Question 1

Production possibilities curve does not show:

Accepted Answer

A)  What to produce
B)  How to produce
C)  For whom to produce
D)  Productive potential under conditions of underemployment

Question 2

The validity of an economic theory is judged by its power to:

Accepted Answer

A)  Explain an economic phenomenon
B)  Predict the course of an economic phenomenon
C)  Prove or disprove a hypothesis
D)  Reveal the economic laws

Question 3

Prof. Robbin's definition of Economics is:

Accepted Answer

A)  Scarcity definition
B)  Growth definition
C)  Welath definition
D)  Welfare definition

Question 4

To whom do you attribute the 'growth' definition of economics?

Accepted Answer

A)  Paul Samuelson
B)  Lionel Robbins
C)  Milton Friedman
D)  Alfred Marshall

Question 5

In a free enterprise economy, the problems of what, how and for whom to produce are solved by :

Accepted Answer

A)  A Planning Committee
B)  The Price mechanism
C)  The Planning Commission
D)  None of these.

Exam 12: Economics and Economic Methods

In a free enterprise economy, the problems of what, how and for whom to produce are solved by :