CBSE Class 12 Economics Microeconomics MCQs Set 03

Question: To which factor, economic problem is basically related to:
a) Choice
b) Consumer’s Selection
c) Firm Selection
d) None of the options
Answer: a

Question: Which of the following Is a type of economic activities?
a) Production
b) Consumption
c) Exchange and Investment
d) All of these
Answer: d

Question: In which economy decisions are taken on the basis of price mechanism?
a) Socialist
b) Capitalist
c) Mixed
d) All of these
Answer: b

Question: Example of microeconomic variable is:
a) Wholesale price index
b) National Income
c) Market demand
d) Aggregate Demand
Answer: c

Question: 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 hold true in either microeconomics or macroeconomics
c) Something which holds true both in microeconomics and macroeconomics
d) None of the above
Answer: a

Question: In which type of economy do consumers and producers make their choices based on the market forces of demand and supply?
a) Open Economy
b) Controlled Economy
c) Command Economy
d) Market Economy
Answer: d

Question: 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)
Answer: a

Question: ‘Economics is the study of mankind in the ordinary business of life’. This definition was given by:
a) Adam Smith
b) Lord Robbins
c) Alfred Marshall
d) Samuelson
Answer: c

Question: Which of the following is a source of production?
a) Land
b) Labour
c) Capital
d) All of these
Answer: d

Question: The point of optimum utilization of resources lies on which side of PPC curve:
a) Towards left
b) Towards right
c) Inside
d) Upwards
Answer: d

Question: Central government of India announced relief packages for migrant labourers during the pandemic of 2020. This statement is ……… .
a) normative statement
b) positive statement
c) general statement
d) None of the above
Answer: b

Question: Studying the determination of prices in individual markets is primarily a concern of
a) negative economics
b) positive economics
c) microeconomics
d) macroeconomics
Answer: c

Question: Central problems of economy and the problem of choice are one and the same thing. Choose from the options below.
a) True
b) False
c) Partially true
d) Incomplete statement
Answer: a

Question: During the covid-19 pandemic, there was nationwide lockdown which led to migration of labour across states. 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
Answer: a

Question: Slope of production curve is:
a) a straight line
b) convex to the point of origin ‘O’
c) concave to the point of ‘O’
d) None of the options
Answer: c

Question: Which of the following is a macroeconomic 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
Answer: d

Question: 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
Answer: a

Question: Which of the central problems is related to selection of techniques of production?
a) What to produce?
b) How to produce?
c) For whom to produce?
d) None of the options
Answer: b

Question: Which of the following is also known as theory of income determination?
a) Microeconomics
b) Macroeconomics
c) Statistics for economics
d) None of the above
Answer: b

Question: There is no degree of aggregation in microeconomics. Choose from the options below.
a) True
b) False
c) Partially true
d) Incomplete statement
Answer: b

Question: Microeconomics focuses on all of the following except the
a) buying and selling decisions by an individual consumer and seller respectively
b) effect 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
Answer: b

Question: 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 unemployment 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
Answer: a

Question: Which of the following economic activities are included in the subject-matter of Economics?
a) Economic Activities related to Unlimited Wants
b) Economic Activities related to Limited Resources
c) Both (a) and (b)
d) None of the options
Answer: c

Question: The problem of ‘what to produce’ relates to:
a) The choice of technique
b) Distribution of income
c) Market value of the goods and services
d) The choice of goods and services
Answer: d

Question: When marginal utility is negative, total utility is:
a) Zero
b) Diminishing
c) Maximum
d) Minimum
Answer: b

Question: Increase (growth) of resources implies that production possibility curve:
a) Shifts to the Right
b) Shifts to the left
c) Rotates to the right
d) None of the options
Answer: a

Question: Who controls economic activities under centrally planned economies?
a) Industrialists
b) Private firms
c) Government
d) Consumers
Answer: c

Question: Example of micro economic variable is:
a) Wholesale price index
b) National income
c) Market demand
d) Aggregate demand
Answer: c

Question: Who said economics is the ‘Science of wealth’?
a) Prof. Robbins
b) Prof. Adam Smith
c) Prof. Marshall
d) Prof. J.K. Mehta
Answer: b

Question: Which of the following is a microeconomic concept?
a) The reasons 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
Answer: b

Question: All newspaper headlines are positive statements. Choose from the options below.
a) True
b) False
c) Partially true
d) Incomplete statement
Answer: c

Question: 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
Answer: a

Question: Positive economic analysis deals with things __.
a) ‘as they ought to be’
b) ‘as they are’
c) Both (a) and (b)
d) None of the options
Answer: b

Question: The word ‘micro’ was firstly used by:
a) Marshall
b) Boulding
c) Ragnar Frish
d) Keynes
Answer: c

Question: Under a free economy, prices are:
a) Regulated
b) Determined through free interplay of demand and supply
c) Partly regulated
d) None of the options
Answer: b

Question: Which of the following subject matter is studied in microeconomics?
a) Money supply
b) Aggregate demand
c) Market demand of a good
d) National income
Answer: c

Question: Mention the name of the curve which shows economic problem:
a) Production Possibility Curve
b) Demand Curve
c) Indifference Curve
d) Production Curve
Answer: a