100 Economics Questions and Answers: Definition and Scope of Economics

Welcome to our comprehensive guide on the Definition and Scope of Economics. This study resource provides 100 carefully crafted questions and answers covering the fundamental concepts of economics, including definitions from renowned economists like Adam Smith, Alfred Marshall, Lionel Robbins, and John Stuart Mill. Whether you’re preparing for SSCE, NECO, NABTEB, UTME, or university examinations, this question bank covers essential topics such as the meaning of economics, the science of economics, microeconomics, macroeconomics, and basic economic concepts including wants, scarcity, choice, scale of preference, and opportunity cost. These practice questions are designed to help students master the foundational principles that form the bedrock of economic studies.

Section A: Definitions of Economics (Questions 1-20)

1. Who is regarded as “the father of Economics”?
A. Alfred Marshall
B. Adam Smith
C. Lionel Robbins
D. John Stuart Mill

Answer: B

2. The definition of Economics as “the practical science of production and distribution of wealth” was given by?
A. Adam Smith
B. Alfred Marshall
C. John Stuart Mill
D. Lionel Robbins

Answer: C

3. Alfred Marshall defines economics as the study of mankind in the _____ business of life.
A. Extraordinary
B. Ordinary
C. Special
D. Complex

Answer: B

4. Which economist defined economics as “the science of material welfare”?
A. Adam Smith
B. A.C. Pigou
C. Lionel Robbins
D. H.J. Davenport

Answer: B

5. The most generally accepted definition of economics was given by?
A. Adam Smith
B. Alfred Marshall
C. Lionel Robbins
D. John Stuart Mill

Answer: C

6. According to Lionel Robbins, economics studies human behaviour as a relationship between ends and _____ means.
A. Unlimited
B. Scarce
C. Abundant
D. Free

Answer: B

7. H.J. Davenport defined economics as a subject that treats phenomena from the standpoint of?
A. Wealth
B. Welfare
C. Price
D. Production

Answer: C

8. Adam Smith defined economics as an inquiry into the nature and causes of?
A. Material welfare
B. Wealth of nations
C. Human behaviour
D. Price mechanism

Answer: B

9. Which economist emphasized that for any commodity to be of economic importance, it must have a price attached to it?
A. Adam Smith
B. Alfred Marshall
C. H.J. Davenport
D. Lionel Robbins

Answer: C

10. A.C. Pigou studied economics on the basis of how total production could be increased to improve?
A. National income
B. Standard of living
C. Employment rate
D. Price stability

Answer: B

11. The definition of economics as “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses” was given by?
A. Adam Smith
B. David Ricardo
C. Lionel Robbins
D. Thomas R. Malthus

Answer: C

12. Alfred Marshall maintained that economics is that part of individual and social action connected with the attainment of?
A. Maximum profit
B. Material requisites of wealth
C. Social welfare
D. Political power

Answer: B

13. According to Adam Smith, economics is concerned with?
A. Welfare making
B. Price making
C. Wealth making
D. Choice making

Answer: C

14. Lionel Robbins referred to economics as a?
A. Natural science
B. Physical science
C. Social science
D. Applied science

Answer: C

15. Prof. Lionel Robbins’ definition of economics is considered the most embracing because it is?
A. Simple and practical
B. Analytical and scientific
C. Traditional and cultural
D. Modern and complex

Answer: B

16. Which century British economist is Adam Smith?
A. 16th century
B. 17th century
C. 18th century
D. 19th century

Answer: C

17. The definition of economics as “the practical science of production and distribution of wealth” was given by?
A. Adam Smith
B. Alfred Marshall
C. Irvin Fisher
D. John S. Mill

Answer: D

18. Why are there many definitions of economics?
A. Because economists are confused
B. Because each economist sees the subject from different points of view
C. Because economics is a new subject
D. Because definitions keep changing

Answer: B

19. According to Alfred Marshall, economics deals with the attainment of?
A. Political power
B. Social status
C. Material requisites of wealth
D. Spiritual growth

Answer: C

20. Which of the following is NOT a definition of economics given in the text?
A. Science of material welfare
B. Study of mankind in the ordinary business of life
C. Science of unlimited resources
D. Inquiry into the nature and causes of wealth of nations

Answer: C

Section B: Economics as a Science (Questions 21-40)

21. Economics is often described as a science because it?
A. Adopts the use of laboratory experiments
B. Involves accurate prediction of human beings
C. Uses scientific methods to explain observed phenomena
D. Deals with observations and fieldwork

