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Introduction to Micro Economics

Multi-choice

Question

1.Who is known as Welfare Economist?

Hint

Author of PRINCIPLES OF ECONOMICS

Answers

Alfred Marshall

Lionel Robins

JB Say

JM Keynes

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Question

2.Usual shape of PPC will be

Hint

Production Possibility Curve

Answers

Convex

Linear Shape

Concave to Origin

None of these

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Question

3.If flood in the country destroys some agricultural production, what happens to the shape of PPC? 

Hint

Movement of PPC

Answers

Moves leftward

Moves rightward

Moves upward along the PPC

No changes

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Question

4.Identify type of economy. Central economic problems are solved by planning authority. 

Hint

Types of economies

Answers

Capitalist economy

Socialist economy

Mixed Economy

All of the above

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Question

5."What ought to be ?" is related with

Hint

Division on the basis of economic analysis

Answers

Micro Economics

Positive Economics

Macro Economics

Normative Economics

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Question

6.Next best alternative forgone is called 

Hint

Related with cost

Answers

Demand

PPC

Opportunity Cost

Supply

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Question

 7.Macro Economics is also called

Hint

Study of aggregates

Answers

Price Theory

Demand Theory

Income Theory

Total Theory

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Question

8.The term "invisible hand" is the contribution of 

Hint

Think about branches of economics

Answers

Alfred Marshall

JM Keynes

PA Samuelson

Adam Smith

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Question

9.Opportunity cost is 

Hint

Different types of costs

Answers

Economic Cost

Transfer earning

Alternative cost

All of the above

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Question

10.A person reduces his production of wheat from 100 units to 80 units in order to increase production of rice from 6 to 8 units. MOC will be 

Hint

Calculate MOC

Answers

12

10

2

20

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Question

11.Functional distribution is related with 

Hint

Central Problems of an Economy

Answers

How to produce?

What to produce?

For whom to produce ?

None of the above

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Question

12. The rightward shift of PPC means

Hint

Movement of PPC

Answers

Growth of resources

Shrink of resources

No change in resources

None of the above

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Question

13.The choice of technology is related with

Hint

Central problems of an economy

Answers

What to produce ?

How to produce?

For whom to produce?

None of the above

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Question

14.The book "An Essay on the Nature and Significance of Economics" was published in the year

Hint

Its Author is known as Lionel Robbins

Answers

1932

1964

1890

1776

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Question

15.Micro Economics is also known as

Hint

Branches of Economics

Answers

Income Theory

Price Theory

Micro Theory

Aggregate Economics

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Question

16. The production technique best suitable for China is

Hint

Techniques of production

Answers

Capital Intensive

Labour Intensive

Both of the above

None of the above

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Question

17. Reward for factor Land is 

Hint

Returns for factors of production

Answers

Interest

Profit

Rent

Wage

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Question

18.Price Mechanism is one of the features of

Hint

Features of economies

Answers

Capitalism

Socialism

Mixed Economy

None of the above

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Question

19.Which among the following is not a feature of Capitalist Economy ?

Hint

Features of Capitalism

Answers

Profit Motive

Private Ownership

Consumer Sovereignty

Welfare Motive

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Question

20.Standard Deviation is the best measure of deviations. This statement is a

Hint

Division on the basis of analysis

Answers

Micro economic concept

Positive Economic concept

Macro Economic concept

Normative Economic concept

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Question

21.Paul A Samuelson was a 

Hint

Views on Economics

Answers

Wealth Economist

Welfare Economist

Growth Economist

Scarcity Economist

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True-False Question

State the below statements as True or False

Question 1

1. The linear shape of  PPC means constant MOC. 

Hint

Shape of PPC 

Question 2

2.The reward for Capital is interest 

Hint

Factors of production and their returns

Question 3

3.Private ownership is the feature of Socialism

Hint

Features of Economies

Question 4

4.The division of Economics into Normative and Positive is on the basis of analysis

Hint

Positive Economics and Normative Economics

Question 5

5.Micro Economics and Macro Economics can not be entirely separated

Hint

Branches of Economics

Question 6

6.Micro economics is concerned with economy as a whole 

Hint

Study area of Micro economics

Question 7

7.In America economic decisions are taken by Government alone.

Hint

Features of Capitalism

Question 8

8.Micro Economics is building block of Macro Economics

Hint

Study area under Micro Economics

Question 9

9.Under capital intensive production technique more capital is used

Hint

Production Techniques

Question 10

10.Monetary theory comes under the heading Macro Economics

Hint

Study area of Macro Economics

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