CBSE Questions for Class 11 Commerce Economics Introduction To Microeconomics Quiz 3 - MCQExams.com

Which of these is/are a positive statement(s).
  • export of onion ought to be banned to check rising prices of onion in domestic market
  • forwarding trading in commodities ought to be banned to curb rising prices
  • export of onion has created shortage of domestic supply of onions
  • all of the above
____________ is a positive statement.
  • To check inflation public spending should be controlled
  • Price control has led to artificial shortage of edible oils.
  • Minimum wage rates should be fixed to avoid exploitation of workers
  • Government should enforce social security laws strictly
_______ determine shape of the production-possibility frontier.
  • Advertisement and fashion
  • Prices and profit
  • Technology and resources
  • Tastes and profits
$$25$$ point reduction in CRR has increased money supply is a ____________ statement.
  • subjective
  • negative
  • positive
  • normative
If there is a production method with improved efficiency, holding all else constant, ______.
  • the production possibilities frontier will shift inward
  • there may be increase in cost of production
  • the production possibility curve will shift inward
  • the production possibilities frontier will shift outward
The slope of the production possibility frontier exhibit ______.
  • relative marginal costs of the two goods
  • relative price of the two goods
  • relative profitability of two goods
  • marginal rate of substitution between two goods
Any point beyond PPF is _______.
  • attainable
  • unattainable
  • attainable with increase in production facilities
  • none of the above
If production possibility curve is a straight vertical line it means _______.
  • unlimited production of both the goods
  • no production at all
  • fixed production of one goods and unrestricted production of other
  • none of the above
____________ is not a positive statement.
  • Marginal rate of tax should be lowered to discourage tax avoidance
  • Export of onions has created shortage of onion in the country
  • Over the last two-decade rate of population growth has fallen
  • Growing unemployment is the cause of rapid increase in crimes in metro cities
If production possibility frontier is linear it implies ______.
  • constant opportunity cost
  • economy is stagnant
  • underemployment of factor of production
  • with the increase in production, opportunity cost also increases
______________ involve value judgement.
  • Normative economics.
  • Positive economics.
  • Political economics.
  • Economic alliance.
What does the slope of PPF indicates ?
  • The opportunity cost of one goods in terms of other one
  • The ratio of their market price
  • Ratio of their cost of production
  • The rate of their growth
If an economy is working at a point left to PPF curve it shows that ______.
  • the economy is working at less than the full employment level
  • the economy is at full employment level
  • the economy is country is faced with excess production
  • there is glut of imports
If production possibility curve is a straight horizontal line it means _______.
  • unlimited production of both the goods
  • no production at all
  • fixed production of one goods and unrestricted production of other
  • none of the above
Curvature of a PPF is due to _______.
  • increase in opportunity cost
  • decrease in opportunity cost
  • fall in demand
  • fall in supply
The difference between the positive and normative approach in economics is that ___________.
  • positive economic start with statement in affirmative mode whereas normative in negative mode
  • positive economic concerns matter of fact, whereas normative concerns matter of opinion
  • in positive economic answer is yes whereas in normative there is no answer to the problem
  • all of the above
By scarcity of productive resources we mean ______.
  • limited supply
  • restricted supply
  • non existence of supply
  • fixed supply
Higher PPC curve indicates _______.
  • more production of both the things with increase in technology or increase in supply of factors of production
  • more production of one at the expense of other
  • more production of one items at the expense of other with increase in technology or factor input supply
  • less than full employment situation
PPF is negative sloped due to ________.
  • scarcity of production resources
  • unlimited wants
  • improvement in technology
  • increasing opportunity cost
Which of the following is a normative statement?
  • To check inflation RBI should restrict money supply
  • Government spends Rs. $$5000$$ crore annually of public health
  • Increase in crude prices will hit the industry hand
  • WPI index is not a true barometer of inflation
To reduce pollution, government should impose heavy penalty on polluting vehicles. This is a __________ statement.
  • subjective
  • negative
  • positive
  • normative
Senior citizen deserve hike in pension and better medical care. This is a ______________ statement.
  • subjective
  • negative
  • positive
  • normative
Economic efficiency means _______.
  • production of goods of mass consumption at lower cost.
  • production of goods and services for those who have purchasing power.
  • getting greatest satisfaction from available resources.
  • full employment of working force.
Which of the following is not a central problem of a society?
  • What to produce
  • How to produce
  • For whom to produce
  • What to eat
Production Possibility curve helps in __________.
  • making proper choice
  • deciding optimal level of production
  • deciding minimum level of cost
  • deciding the stage of increasing return to scale
Economic growth is best depicted by ___________.
  • outward shift in PPF curve
  • upward movement in PPF curve
  • downward shift in PPF curve
  • inward movement in PPF curve
Production Possibility Curve (PPC) will be a straight line when __________.
  • opportunity cost of addition unit is constant
  • opportunity cost of addition unit is faffing
  • opportunity cost of addition unit is increasing
  • None of these
If a firm is operating at any point inside the PPF, then the firm is ________.
  • inefficient firm
  • efficient firm
  • dominating firm
  • poised for abnormal growth
Positive economic theory deals with __________.
  • what are or how the economic problems faced by the society are solved
  • how the problem should be solved
  • what to produce
  • when to produce
A normative science deals with the things_____.
  • as they ought to be
  • as they are
  • both
  • either (A) or (B)
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