Economy

Q.

Positive Economic Theory Deals With_____.

Q. Which among the following statements highlights Adam Smith's definition of economics?

1. Economics is the art of wealth.
2. Economics is the art and science of wealth.
3. Economics is the science of expense management.
4. Economics is the science of wealth.

Q. Which economic activity helps in transporting goods from the manufacturer to the consumer?

1. Manufacturing
2. Distribution
3. Consumption
4. Exchange

Q. Which of the following are considered as production activities?

1. A farmer growing wheat in his field
2. Haircutting service at a salon
3. A consumer buying wheat and having a haircut
4. A scientist doing research in a lab

Q. Which of the following are important economic activities or factors in an economy?

1. Production
2. Distribution
3. Culture
4. Producer
5. Social norms
6. Seller
7. Consumption
8. Law and order

Q. Maxima is a wholesaler who buys an earphone from the manufacturer and sells it directly to Mahima, a consumer. After a few months, Mahima decides to sell her earphones.

Analyse which of the following are true.

1. Consumption process was done by Mahima.
2. Distribution process was done when Maxima sold it to Mahima.
3. There was no distrubtion process as no retailer is involved.
4. Distribution process was done by Mahima when she resold the earphones.

Q. Which of the following means family management in Greek?

1. Oikonomics
2. Oikonomia
3. Economy
4. Oikos

Q. Identify the activity where people buy the products from the retailer to fulfill their needs.

1. Production
2. Distribution
3. Consumption
4. Exchange