100 MCQs of Introduction to Microeconomics, CUET, CBSE, ISC

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Looking for important MCQs (Multiple Choice Questions) with answers of the Introduction chapter of Microeconomics class 11 CBSE, CUET, ISC class 12, and State Board.

‘Introduction’ is chapter 1 of Microeconomics Book of 11th class CBSE Board and class 12 ISC Board.

Multiple choice Questions of Introduction chapter to Microeconomics for CUET

Let’s Practice

Which of the following central problem of an economy deals with the distribution of National Income?

a) How to produce
b) What to produce
c) For whom to produce
d) None of these

Ans – c)

Which of the following is/are features of resources in an economy?

a) Limited supply
b) Alternative uses
c) Both a) and b)
d) None of these

Ans – c)

Scarcity requires that people must do which of the following things?

a) Trade
b) Cooperate
c) Make choices
d) Competition

Ans – c)

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 borne in terms of discomfort and pain while supplying factors of production
d) that which we forgo, or give up while making a choice or a decision

Ans – d)

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

Ans – b)

Which of the following is/are true about an economy?

a) It is the system of arrangement of all economic activities
b) It is comprised of all the regions of a country
c) Both a) and b)
d) Neither a) nor b)

Ans – c)

The most fundamental economic problem is related to

a) scarcity of resources
b) Unlimited human wants
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

An economy in which all economic activities are organised through the market is called:

a) mixed economy
b) market economy
c) centrally planned economy
d) None of these

Ans – b)

Economics is:

a) the study of stocks and bond market
b) mainly the study of business firms
c) the problem of choice under scarcity
d) the study of management decisions

Ans – c)

Which of the following is/are not the feature of human wants

a) Limited
b) Recurring
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

According to Prof. Lionel Robbins
means are

a) Scarce
b) Unlimited
c) Undefined
d) All of these

Ans – a)

Microeconomics is not concered with the behaviour of:

a) National income
b) a consumer
c) a firm
d) a producer

Ans – a)

Macroeconomics deals with:

a) the behaviour of firms
b) the behaviour of electronics industry
c) the activities of individual units
d) economic aggregates

Ans – d)

Which of is/are the reasons for Economic problems?

a) Scarcity of resources
b) Alternative uses of resources
c) Unlimited human wants
d) All of the above

Ans – d)

There are many economies in the world which are technologically advanced, these economies further focus upon development
of latest technologies. In this way, these economies will be able to solve the economic problems once for all.

a) True
b) False
c) Partially True
d) Incomeplete statement

Ans – b)

Microeconomics deals with which of the following?

a) Total output of an economy
b) Measurement of a nation’s inflation rate
c) How producers and consumers interact in individual market
d) How tax policies influence economic growth

Ans – c)

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

a) macroeconomics depends on microeconomics
b) there is no correlation between micro and macroeconomics
c) study of micro and macro economics is independent of each other
d) microeconomics is dependent on macroeconomics

Ans – a)

Which of the following are types of economic systems?

a) Market Economy
b) Planned Economy
c) Mixed Economy
d) All of these

Ans – d)

As an economic concept, scarcity applies to _

a) Money but not time
b) time but not money
c) Both money and time
d) Neither time nor money

Ans – c)

The government of India decided to produce 1,000 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 these

Ans – a)

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

a) distribution
b) technique of production
c) quantity to be produced
d) commodities to be produced

Ans – b)

Economics is the study of

a) the choices we make because of scarcity of resources.
b) The allocation of resources only
c) the distribution of surplus goods to those in need
d) ways to reduce wants to eliminate the problem of scarcity

Ans – d)

Central problems of economy and the problem of choice are one and the same thing.

a) True
b) False
c) Partiall true
d) Incomplete statement

Ans – d)

Which of the following is the root cause of all economic problems?

a) Misallocation of resources
b) Scarcity
c) Under-consumption
d) Over-population

Ans – b)

Which of the following central problems of an economy deals with deciding the quantity of goods to be produced?

