Economic Methodology Quiz by Shubhrata Shrestha | May 20, 2025 | 0 comments Economic Methodology Quiz 1. What makes economics different from natural sciences? A. It studies chemistry and physics B. It focuses only on theoretical models C. It involves human behavior which is unpredictable D. It only uses laboratory experiments None 2. Which of the following is a positive statement? A. Inflation is too high B. The government should reduce taxes C. India’s GDP grew by 6.2% in 2023 D. It’s unfair that prices are rising None 3. The assumption “Ceteris Paribus” is used in economics to: A. Compare two economies B. Simplify analysis by holding other variables constant C. Forecast income distribution D. Measure inflation None 4. Which of the following is a normative statement? A. The price of oil increased by 10% B. Taxes constitute 15% of GDP C. The inflation rate is 3.2% D. The government should reduce income inequality None 5. In the long run: A. Only labor is fixed B. All factors of production are variable C. Capital cannot be adjusted D. Consumer preferences stay constant None 6. In the very long run, which of the following can change? A. Only capital and labor B. Only technology C. Technology, government policy, and social norms D. Only land resources None 7. An economic model that assumes ceteris paribus is: A. Unrealistic and always inaccurate B. Useful for understanding the effect of one variable C. Only valid in command economies D. Only applicable to price ceilings None 8. Which feature is NOT part of economics as a social science? A. Building hypotheses B. Using observation C. Testing models D. Conducting physical lab experiments None 9. “Reducing taxes will benefit the economy” is: A. A positive statement B. A scientific fact C. A normative statement D. An assumption of ceteris paribus None 10. Which statement about short run is TRUE? A. All factors of production are variable B. Firms cannot change output C. Only one input is fixed, others can change D. Prices are permanently fixed None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
