Question

Multiple Choice Questions (MCQs)

1. The law of scarcity:

(a) Does not apply to rich, developed countries.

(b) Applies only to the less developed countries.

that consumers want will be satisfied in a socialistic system.

(C) Implies (d) Implies that consumers wants will never be completely satisfied.

2. Assume that a PPF for butter and guns is drawn so that it is a straight line. It means:

Less and less units of butter are sacrificed to gain an additional unit of gun.

More and more units of butter are sacrificed to gain an additional unit of gun.

Same units of butter are sacrificed to gain an additional unit of gun.

(a) (b) (c) (d) None of these

3. Which of these is not an assumption of PPC?

(a) Resources are fully and efficiently utilised (b) Resources in the economy are fixed (c) There is no change in level of technology (d) Resources are equally efficient in production of all products

4. In which situation, can PPC be a straight line:

(a) When MRT is decreasing (c) When MRT is constant

(b) When MRT is increasing (d) None of these

5. Which of these economic problem deals with technique of production?

a) What to Produce (c) For whom to Produce

(6) How to Produce (d) None of these

6. Ramesh is working at a salary of 35,000 per month. He receives two job offers: (1) To work as an accountant at a salary of 30,000 per month: (ii) To work as a sales manager at a salary of 25,000 per month. In the given case, his opportunity cost will be:

(a) 25,000 (c) 35,000

7. PPF is concave to the origin because of:

(a) Increasing MRT (c) Constant MRT

8. An economy operate on PPF when there is:

(a) Optimum utilisation of resources (c) Underemployment of resources

(b) 30,000 (d) 65,000

(b) Diminishing MRT (d) None of these

(6) Inefficient use of resources

d) None of these

9. Identify the central problem which deals with deciding the quantity of goods to be produced:

(a) What to Produce (c) For whom to Produce

10. Scarcity refers to limitation of (a) Demand, Sale (c) Supply, Demand

(b) How to Produce (d) None of these in relation to _ for a commodity.

(b) Demand, Supply (d) None of these
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Answer 1

Answer:

1

d )   Implies that consumers wants will never be completely satisfied.

2  same units of butter are sacrificed to gain an additional unit of gun.

3  a)  Resources are fully and efficiently utilised

4   When MRT is constant

5  how to produce

6 a ) 25000

7 (a) Increasing MR

8  (a) Optimum utilisation of resources

9 What to Produce

10  Supply in relation to Demand for a commodity ,None of these in relation to _ for a commodity.

Answer 2

Answer:

1 D. 5 B. 6 C. 8 A. 9 A. 10 C.

Explanation:

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