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Definitions, Scope, Importance And Methodology Of Economics - SS1 Economics Past Questions and Answers - page 1

1

Economics is a ______ science that studies how individuals and households allocate their resources.

A

Physical

B

Management

C

Social

D

Cultural

correct option: c
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2

What is the origin of the term "economics"?

A

Latin words "oikos" and "nomos"

B

Greek words "logos" and "nomos"

C

Greek words "oikos" and "nomos"

D

Latin words "logos" and "nomos"

correct option: c
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3

What is microeconomics?

A

Study of how economies grow and develop over time

B

Study of how international institutions affect international trade and finance

C

Study of how individuals, households, and firms make decisions about how to allocate their resources

D

Study of how low-income countries can grow and develop economically and reduce poverty

correct option: c
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4

What is macroeconomics?

A

 Study of how economies grow and develop over time

B

Study of how international institutions affect international trade and finance

C

Study of how individuals, households, and firms make decisions about how to allocate their resources

D

Study of how low-income countries can grow and develop economically and reduce poverty

correct option: d
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5

The methodology of economics involves the use of theoretical models and empirical methods to analyze economic phenomena. True or False?

A

True

B

False

correct option: a
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6

List 3 reasons why the study of economics is important.

Three reasons why the study of economics is important include:

  1. Economics is important because it provides tools and models to study how societies allocate scarce resources like labour, capital, and natural resources, and how they make decisions about what to produce, how to produce, and for whom to produce.
  2. Economics is useful for businesses, policymakers, and consumers to make informed decisions about buying and selling goods and services.
  3. Economics is used in policy-making, with the goal of promoting economic growth, reducing inequality, and achieving other social objectives.

 

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7

 Differentiate between international and environmental economics.

International economics is the study of how countries trade with each other and how international institutions such as the World Trade Organization and the International Monetary Fund affect international trade and finance while environmental economics is the study of how economic activities affect the environment and how environmental policies can be designed to promote sustainable development.

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8

Define economics according to Prof. Lionel Robbins.

Lionel Robbins defined economics as "the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."

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