(a) Marshall
(b) Ricardo
(c) Ragnar Frish
(d) None of these
Answer: (d) None of these
Question :- Which of the following is studied under Micro Economics ?
(a) Individual unit
(b) Economic Aggregate
(c) National Income
(d) None of these
Answer: (d) None of these
Question :- Which of the following economic activities are included in the subject-matter of Economics?
(a) Economic Activities related to Unlimited Wants
(b) Economic Activities related to Limited Resources
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
Question :-On which base structure of economic problems has been installed?
(a) Unlimited Wants
(b) Limited Resources
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
Question :-‘Micros’, which means ‘Small’ belongs to:
(a) Arabian word
(b) Greek word
(c) German word
(d) English word
Answer: (b) Greek word
Question :- Which of the following statement is true?
(a) Human wants are infinite
(b) Resources are limited
(c) Scarcity problem gives birth to choice .
(d) All of these
Answer: (c) Scarcity problem gives birth to choice
Question :- Which of the following is the salient feature of factors (or resources) ?
(a) These are limited as compared to wants
(b) These have alternative uses
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
Question :- Which is a central problem of an economy ?
(a) Allocation of Resources
(b) Optimum Utilisation of Resources
(c) Economic Development
(d) All of these
Answer: (d) All of these
Question :- Which of the following Is a type of economic activities ?
(a) Production
(b) Consumption
(c) Exchange and Investment
(d) All of these
Answer: (d) All of these
Question :- To which factor, economic problem is basically related to:
(a) Choice
(b) Consumer’s Selection
(c) Firm Selection
(d) None of these
Answer: (a) Choice
Question :- Economy may be classified as:
(a) Capitalist
(b) Socialist
(c) Mixed
(d) All of these
Answer: (d) All of these
Question:-Which economy has a co-existence of private and public sectors ?
(a) Capitalist
(b) Socialist
(c) Mixed
(d) None of these
Answer: (c) Mixed
Question :- The main objective of a socialist economy is…….
(a) Maximum production
(b) Economic freedom
(c) Earning profit
(d) Maximum public welfare
Answer: (d) Maximum public welfare
Question :- In which economy decisions are taken on the basis of price mechanism ?
(a) Socialist
(b) Capitalist
(c) Mixed
(d) All of these
Answer: (b) Capitalist
Question :- The slope of a production possibility curve falls :
(a) From left to right
(b) From right to left
(c) From top to bottom
(d) From bottom to top
Answer: (c) From top to bottom
Question :-Production Possibility Curve is:
(a) Concave to the axis
(b) Convex to the axis
(c) Parallel to the axis
(d) Vertical to the axis
Answer: (a) Concave to the axis
Question :- Mention the name of the curve which shows economic problem:
(a) Production Curve
(b) Demand Curve
(c) Indifference Curve
(d) Production Possibility Curve
Answer: (d) Production Possibility Curve
Question :- Which of the following is studied under Macro Economics ?
(a) National Income
(b) Full. Employment
(c) Total Production
(d) All of these
Answer: (d) All of these
Question :- Which of the following Is a branch of Micro Economics ?
(a) Product Price Determination
(b) Factor Price Determination
(c) Economic Welfare
(d) All of these
Answer: (d) All of these
Question :- Which of the following is a source of production ?
(a) Land
(b) Labour
(c) Capital
(d) All of these
Answer: (d) All of these
Question :- Who said, “Economics is a science of wealth.”
(a) Marshall
(b) Robbins
(c) Adam Smith
(d) J.K. Mehta
Answer: (c) Adam Smith
Question :- “Economics is a science of logic.’’ Who said it ?
(a) Hicks
(b) Keynes
(c) Robbins
(d) Marshal
Answer: (c) Robbins
Question :- Micro Economics includes:
(a) Individual unit
(b) Small units
(c) Individual price determination
(d) All of these
Answer: (d) All of these
Question :- Who was the father of Economics ?
(a) I. B. Say
(b) Malthus
(c) Adam Smith
(d) Joan Robinson
Answer: (c) Adam Smith
Question :- Who gave the definition of Economics related to welfare ?