Answer: C

22. A scientific approach in Economic analysis entails?
A. A deductive method only
B. Both inductive and normative only
C. A normative method only
D. Both inductive and deductive methods

Answer: D

23. Science is regarded as knowledge acquired through?
A. Guessing and assumptions
B. Observations, testing, and generalization
C. Reading and memorization
D. Traditional beliefs

Answer: B

24. Which of the following is NOT a step in the scientific method of economics?
A. Observation of events
B. Formulating a hypothesis
C. Ignoring data
D. Testing the laws

Answer: C

25. Economics is a social science because it?
A. Deals with an aspect of human behaviour
B. Provides people with commodities they want
C. Deals with limited resources only
D. Is related to how goods are produced

Answer: A

26. The scientific method in economics includes all EXCEPT?
A. Collecting data
B. Organizing and analyzing data
C. Making predictions based on laws
D. Avoiding generalization

Answer: D

27. Economics is called a social science because it is?
A. A branch of social studies
B. A study of ways man devises to satisfy unlimited wants from limited resources
C. A dismal science
D. Governed by scientific laws

Answer: B

28. Economics uses scientific methods to explain observed phenomena and to?
A. Control human behaviour
B. Predict the outcome of future economic events
C. Eliminate scarcity
D. Create unlimited resources

Answer: B

29. In the scientific method, after formulating a hypothesis, the next step is?
A. Making predictions
B. Collecting data
C. Formulating laws
D. Testing laws

Answer: B

30. The study of economics is mainly concerned with how to?
A. Rank individual’s wants given abundant resources
B. Make choice when resources are inadequate
C. Satisfy every member of all societies
D. Produce all the goods needed by everyone

Answer: B

31. Economics can best be defined as the study of?
A. How to spend family income efficiently
B. How to find minimum cost of production
C. The interpretation of scarce resources and data
D. How scarce resources can be used efficiently

Answer: D

32. The scientific approach in economics involves making generalization about a situation based on?
A. Opinions
B. Facts
C. Traditions
D. Beliefs

Answer: B

33. Economics is unique as a subject because it can be classified as?
A. A science or a social science
B. An art or a craft
C. A humanity or a philosophy
D. A business or a trade

Answer: A

34. Which of the following best describes economics as a science?
A. It uses laboratory equipment
B. It adopts scientific methods to explain observed phenomena
C. It deals only with chemicals
D. It cannot make predictions

Answer: B

35. The formulation of laws in economics is based on?
A. Random guesses
B. Data analysis and testing
C. Political decisions
D. Cultural beliefs

Answer: B

36. Economics is a social science because it studies?
A. Plants and animals
B. Human behaviour
C. Chemical reactions
D. Physical forces

Answer: B

37. In economic analysis, both inductive and deductive methods are used to?
A. Confuse students
B. Make generalizations about situations
C. Avoid scientific approach
D. Eliminate the need for data

Answer: B

38. The ability of economics to predict future economic events makes it?
A. An art
B. A science
C. A philosophy
D. A religion

Answer: B

39. Which step in the scientific method comes immediately after collecting data?
A. Making predictions
B. Formulating a hypothesis
C. Organizing and analyzing data
D. Observation of events

Answer: C

40. The scientific method in economics helps economists to?
A. Avoid making decisions
B. Understand and explain economic phenomena
C. Ignore market forces
D. Create unlimited resources

Answer: B

Section C: Microeconomics (Questions 41-55)

41. Microeconomics is the study of?
A. The economy as a whole
B. Individual components of the economy
C. National income
D. General price level

Answer: B

42. The study of the economic behaviour of individual decision-making units in a free enterprise economy is known as?
A. Microeconomics
B. Macroeconomics
C. Indifference curve
D. Circular flow of income

Answer: A

43. Microeconomics pertains to all EXCEPT?
A. Individual consumer
B. Small group of people
C. Firms and industries
D. National employment

Answer: D

44. Microeconomics explains how the interactions of demand and supply help to determine?
A. National income only
B. Prices, wage rates, rental charges, and profit margins
C. Economic growth rate only
D. Total exports and imports

Answer: B

45. Microeconomics is concerned with how an individual consumer reacts to?
A. National policies
B. Prices
C. International trade
D. Government spending

Answer: B

46. In microeconomics, we study the supply of a firm and not?
A. Individual supply
B. Aggregate supply in the economy
C. Market supply
D. Product supply

