Business Economics · Class 12 Commerce
Ch 1Nature and Scope of Business Economics — Class 12 Business Economics, concept-first.
Every business — a corner shop, a manufacturing firm, or a large company — has to keep answering the same hard question: how to make the best use of limited resources (money, materials, labour, time) to earn the highest possible return.
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Nature and Scope of Business Economics
Nature and Scope of Business Economics
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Chapter contents
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Meaning and Definition of Business Economics
Every business — a corner shop, a manufacturing firm, or a large company — has to keep answering the same hard question: how to make the best use of limited resources (money, materials, labour, time)…
Nature and Characteristics of Business Economics
Once we know what Business Economics is, it helps to pin down its nature — the recurring characteristics that give the subject its distinctive identity.
Scope of Business Economics
The scope of Business Economics tells us the range of subject-matter it actually covers — the specific business problems it is equipped to analyse.
Microeconomics and Macroeconomics
To understand where Business Economics draws its theory from, a student must clearly distinguish the two great branches of economics: microeconomics and macroeconomics.
Role of the Business Economist in Decision-Making
A business economist (or managerial economist) is a specialist who applies economic reasoning to help management take sound decisions and plan for the future.
Basic Economic Concepts: Wants, Utility, Goods, Value, Price and Wealth
Business Economics rests on a handful of basic terms that recur throughout the whole course. Getting these clear at the outset prevents confusion later, because everyday language uses several of them…
Short Answer Questions
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Long Answer Questions
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Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1Write the correct answer choosing from the alternatives given under each bit : Who gave the scarcity definition of Economics? (a) Adam Smith…Preview
- Q2Value means (a) usefulness of a commodity (b) exchange value of a commodity (c) pleasure derived from a commodity (d) want satisfying power…Preview
- Q3Examine the correctness of the following statement. Correct it if necessary, without changing the portion underlined : The want satisfying c…Preview
- Q4Examine the correctness of the following statement. Correct it if necessary, without changing the portion underlined : National highway is a…Preview
- Q5Answer within 30 words : What are the central problems of an economy?Preview
- Q6Answer within 30 words : What are conventional necessaries?Preview
- Q7Distinguish between (limit your answer to 50 words) : Wealth and Income.Preview
- Q8Distinguish between (limit your answer to 50 words) : Micro-economics and Macro-economics.Preview
- Q9Motor car for a busy doctor is a : (a) Necessary (b) Comfort (c) Luxury (d) None of thesePreview
- Q10The goods having exchange value are known as : (a) Free goods (b) Unproductive goods (c) Economic goods (d) None of thesePreview
- Q11The goods which satisfy human wants indirectly are called : (a) Public goods (b) Consumers' goods (c) Producers' goods (d) Intermediate good…Preview
- Q12Health is not wealth because it has no : (a) Scarcity (b) Utility (c) Marketability (d) None of thesePreview
- Q13Destruction of utility is known as : (a) Production (b) Distribution (c) Consumption (d) DivisionPreview
- Q14Examine the correctness of the following statement and correct it if incorrect, without changing the underlined portion : The law of equimer…Preview
- Q15Examine the correctness of the following statement and correct it if incorrect, without changing the underlined portion : Macro economics is…Preview
- Q16What do you mean by service utility ?Preview
- Q17What are the central problems of an economy ?Preview
- Q18What are conventional necessary goods ?Preview
- Q19Distinguish between : Value and pricePreview
- Q20Distinguish between : Wealth and capitalPreview
- Q21Explain the law of equimarginal utility.Preview
More questions
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- Q1Business Economics is best described as: (a) A branch of economics that studies only the economy as a whole (b) The application of economic…Free
- Q2Which one of the following statements about the nature of Business Economics is correct? (a) It is purely positive in character and never pr…Free
- Q3Which of the following areas does NOT normally fall within the microeconomic scope of Business Economics? (a) Demand analysis and forecastin…Preview
- Q4Microeconomics is also known as: (a) Income and employment theory (b) Price theory (c) The theory of national income determination (d) The t…Preview
- Q5In economics, the term 'utility' means: (a) The usefulness or moral goodness of a commodity (b) The want-satisfying power of a good or servi…Preview
- Q6The 'paradox of value' (water–diamond paradox) is best explained by which of the following? (a) Water has high value in exchange but low val…Preview