(a) Adam Smith
(b) Marshall
(c) Robbins
(d) Samuelson
Answer: (b) Marshall
Question :- The word ‘micro’ was firstly used by:
(a) Marshall
(b) Building
(c) Keynes
(d) Ragnar Frisch
Answer: (d) Ragnar Frisch
Question :- According to whom, Economics is a science of human welfare ?
(a) A Marshall
(b) Paul Samuelson
(c) J. S. Mill
(d) Adam Smit
Answer: (a) A Marshal
Question :- Which of the following is not a factor of production ?
(a) Land
(b) Labour
(c) Money
(d) Capital
Answer: (c) Money
Question :- The central problem of an economy is:
(a) What to produce ?
(b) How to produce ?
(c) How to distribute produced goods ?
(d) All of these
Answer: (d) All of these
Question :- Consumer behavior is studied in:
(a) Micro Economics
(b) Income Theory
(c) Macro Economics
(d) None of these
Answer: (a) Micro Economics
Question :- Indian economy is:
(a) Centrally planned economy
(b) Market economy
(c) Mixed economy
(d) None of these.
Answer: (c) Mixed economy
Question :-Who used the word ‘micro’ for the first time:
(a) Marshall
(b) Building
(c) Keynes
(d) Ragnar Frisch
Answer: (d) Ragnar Frisch
Question :-Who said economics is the ‘Science of wealth:
(a) Prof. Robbins
(b) Prof. J.K. Mehta
(c) Prof. Marshall
(d) Prof. Adam Smith
Answer: (d) Prof. Adam Smith
Question:-What is the shape of production possibility curve:
(a) Concave to the origin
(b) Concave
(c) Straight line
(d) None of the above.
Answer: (a) Concave to the original
Question :-The reason for downward shape of production possibility curve is:
(a) Increasing opportunity cost
(b) Decreasing opportunity cost
(c) Same opportunity cost
(d) Negative opportunity cost
Answer: (b) Decreasing opportunity cost
Question :- The point of optimum utilization of resources lies on which side of PPC curve:
(a) Towards left
(b) Towards right
(c) Inside
(d) Upwards
Answer: (d) Upwards
Question :-. Which of these is not an assumption of PPC?
(a) Resources are not fully employed
(b). Resources in the economy are fixed
(c) There is no change in level of technology.
(d) resources are equally efficient in production of all produces
Answer: (a) Resources are not fully employed
Question :- In which situation, can PPC be a straight line:
(a) When MRT is decreasing
(b) When MAT is increasing
(c) When MPT is constant
(d) None of these
Answer:(d) None of these
Question :- Which of these economic problem deals with technique of production?
(a) What to Produce
(b) How to Produce
(c) For whom to Produce
(d) None of these
Answer:(b) How to Produce
Question :- Ramesh is working at a salary of र 35,000 per month. He receives two job offers: (i) To work as an accountant at a salary of 25000 per month; (ii) To work as a sales manager at a salary of 30000 per month. In the given case, his opportunity cost will be:
(a) 25,000
(b) 30000
(c) 35,000
(d) 65000
Answer:(b) 30000
Question :- PPF is concave to the origin because of:
(a) Increasing MAT.
(b) Diminishing MRT
(c) Constant MRT
(d) None of these
Answer:(a) Increasing MAT.
Question :-An economy operate on PPF when there is:
(a) Optimum utilisation of resources.
(b) Inefficient use of resources
(c) Underemployment of resources
(6) Fuller utilisation of resources
Answer: (a) Optimum utilisation of resources.
Question :- Identify the central problem which deals with deciding the quantify of goods to be produced:
(a) What to Produce
(b) How to Produce
(c) For whom to Produce
(d) None of these
Answer:(a) What to Produce
Question :-Scarcity refers to limitation of in relation to for a commodity.
(a) Demand. Sale
(b) Demand, Supply
(c) Supply, Demand
(i) None of these
Answer: (c) Supply, Demand
Question :- The word ‘Economics’ is most closely connected with the word:
(a) Free
(b). Scarcity
(e) Unlimited
(d) Restricted
Answer: (b) Scarcity
Question :- Which of the following is true regarding the law of scarcity?