Answer: B

47. Which of the following is a microeconomic issue?
A. Inflation rate
B. Consumer demand for a product
C. National income
D. Economic growth

Answer: B

48. Microeconomics deals with?
A. Aggregate demand
B. Individual demand
C. Total employment
D. General price level

Answer: B

49. The determination of rental charges is a concern of?
A. Macroeconomics
B. Microeconomics
C. International economics
D. Development economics

Answer: B

50. Microeconomics focuses on?
A. The whole economy
B. Individual economic units
C. Global trade
D. Government budget

Answer: B

51. Which of the following is studied under microeconomics?
A. Total production output
B. Profit margins of a firm
C. Rate of inflation
D. Level of national income

Answer: B

52. Microeconomics helps in understanding?
A. Booms and slumps
B. Price determination in individual markets
C. Economic growth rate
D. Deflation

Answer: B

53. The study of how an individual consumer makes choices is part of?
A. Macroeconomics
B. Microeconomics
C. Econometrics
D. Statistics

Answer: B

54. Wage rate determination in a particular industry is a topic in?
A. Macroeconomics
B. Microeconomics
C. Public finance
D. International economics

Answer: B

55. Microeconomics and macroeconomics are?
A. Completely unrelated
B. Closely related
C. The same thing
D. Opposing concepts

Answer: B

Section D: Macroeconomics (Questions 56-70)

56. Macroeconomics relates to the economy of?
A. Individual consumers
B. The whole society
C. Individual firms
D. Specific industries

Answer: B

57. Macroeconomics can best be described as the?
A. Analysis of how a consumer tries to spend income
B. Study of the large aggregates of the economy or the economy as a whole
C. Analysis of how firms attempt to maximize profits
D. Study of how supply and demand determine prices in individual markets

Answer: B

58. Macroeconomics provides explanations for all EXCEPT?
A. Total employment
B. Individual consumer behaviour
C. General price level
D. Economic growth rate

Answer: B

59. Macroeconomics is a study of economic science from the point of view of?
A. Resource markets or production units
B. Individual producers or consumers
C. Aggregate or general economy
D. Companies or individual firms

Answer: C

60. Macro economics is concerned with?
A. The aggregate or total levels of income, employment, and output
B. A detailed examination of specific economic units
C. Positive economics only
D. Individual market analysis

Answer: A

61. Which of the following is a macroeconomic issue?
A. Price of a specific product
B. Rate of inflation
C. Consumer choice
D. Firm’s profit maximization

Answer: B

62. Macroeconomics deals with?
A. Individual demand and supply
B. Total exports and imports
C. Single market prices
D. One consumer’s behaviour

Answer: B

63. Booms and slumps are studied in?
A. Microeconomics
B. Macroeconomics
C. Managerial economics
D. Welfare economics

Answer: B

64. The level of national income is a concern of?
A. Microeconomics
B. Macroeconomics
C. Consumer theory
D. Production theory

Answer: B

65. Macroeconomics takes into consideration the whole economy from?
A. A local point of view
B. A national point of view
C. An individual point of view
D. A firm’s point of view

Answer: B

66. Which of the following is NOT a macroeconomic concern?
A. Total employment
B. General price level
C. Individual firm’s output
D. Economic growth rate

Answer: C

67. Macroeconomics provides explanations for?
A. Consumer equilibrium
B. Deflation
C. Firm’s cost structure
D. Individual demand

Answer: B

68. The study of consumption at the national level is part of?
A. Microeconomics
B. Macroeconomics
C. Consumer economics
D. Household economics

Answer: B

69. Investment at the economy level is studied in?
A. Microeconomics
B. Macroeconomics
C. Financial economics
D. Business economics

Answer: B

70. Macroeconomics and microeconomics are both concerned with?
A. Only production
B. Determination of prices, incomes, and use of resources
C. Only consumption
D. International trade only

Answer: B

Section E: Basic Concepts – Wants and Resources (Questions 71-85)

71. Wants refer to?
A. Things we have already acquired
B. Things we wish or desire to have in life
C. Things we don’t need
D. Things that are freely available

Answer: B

72. Human wants are said to be?
A. Limited
B. Insatiable
C. Constant
D. Decreasing

Answer: B

73. Resources include all EXCEPT?
A. Land
B. Labour
C. Capital
D. Wants

Answer: D

74. The means or basic instruments with which human wants can be satisfied are called?
A. Wants
B. Resources
C. Choices
D. Preferences

