CBSE Class 12 Economics Microeconomics MCQs Set 04

Question: 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
Answer: b

Question: Which of the following is not concerned with the problem of choice?
a) Excessive income
b) Alternative use of resources
c) Unlimited wants
d) Limited (scarce) resources
Answer: a

Question: 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
Answer: a

Question: Which Economist divided Economics in two branches of micro and macro on the basis of economic activity?
a) Marshall
b) Ricardo
c) Ragnar Frish
d) None of the options
Answer: d

Question: 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 the options
Answer: c

Question: Consuming two goods, consumer attains equilibrium when:
a) MU₁ > MU₂
b) MU₂ > MU₁
c) MU₁ = MU₂
d) TU₁ = TU₂
Answer: c

Question: Which of the following is the salient feature of factors (or resources)?
a) These are limited as compared to wants
b) These have alternative uses
c) Both (a) and (b)
d) None of the above
Answer: c

Question: What satisfying power of commodity is called:
a) Consumption
b) Utility
c) Production
d) Value addition
Answer: b

Question: __ of resources is necessary for the development of the economy.
a) Utilisation
b) Growth
c) Wastage
d) Non-utilisation
Answer: b

Question: 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
Answer: c

Question: On which base structure of economic problems has been installed?
a) Unlimited Wants
b) Limited Resources
c) Both a and b
d) None of the above
Answer: c

Question: 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
Answer: b

Question: Micro Economics includes:
a) Individual unit
b) Small units
c) Individual price determination
d) All of these
Answer: d

Question: The activities which are linked with use of goods and services for the satisfaction of wants directly are known as:
a) production
b) consumption
c) distribution
d) exchange
Answer: b

Question: 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
Answer: b

Question: 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
Answer: d

Question: Under the Inductive method, the logic proceeds from:
a) General to particulars
b) Particular to general
c) both a and b
d) None
Answer: b

Question: Consumer behaviour is studied in:
a) Micro Economics
b) Income Theory
c) Macro Economics
d) None of the options
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: a

Question: What is known as the study of individual units?
a) Macroeconomics
b) Microeconomics
c) Income and Employment Theory
d) Development economics
Answer: b

Question: Which economic problem involves selection of category of people who will ultimately consume the goods?
a) For whom to produce
b) How to produce
c) What to produce
d) None of the options
Answer: a

Question: Which of the following is not an example of macroeconomics?
a) National income
b) Unemployment
c) Population growth
d) None of the above
Answer: d

Question: 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
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: Positive economic analysis is concerned with:
a) Opinions
b) Value judgements
c) Facts and Figures
d) Ideals
Answer: c

Question: 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
Answer: d

Question: What is the name of the book written by J.M. Keynes?
a) Wealth of Nation
b) Political economy
c) The General Theory of Employment, Interest and Money
d) None of the options
Answer: c

Question: 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
Answer: c

Question: 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
Answer: a

Question: There is ……… degree of aggregation in macroeconomics.
a) constant
b) lower
c) higher
d) no
Answer: c

Question: 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
Answer: c