A) It states that the wants of a consumer will never be satisfied completely.
B) It indicates that the wants of a consumer will be satisfied in a socialistic system.
C) It is only for underdeveloped countries.
D) It is not for rich and developed countries.
Answer: Option A
Question:- Which of the following does a person need to make a rational decision?
A) Choices that don’t have trade-offs
B) Choices that never change
C) Choices that are consistent with a similar goal every time
D) Logical choices without errors
Answer: Option C
Question:- Which of the following is the central problem of an economy?
A) Assigning limited resources in a way that unlimited desires and needs of the society are satisfied
B) Ensuring a minimum income for each citizen
C) Assuring that production happens in the most effective way
D) Analysing the demand with market economies
Answer: Option A
Question :- When does an economy succeed in producing resources efficiently?
A) When goods and services are produced without resources being wasted
B) When the total number of goods manufactured is high
C) When the resources employed are the best
D) When the resources are employed for highly valued uses
Answer: Option A
Question :- Which option is a disadvantage for allocating resources that are utilising a market system?
A) Profits will be less
B) Impossible to stop the wastage of scarce resources
C) Notable unemployment may take place
D) Uneven distribution of income
Answer: Option D
Question:- Which branch of economic theory is associated with the difficulty of resources allocation?
A) Econometrics
B) Microeconomic theory
C) Macroeconomic theory
D) None of the above
Answer: Option B
Question :- The creation of choice is done by _________ .
A) Scarcity of resources
B) Less choices
C) The urgency of needs
D) Abundance of resources
Answer: Option A
Question :- The law of scarcity
(a) States that the want of a consumer will never be satisfied completely
(b) Indicates that the want of consumer will be satisfied in a socialistic system
(c) Is only for underdeveloped countries
(d) Is not for rich and developed countries
Answer: Option (a)
Question :- To make a rational decision a person needs
(a) Choices that don’t have trade-offs
(b) Choices that never change
(c) Choices that are consistent with a similar goal every time
(d) Logical choices without error.
Answer: Option (c)
Question :- The central problem of an economy is
(a) Assigning limited resources in a way that unlimited desires and needs of the society are satisfied
(b) Ensuring a minimum income for each citizen.
(c) Assuring that production happens in the most effective way.
(d) Analyzing the demand with market economies.
Answer: Option (a)
Question :- An economy succeeds in producing resources efficiently when
(a) Goods and services are produced without resources being wasted.
(b) The total number of goods manufactured is high.
(c) The resources employ are the best
(d) The resources employed for highly valued uses.
Answer: Option (a)
Question :- Which option is a disadvantage for allocating resources utilizing a market system?
(a) Profits will be less
(b) Impossible to stop the wastage of scarce resources
(c) Notable unemployment may take place
(d) Uneven distribution of income
Answer: Option (d)
Question :- Which branch of economic theory is associated with the difficulty of resources allocation
(a) Econometrics.
(b) Micro-economic theory
(c) Macro-economic theory
(d) None of the above
Answer: Option (b)
Question :- The creation of choice is done by
(a) Scarcity of resources
(b) Less choice option
(c) The urgency of needs
(d) Abundance of resources
Answer: Option (a)
Question :- Central problem of an economy arise, because:
-
- Many goods are sold in market
- Government makes decisions
- Shortage of labour
- Multiplicity of wants and Scarcity of resources.
Answer: Option (D)
Question :- The central problem of an economy is
-
-
- Assigning limited resources in a way that unlimited desires and needs of the society are satisfied.
- Ensuring a minimum income for each citizen.
- Assuring that production happens in the most effective way.
- Analyzing the demand with market economies.
