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Economic Theory

ASSIGNMENTS

Review Questions

1. How is Economics defined?
2. What are three reasons to study economics?

3. Who is regarded as the father of economics?
4. “Economics is a science of choice” – explain.
5. “Economics is a science which studies human behavior as a

relationship between ends and scarce means which have alternative uses”.
Explain.
6. What is the scope of microeconomics?
7. What are examples of individual economic agents? What is the

basic problem of an economy?
8. What do you mean by the terms “ends” and “means”?
9. What is the meaning of economizing of resources? Why is there a

need for economizing resources?
10. What is meant by scarcity in economics? Can you think of two
causes of scarcity?
11. Explain how scarcity and choice go together.

12. Write five importance of microeconomics.
13. What is the difference between microeconomics and
macroeconomics?

14. What are the main goals of macroeconomics?
15. How is economic model defined?

Multiple-Сhoice Questions

1. What are the reasons to study economics?

a) to be an informed voter;
b) to understand society and global affairs;
c) to learn a way of thinking;
d) all of the above.

2. Economics is best defined as the study of:
a) financial decision-making;

b) how consumers make purchasing decisions;
c) choices made by people faced with scarcity;
d) inflation, unemployment, and economic growth.

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