12 Questions
What is the central focus of economics?
Scarcity of resources and choices among their alternative uses
What is one reason scarcity of resources leads to economic problems?
Unlimited human wants and scarce resources
Why do people need to make choices among alternatives according to the text?
To satisfy unlimited human wants with limited resources
What does the science of economics primarily focus on?
Satisfying unlimited human wants with limited resources
In economics, why is the knowledge of economics important for comparing alternatives?
To choose the best option among alternatives due to scarcity
What is responsible for inducing people to make choices among alternatives according to the text?
Scarcity of resources
According to Adam Smith, what did he consider the science of economics to be?
The science of wealth
Why did Ruskin and Carlyle criticize economics as a 'dismal science' according to the text?
Because it promoted selfishness against ethics
What did Alfred Marshall emphasize in his definition of economics?
The material requisites of well-being
What distinction did Marshall make between material and immaterial things in his definition of economics?
Material things can be touched, immaterial things cannot
Why was Alfred Marshall criticized according to the text?
For focusing only on material things promoting welfare
What did Adam Smith believe would lead individuals to promote the interests of society?
An invisible hand
Test your knowledge on the fundamental concepts of economics such as scarcity, choices, production, exchange, and consumption of goods and services. Understand how economics plays a crucial role in wealth creation and human welfare.
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