Introduction to Business EconomicsMODULEQuestion 627 of 209
All Questions

Which of the following is not one of the four central questions that the study of economics is supposed to answer?

Options

AWho produces what?
BWhen are goods produced?
CWho consumes what?
DHow are goods produced?
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option b — When are goods produced?

All Options:

  • AWho produces what?
  • BWhen are goods produced?
  • CWho consumes what?
  • DHow are goods produced?

Detailed Solution & Explanation

• The study of economics fundamentally revolves around the problem of scarcity and how societies allocate their limited resources to satisfy unlimited wants. This leads to a set of core questions that every economic system must address. • The four central questions of economics are traditionally identified as: 1. What to produce? (This encompasses "Who produces what?" as it determines the types and quantities of goods and services.) 2. How to produce? (This refers to the methods and resources used in production.) 3. For whom to produce? (This relates to the distribution of goods and services, which includes "Who consumes what?") 4. What provisions should be made for economic growth? (This addresses future production possibilities.) • Option (A) "Who produces what?" directly relates to the "What to produce?" question, as it defines the output of an economy. • Option (C) "Who consumes what?" directly addresses the "For whom to produce?" question, focusing on the distribution of goods and services among the population. • Option (D) "How are goods produced?" is one of the explicit core questions of economics, dealing with production methods and resource allocation. • Option (B) "When are goods produced?" is not considered one of the four fundamental questions of economics. While timing of production can be a factor in business decisions and market dynamics, it is typically a secondary consideration derived from the "What," "How," and "For Whom" questions, rather than a primary, overarching question defining an economic system's core function. The core questions focus on the allocation and distribution of resources, not the specific timing of production.

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 Syllabus

Exam 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.

Related Comparison Tables

Microeconomics vs Macroeconomics: The Complete CA Foundation GuidePositive vs Normative Economics: Fact vs Opinion

More Questions from Introduction to Business Economics

A study of how increases in the corporate income tax rate will affect the nation unemployment rate is an example of

In a ______ the producer is free to set up any type of firms produce goods and services of his choice.

In the beginning the word economics was

In Economics, we use the term scarcity to mean;

In a free market economy, allocation of resources is determined by

If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?

Ready to Master Introduction to Business Economics?

Practice all 209 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free