Question

Multiple-Choice Questions
MO
1. Which one of the following is a microeconomic study?
(a) Price level
(b) Money supply
(c) Cotton textile Industry
(d) Foreign exchange rate


2. Which of the following best describes an economic problem?
(a) Problem of making optimum utilisation of resources (b) Making choice in the presence of scarcity
(c) Problem of choice of technique of production
(d) Problem of resource allocation


3. Which of the following is not a micro-economic study?
(a) Determination of price of a commodity
(b) Study of the manufacturing sector
(c) Determination of wage-rate of computer engineers (d) Determination of cost of a product


4. The central problems arise in .....
(a) Capitalist economies
(b) Socialist economies
(C) all economies
(d) mixed economies


5. Capital intensive technique would be chosen in an economy in which...
(a) rate of interest is high
(b) capital is surplus
(c) labour is surplus
(d) capital formation is taking place


6. The central problem of Forwhom to produce?' concerns with ..........
(a) whether rich or poor will purchase the commodities (b) who will purchase the commodities
(C) the distribution of national income
(d) none of these


7. PPC shifts rightward when there is....... ... In the economy.
(a) growth of resources and improvement in technology (b) underutilisation of resources
(c) improvement in technology
(d) efficient utilisation of resources


8. If there is unemployment in the economy we would be producing .............
be producing ................... the PPC.
(a) inside
(b) outside
(c) on
(d) none of these


9. If the marginal rate of transformation is constant, the PPC would be....
(a) convex to the origin
(b) straight line
(c) concave to the origin
(d) none of these


10. Which of the following will lead to a leftward shift of PPC?
(a) Growth of resources
(6) Efficient utilisation of resources
(c) inefficient utilisation of resources
(d) Decrease in resources


11. Which of the following statements is true?
(a) Massive unemployment shifts the PPC to the left.
(b) In an economy, production takes place only on the PPC.
(C) The concavity of PPC implies diminishing MRT.
(d) Reduction in unemployment helps the economy in realising its production potential.


12. Name the economic value achieved through the spread of education in the context of production potential.
(a) Increase in efficiency
(b) Effective utilisation of resources
(c) Economic growth
(d) All of these


13. Which of the following statements is false?
(a) A point above the PPC represents increase in resources.
(b) Due to unemployment production in the economy is below its potential.
(c) PPC shows what an economy can potentially produce, and not what it actually produces
(d) Inflow of foreign capital will cause rise in production potential leading to economic growth.​

Answer 1

Answer:

1-Price level

2-Making choice in the presence of scarcity

3-Determination of cost of a product

4-all economies

5-capital is surplus

6-whether rich or poor will purchase the commodities

7-efficient utilisation of resources

8-outside

Answer 2

Multiple-Choice Questions

Explanation:

1. Which one of the following is a micro-economic study?

(a) Price level

2. Which of the following best describes an economic problem?

(b) Making choice in the presence of scarcity

3. Which of the following is not a micro-economic study

(b) Study of the manufacturing sector

4. The central problems arise in .....

(C) all economies

5. Capital intensive technique would be chosen in an economy in which...

(b) capital is surplus

6. The central problem of For whom to produce?' concerns with ..........

(a) whether rich or poor will purchase the commodities

7. PPC shifts rightward when there is....... ... In the economy

(a) growth of resources and improvement in technology

8. If there is unemployment in the economy we would be producing ................... the PPC

(a) inside

9.  If the marginal rate of transformation is constant, the PPC would be....

(b) straight line

10. Which of the following will lead to a leftward shift of PPC?

(c) inefficient utilisation of resources

11. Which of the following statements is true?

b) Reduction in unemployment helps the economy in realising its production potential.

12) Name the economic value achieved through the spread of education in the context of production potential.

(d) All of these

13)  Which of the following statements is false?

(a) A point above the PPC represents increase in resources