Top 150+ Solved Principles of Micro Economics MCQ Questions Answer
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. Which of the following statements is most closely associated with generalequilibrium analysis?
a. everything depends on everything else
b. the equilibrium price of a factor depends on the balancing of the forces of demand and supply for that factor
c. the equilibrium price of a good or service depends on the balancing of the forces of demand and supply for that good or service
d. none of these
Q. The meaning of the word ‘economic’ is most closely associated with the word:
a. free
b. scarce
c. unlimited
d. unrestricted
Q. The market equilibrium for a commodity is determined by
a. the market demand for the commodity
b. the market supply of the commodity
c. the balancing of the forces of demand and supply for the commodity
d. any of these
Q. Microeconomics studies the decision making behavior of:
a. society as a whole
b. an individual or household
c. a group of individuals
d. economy as a whole
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 independent variables.
Q. The validity of an economic theory is judged by its power to:
a. explain an economic phenomenon
b. predict the course of an economic phenomenon
c. prove or disprove a hypothesis
d. reveal the economic laws
Q. The subject matter of economics is the study of:
a. wealth
b. welfare
c. scarcity
d. scarcity and choice
Q. To whom do you attribute the ‘growth’ definition of economics?
a. paul samuelson
b. lionel robbins
c. milton friedman
d. alfred marshall
Q. The first economist who coined the terms micro economics andmacroeconomics
a. ragnar frisch
b. keynes
c. marshall
d. friedman
Q. Microeconomics deals with:
a. the theory of factor pricing
b. the theory of product pricing
c. the theory of economic welfare
d. all the above