CBSE Questions for Class 11 Commerce Economics Introduction To Microeconomics Quiz 10 - MCQExams.com

An example of positive economic analysis would be:
  • An analysis of the relationship between the price of food and the quantity purchased
  • Determining how much income each person should be guaranteed
  • Determining the fair price for food
  • Deciding how to distribute the output of the economy
What is production possibility frontier? 
  • Combination of two or ore resources used in production
  • Combination of a good and a service when the resources are fully utilized
  • Combination of a good and a resource when the resources are fully utilized
  • Combination of two goods that can be produced when the resources are fully utilized
Which of the following statement would you consider to be a normative one?
  • Faster economic growth should result if an economy has a higher level of investment
  • Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure.
  • Higher level of unemployment will lead to higher level of inflation
  • The average level of growth in the economy was faster in the 1990s than the 1980s
The collection of all the possible combinations produced from a given amount of resources is called _______.
  • production set
  • production possibility set
  • production possibility line
  • possible production group
Indian industry faced the process of retrogression and deceleration because of ____________.
  • unsatisfactory performance of agriculture
  • slackening of real investment in public sector
  • narrow market for industrial goods, especially in rural areas
  • all of the above
Production Possibilities (alternative)
ABCDEF
Hot pockets $$15$$$$12$$$$9$$$$6$$$$2$$$$0$$
Eggs$$0$$$$6$$$$11$$$$15$$$$18$$$$20$$
Referring to the table, in moving from point D to point C, the opportunity cost of $$1$$ more Hot Pocket is:
  • $$4$$ eggs
  • $$\dfrac{1}{6}$$ eggs
  • $$1$$ egg
  • $$\dfrac{4}{3}$$ eggs
If there were no choices in resource allocation, microeconomics would not have existed.
  • True
  • False
The problem of resource allocation would not arise if resources had no alternatives uses.
  • True
  • False
Positive statements are the statements of truth.
  • True
  • False
When output of Good - $$1$$ increases from $$100$$ units to $$110$$ units and output of Good - $$2$$ decreases from $$400$$ units to $$350$$ units, marginal opportunity cost = $$50$$ units.
  • True
  • False
Lack of scarcity implies lack of economic problem.
  • True
  • False
The following table shows the production possibility of cricket bats and sarees of an imaginary economy
Production of Cricket Bats (in thousand)012345
Production of Sarees (in lakh)75706250300
If the production of cricket bats is increased from $$3$$ thousand to $$4$$ thousand, what is the opportunity cost that the economy has to bear?
  • Zero
  • $$8$$ lakh sarees
  • $$30$$ lakh sarees
  • $$20$$ lakh sarees
In a socialist economy, it is the responsibility of the ___________ to ensure that adequate amount of goods are made available to the people.
  • central bank
  • planning authority
  • NGOs
  • business firms
'From each according to his capacity and to each according to his work' is the principle of ___________, in a socialist economy.
  • distribution of utilities
  • distribution of income
  • employment segregation
  • wealth distribution
Which among the following influences the choice of method of production used by the public sector in a mixed economy? 
  • Promotion of economic growth
  • Input/Factor prices
  • Generation of employment opportunities
  • All of the above
The government in a mixed economy controls production in ____________  as well as ____________ sector so as to ensure adequate availability of necessities.
  • primary, industrial
  • public, private
  • banking, agricultural
  • public, construction
The ___________ sector in a mixed economy decides 'what to produce and how much to produce' based on the overall national objectives.
  • private
  • public
  • industrial
  • agricultural
The public sector under a mixed economy provides __________ so as to promote economic development.
  • consumer goods
  • economic infrastructure
  • luxury goods
  • all of the above
________ economics explain economics phenomenon according to their causes and effects
  • Normative
  • Empirical
  • Positive
  • Applied
Which of the following is true for micro-macro paradox? 
  • Something which is true in microeconomics does not hold true in macroeconomics.
  • Something which does not hold true in either microeconomics or macroeconomics.
  • Something which holds true both in microeconomics or macroeconomics.
  • None of the above.
When an individual saves a part of his income, then this is considered as a way to meet uncertainties of the future but national savings lead to an economic slowdown. Choose from the options below.
  • True
  • False
  • Partially true
  • Incomplete statement
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