Introduction to Business EconomicsMODULEQuestion 690 of 209
All Questions

Which of the following is a normative statement?

Options

APlanned economies allocate resources via government departments.
BMost transitional economies have experienced problems of falling output and rising prices over the past decade
CThere is a greater degree of consumer sovereignty in market economies than planned economies.
DReducing inequality should be a major priority for mixed economies.
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Correct Answer

✅ Option d — Reducing inequality should be a major priority for mixed economies.

All Options:

  • APlanned economies allocate resources via government departments.
  • BMost transitional economies have experienced problems of falling output and rising prices over the past decade
  • CThere is a greater degree of consumer sovereignty in market economies than planned economies.
  • DReducing inequality should be a major priority for mixed economies.

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

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