-
Answer: Option (a)
Question :- Slope of production possibility curve is:
-
-
-
- a straight line
- convex to the point of origin
- concave to the point of origin
- none of these
-
-
Answer: Option (C )
Question :- When an economy is operating on the PPC, it indicates:
-
- potential output > actual output
- potential output= actual output
- potential output< actual output
- None of these
Answer: Option (B )
Question :- The opportunity cost of 1000 kg of rice produced on a land which can also produce 800 tonnes of wheat is:
-
- 1000 kg of wheat
- 800 tones of wheat
- 8,000 tones of wheat
- all of the above
Answer: Option (B)
| 1 (d) | 2 (a) | 3 (c) | 4 (b) | 5 (b) |
| 6 (a) | 7 (c) | 8 (d) | 9 (b) | 10 (a) |
Question :-When some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of transformation:
A increases
B decreases
C remains constant
D is zero
Answer: Option (A)
Question :-Which is not a central problem of an economy?
- A What to produce?
- How to produce?
- How to maximize private profit?
- For whom to produce?
Answer: Option (C )
Question:- Economic problem arises due to:
-
- limited wants
- scarce means
- alternative uses
- both (b) and (c)
Answer: Option (D )
Question :- Which of the following is related to the problem ‘how to produce’?
-
- Factor distribution of income
- the choice of technique
- The choice of product
- None of these
Answer: Option (C )
Question :- Concavity of PPC implies:
-
- increasing slope
- decreasing slope
- constant slope
- none of these
Answer: Option (A)
Question :- Which is not a central problem of an economy?
A. What to produce
B. How to produce
C. How to maximize private profit
D. For whom to produce
Answer: Option C
Question :- The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Answer: Option D
Fill in the blanks
1. Every person has ………………… quantity of goods.
Answer: Few
2. ……………………economics is the study of individual economic units.
Answer: Micro-economics
3. Opportunity cost ………………….. in production list.
Answer: Changes
4. Micro and Macro-economics are ……………………… to each other.
Answer: Complement
5. Economic growth is related to ………………………… economics
Answer: Macro
6. Economy is a group of ………………….. units.
Answer: Production
7. Mixed economy is composed of ………………………. and …………………………
Answer: Socialism, Capitalism
8. The goods and services which help in the production of other goods and services are ………………………. goods.
Answer: Intermediate
9. Scarcity refers to the limitation of ………………………. in relation to for a commodity.
Answer: Supply, Demand
10 ………………………. deals with study of jute industry.
Answer :- Microeconomics
11. ……………………….Science deals with what ought to be or how the economic problems should be solved.
Answer:- Normative
12. Microeconomics is that part of economic theory which studies the behavior of ………………………. units of an economy.
Answer:- Individual
13. . ………………………. is the cost of next best alternative foregone.
Answer :- Opportunity Cost
14. The problem of . ………………………. involves selection of goods and services to be produced and the quantity to be produced of each selected commodity.
Answer:-What to Produce
15. Production Possibility Frontier is . ………………………. shaped because of increasing marginal rate of transformation.
Answer :- Concave
16. Macroeconomics is also known as . ……………………….
Answer :-Income and Employment Theory
17. . ………………………. is also known as Price Theory.
Answer :-Microeconomics
18. . ………………………. is a system which provides people with the means to work and earn a living.
Answer :- Economy
19. . ………………………. is that part of economic theory which studies the behavior of aggregates of the economy as a whole.
Answer :- Macroeconomics
20. ……………………….Economics deals with what are the economic problems and how are they actually solved.
Answer :- Positive
21. Production Possibility Frontier is convex shaped when marginal rate of transformation is ……………………….
Answer :-Decreasing
22. Two branches of Economics are ………………………. and ……………………….
Answer :- Microeconomics, Macroeconomics
23. Growth of resources shifts the production possibility frontier towards ……………………….
Answer :– Right
24. The part of economics which deals with the question of what, how and for whom to produce is known as ……………………….
Answer :- Microeconomics
25. The problem of ………………………. deals with technique of production.
Answer :- How to Produce
26. PPF will shift towards ………………………. when there is technological degradation in case of both the goods.
Answer :- Left
27. ……………………….(Positive/Normative) statement is based upon facts and not suggestive in nature.
Answer :- Positive
28. ………………………. measures the slope of Production Possibility Frontier.
Answer :- Marginal Rate of Transformation or MRT
29. ………………………. Microeconomics and Macroeconomics are both (Independent/Interdependent) Branches of Economics.
