Micro Economics
Multiple Choice Questions on Economics
1. Micro economics theory deals with
(a) Economic behavior of individual economic decision making units;
(b) Economy as a whole ; (c) Trade relations ; (d) Economic growth
of the society
2. Which of the following is a central problem of every economy
(a) Abundance of resources ; (b) Scarcity of economic resources ; (c)
Poverty;
(d) Moral and ethical values
3. Equilibrium relates to which of these
(a) Market condition which oscillate ; (b) Market state of falling price;
(c) Market condition of rising price ; (d) Market conditions which
once achieved tends to persist
4. General equilibrium analysis refers to
(a) Behaviour of individual economic decision making units and
individual markets in isolation;
(b) Behaviour of all the individual decision making units and market
viewed in totality;
(c) Both ; (d) (d) none
5. Normative economic theory deals with
(a) What is or how the economic problem facing the society are solved;
(b) How the problem should be solved ; (c) What to Produce ; (d)
How to produce
6. In a mixed economy which sector(s) is/ are found
(a) Private Only ; (b) Public sector only ; (c) None ; (d) Both a and b
7. In economic theory the term “means” refers to
(a) Resources ; (b) Arithmetic mean ; (c) A characteristic ; (d) None
8. Market equilibrium of a commodity is determined by
(a) Balancing of demand and supply position ; (b) Aggregate demand
; (c) Aggregate supply;
, (d) Government intervention
9. Cetris Paribus means
(a) Holding demand constant ; (b) Holding supply constant ; (c) Price
being constant;
(d) Other things being constant
10. Economic resources are
(a) Unlimited ; (b) Limited in supply and use ; (c) Limited in supply but
have alternative uses;
(d) Unproductive
11. Which of the following is/ are not an economic resource
(a) Land ; (b) Capital ; (c) Labour ; (d) Air
12. Which of the following is/ are an
economic resource
(a) Land ; (b) Capital ; (c) Labour ;
(d) All the three
13. Which of the following is/ are a non-economic resource
(a) Air (b) Water ; (c) Sunlight ; (d) All the three
14. Which of these resources would be called as land in economics
(a) Coal mines of Bihar ; (b) Water resources of Uttaranchal ; (c)
Mineral deposits of Jharkhand;
(d) All the three
15. Which of these is not land in economics
(a) Tehri Dam ; (b) Forest reserves of Assam ; (c) Fish reserves in the
Bay of Bengal;
(d) Herbal plant of Uttaranchal
16. Which of these would be classified as capital in economics
(a) Bhankra Dam ; (b) Indira canal ; (c) Golden triangle ; (d) All the
three
17. Capital in economics means
(a) Factor of production ; (b) Fund brought in by the entrepreneur;
(c) Investment in shares, bank deposits ; (d) All the above
,18. Scarcity of resources leads to
(a) Unsatisfaction of human wants ; (b) Evaluation of alternative uses of
scarce resources;
(c) Both ; (d) None
19. Who defined economics as “ Science which deals with wealth”
(a) J. (B) Say ; (b) (A) (C) pigou ; (c) Alfred Marshall ; (d) Robbins
20. Economics cannot be considered a perfect science because
(a) Human behaviour is unpredictable
(b) It is difficult to make correct prediction of economic variables
(c) Economist do not have common opinion about a particular
economic event
(d) All the three
21. In economic goods includes material things which……….
(a) Can be transferred ; (b) Can be exchanged for one another ;
(c) Both ; (d) None
22. In economic wealth is the stock of all those material and immaterial
objects which……...
(a) Are transferable ; (b) Have utility ; (c) Are scarce ; (d) All the
three
23. In addition to three Central problem of economy, the additional
problem(s) raised by the Modern economists is / are
(a) Are the resources fully utilized or not ;
(b) How efficient is the production and distribution system;
(c) Whether the capacity to produce or grow is increasing or is static ;
(d) All the three
24. The basic assumption of an economic analysis is/ are
(a) Cetris paribus ; (b) Rational behavior ; (c) Both ; (d) None
25. The terms Micro economic and Macro economics were coined by
(a) Professor A Samulson ; (b) Giffen ; (c) Prof. Ragner Frisch ; (d)
Eagle
26. is known as father of economics
, (a) Adam Smith ; (b) Professor A Samulson ; (c) Alfred Marshall ; (d)
J R Hicks
27. Which of these are outside the domain of macro economics
(a) Consumer behavior ; (b) National income ; (c) Economic growth;
(d) Balance of payment and trade
28. Scarcity of resources means
(a) Limited resources ; (b) Non – esxistence of resources ; (c) Both ;
(d) None
29. Human wants are
(a) Unsatisfiable ; (b) Unlimited ; (c) Undefined ; (d) Limited
30. Economics cannot be given the status of science because
(a) Of non-uniformity of opinion and approach of economist;
(b) Economic behaviour of human being is unpredictable;
(c) Measuring rod of money is unstable ; (d) All the three
31. Which of the following is not a central problem of a society
(a) What to produce ; (b) How to produce ; (c) For whom to produce ;
