Introduction to Economics - Online Test
Q1. An economy always produces on, but not inside a PPC.
Answer : Option B
Explaination / Solution:
When an economy produces on PPC it mean there is no unemployment and all the resources are fully and being used efficiently but practically . If there is unemployment or inefficient use of resources an economy will operate inside the PPC.
Q2. The study of jute industry is a macroeconomic study. This statement is
Answer : Option B
Explaination / Solution:
Micro economics deals with determination of prices and quantities in individual markerts and with the relationship among these markets.
Q3. Price determination of a commodity is a subject matter of microeconomics.
Answer : Option A
Explaination / Solution:
Micro economics deals with the behaviour of individual economic units such as consumers and business firm and is concerned with the determination of relative prices of commodities and factors of production.
Q4. The study of general price level is a macroeconomic study. This statement is
Answer : Option D
Explaination / Solution:
Macro economics is concerned with variables as the aggregate volume of output of an economy, with extent to which resources are employed, with the size of national income and with general price level.
Q5. Which central problem explains ‘who gets more and who gets less’?
Answer : Option D
Explaination / Solution:
This problem refers to selection of the category of people who will ultimately consume the goods, i.e. whether to produce goods for more poor and less rich or more rich and less poor. Since resources are scarce in every economy, no society can satisfy all the wants of its people. Thus, a problem of choice arises.
Q6. Any allocation of resources result in
Answer : Option D
Explaination / Solution:
Resource allocation arises as an issue because the resources of a society are in limited supply, whereas human wants are usually unlimited, and because any given resource can have many alternative uses.
Q7. Who gets how much in an economy is best described by which of the following central problems?
Answer : Option A
Explaination / Solution:
For whom to produce refers to selection of the category of people who will ultimately consume the goods, i.e. whether to produce goods for more poor and less rich or more rich and less poor. Since resources are scarce in every economy, no society can satisfy all the wants of its people.
Q8. The positive economic analysis deals with the variables
Answer : Option B
Explaination / Solution:
Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories.
Q9. Microeconomics studies the behaviour of
Answer : Option D
Explaination / Solution:
The term Micro Economics is derived from the Greek work “Mikros” which means “Small”. Micro economics gives a detailed analysis of one part of the economy or society. It studies the behaviour of individual units of the economy, such as households, firms, industries and markets.
Q10. The subject of a Microeconomic study is
Answer : Option B
Explaination / Solution:
Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms
