economic laws?
(A) Classical school of thought
(B) Neo-classical school of thought
(C) Keynesian school of thought
(D) Historical school of thought
Who criticized Robbins’ definition of economics?
(A) Marshall
(B) J.B. Clark
(C) Beveridge
(D) Pigou
Walker, Senior, and Malthus belonged to which school of thought?
(A) Classical
(B) Neo-classical
(C) Keynesian
(D) Australian
Cannon, Pigou, and Pareto belonged to which school of thought?
(A) Classical
(B) Keynesian
(C) Australian
(D) None of the above
Marshall belonged to which country?
(A) America
(B) England
(C) France
(D) Japan
According to which economist does economics have the place of intellectual religion?
(A) Adam Smith
(B) Marshall
(C) Durban
(D) Keynes
Which economist presented the concept of macroeconomics?
(A) Adam Smith
(B) Marshall
(C) Pigou
(D) Keynes
Study of small units of an economic system is called:
(A) Microeconomics
(B) Macroeconomics
(C) Applied economics
(D) Positive economics
Study of large aggregates of an economic system is called:
(A) Microeconomics
(B) Macroeconomics
(C) Applied economics
(D) Normative economics
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Multiple Choice Questions – Principles of Economics (I.COM Part-1)
- What is the nature of state laws?
(A) Local
(B) Regional
(C) National
(D) International
- Microeconomics is related to:
(A) National income
(B) Unemployment
(C) Trade cycle
(D) Consumer behavior
- Which laws do not have punishment for disobedience?
(A) Moral laws
(B) State laws
(C) Economic laws
(D) Political laws
- Which of the following is NOT included in macroeconomics?
(A) Investment
(B) Price
(C) Employment
(D) National income
- According to Robbins, the basic subject matter of economics is:
(A) Economic problems
(B) Political problems
(C) Religious problems
(D) Psychological problems
- Who is considered a neoclassical economist?
(A) Adam Smith
(B) Malthus
(C) Robbins
(D) Keynes
- Describing an event as it is, after observing and analyzing it, is known as:
(A) Normative science
(B) Positive science
(C) Biological science
(D) Forecasting science
- Who gave the most clear and comprehensive definition of economics?
(A) Adam Smith
(B) Alfred Marshall
(C) Robbins
(D) A.C. Pigou
- The subject matter of macroeconomics includes:
(A) Consumer behavior
(B) International trade
(C) Firm behavior
(D) Price mechanism
- Which laws are conditional?
(A) State laws
(B) Economic laws
(C) Scientific laws
(D) Moral laws
- Microeconomics is related to:
(A) International trade
(B) Firm behavior
(C) National income
(D) Personal income
- What kind of problems can be discussed in macroeconomics?
(A) Consumer behavior
(B) International trade
(C) Problems of a firm
(D) Price determination
- Which one is NOT studied in microeconomics?
(A) National income
(B) Market equilibrium
(C) Consumer behavior
(D) Firm equilibrium
- What is another name for microeconomics?
(A) Price theory
(B) Welfare economics
(C) Theory of income and employment
(D) Applied economics
- Economic laws are formulated based on:
(A) Court decisions
(B) People’s behavior
(C) Assembly discussions
(D) Government policies
- Who considered economics as a science of material welfare?
(A) Marshall
(B) Keynes
(C) Robbins
(D) Adam Smith
- Which laws are comprehensive and universal?
(A) Laws of sports
(B) Economic laws
(C) Government laws
(D) Natural laws
- Which of the following is NOT considered an economic want?
(A) Cloth
(B) Water
(C) Air
(D) Car
- Goods obtained by paying their price are called:
(A) Uneconomic goods
(B) Economic goods
(C) Superior goods
(D) Inferior goods
- Goods obtained without paying their price are called:
(A) Uneconomic goods
(B) Economic goods
(C) Superior goods
(D) Inferior goods
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Long. Describe
Adam Smith’s definition of economics and evaluate it critically.
Economics is the science of wealth. Discuss it.
Long.
Give the definition of Prof. Alferd Marshall and give a critical evaluation of it.
Economics is a science of welfare. Discuss.
Long.
Describe Prof. Robbins definition and also point out its merits and demerits.
- Economics is the science of unlimited wants and limited means. Discuss.
Long. Compare the definitions of Prof. Robbins and Prof. Marshall.
Long. Is economics a science or an art? Support your answer with arguments.
10.
Long. What are economic laws? Describe characteristics of economic laws. compare economic laws with state laws, moral laws and scientific laws.
11.
Long. Describe the methods of deriving economic laws.
Long. Describe the importance and advantages of economics.
Long. Differentiate between micro and macro economics.
From which word and language the word ‘Economics’ has been derived?
The word ‘Economics’ has been derived from the Latin language’s word ‘Oikonomos” which means the management of house affairs.
Define economics according to Prof Adam Smith?
In how many parts Prof Adam Smith has divided his book “Wealth of nations”?