a) What to produce
b) How to produce
c) For whom to produce
d) When to produce

Ans – a)

Central problems of economy and the problem of choice are one and the same thing.

a) True
b) False
c) Partially true
d) Incomeplete statement

Ans – a)

There are _ central problems in an economy.

a) two
b) three
c) four
d) None of these

Ans – b)

Which of the following is an example of microeconomics?

a) Production by an industry
b) Income of an individual
c) Total saving in a bank
d) All of these

Ans – d)

Which of the following is not a central problem?

a) What to produce
b) When to produce
c) How to produce
d) For whom to produce

Ans – b)

Which of the central problem is related to selection of techniques of production?

a) What to produce
b) How to produce
c) For whom to produce
d) None of these

Ans – b)

Which of the central problem is related to distribution of income?

a) What to produce
b) How to produce
c) For whom to produce
d) None of these

Ans – c)

Which of the following is a characterisitc of normative economics?

a) There are individual opinions
b) These are not based upon facts and figures
c) These deal with ‘What ought to be’
d) All of these

Ans – d)

Which of the following is not an example of macroeconomics?

a) National income
b) Unemployement
c) Population growth
d) None of the above

Ans – d)

The fact that people with higher incomes get to consume more goods and services addresses the _ question.

a) When
b) Where
c) For whom
d) How

Ans – c)

In the production process, if goods worth ₹2,000 are produced by four factors of production, then labour will get ₹500.

a) True
b) False
c) Partially true
d) Incomeplete statement

Ans – b)

Positive statement does not deal with:

a) what is
b) What will be
c) What ought to be
d) Both b) and c)

Ans – c)

__ of resources is necessary for the development of the economy.

a) Utilisation
b) Growth
c) Wastage
d) Non-utilisation

Ans – b)

Which of the following is a microeconomics concept?

a) The resons for the rise in general prices in an economy
b) reducing inequality of income and wealth
c) Maintaining the foreign exchange reserves
d) None of the above

Ans – b)

There is no degree of aggregation in microeconomics.

a) True
b) False
c) Partially true
d) Incomeplete statement

Ans – b)

Resources of every economy are __

a) Sufficient
b) Limited
c) unlimited
d) unutilised

Ans – b)

The activities which are linked with use of goods and services for the satisfaction of wants directly are known as:

a) production
b) consumtption
c) distribution
d) exchange

Ans – b)

Which of the following is a macroeconomics concept?

a) The reasons why viaan buys less orange juice
b) The reasons why employment decreased at a factory
c) The reasons for a decline in price of a good
d) None of the above

Ans – d)

There is _ degree of aggregation in macroeconomics.

a) constant
b) lower
c) higher
d) no

Ans – c)

Economic problems arise due to:

a) Unlimited human wants
b) Alternative uses of Resources
c) Scarce resources
d) All of these

Ans – d)

Which of the following subject matter study in microeconomics

a) Money supply
b) Aggregate demand
c) Market demand of a good
d) National income

Ans – c)

Macroeconomics focuses on all of the following except the

a) buying and selling decisions by an individual consumer and seller respectively.
b) affect of increasing the money supply in inflation.
c) effect on tobacco sales of an increase in the tax on cigarettes.
d) hiring decisions made by a business.

Ans – b)

All newspaper headlines are positive stateemnts.

a) True
b) False
c) Partially true
d) Incomplete statement

Ans – c)

Which of the following subject matter does not study in macroeconomics?

a) Employment level
b) Aggregate supply
c) National income
d) Determination of market price

Ans – d)

Positive economic analysis deals with things __ .

a) ‘as they ought to be’
b) ‘as they are’
c) Both a) and b)
d) None of these

Ans – b)

The following headline appeared in ‘Hindustan Times’ dated 25th July 2018, ‘Getting insurance for rain damage cars
an uphill task’ This statement is

a) Positive economics
b) normative economics
c) general economics
d) None of the above

Ans – a)

Central government of India announced relief packages for migrant labourer during the pandemci of 2020. This
statement is ____ .

