Economics is a branch of _____ focused on the production, distribution and consumption of goods and services.
Options
ANatural science
BPhysical science
CSocial science
DNone of these
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Introduction to Business EconomicsMTP Dec 22Question 564 of 209
All Questions Correct Answer
✅ Option c — Social science
All Options:
- ANatural science
- BPhysical science
- CSocial science
- DNone of these
Detailed Solution & Explanation
• Economics is fundamentally concerned with human behavior in the face of scarcity. It studies how individuals, businesses, and governments make choices about allocating limited resources to satisfy unlimited wants and needs. This focus on human interactions, decisions, and societal structures places it firmly within the realm of social studies.
• The definition provided in the question – "focused on the production, distribution and consumption of goods and services" – directly describes how societies organize themselves to manage resources and satisfy their members' needs. This is a core aspect of social organization and human interaction.
• Therefore, Option (C) Social science is the correct answer. Social sciences are academic disciplines that study human society and social relationships. Economics, along with sociology, psychology, political science, and anthropology, falls under this broad category because it analyzes human behavior and societal systems.
• Option (A) Natural science and (B) Physical science are incorrect because they deal with the study of the natural world and non-living matter, respectively, through observation and experimentation. Examples include biology, chemistry, and physics. Economics does not primarily study natural phenomena or physical properties; instead, it examines human economic activity and its societal implications.
About This Chapter: Introduction to Business Economics
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Meaning, Scope, Price Mechanism
This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.
View Official ICAI SyllabusExam Strategy Tip
Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.
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