Answer: B

75. Productive resources include?
A. Land, labour, capital, and entrepreneur
B. Only money
C. Only time
D. Only land

Answer: A

76. Wants represent claims on?
A. Resources of production
B. Government revenue
C. Foreign aid
D. International trade

Answer: A

77. Human wants are unlimited while resources to satisfy them are?
A. Also unlimited
B. Scarce
C. Abundant
D. Increasing

Answer: B

78. Which of the following is NOT a resource?
A. Time
B. Money
C. Land
D. Desire

Answer: D

79. Wants are described as?
A. Ends or desires of human beings
B. Means of production
C. Sources of income
D. Factors of production

Answer: A

80. The productive resources include land, labour, capital, and?
A. Money
B. Entrepreneur
C. Time
D. Technology

Answer: B

81. Human wants are insatiable because?
A. People are greedy
B. The means for satisfying them are limited
C. People don’t know what they want
D. Resources are unlimited

Answer: B

82. Resources are scarce or limited relative to?
A. Production
B. Wants
C. Consumption
D. Distribution

Answer: B

83. Which of the following best describes wants?
A. They are fixed
B. They are life objectives, goals, or ambitions
C. They are always satisfied
D. They are limited

Answer: B

84. Everybody wants one thing or the other at any given time because?
A. Wants are natural to human beings
B. People are never satisfied
C. Resources are plenty
D. Government provides everything

Answer: A

85. The resources to satisfy human wants include time and?
A. Desire
B. Money
C. Want
D. Ambition

Answer: B

Section F: Scarcity and Choice (Questions 86-95)

86. Scarcity refers to?
A. Unlimited supply of resources
B. Limited supply of resources relative to demand
C. Abundant resources
D. Free goods

Answer: B

87. Scarcity is the _____ economic problem.
A. Minor
B. Central or basic
C. Temporary
D. Artificial

Answer: B

88. Because of scarcity, one is compelled to?
A. Produce more goods
B. Make a choice
C. Ignore wants
D. Increase resources

Answer: B

89. Choice involves?
A. Satisfying all wants
B. Selection and satisfaction of the most pressing wants
C. Ignoring all wants
D. Producing all goods

Answer: B

90. Choice-making reflects?
A. The abundance of resources
B. The alternative uses of resources
C. The unlimited nature of resources
D. The absence of scarcity

Answer: B

91. The problem of choice is created by?
A. Abundance
B. Scarcity
C. Production
D. Distribution

Answer: B

92. All economic units in any economy face the problem of?
A. Abundance
B. Scarcity
C. Surplus
D. Excess

Answer: B

93. Since human wants are unlimited and resources are limited, what is constantly made?
A. Profit
B. Choice
C. Goods
D. Money

Answer: B

94. Scarcity means that there are _____ resources compared to the units required.
A. Many
B. Few
C. Enough
D. Excess

Answer: B

95. It is impossible to satisfy all human wants at any given time because of?
A. Lack of money
B. Scarcity of resources
C. Government policies
D. Lack of technology

Answer: B

Section G: Scale of Preference and Opportunity Cost (Questions 96-100)

96. Scale of preference is defined as?
A. A list of human wants in order of relative importance
B. A list of resources available
C. A list of goods produced
D. A list of prices

Answer: A

97. Scale of preference helps economists to make?
A. Irrational choices
B. Rational choices
C. Random choices
D. Difficult choices

Answer: B

98. Opportunity cost is also known as?
A. Money cost
B. Real cost or true cost
C. Market cost
D. Production cost

Answer: B

99. Opportunity cost is the _____ alternative in order to acquire a particular commodity.
A. Gained
B. Forgone
C. Purchased
D. Produced

Answer: B

100. A scale of preference is inconsistent if there is?
A. Order in ranking
B. Contradiction in the ranking of items
C. Proper arrangement
D. Priority listing

Answer: B

Answer Key Summary

Conclusion

This comprehensive question bank on the Definition and Scope of Economics covers all essential topics from the foundational definitions by classical economists to modern interpretations by Lionel Robbins. Students preparing for SSCE, NECO, NABTEB, UTME, and university examinations will find these 100 questions invaluable for revision and self-assessment. The questions span definitions of economics, the scientific nature of economics, microeconomics, macroeconomics, and basic economic concepts including wants, resources, scarcity, choice, scale of preference, and opportunity cost. Master these questions to build a strong foundation in economic principles and excel in your examinations.