Economics M.C.Q (1 Marks)

1. Adam Smith

3. Adam Smith.

3. Government.

2. Scarcity at any point of time due to limited amounts of productive resources.

1. Earthquake destroying resources of the country.

2. Freedom of enterprise.

2. Brain drain of younger worker.

4. Theory of investment multiplier.

3. Was demonetisation justified?

4. Income from the railways.

1. Excessive income.

3. Monetary Policy.

2. Output of firm.

2. Resources are not equally efficient for production of the two goods.

3. A movement from point F to point C.

3. For whom to produce?

4. ₹ 330.

2. Shift to left.

Explanation:

When the resources are destroyed or there is a use of outdated technology, then production of an economy goes down and as a result production possibility curve will shift to left.

2. The production possibilities frontier shifts upward.

2. Diminishing.

2. Utility.

2. Concave.

1. Macroeconomics depends on micro economics.

4. Production possibilities curve.

2. Concave.

2. Interrelated to each other.

2. Technological advancement.

4. The choice of goods and services.

1. Both (a) and (c).

1. Fuller utilisation of resources.

2. How to produce

3. For whom to produce

2. The pleasure that could have been enjoyed watching TV instead.

4. 'Implies that consumers' wants will never be completely satisfied.

1. What to produce?

4. 20 lakh sarees.

2. Technique of production.

4. Allocating scarce resources in such a manner that society's unlimited needs or wants are satisfied in the best possible manner.

4. All of the above.

1. Microeconomic theory.

1. Infinite production possibilities exist

3. concave to the point of ‘O’.

1. Downward slopping concave to the origin

1. Wants exceed the resources available For to satisfy theme.

4. Both (a) and (b).

Explanation:

The production possibility curve will shift rightward under the following two conditions:

1. Growth of natural resources in the economy.
2. Technological advancement due to import or research and development.

3. Economy

2. Increasing MRT.

Explanation:

Production possibility curve is concave to the origin because of increasing MRT, i.e. increasing marginal opportunity cost which implies that for producing an additional unit of a good, sacrifice of units of other good goes on increasing.

4. Transformation curve.

1. What goods to produce and how much to produce.

1. All of the above

3. Constant.

3. Economy.

4. All of the above

4. All of the above

4. That which we forgo, or give up, while making a choice or a decision.

2. Production possibility curve.

2. Aggregate demand and aggregate supply.

1. National income.

3. How producers and consumers interact in individual market?

4. All of the above

4. Economic aggregates.

1. Labour surplus economy.

4. For whom to produce?

3. Economy.

3. Consumer preference.

1. Demand for goods exceeds its supply.

3. Private ownership and public ownership over means of production co-exist.

1. Shifts to the Right.

3. Opportunity costs are constant.

2. A straight line.

2. 2.5

4. All of the above

4. All of the above

2. 1000kg rice.

Explanation:

Opportunity cost of producing 1500kg pulses is production of 1000kg rice sacrificed.

4. Straight line.

1. Shifts inward

3. Market demand.

1. Positive.

3. The problem of choice under scarcity.

4. All of the above

3. MU1 = MU2

3. Straight line.

​​​​​​​Explanation:

In the above schedule, the MRT is 5 units of goods 'B' sacrificed to produce 1 unit of goods ‘A’. MRT is constant therefore production possibility curve is a straight line negatively sloped.

4. All of the above

4. All of these.

2. Capital surplus economy.

1. Diminishing opportunity cost.

3. Point R

4. All of the above.

4. Point S

4. D.

4. A movement from a point inside the PPF to a point on the PPF.

1. Point N to M

1. 3

3. Improvement in technology in both good X and good Y

3. Production of more units of good X and less units of good Y.

4. Goods and services are produced at least cost and no resources are wasted.

4. All of the above

4. All of the above.

2. Market economy.

2. PPC will shift towards left.

3. An outward shift.