CA Foundation P4 · Chapter 1 · Question 2 of 15
Which of the following is NOT a characteristic of Business Economics?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It is a purely abstract science that ignores practical constraints of the firm
Explanation
Business Economics is pragmatic: it adapts theory to the real constraints faced by firms. It is mainly micro in character but also uses macro concepts, and it borrows tools from mathematics, statistics, accounting and decision theory. Calling it purely abstract contradicts its applied nature.
More Nature and Scope of Business Economics MCQs
- Q4Which of the following is a positive statement?
- Q5The central problem 'how to produce' relates mainly to:
- Q6The basic economic problem of scarcity arises because:
- Q7In a capitalist economy, the allocation of resources is primarily guided by:
- Q8Which of the following is NOT a feature of a socialist economy?