Unit 1: Introduction to Economics — Online MCQ Test
ECONOMICS · CLASS 11 INTERMEDIATE 1 YEAR · Telangana State Board
Practice Unit 1: Introduction to Economics with a free chapter-wise online MCQ test.
This chapter covers: This chapter covers basic economic definitions Wealth Welfare Scarcity Growth scope nature methods micro versus macroeconomics and fundamental economic concepts..
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Unit 1: Introduction to Economics — Important Questions & Answers
What is the central problem studied in economics?
- A. Unlimited resources
- B. Scarcity of resources
- C. Equal distribution of wealth
- D. Only price determination
Answer: B. Scarcity of resources
Economics studies how people make choices because resources are scarce relative to unlimited wants.
Economics studies how people make choices because resources are scarce relative to unlimited wants.
Who defined economics as a science that studies human behaviour as a relationship between ends and scarce means which have alternative uses?
- A. Adam Smith
- B. Alfred Marshall
- C. Lionel Robbins
- D. Paul Samuelson
Answer: C. Lionel Robbins
Lionel Robbins gave the scarcity-based definition of economics. It is one of the most important modern definitions.
Lionel Robbins gave the scarcity-based definition of economics. It is one of the most important modern definitions.
Which of the following is a normative statement?
- A. Prices have increased by 5 percent
- B. Unemployment exists in the economy
- C. The government should reduce poverty
- D. National income is measured in money terms
Answer: C. The government should reduce poverty
Normative statements express opinions or what ought to be done. They are value judgments rather than facts.
Normative statements express opinions or what ought to be done. They are value judgments rather than facts.
Which statement correctly distinguishes wealth from welfare?
- A. Wealth is a means; welfare is the end
- B. Wealth and welfare are exactly the same
- C. Welfare is always measured in money
- D. Wealth has no economic value
Answer: A. Wealth is a means; welfare is the end
Wealth is a means to satisfy human wants, while welfare is the satisfaction or well-being obtained from it.
Wealth is a means to satisfy human wants, while welfare is the satisfaction or well-being obtained from it.
Which of the following is the best reason economics is called both a science and an art?
- A. It only uses numbers and formulas
- B. It explains economic facts and helps in practical decision-making
- C. It has no theories
- D. It studies only nature and animals
Answer: B. It explains economic facts and helps in practical decision-making
Economics is a science because it studies and explains facts, and an art because it guides practical action and policy.
Economics is a science because it studies and explains facts, and an art because it guides practical action and policy.