Question 1

What is the primary focus of Economics as a social science?

Accepted Answer

The study of how individuals, businesses, and governments allocate scarce resources to satisfy unlimited wants and needs.

Answer

The analysis of technological innovations in manufacturing.

Answer

The examination of physical laws governing nature.

Answer

The study of historical events and their impact on society.

Question 2

Why is scarcity a central concept in Economics?

Accepted Answer

Because it leads to trade-offs, choices, and the opportunity cost of every decision.

Answer

Because it only applies to financial resources.

Answer

Because resources are unlimited and desires are finite.

Answer

Because it is a concept used only in politics.

Question 3

What distinguishes Microeconomics from Macroeconomics?

Accepted Answer

Microeconomics examines individual actors, while Macroeconomics looks at the economy as a whole.

Answer

Microeconomics is concerned with global issues, while Macroeconomics looks at local behavior.

Answer

Microeconomics deals only with historical economic data, while Macroeconomics uses future projections.

Answer

Microeconomics focuses on governmental policies, whereas Macroeconomics deals with individual choices.

Question 4

What method involves starting with general theories to make specific predictions?

Accepted Answer

The deductive method.

Answer

The inductive method.

Answer

The empirical method.

Answer

The comparative method.

Question 5

Which approach in Economics deals with value-based judgments?

Accepted Answer

Normative Economics.

Answer

Positive Economics.

Answer

Descriptive Economics.

Answer

Predictive Economics.

Question 6

How can studying Economics contribute to personal financial decisions?

Accepted Answer

It helps individuals budget, save, and invest wisely.

Answer

It guarantees financial security without planning.

Answer

It provides methods for avoiding taxes.

Answer

It eliminates the need for market awareness.

Question 7

What is opportunity cost?

Accepted Answer

The value of the next best alternative that is forgone when making a decision.

Answer

The total cost of all alternatives combined.

Answer

A fixed cost that does not change over time.

Answer

The benefit received from the best alternative.

Question 8

Which tools do economists often use to analyze data?

Accepted Answer

Graphs, statistical models, and econometric software.

Answer

Personal opinions and experiences.

Answer

Historical documents and anecdotes.

Answer

Only qualitative descriptions.

Question 9

How does Economics intersect with other fields like history and politics?

Accepted Answer

It offers insights into issues such as trade, poverty, and globalization.

Answer

It focuses only on individual economic behavior.

Answer

It is purely a mathematical discipline.

Answer

It does not relate to social issues.

Question 10

Why is it important to understand both Microeconomics and Macroeconomics?

Accepted Answer

Because individual choices aggregate to influence macroeconomic outcomes.

Answer

Because only macroeconomic policies matter.

Answer

Because they are entirely unrelated fields.

Answer

Because microeconomics only looks at historical data.

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