a) Normative Statement
b) Positive Statement
c) General Statement
d) None of the above

Ans – b)

Macroeconomics deals with:

a) Theory of distribution
b) Theory of income and employment
c) Theory of economic growth
d) All of these

Ans – d)

Central problem of an economy is/are

a) What to produce and in what quantities
b) How to produce
c) For whom to produce
d) All of these

Ans – d)

Theory of distribution studies the problem of:

a) What to produce and in what quantities
b) How to produce
c) For whom to produce
d) All of these

Ans – c)

During the covid 19 pandemic, there was nation wide lockdown which led to migration of labour across state. State
government should have taken necessary steps to reduce the migration of people. This statement indicates

a) normative statement
b) positive statement
c) general statement
d) None of the above

Ans – a)

The possibility of third wave of covid 19 pandemic can be reduced by following covid appropriate behaviour. Identify
the type of statement from given below.

a) Normative statement
b) Positive statement
c) Both a) and b)
d) None of the above

Ans – b)

Theory of production studies the problem of:

a) What to produce and in what quantities
b) How to produce
c) For whom to produce
d) All of these

Ans – b)

Price theory studies the problem of:

a) What to produce and in what quantities
b) How to produce
c) For whom to produce
d) All of these

Ans – a)

Darshit is working at a salary of ₹70,000 per month. He receives two job offers:

i) To work as an accountant at a salary of ₹60,000 per month
ii) To work as a sales manager at a salary of ₹50,000 per month. In the given case, his opportunity cost will be:

a) ₹50,000
b) ₹60,000
c) ₹70,000
d) ₹1,30,000

Ans – b)

Economics cost is equal to

a) accounting cost
b) opportunity cost
c) sum of accounting cost and opportunity
cost
d) difference of accounting cost and opportunity cost

Ans – c)

In broad terms, the difference between microeconomics and macroeconomics is that

a) they use different schools of thought
b) microeconomics studies the effects of fiscal policy on the unemployement rate while macroeconomics does not.
c) Macroeconomics studies the effects of fiscal policy on the price of individual goods and services whereas microeconomics
does not
d) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national
economy

Ans – a)

Scarcity refers to limitation of in relation to for a commodity.

a) Demand, Sale
b) Demand, Supply
c) Supply, Demand
d) None of these

Ans – c)

The word ‘Economics’ is most closely connected with the word:

a) Free
b) Scarcity
c) Unlimited
d) Restricted

Ans – b)

Which economic problem involves selection of category of people who will ultimately consume the goods?

a) How to produce
b) For whom to produce
c) What to produce
d) None of these

Ans – b)

Studying the determination of prices in individual markets is primarily a concern of

a) negative economics
b) positive economics
c) microeconomics
d) macroeconomics

Ans – c)

Which of the following is also known as theory of price determination?

a) Microeconomics
b) Macroeconomics
c) Statistics for economics
d) None of the above

Ans – a)

Which of the following central problems of an economy deals with technique of production?

a) What to produce
b) How to produce
c) For whom to produce
d) When to produce

Ans – b)

which part of economic theory aims to determine income and employment level of the economy?

a) Microeconomics
b) Macroeconomics
c) Neither a) nor b)
d) Both a) and b)

Ans – b)

The central problem of ‘What to produce covers the issue relating to:

a) What goods are to be produced
b) What quantities of goods to be produced
c) Both a) and b)
d) Neither a) nor b)

Ans – c)

Which of the following is also known as thoery of income determination?

a) Microeconomics
b) Macroeconomics
c) Statistics for economics
d) None of the above

Ans – b)

When an individual saves a part of his income, then this is considered as a way to meet uncertainities of future but
national savings leads to economics slowdown.

a) True
b) False
c) Partially True
d) Income Statement

Ans – a)

In deciding ‘How to produce’, the economy should consider:

a) Labour intensive techniques
b) Capital intensive techniques
c) Both a) and b)
d) Neither a) nor b)

Ans – c)