According to Prof Adam Smith, Economics is a science which discusses the production of wealth, consumption of wealth, distribution of wealth and exchange of wealth.
Prof Adam Smith has divided his book wealth of nations in the following four parts:-(0)
Production of wealth.
(ii)-
Consumption of wealth.
(ili)
Distribution of wealth.
(iv)
Exchange of wealth.®
Write the names of main classical Economists?
Q.5:
Ans:
Following are the main names of classical Economists: Walrus, F.A. walker, Chapman,
J.B. Say, J.S. Mill, N.W. Senior, Malthus, Ricardo etc.
Define Economics in the words of Prof Marshall.
Q.6:
Ans:
Write the names of main Neo classical Economists?
Q.7:
Ans:
Economics is a science which studies human behaviour in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well being.
Thus economics is on one side a study of wealth and on the other and more important side, a part of study of man.
Following are the names of New Classical Economists: Cannon, Pigou, Pareto, Clark etc.
four facts of life presented by robbins
Q.10:
Ans:
Human ends (wants) are unlimited.
(ii)
Wants are not equally important.
(iii
Means are limited.
(iv)
Means have alternative uses.
Define Science.
e1:
Ans:
Science: Science is the collection of facts about a particular section of universe which is arranged in the light of research and practical after an impartial study. Moreover a permanent relationship is established between the causes and results of these facts For example, a useful and organized collection of information about matter, light, heat and atom etc has been collected in the form of Physics.
Define positive economics.
Define Normative science.
Positive Economics: This is the science in which after the observation and analysis of conditions and incidents occuring in a particular section of universe are stated as they are.
For example physics, chemistry and Biology etc.
This is the science in which conditions and incidents should be checked from a particular point of view and decided that they should be as. For example, instead of poverty, there should be prosperty, every individual living in the country should be provided with bread, clothing and accommodation, instead of dictatorship, there should be democracy in the society. The example of this kind of science is economics, political science and ethics etc.
define ART
An art is activities Which are made to attain special objectives: Some principles are derived with the help of science and when we act upon these principles to attain a specific objective, the same science becomes an art. For example, what is studied in books by medical student, is science but after becoming doctor when he treats patients and gives a practical shape to his test results, then he makes his science an art.
What is meant by economic law.
Define economic law in the words of Prof Nevin.
Define economic law in the words of Prof Marshall.
’ Economics Law: Economic law is the saine bchaviour of people which they adopt during economic struggle. It means the conditions when the wants are unlimited and means to satisfy them are limited. If the conditions are the same, this behaviour remains the same. Therefore this (behaviour) becomes an economic law.
Economic laws are statements of tendencies that are likely to result from certain causes.
An economic law is a statement that a certain course of action may be expected under certain conditions from the members of society.
Economic laws are conditional, Explain.
Economic laws are conditional. It means some conditions are attached with every cconomic law. Economic laws prove true only in the presence of these conditions. We quote the example of law of demand. According to this law increase in the price of some commodity is followed by a decrease in its demand and vice versa, provided that other things remain constant. By other things remain constant means assumptions (conditions) of law of demand.
Economic laws lack exactitude and definiteness, Explain.
Economic laws are not exact and definite, because they are related with human bahaviour and human behaviour usually keeps on changing. While physical laws are related with lifeless matter, the result of any repeating action applied on them will always be the same.
Explain inductive method?
Explain deductive method:
Inductive Method: In inductive method we approach from particular fact to general fact. For example, we see that when price of commodity increases. Aslam decreases its demand. So, keeping in view Aslam’s certain behavior, we draw the general conclusion that when the price of a commodity increase, all the people purchase less quantity of it.
Deductive Method: It means to draw a certain conclusion from known fact of general principle. For example, it is general fact that man is mortal. It leads to the fact that Aslam is also mortal) In the same way, we also observe that an increase in the price of a commodity is followed by a decrease in its demand. Therefore, Aslam also decreases the demand for the commodity, if its price increases.
State the definitions of Micro Economics and Macro Economics.
OR
Differentiate between Micro economics and Macro Economics.
Ans:*
0.23:
Meaning of Micro Economic and Macro Economics: The meaning of micro is millionth part of a thing. It means the smallest unit of anything.
In micro economics, we study the separate parts and small units of an economic system.
For example, we study the behavior of a consumer or conditions of a firm or the conditions of a certain industry or the prices of factors of production e.g. land, labour, capital and organization.
Macro means ‘large’ when for the sake of economic analysis, economy is examined as a whole it is called macro economics. In macro economics, national income, national’ savings, aggregate consumption, aggregate investment, aggregate demand and general Jevel of prices are studied.
Why do economic laws not prove true like physical (scientific) laws.
Economics laws are made on the basis of human behaviour. While physical laws are related with lifeless matter. Human behaviour keeps on changing. so, economic laws do not prove true like the physical laws.
Write four main characteristics of economic laws.
Ans:
Q24:*
Following are four main characteristics of economic laws:
(i) Economic laws are conditional.