Answer :- Interdependent
State true or false
1. Production possibility curve is convex towards main point.
Answer: False
2. Central problem in the capitalist economy is solved by price mechanism.
Answer: True
3. An economy can be capitalist, socialist or opportunist.
Answer: False
4. Today all economics of the world are almost mixed economics.
Answer: True
5. Macro-economics is the study of the problems of unemployment, price inflation etc.
Answer: True
6. In socialism, the feeling of personal profit is prominent
Answer: False
7. The problem of ‘how to produce’ involves choice between consumer goods and capital goods.
Answer:- False. The problem of ‘how to produce’ deals with choice of technique to be used for production of goods and services.
8. Economy always operates on production possibility frontier.
Answer:- False. Economy operates on production possibility frontier (PPF) only when resources are fully and efficiently utilised. If resources are not fully and efficiently utilized, then economy operates at any point inside PPF.
9. Macroeconomics deals with study of cotton textile industry.
Answer:- False. Cotton textile industry is a micro concept as it is one of the part of industry. So, it is studied under microeconomics.
10. If the economy is operating inside the production possibility frontier, it indicates that the economy is saving resources for growth and expansion in future.
Answer:- False. It indicates that there is underutilization or inefficient use of resources.
11.Central problems are found only in the developing economies like India and Bangladesh and not in developed countries like USA.
Answer:- False. Central problems are found in all economies (both developed and developing economies) as every economy faces problem of scarcity of resources.
12. ‘No Scarcity’ means no economic problem.
Answer:- True. If there is no scarcity, then there would be no economic problem as scarcity is the basic reason for economic problem.
13. The part of economics which deals with the question of what, how and for whom to produce is known as macroeconomics.
Answer:- False. Microeconomics deals with the question of what, how and for whom to produce.
14. Production Possibility Curve shows the point at which the economy actually operates.
Answer:- False. Production Possibility Curve (PPC) does not show the point at which the economy will actually operate. It only shows the maximum available possibilities, which an economy can produce. The exact point of operation depends on how well the resources of the economy are used.
15. Main tools of Macroeconomics are demand and supply.
Answer:- False. The main tools of Macroeconomics are Aggregate Demand and Aggregate Supply.
Assertion (A) and Reason (R)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Tools of microeconomics are demand and supply.
Reason (R): Microeconomics studies the behavior of individual units of an economy.
Alternatives:
(a) Both Assertion (A) and Reason ( ) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both. Assertion (A) and Reason ( ) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: Option (b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Production Possibility Frontier (PPF) is a Concave Shaped curve.
Reason (R): PPF shows all the maximum possible combination of two goods, which can be produced with the available resources and technology.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(1) Both Assertion and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion is True but Reason is False.
(4) Assertion (A) is False but Reason (R) is True.
Answer: Option (b)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Human wants differ in priorities.
Reason (R): For every individual, some wants are more important and urgent as compared to others.
Alternatives:
(a) Both Assertion and Reason are True and Reason is the correct explanation of Assertion (A).
(b) Both Assertion and Reason are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion is True but Reason is False.
(1) Assertion is False but Reason is True.
Answer: Option (a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below.
Assertion (A): Macroeconomics is also known as Income and Employment Theory.
Reason (R): Macroeconomics aims to determine income and employment level of the economy. Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: Option (a)
Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Positive Economics avoids economic value judgements.
Reason (R): Positive Statements can be verified as true or false by comparing with actual data. Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Answer: Option (b)
Question :- Match the following:
| ‘A’ | ‘B’ |
| 1. The mechanism of micro-economics | (a) Capitalist economy |
| 2. Basic financial problem | (b) All resources are efficiently used |
| 3. No state interference | (c) Price analysis |
| 4. No restrictions on trade | (d) Limitation and election |
| 5. Main assumptions of production possibility curve | (e) Open economy. |
Answer:-
| ‘A’ | ‘B’ |
| 1. The mechanism of micro-economics | (c) Price analysis |
| 2. Basic financial problem | (d) Limitation and election |
| 3. No state interference | (a) Capitalist economy |
| 4. No restrictions on trade | (e) Open economy. |
| 5. Main assumptions of production possibility curve | (b) All resources are efficiently used |