12 Questions
What is the central focus of economics?
Scarcity of resources and choices among their alternative uses
Why does scarcity lead to making choices among alternatives?
Due to the limited or scarce resources available
What are the two major factors responsible for the emergence of economic problems?
Scarcity of resources and unlimited human wants
In economics, what do individuals need to do in order to satisfy numerous human wants?
Satisfy wants with limited resources available in nature
What does the science of economics mainly center on?
Want satisfaction through effort
Apart from individual decision making behaviors, what macro variables does economics cover?
International trade and public finance
According to Adam Smith's definition, economics is primarily the science of:
Wealth
Why did Ruskin and Carlyle criticize economics as a 'dismal science'?
It taught selfishness which was against ethics
According to Alfred Marshall, what does economics primarily study?
Attainment and use of material requisites of well-being
What did Marshall's definition of economics criticize about traditional views?
Consideration of material things only
According to Adam Smith, how are individuals led to promote the interests of society?
Through self-interest guided by an 'invisible hand'
Why did the emphasis in economics shift from wealth to welfare according to the text?
To align economics with social ethics
Test your knowledge of basic economic principles and concepts with this quiz. Explore topics such as scarcity, resource allocation, production, exchange, and consumption of goods and services in economic systems.
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