(d) Where to produce
32. The paradox of Diamond is more costly than water is explained by
(a) Marginal utility concept ;(b) Scarcity ; (c) Relative cost of
production ; (d) All the three
33. Which of these is an economic activity
(a) A father teaching his son at home instead of sending to any coaching
centre
(b) A hair dresser doing hair cut designing on payment
(c) A housewife mending her family cloths on her own
(d) A singer giving a show on his son’s wedding anniversary
34. The term “ Micro” is derived from the …….word which means……..
(a) Latin, small ; (b) Greek, small ; (c) English, tiny ; (d) Roman,
small
35. Which of the following issue relates to micro-economics
(a) Impact of crude price hike on inflation
Multiple Choice Questions on Economics
1. Micro economics theory deals with
(a) Economic behavior of individual economic decision making units;
(b) Economy as a whole ; (c) Trade relations ; (d) Economic growth
of the society
2. Which of the following is a central problem of every economy
(a) Abundance of resources ; (b) Scarcity of economic resources ; (c)
Poverty;
(d) Moral and ethical values
3. Equilibrium relates to which of these
(a) Market condition which oscillate ; (b) Market state of falling price;
(c) Market condition of rising price ; (d) Market conditions which
once achieved tends to persist
4. General equilibrium analysis refers to
(a) Behaviour of individual economic decision making units and
individual markets in isolation;
(b) Behaviour of all the individual decision making units and market
viewed in totality;
(c) Both ; (d) (d) none
5. Normative economic theory deals with
(a) What is or how the economic problem facing the society are solved;
(b) How the problem should be solved ; (c) What to Produce ; (d)
How to produce
6. In a mixed economy which sector(s) is/ are found
(a) Private Only ; (b) Public sector only ; (c) None ; (d) Both a and b
7. In economic theory the term “means” refers to
(a) Resources ; (b) Arithmetic mean ; (c) A characteristic ; (d) None
8. Market equilibrium of a commodity is determined by
(a) Balancing of demand and supply position ; (b) Aggregate demand
; (c) Aggregate supply;
, (d) Government intervention
9. Cetris Paribus means
(a) Holding demand constant ; (b) Holding supply constant ; (c) Price
being constant;
(d) Other things being constant
10. Economic resources are
(a) Unlimited ; (b) Limited in supply and use ; (c) Limited in supply but
have alternative uses;
(d) Unproductive
11. Which of the following is/ are not an economic resource
(a) Land ; (b) Capital ; (c) Labour ; (d) Air
12. Which of the following is/ are an
economic resource
(a) Land ; (b) Capital ; (c) Labour ;
(d) All the three
13. Which of the following is/ are a non-economic resource
(a) Air (b) Water ; (c) Sunlight ; (d) All the three
14. Which of these resources would be called as land in economics
(a) Coal mines of Bihar ; (b) Water resources of Uttaranchal ; (c)
Mineral deposits of Jharkhand;
(d) All the three
15. Which of these is not land in economics
(a) Tehri Dam ; (b) Forest reserves of Assam ; (c) Fish reserves in the
Bay of Bengal;
(d) Herbal plant of Uttaranchal
16. Which of these would be classified as capital in economics
(a) Bhankra Dam ; (b) Indira canal ; (c) Golden triangle ; (d) All the
three
17. Capital in economics means
(a) Factor of production ; (b) Fund brought in by the entrepreneur;
(c) Investment in shares, bank deposits ; (d) All the above
,18. Scarcity of resources leads to
(a) Unsatisfaction of human wants ; (b) Evaluation of alternative uses of
scarce resources;
(c) Both ; (d) None
19. Who defined economics as “ Science which deals with wealth”
(a) J. (B) Say ; (b) (A) (C) pigou ; (c) Alfred Marshall ; (d) Robbins
20. Economics cannot be considered a perfect science because
(a) Human behaviour is unpredictable
(b) It is difficult to make correct prediction of economic variables
(c) Economist do not have common opinion about a particular
economic event
(d) All the three
21. In economic goods includes material things which……….
(a) Can be transferred ; (b) Can be exchanged for one another ;
(c) Both ; (d) None
22. In economic wealth is the stock of all those material and immaterial
objects which……...
(a) Are transferable ; (b) Have utility ; (c) Are scarce ; (d) All the
three
23. In addition to three Central problem of economy, the additional
problem(s) raised by the Modern economists is / are
(a) Are the resources fully utilized or not ;
(b) How efficient is the production and distribution system;
(c) Whether the capacity to produce or grow is increasing or is static ;
(d) All the three
24. The basic assumption of an economic analysis is/ are
(a) Cetris paribus ; (b) Rational behavior ; (c) Both ; (d) None
25. The terms Micro economic and Macro economics were coined by
(a) Professor A Samulson ; (b) Giffen ; (c) Prof. Ragner Frisch ; (d)
Eagle
26. is known as father of economics
, (a) Adam Smith ; (b) Professor A Samulson ; (c) Alfred Marshall ; (d)
J R Hicks
27. Which of these are outside the domain of macro economics
(a) Consumer behavior ; (b) National income ; (c) Economic growth;
(d) Balance of payment and trade
28. Scarcity of resources means
(a) Limited resources ; (b) Non – esxistence of resources ; (c) Both ;
(d) None
29. Human wants are
(a) Unsatisfiable ; (b) Unlimited ; (c) Undefined ; (d) Limited
30. Economics cannot be given the status of science because
(a) Of non-uniformity of opinion and approach of economist;
(b) Economic behaviour of human being is unpredictable;
(c) Measuring rod of money is unstable ; (d) All the three
31. Which of the following is not a central problem of a society
(a) What to produce ; (b) How to produce ; (c) For whom to produce ;
(d) Where to produce
32. The paradox of Diamond is more costly than water is explained by
(a) Marginal utility concept ;(b) Scarcity ; (c) Relative cost of
production ; (d) All the three
33. Which of these is an economic activity
(a) A father teaching his son at home instead of sending to any coaching
centre
(b) A hair dresser doing hair cut designing on payment
(c) A housewife mending her family cloths on her own
(d) A singer giving a show on his son’s wedding anniversary
34. The term “ Micro” is derived from the …….word which means……..
(a) Latin, small ; (b) Greek, small ; (c) English, tiny ; (d) Roman,
small
35. Which of the following issue relates to micro-economics
(a) Impact of crude price hike on inflation
