Introduction to Economics

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What was the name of the field of study that Economics was known as before the 19th century?

Industrial Economics
Public Finance
Political Economy (correct)
Business Economics

What is the title of the book written by Adam Smith that is considered the first modern work of Economics?

The Theory of Moral Sentiments
The Wealth of Nations (correct)
The Principles of Political Economy
An Inquiry into the Principles of Economics

What is the primary constraint that limits an individual's ability to satisfy all of their desires in the given scenario?

Unlimited budget
Unlimited wants
Limited resources (correct)
Limited time

What is the economic concept that is being demonstrated in the scenario where the individual has to choose between different options with their `1000 gift?

Opportunity Cost (D) Signup and view all the answers

What is the branch of economics that focuses on individual economic units, such as households and firms, and their decision-making processes?

Microeconomics (D) Signup and view all the answers

What is the underlying assumption of the Rational Choice Theory that is being demonstrated in the scenario?

Individuals make choices based on their preferences and budget constraints (A) Signup and view all the answers

What is a primary concern of economics, in addition to allocating resources?

Increasing the productive capacity of resources (C) Signup and view all the answers

What is the primary goal of the study of economics?

To understand and analyze economic issues (C) Signup and view all the answers

What is the role of economic tools in decision making?

To choose the best course of action from alternative options (A) Signup and view all the answers

What is a characteristic of economic issues addressed in the study of economics?

They are fundamentally connected to economic analysis (D) Signup and view all the answers

What is a factor that has led to fluctuations in the rate of resource utilization in the past?

Insufficient demand (C) Signup and view all the answers

What is a benefit of developing an analytical approach to economic issues?

It provides a framework for understanding and analyzing economic issues (D) Signup and view all the answers

What is a characteristic of most economic problems?

They are affected by several forces, including economics, politics, and social norms (A) Signup and view all the answers

What is the primary benefit of studying economics?

It enables examination of a problem in its right perspective and helps in discovering suitable measures (D) Signup and view all the answers

What is the context in which Mr. Ramamurthy is considering expanding his business?

Food and soft drinks (C) Signup and view all the answers

What is implied by Mr. Swaminathan's response to Mr. Ramamurthy's proposal?

He is cautious and wants to consider the long-term impact (D) Signup and view all the answers

What is the significance of the scarcity of resources in economics?

It results in limited alternative uses (A) Signup and view all the answers

What is the relationship between economics and business economics?

Business economics is a subset of economics (D) Signup and view all the answers