1) 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.
(c) Resources have alternative uses.
(d) All the above.
Business Economics is
Abstract and applies the tools of Microeconomics.
Involves practical application of economic theory in business decision making.
Incorporates tools from multiple disciplines.
(b) and (c) above.
4) 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.
9). A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of
Macro-Economics.
(b) Descriptive Economics.
(c) Micro-economics.
Normative economics.
14). The branch of economic theory that deals with the problem of allocation of resources is
(a) Micro-Economic theory.
Macro-economic theory.
Econometrics
none of the above.
15) Which of the following is not the subject matter of Business Economics?
Should our firm be in this business?
How much should be produced and at price should be kept?
How will the product be placed in the market?
How should we decrease unemployment in the economy?
20). Which of the following statements is incorrect?
Business economics is normative in nature.
(b) Business Economics has a close connection with statistics.
Business Economist need not worry about macro variables.
Business Economics is also called Managerial Economics.
23) A capitalist economy uses ____________________ as the principal means of allocating resources.
demand
(b) supply
(c) efficiency
d) prices
29. Which of the following is not one of the four central questions that the study of economics is supposed to answer?
Who produces what?
When are goods produced?
Who consumes what?
How are goods produced?
30. Larger production of ____goods would lead to higher production in future.
consumer goods
capital goods
agricultural goods
public goods
34. Exploitation and inequality are minimal under:
Socialism
Capitalism
Mixed economy
None of the above
In Economics, the central economic problem means:
Output is restricted to the limited availability of resources
Consumer do not have as much money as they would wish
(c) There will always be certain level of unemployment
(d) Resources are not always allocated in an optimum way
37) Scarcity definition of Economics is given by-
Alfred Marshall
Samuelson
Robinson
Adam Smith
44) Mr. Satish hired a business consultant to guide him for growth of his business. The consultant visited him factory and suggested some changes with respect to staff appointment, loan availability and so on. Which approach is that consultant using?
Micro economics
Macro economics
Both a and b