(ii) They lack exactitude and definiteness.
(iii) They lack predictability.
(iv) They are qualitative but not quantitative.
What is meant by scarce (limited) means.
HORT QUESTIONS
287
Meaning of scarce (limited) means: It means that man’s resources or means i.e. his an com aud wealth are less as compare i with his wng; In thavay. the aggre ,a? resources uf produc i marcis ta tie nee or waitica prople. o, eve an indiv’d ailya l
the country collectively has to be careful in utilizing its resources to satisfy the wants.
What is meant by economic problem.
2.26:
ADS:
Meaning of economic problem: According to Prof Robbins an economic problem exists when the following four conditions exist at the same time. (i)
Human wants are unlimited.
(ii)
Wants are not equally important.
(iti)
Means are limited.
(iv)
Means have alternative uses.
If anyone of these four conditions is not present, then no economic problem will exist at all.
Economics is a social science, why?
Write kinds of economics.
Economics is concerned with human beings. Its objective is the prosperity of human life.
That is why, in economics methods to increase human welfare are told. So, we can say that economics is a social science.
There are three kinds of economics.
(i)
Descriptive economics.
(ii)
Theoretical economics.
(iii)
Applied economics.
What is meant by descriptive economics?
0.29:
Ans:
Meaning of descriptive economics: In this kind of economics, the economic facts concerned with agriculture, industry, communication. etc. are described in the form of figures. For example to describe facts and figures concerning industry and agriculture in Pakistan is descriptive economics.
What is Theoretical economics? *
Write the kinds of theoretical economics.
Q.31:
Theoretical Economics: In this kind of economics, economic conditions or problems are studied neutrally and analysis is made about them. The purpose of this analysis is to understand economic problem or process of economy properly, so that limited resources may be used effectively.
There are two kinds of theoretical economics:-
Positive economics.
(ii)
Normative economics.
What is positive economics.
Ans:
Q.32:
Ans:
What is Normative economics?
W
Positive Economics: In positive economics, the progress of the economy is examined being neutral. It means, problems of the economy are analyzed on factual basis keeping in view causes and facts. It means, positive economics is related with the objective and scientific explanation of working of an economic system.
Normative Economics: In normative economics solution of economic problems of a country is suggested. Economists suggest a personal solution of economic problems.
What is applied economics ?
Ans:
Q.36:
Applied Economica: On the basis of analysis given by theoretical economics. The method which is adopted to solve the economic problems of a country, is called applied economics.
- In this, such policies are followed which help in raising the living standard of people, the level of employment and rate of national development.
hich are the theories discussed in micro economics.
ん、
The following theories are discussed in micro economics.
(0)
Theory of price
Theory of consumer behavaiour.
(li)
Theory of behaviour of firm.
(iv)
Theory of distribution of wealth.
Q.34:
Which are the theories discussed in macro economics.
Ans:
T
Q.35:
he following theories are discussed in macro economics:-(i)
Theory of national income and employment.
(ii)
Theory of trade cycle.
(ili)
Theory of money.
(iv)
Theory of international trade.
(v)
Theory of Public finance.
State importance of economics in the words of Prof Voton.
0.37: State importance of economics in the words of Prof Durban.
Q.38:
You can not become good citizen if you have no economist with you.
Economics has the place of intellectual religion.
What is Classical school of thought?
9.41:
Ans:
What is New Classical school of thought?
0.42:
Classical school of Thought: Prof. Adam Smith and follower are called classical school of thought.
New Classical School of Thought: Prof. Marshall and follower are called classical school of thought.
Write four educational advantages of economics.
Ans:
Q.39 Write four practical advantages of economics.
Ans:
Q40:
Ams:’
Following are four educational advantages of economics:
Mental level grows.
(ii)
It provides awareness of economic conditions.
(iii)
* It induces the man to be economical.
(iv)
It creates sense of responsibility.
Following are four practical advantages of economics:
(0)
Economic problems can be solved.
(ii)
Living standard of people can be raised.
(Ti)
Distribution of wealth can be equitable.
(iv)
Economic development can be attained without depression.
What i meant by wealth?
What is meant by production of wealth?
Meaning of Production of wealth: Production of wealth means how wealth is produced.
There are four factors which produce wealth i.e., land, labour, capital and organization.
The combination of these four factors produces goods and services which are called wealth.
What is meant by consumption of wealth?
What is meant by exchange of wealth?
What is meant by distribution of wealth?
Meaning of consumption of wealth: Consumption of wealth means how wealth is spent or consumed. The part of wealth which we spend on the necessities of life, is called consumption of wealth:
Meaning of Exchange of Wealth: It means how wealth is exchanged. In other words, how wealth passes from one person to another person or how it shifts from one country to another country through internation trade. To know shout this is called exchange of wealth.
Meaning of Distribution of Wealth: Wealth is produced by the combination of four factors of production and it is distributed among them. The factors are given rewards as rent to land, wages to labour, interest to capital and profit to entreprencur.
