CBSE + 2 Economics - Introductory Microeconomics - Important Questions and Answers

Class:- XII  Subject:-Economics

Lesson:-01-    Introductory Microeconomics

1-Economics is-

a)The study of stock and bond market           

b)Mainly the study of business firms       

c)The problem of choice under scarcity         

d)The study of management decisions

2-In economics , the central problem is:

a)Scarcity                                                                     

b)Consumption                     

c)Money making                                                       

d)exchange

3-microeconomics is not concerned with the behavior of:

a)National income                                                   

b)A consumer                          

c)A firm                                                                                        

d)A producer

4-Microeconomics deals with

a)The behavior of firms                                       

b)The behavior of electronics industry                            

c)The activities of individual units                   

d)Economics aggregates

5- Microeconomics deals with which of the following:

a)The total output of an economy              

b)The measurement of a nations inflation rate

c)How producers and consumers interact in individual market s                

d)How tax policies influence economic growth

6-Total output of an economy is the sum of  total outputs of individual producers.This statement proves that: 

a)Macroeconomics depends on micro economics

b)There is no correlation between micro and macro economics

c)Study of micro and macro economics is independent of each other

d)microeconomics is depends on macroeconomics

7-which of the following  is not an economic problem faced by a country?

a)alternate uses of limited resources

b)unlimited wants

c)scarce wants            

d) limited resource

8-In a country planned economy, all the economic decisions are taken by the:

a)Consumers                                                     

b)Government                

c)Market force                                                  

d)Capitalists

9- The central problem of how to produce is a problem of choice regarding:

a)Distribution                                                    

b)Technique of production                         

c) Quality to be produced                             

d)Commodities to be produced

10-The govt. of India decided to produce 1000 million quintals of wheat this year . The decision regarding quantity of production is a part of which central problem of the economy:

a)what to produce                                          

b)How to produce                          

c)For whom to produce                                               

d)None of the above

11-Opportunity cost is:

a)The additional benefit of buying an additional unit of a product                       

b)The cost incurred in the past before we make a decision about what to do in future                   

c)A cost that is born in term of discomfort and pain while supplying factors of production             

d)That which we forgo, or give up, while making a choice or a decision

12-The opportunity cost of watching a movie will be equal to;

a)The time lost while watching the show                          

b)The pleasure that could have been enjoyed watching TV instead                     
c)The pleasure enjoyed by watching the show                  

d)The amount paid to buy the tickets

13-When there is an improvement in technology,holding everything else constant:

a)The production possibilities frontier shifts inward                        

b) The production possibilities frontier shifts upward                     

c) The production possibilities frontier remains the same                             

d) The production possibilities frontier shifts downwards

14-Many people have died and large number factories destroyed because of a severe earthquake in the country . How will it affect the country’s PPC?

a)Its PPC will shift to the right                    

b)Its PPC will shift to the left                      

c)Economy will operate inside PPC                          

d)PPC will not be affected with this change

15-The reason behind a rightward or outward shift of PPC could be:

a)Growth of resources                 

b)Technological advancement                  

c)Either (a)or(b)or both                               

d)Fall in resources or obsolete technology

16-The reason behind the concave shape of PPC is:

a)Increasing marginal opportunity cost                 

b)Falling marginal rate of transformation                             

c) Falling marginal opportunity cost                         

d)Constant marginal rate of transformation

17-PPC will be a straight line when MOC will be:

a)Falling                                                               

b)Rising                               

c)Constant                                                          

d)Zero

ANSWER: LESSON-1

1-C            

2-A                         

3-A                         

4-D                         

5-C                         

6-A

7-C                         

8-B                         

9-B                         

10-A                       

11-D                       

12-B

13-B          

14-B                         

15-C                       

16-A                       

17-C

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CBSE + 2 Economics - Introductory Microeconomics - Important Questions and Answers

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