MCQ Economics Class 12 Chapter 1 Introduction Microeconomics

MCQ’s For All Chapters – Microeconomics Class 12th

1. What is one of the basic economic problems faced by society?

Unlimited resources

Allocation of limited resources

Unlimited production

Elimination of choices

Question 1 of 20

2. Why does scarcity of resources give rise to the problem of choice?

Resources have no alternative uses

Resources are unlimited

Resources have competing usages

People have no needs

Question 2 of 20

3. Which of the following is a central problem of an economy?

What is produced and in what quantities

Who owns every resource

How to eliminate all production

How to increase unlimited consumption

Question 3 of 20

4. Which question is related to the problem of “How are these goods produced”?

Who gets the goods?

Which resources and technologies should be used?

What should consumers buy?

How should goods be distributed?

Question 4 of 20

5. What does the question “For whom are these goods produced?” mainly concern?

Distribution of produced goods and services

Choice of technology

Quantity of resources

Production methods only

Question 5 of 20

6. What is called the collection of all possible combinations of goods and services that can be produced from given resources and technology?

Market economy

Production possibility set

Mixed economy

Opportunity cost

Question 6 of 20

7. According to the given production possibilities, what is the maximum amount of corn that can be produced?

2 units

3 units

4 units

10 units

Question 7 of 20

8. If all resources are used in the production of cotton, what is the maximum amount of cotton that can be produced?

4 units

7 units

9 units

10 units

Question 8 of 20

9. What does a point on or below the production possibility frontier represent?

A combination that cannot be produced

A combination that can be produced

Only wasteful production

Only full employment

Question 9 of 20

10. What does a point strictly below the production possibility frontier indicate?

All resources are fully utilised

Resources are unlimited

Resources are underemployed or used wastefully

Production is impossible

Question 10 of 20

11. What is the opportunity cost of an additional unit of a good?

The total amount of resources available

The amount of another good that has to be forgone

The market price of the good

The amount of all goods produced

Question 11 of 20

12. In a centrally planned economy, who makes the important decisions regarding production, exchange and consumption?

Consumers

Producers

Government or central authority

Foreign markets

Question 12 of 20

13. What is a major feature of a market economy?

All activities are organised by the government

Economic activities are organised through the market

Production is completely controlled by one authority

Prices are fixed by households

Question 13 of 20

14. In a market system, what helps coordinate the economic activities of individuals?

Price signals

Government orders only

Unlimited resources

Population size

Question 14 of 20

15. What is likely to happen when buyers demand more of a certain good in a market system?

Its price will rise

Its production will always stop

Its price will become zero

Its resources will disappear

Question 15 of 20

16. What type of economy exists in reality where some decisions are taken by the government and economic activities are largely conducted through the market?

Centrally planned economy

Mixed economy

Closed economy

Traditional economy

Question 16 of 20

17. What does positive economic analysis study?

Whether economic mechanisms are desirable

How different economic mechanisms function

How to distribute income equally

Whether a policy is morally correct

Question 17 of 20

18. What does normative economics try to understand?

How mechanisms function

Whether economic mechanisms are desirable or not

How prices are calculated only

How resources are produced

Question 18 of 20

19. What is mainly studied in microeconomics?

The economy as a whole

Aggregate output and employment

Behaviour of individual economic agents in different markets

Total price level of the economy only

Question 19 of 20

20. Which of the following is a major focus of macroeconomics?

Behaviour of an individual consumer

Behaviour of a single producer

Aggregate measures such as total output and employment

Exchange of one particular commodity

Question 20 of 20

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