Top 350+ Solved Micro Economics 1 MCQ Questions Answer
Q. Which of the following embodies a more widely accepted definition of economics?
a. Science of material welfare
b. Science of wealth
c. A study of mankind in the ordinary business of life
d. Science of making choice.
Q. The fundamental problem faced by an economy is one of :
a. Exchange
b. Decision making by the government
c. Economic welfare
d. Scarcity of resources and multiplicity of wants.
Q. Production possibilities curve does not show:
a. What to produce
b. How to produce
c. For whom to produce
d. Productive potential under conditions of underemployment
Q. State whether Economics is :
a. A positive science only
b. Neither a positive science
c. A science but not art
d. A science or an art depending on who uses Economics and for what
Q. Who of the following emphasized the normative aspect of Economics as a science?
a. The English classical school
b. Lionel Robbins
c. The German historical school
d. None of these.
Q. Of the following economists who is considered as master of partial analysis?
a. Alfred Marshall
b. A.C.Pigou
c. J.M.Keynes
d. J.S.Mill.
Q. Which of the following statements has been drawn by inductive method?
a. A consumer will buy from the cheapest market
b. All businessmen wish to buy at low price and sell at high price
c. A private firm will try to maximize its profits
d. The larger the stock of money with a person, the lower is the utility that he
Q. What is true for deductive method?
a. Abstract
b. Realistic
c. Economic conditions assumed to be changing
d. Supported by historical school.
Q. What is true for inductive method?
a. Hypothetical
b. Empirical
c. Ignores experimentation
d. Static
Q. Find out the correct statement:
a. Prediction of economic models cannot be refuted by empirical evidence
b. Models transform verbal expressions in to more scientific expressions
c. Models make no assumptions
d. Economic models are comprehensive and not partial
Q. Micro economic theory studies how a free enterprise economy determines:
a. The Price of goods
b. The price of services
c. The price of resources
d. All of these.
Q. Which aspect of taxation involves normative economics?
a. The incidence of the tax
b. The fairness of the tax
c. The effect of the tax on incentives to work
d. All of the above
Q. Microeconomics deals primarily with:
a. Comparative statics, general equilibrium and positive economics
b. Comparative statics, partial equilibrium and normative economics
c. Dynamics, partial equilibrium and positive economics
d. Comparative statics, partial equilibrium and positive economics.
Q. The word micro was first used in Economics by:
a. Keynes
b. Ragnar Frisch
c. J.R.Hicks
d. Marshall
Q. A function refers to :
a. The demand for a commodity
b. The supply of a commodity
c. The demand and supply of a commodity service or resource
d. The relationship between one dependent variable and one or more