R4RIN – MCQs, Mock Tests | Economics Economics Nature and Scope of Economics

Father of political economy:

1. Adam Smith
2. Malthus
3. Marshall
4. Samuelson

✅ Correct Answer: 1

He described economics as a science of material welfare:

1. Robbins
2. Marshall
3. Ricardo
4. Keynes

✅ Correct Answer: 2

Economic laws are:

1. Scientific
2. Moral
3. Natural
4. Unreal

✅ Correct Answer: 1

Economics is a science:

1. Spiritual
2. Social
3. Dismal
4. Moral

✅ Correct Answer: 2

Economic problems arise because of:

1. Greed
2. Scarcity
3. Dishonesty
4. Laziness

✅ Correct Answer: 2

Which statement relates to macroeconomics:

1. Oil prices are rising in Pakistan
2. Profit rate is high in textile industry
3. The firms try to make huge profits
4. The government has failed to control inflation

✅ Correct Answer: 4

Which statement is true?

1. Economics is a physical and normative science
2. Economics is a social and natural science
3. Economics is physical and positive science
4. Economics is a social and normative science

✅ Correct Answer: 4

Ceteris paribus means:

1. Other things equal
2. All variables are independent
3. Enable economists to simplify reality
4. That no other assumptions are made

✅ Correct Answer: 1

In economics assumptions:

1. Make economic theory useless
2. Mean other things equal
3. Enable economists to simplify reality
4. Used in micro and not in macroeconomist

✅ Correct Answer: 3

Normative economics:

1. Deals solely with the facts
2. Is never studied in colleges
3. Involves opinions and interpretations
4. Is clearly preferable to positive economics

✅ Correct Answer: 3

Basic economic problem is:

1. Inflation
2. Unemployment
3. Poverty
4. Scarcity

✅ Correct Answer: 4

Microeconomics concentrates:

1. In only poor countries
2. In a country that uses resources inefficiently
3. In all countries of the world
4. When society produces unimportant or silly goods

✅ Correct Answer: 3

Microeconomics concentrates:

1. On inflation
2. International economic relations
3. Individual economic units
4. Economic development of Pakistan

✅ Correct Answer: 3

Macroeconomic deals with:

1. How to buy groceries
2. Aggregate economic activity
3. Establishment of a new firm
4. Industrial activity

✅ Correct Answer: 2

Three basic economic problems:

1. What how and for whom
2. Why where and when
3. What which and how much
4. What which why

✅ Correct Answer: 1

Economics:

1. Is more important than mathematics
2. Is a social science
3. Should be made compulsory for every student
4. None of these

✅ Correct Answer: 2

Economic law:

1. Must be followed
2. Are hated by people
3. Show economic behaviour of people
4. Are unscientific

✅ Correct Answer: 3

Adam Smith was a:

1. Was a Saint
2. A modern economist
3. Good sports man
4. Classical economist

✅ Correct Answer: 4

Marshall in his definition of economics:

1. Uses the concept of material welfare
2. Dislikes wealth
3. Accuses Adam Smith
4. Praises Robbins

✅ Correct Answer: 1

Wealth of Nations:

1. Is another name for United Nations
2. Is a book
3. Indicates total wealth of rich countries
4. Contains formulas to earn wealth

✅ Correct Answer: 2

Marshall wrote the book:

1. Introduction to economics
2. Principles of economics
3. Classical economics
4. Microeconomic theory

✅ Correct Answer: 2

Economic theory means:

1. Economic policy
2. Principles of economics
3. Descriptive economics
4. Economic facts

✅ Correct Answer: 2

Robbins in his definition:

1. Talks of scarcity of resources
2. Preaches moral values
3. Advises neutrality in economics
4. None of the above

✅ Correct Answer: 1

Market system means:

1. Socialism
2. Capitalism
3. A place where goods are traded
4. All of the above

✅ Correct Answer: 2

One or more persons living together and having a common budget is called:

1. A family
2. Organisation
3. Household
4. All commodities in a house

✅ Correct Answer: 3

Wealth of Nations was written in:

1. 1976
2. 1876
3. 1776
4. 1676

✅ Correct Answer: 3

Economic principles are also called:

1. Economic law
2. Economic theory
3. Economic model
4. All of the above

✅ Correct Answer: 4

Wealth of nations was written by:

1. Adam Smith
2. Malthus
3. Marshall
4. Newton

✅ Correct Answer: 1

Professor Marshall thinks:

1. Economics studies national welfare
2. Economics studies personal welfare
3. Economics studies total welfare
4. Economics studies material welfare

✅ Correct Answer: 4

Select the correct statement:

1. Economics affects politics
2. Economics affects history
3. Geography affects economics
4. All of the above are true

✅ Correct Answer: 4

Everyone should study economics:

1. Is a positive statement
2. Is a narmative statement
3. Is a true statement
4. Is nonsense

✅ Correct Answer: 2

Utility and usefulness are:

1. Equal
2. Different
3. Similar
4. Unrelated

✅ Correct Answer: 2

Rotten eggs are:

1. Free good
2. Economic good
3. Service
4. Wealth

✅ Correct Answer: 1

Scarcity means that:

1. Non-availability of goods
2. High price of goods
3. Nobody wants to consume it
4. The good is available but it is not free

✅ Correct Answer: 4

The basic economic problem common to all societies is:

1. Scarcity cannot be totally eliminated
2. What how and for whom to produce
3. Equal distribution of wealth
4. The achievement of full employment

✅ Correct Answer: 1

Human wants are:

1. One thousand
2. Few
3. Innumerable
4. Countable

✅ Correct Answer: 3

Scarcity means:

1. Non-availability of goods
2. High price of goods
3. Less supply than demand
4. High profit of the firms

✅ Correct Answer: 3

Validity of economic theories can never be proved with 100 percent certainty because:

1. Ceteris paribus clause
2. Limited number of observation is possible
3. Some observation will be made in furture which refute the theory
4. (b) and c

✅ Correct Answer: 1