8 Questions
Which of the following statements accurately describes the economic problem?
Wants are unlimited, and resources are scarce.
What is the primary goal of economics as a social science?
To study how individuals, firms, and governments allocate scarce resources to satisfy unlimited wants and needs.
Which of the following statements is an example of a positive statement in economics?
The unemployment rate in the country is currently 6%.
What is the primary purpose of forming a hypothesis in economic methodology?
To provide a possible explanation for observed economic patterns or behavior.
What is the meaning of the term 'economic welfare' in the context of the given information?
The level of prosperity and standard of living of an individual, group, or country.
Which of the following is NOT a step in the economic methodology described in the given information?
Conducting controlled experiments
What is the purpose of calculating index numbers in economics?
To measure the change in the value of a variable over time.
What is the primary characteristic of a normative statement in economics?
It is a statement of opinion or value judgment.
Test your knowledge on economic methodology, the economic problem, index numbers, and economics as a social science. Questions cover formulas for calculating index numbers and the role of economics in studying human behavior.
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