Praxis II: Economics Content Knowledge Exam Prep

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PRAXIS II: Economics Content Knowledge Exam Prep - Quiz

Economics according to Lionel Robbins is a social science discipline concerned with human interaction with economic forces namely end and means. It is helpful in monetary policy, national economic policies as well as individual financial life. Do you understand the fundamentals of economics? Provide answers to the following questions if you do.

Questions and Answers

1.

Who described economics as the study of the relationship between end and means?
- A.
  
  Alfred Marshal
- B.
  
  Micheal Jones
- C.
  
  Adams Smith
- D.
  
  Lionnel Robbins
Correct Answer
D. Lionnel Robbins

Explanation
Lionnel Robbins described economics as the study of the relationship between end and means.

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2.

What part of economics is concerned with basic elements like individual agents and markets?
- A.
  
  Macroeconomics
- B.
  
  Financial economics
- C.
  
  Political economy
- D.
  
  Microeconomics
Correct Answer
D. Microeconomics

Explanation
Microeconomics is the branch of economics that focuses on the behavior of individual agents such as consumers, firms, and markets. It examines how these agents make decisions regarding the allocation of scarce resources and the interactions between supply and demand. Microeconomics analyzes the factors that influence individual choices, market equilibrium, pricing, production, and consumption patterns. It is concerned with understanding the fundamental building blocks of the economy and how they interact at a micro level.

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3.

What part of economics is concerned with the entire economy and issues surrounding it?
- A.
  
  Microeconomics
- B.
  
  Financial economy
- C.
  
  Political economy
- D.
  
  Macroeconomics
Correct Answer
D. Macroeconomics

Explanation
Macroeconomics is the branch of economics that focuses on the entire economy as a whole, rather than individual markets or industries. It examines issues such as inflation, unemployment, economic growth, and fiscal and monetary policies. It aims to understand and analyze the overall functioning of the economy and the factors that influence it, including government policies, international trade, and aggregate variables like national income and output. Therefore, macroeconomics is concerned with the broader economic phenomena and provides insights into the performance and behavior of the economy as a whole.

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4.

What distinction of economics describes "what is"?
- A.
  
  Normative economics
- B.
  
  Applied economics
- C.
  
  Positive economics
- D.
  
  Classical economics
Correct Answer
C. Positive economics

Explanation
Positive economics is a distinction of economics that describes "what is". It focuses on objective analysis and the study of economic phenomena as they exist in reality, without making value judgments or prescribing how things should be. It aims to provide an accurate and scientific understanding of economic behavior and outcomes by using empirical evidence and data analysis. Positive economics seeks to explain and predict economic events and relationships based on facts and observable patterns, allowing for the development of economic theories and models.

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5.

Who described economics as an enquiry into wealth of nations?
- A.
  
  Thomas Carlyle
- B.
  
  Alfred Marshall
- C.
  
  John Mill
- D.
  
  Adam Smith
Correct Answer
D. Adam Smith

Explanation
Adam Smith described economics as an enquiry into the wealth of nations. He is often referred to as the father of modern economics and his book "The Wealth of Nations" is considered one of the most influential works in the field. In this book, Smith explores the principles of capitalism, division of labor, and the role of self-interest in economic decision-making. He argued that the wealth of a nation is determined by the productivity and efficiency of its economy, and that free markets and limited government intervention are key to economic growth and prosperity.

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6.

Which of the following is not an economic system?
- A.
  
  Feudalism
- B.
  
  Socialism
- C.
  
  Mixed economy
- D.
  
  Capitalism
Correct Answer
A. Feudalism

Explanation
Feudalism is not considered an economic system because it is a social and political system that existed during the medieval period. In a feudal system, land was owned by the king or nobles who granted it to vassals in exchange for their loyalty and military service. The economy was primarily agrarian, with serfs working the land in exchange for protection and a portion of the crops. Feudalism did not have the characteristics of a modern economic system, such as private ownership of resources, market exchange, or a central authority regulating economic activities.

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7.

Which of the following is not employed in economics?
- A.
  
  Game theory
- B.
  
  Trigonometry
- C.
  
  Linear algebra
- D.
  
  Statistics
Correct Answer
B. Trigonometry

Explanation
Trigonometry is not employed in economics. Economics mainly focuses on the study of production, consumption, and distribution of goods and services. Game theory, linear algebra, and statistics are commonly used tools in economics to analyze and model economic behavior, make predictions, and inform decision-making. Trigonometry, on the other hand, is a branch of mathematics that deals with the relationships between angles and sides of triangles, which is not directly applicable to economic analysis.

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8.

Which of these is not a microeconomic concept?
- A.
  
  Opportunity cost
- B.
  
  Keynesian theory
- C.
  
  Budgeting
- D.
  
  Theory of firms
Correct Answer
B. Keynesian theory

Explanation
The question asks for a concept that is not related to microeconomics. Microeconomics is the study of individual economic agents such as households, firms, and markets. Opportunity cost, budgeting, and the theory of firms are all concepts that fall under the realm of microeconomics as they focus on individual decision-making, resource allocation, and market behavior. However, Keynesian theory is a macroeconomic concept that deals with aggregate variables such as national income, employment, and inflation. Therefore, Keynesian theory is not a microeconomic concept.

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9.

Which of these is not related to economics?
- A.
  
  Economic history
- B.
  
  Energy economics
- C.
  
  Power economics
- D.
  
  Economic geography
Correct Answer
C. Power economics

Explanation
Power economics is not related to economics because it refers to the study of the production, distribution, and consumption of electrical power, which falls under the domain of electrical engineering and energy studies rather than economics. Economic history, energy economics, and economic geography are all branches of economics that focus on the historical development of economies, the economics of energy production and consumption, and the spatial distribution of economic activities, respectively.

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10.

When was Adams Smith's "The Wealth of Nations"?
- A.
  
  1789
- B.
  
  1782
- C.
  
  1781
- D.
  
  1776
Correct Answer
D. 1776

Explanation
"The Wealth of Nations" by Adam Smith was published in 1776. This groundbreaking book is considered one of the foundational texts of modern economics. In it, Smith discusses the principles of free markets, division of labor, and the invisible hand theory, which have had a significant impact on economic thought and policy. The publication of "The Wealth of Nations" marked a turning point in the understanding of economics and its influence can still be seen today.

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