Out of the following, macroeconomics focuses on:

a) Allocation of resources
b) Jute industry
c) Aggregate demand
d) Both a) and b)

Ans – d)

Which of the following is an example of a positive economy?

a) Indian is taking steps to control rising prices
b) There are inequalities of income in our economy
c) India should not be an overpopulated country
d) Both a) and b)

Ans – d)

Theories of microeconomics and macroeconomics are interdependent.

a) True
b) False
c) Partially True
d) Incomeplete Statement

Ans – a)

Opportunity cost refers to which of the following?

a) Accounting cost minus the marginal benefit
b) Monetary costs of an activity
c) Highest valued alternative forgone
d) Accounting cost minus the marginal cost

Ans – c)

The statements like ‘Economy should control pollution’ or ‘Unemployment in the economy ought to be reduced’ fall within the scope of:

a) Normative Statements
b) Positive Statements
c) Both a) and b)
d) None of these

Ans – c)

In the context of rising prices, following statements are made by two people:

Hemant: Prices in the economy are continously rising.

Sachin: The government should take reasonable steps to control rising prices.

Identify the statements as Positive Statement and Normative Statement

a) Hemant: Positive; Sachin; Normative
b) Hemant: Normative; Sachin; Positive
c) Both are Positive Statements
d) Both are Normative Statements

Ans – a)

Viaan decided to join a NCC camp this year which required an entry fee of ₹ 1,500 during the summer vacation by not opting for usual part time job which he used to do in other years and earn ₹5,000. What will be the opportunity cost
in this case?

a) ₹1500
b) ₹5,000
c) ₹6,500
d) Can’t be determined

Ans – c)

An entrance examination has 200 questions in total. Each correct answer gives 1 Mark with a negative mark of 1/4 for each
incorrect answer. What is the opportunity cost of 30 incorrect questions

a) 7.5
b) 30
c) 37.5
d) Can’t be determined

Ans – c)

Positive economic analysis is concerned with:

a) Opinions
b) Value judgements
c) Facts and Figures
d) Ideals

Ans – c)

Out of the following, which one is macro-variable?

a) Production of food grains in India
b) Pricing decision by Tata Motors
c) Measurement of general price level
d) Fall in petrol prices

Ans – c)

Which of the following is the salient feature of resources?

a) These are limited as compared to wants
b) They have alternative uses
c) Both a) and b)
d) They are unlimited

Ans – c)

Which of the following is true for microeconomics paradox?

a) Something which is true in microeconomics does not hold true in macroeconomics
b) Something which does not holds true in either microeconomics or macroeconomics
c) Something which holds true both in microeconomics or macroeconomics
d) None of the above

Ans – a)

Choose the correct statement from the given below.

a) In a centrally planned economy, economic decisions are governed by profit motive as per decision of central Bank
fot the country
b) Normative statements are those which pass value judgement and economic problems as they are
c) There is limited degree of aggregation present in microeconomics has greater degree of aggregation.
d) Central Problems of an economy and problem of choice are two different issues that only mixed economics faces

Ans – b)

Which of these is a central problem of an economy?

a) Deficit demand
b) Equilibrium of an economy
c) For whom to produce
d) Decreasing return to a factor

Ans – c)

Which of these is normative economics?

a) 25 percent population of India is below the poverty line.
b) Increase in FDI has increased the GDP of India
c) Equal distribution of income will make India poverty free
d) Higher welfare spending by the government increases the Aggregate Demand

Ans – c)

Suppose that you have to decide between seeing a movie and going to see a cricket match on a particular saturday
evening. You are willing to pay ₹500 to see the movie. You are willing to pay ₹1,500 for the cricket match. The
opportunity cost of going to the movie is

a) ₹1,000
b) ₹500
c) ₹1,500
d) None of these

Ans – c)

Which of the following is/are not a feature of a mixed economy?

a) Modern and traditional industries working together
b) Public takes the leading role in the economic activity
c) Foreign and domestic industries working together
d) All of the above

Ans – d)

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Anurag Pathak
Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.

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