BBA 1st Year Principles Of Economics Very Short Question Answer Study Notes

BBA 1st Year Principles Of Economics Very Short Question Answer Study Notes

BBA 1st Year Principles Of Economics Very Short Question Answer Study Notes

BBA 1st Year Principles Of Economics Very Short Question Answer Study Notes

BBA 1st Year Principles Of Economics Very Short Question Answers unit 1
BBA 1st Year Principles Of Economics Very Short Question Answers unit 1

Q.1. Define the term economics.

Ans. Economics is the science which treats wealth, i.e. how human being earn money and how they spend it.

Q.2. Give any four points to describe the nature of economics.

Ans. Four points to describe the nature of economics are:

  • Economics is pure and applied science.
  • Economics is a normative science.
  • Economics is a science.
  • Economics is a positive science.

Q.3. In how many parts the definition of economics has been divided?

Ans. It has been divided into four parts:

  • Wealth definition.
  • Welfare definition
  • Scarcity definition.
  • Growth oriented definition.

Q.4. Write any four features of Robbins’s definition in economics.

Ans. Four features of Robbins’s definition in economics are:

  • Robbins’s definition is analytical.
  • Economics is treated as science.
  • Universality
  • Study of human behavior.

Q.5. What is wealth definition of economics according to Adam Smith?

Ans. According to Adam Smith, economics is an enquiry into the nature and causes of wealth of nations.

  • Wealth is the central point.
  • Imagination of economic plan.
  • Individual and social interests reconcile.

Q.7. Give the main points of criticism of wealth economics definition.

Ans. The main points of criticism of wealth economics definition are :

  • More emphasis on wealth.
  • Narrow meaning of wealth.
  • Neglect of welfare.
  • Narrow subject matter

Q.8. What is welfare economics definition.

Ans. Welfare economics is a study of mankind in the ordinary business of life. It examines the part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well being.  

Q.9. Write any four fundamental prepositions in Robbins’ definition.

Ans. Four fundamental prepositions in Robbins’s definition are:

  • Unlimited wants.
  • Limited resources
  • Alternative uses of resources,
  • Wants vary in intensity

Q.10. Write down the characteristics of scarcity definition.

Ans. The characteristics of scarcity definition are :

  • Human beings have unlimited wants.
  • The means that are available for the satisfaction of human wants are limited.
  • This leads to the problem of choice. They have to select the use to which the scarce resources will be put.

Q.11. What do you mean by microeconomics?

Ans. The term ‘micro’ has been derived from the Greek word ‘mikros’ which means ‘small’. Thus, microeconomics is the study of individual units of economy such as individual consumer, individual firm and small group of individual unit such as various industries and markets.

Q.12. Describe the features of microeconomics.

Ans. Following are the features of microeconomics :

  • It is a study of individual unit.
  • It is a study of small variables.
  • It is a price determination of a commodity.

Q.13. Write down any two limitations of microeconomics.

Ans. The two limitations of microeconomics are:

  • As we know that it assumes full employment which is a rare phenomenon in the present days. It is therefore based on an unrealistic assumption.
  • Microeconomics does not give a correct picture of the working of the entire economy. It explains the working of individual units only.

Q.14. What is macroeconomics?

Ans. Macroeconomics is the study of the behavior of large aggregates such as total employment, national product, national income, general price level of the country etc. It deals with the problems of unemployment, inflation, deflation, international trade, economic growth and economic fluctuations. Thus, macroeconomics is the national income analysis.

Q.15. Mention the four importance of macroeconomics.

Ans. Four importance’s of macroeconomics are:

  • Helpful in understanding the working of whole economy.
  • Helpful in the formation of economic policies.
  • Helpful in the study of growth and developments.
  • Helpful in the development of macroeconomics.

Q.16. Who is economist?

Ans. One of the most important object of management in its decision making process is to identify the key factors which influence the business firm over a period of time. The person responsible for assisting top management in this task is called economist.

Q.17. Write down any four responsibilities of an economist.

Ans. The four responsibilities of an economist are :

  • To make successful forecasting.
  • To search the measures for the increase in the earning capacity of firm.
  • To establish contacts with the sources of economic information and experts.
  • To keep the management informed of all the possible economic trends.

Q.18. What is deductive method?

Ans. Deductive method is an important method relating to the formulation of economic theory This method is also known as hypothetical method or abstract method. In this method, inferences are drawn from general cases to establish particular cases.

Q.19. Describe any four advantages of deductive method

Ans. The four advantages of deductive method are :

  • It is a simple method.
  • This method is certain and we get clear conclusion
  • University.
  • Complement to inductive method.
  • Helpful to understand economic facts.

Q.20. What are the three top management problems related with external factors?

Ans. The three top management problems related with external factors are :

  • What types a cyclical fluctuations are expected in national economy in future?
  • What are the expectations of demand of goods being produced by the enterprise?
  • What policies are expected to be adopted by competitors during coming period?

Q.21. Write down the two advantages and two disadvantages of inductive method.

Ans. The two advantages of inductive method are:

  • Possibility of verification.
  • Complement to deductive method.

The two disadvantages of inductive method are:

  • Limited use in the field of economics.
  • Limited scope of verification.

Q.22. What is Production Possibility Curve (PPC)?

Ans. Production possibility curve shows all the possible combinations of two goods that are economy can produce, faithful utilization of giving resources and state of technology.

Q.23. What are the three assumptions of PPC?

Ans. The three assumptions of PPC are:

  • Resources are fixed.
  • There is no change in technology
  • The resources are not equally efficient in production of all products. It means particular resource is more efficient in the production of one product than in another product.

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