KENDRIYA VIDYALAYA SANGATHAN REGIONAL

OFFICE, AGRA
SUBJECT: ECONOMICS
CLASS: XI
MICRO ECONOMICS
UNIT 1

Q.NO. QUESTIONS Marks

1. CASE STUDY 1
COVID-19 impact on employment: Corona virus pandemic
brought the economy of India to a halt over the past one year, and
numerous people have lost their jobs, especially women. A recent
study in Delhi found that in eight months, the unemployment rate
in the national capital increased by 17%, with about 83% of
women respondents choosing to permanently opt out of
participating in the workforce. A similar trend has been observed
throughout the country and this at a time when the participation of
women was already declining in the workforce with each passing
year.

As per Centre for Monitoring Indian Economy (CMIE) estimates,

between mid-2016 and early 2020, the female labour participation
rate, which is the percentage of women working out of all women
falling in the working age, fell from 16.4% to about 11%. And
now, it has been estimated that this number might have further
been pushed this figure down to 9% due to the pandemic.

Work from home has been seen as less productive for women
because of added household chores and irregular hours. Children’s
education is also the purview of mothers. With reduced revenues
and uncertain future, most organizations are going for job
 rationalization, which is likely to affect women more as even
employers are questioning the women’s ability to work with
children at home and prefer to employ those without such
responsibilities.
Due to pandemic, PPC of the economy will shift to..........
A.Downwards
B.Upwards
C.No change
D.All the above
Ddecline in the number Of working women shows.........
2. 1
A.Growth of resources
B.Underutilization of resources
C.Full utilization of resources
D.None of these
In the above mentioned situation, the production in the
3 1
economy will be........
A.On PPC
B.Above PPC
C.Below PPC
D.All the above
In order to produce at PPC and full utilization of
4 1
resources.............
A.Gender gap for employment opportunities should be increased.
B.Gender gap for employment opportunities should be minimized.
C.Both (a) and (b)
D.None of the above.
Which of the following is studied under Micro Economics?
5 1
A. Individual unit
B. Economic Aggregate
C. National Income
D.None of these

Which of the following statement is not true?

6 1
A.Human wants are infinite
B.Resources are limited
C.Scarcity problem gives birth to choice.
D.All wants can be fulfilled.
 Which is not a central problem of an economy?
7 1
A.Allocation of Resources
B.Optimum Utilization of Resources
C.Nneeds maximization
D.Economic Development

The slope of a production possibility curve falls:

8 1
A.From left to right
B.From right to left
C.From top to bottom
D.From bottom to top

Production Possibility Curve is:

9 1
A.Concave to the axis
B.Convex to the axis
C.Parallel to the axis
D.Vertical to the axis

Mention the name of the curve which shows economic

10 1
problem:
A.Production Curve
B.Demand Curve
C.Indifference Curve
D.Production possibility curve

Which of the following is not studied under Macro

11 1
Economics?
A.National Income
B.Full Employment
C.Total Production
D.Mobile Industry

Iimprovement in resources leads to shift in PPC.......

12 1
A.Upward
B. Downward
C. No change
D. Straight line
13 The reason for downward shape of production possibility 1
curve is:
A.Increasing opportunity cost
B.Decreasing opportunity cost
C.Same opportunity cost
D.Negative opportunity cost
14 Read the following statements (A) Assertion and (R) Reason. 1
Choose the correct alternative given below.
Assertion (A) Cloth market is a study under the micro
economics.
Reason(R) A market is an individual unit not the whole
economy.
(1) Both assertion and reason are true and reason is correct
explanation of assertion.
(2) Both assertion and reason is true but reason is not the correct
explanation of assertion.
(3)Assertion is false; reason is true.
(4) Assertion is true: reason is false.

15 Read the following statements (A) Assertion(R) Reason. 1

Choose the correct alternative given below.
Assertion (A) Backward technology shifts PPC Upwards.
Reason(R) Backward technologies increase the productivity of
resources.

(1) Both assertion and reason are correct and reason is not correct
explanation of assertion.
(2)Both assertion and reason are incorrect or false.
(3)Assertion is correct and reason is false.
(4)Both assertion and reason is correct and reason is correct
explanation of assertion.
`16 Why does an economic problem arise? Explain. 3/4

Explain the problem -How to produce?

17 3/4

18 What does the problem for whom to produce refer to? 3/4
ANSWER KEY
QUESTION ANSWERS
NO.
1 (a) Downwards
2 (B) Underutilization of resources
3 (C)Below PPC
4 (B) Gender gap for employment opportunities should be
minimized.
5 (A) Individual unit
6 (D)All wants can be fulfilled.
7 (C) Needs maximization
8 (B) From right to left
9 (A)Concave to the axis
10 (D)Production possibility curve
11 (D)Mobile Industry
12 (A) Upward

13
(A)Increasing opportunity cost
14 (1) Both assertion and reason are true and reason is correct
explanation of assertion.
16 Reasons-
1. Unlimited wants - Human wants go on multiplying with the
expansion of Education, knowledge,
Scientific advancement and economic growth. A man can not
satisfy all of his wants and therefore he has to make a choice in
order of urgency.
2. Limited resources - The resources are limited in relation to
need for them. It is the main cause of economic problem.
3. Alternative use of resources - A resource can be utilized in a
different way and for different purposes. Therefore choice has
to be made among different uses of Resources.

17 Broadly, there are two techniques of production.

a. Labour intensive Technique: Under this technique,
production depends more on the use of labour.
b. Capital Intensive Technique: Under this technique,
production depends more on the use of machines (called capital)
efficient technique of production is that which Uses minimum
possible inputs for a given amount of output. So that, cost per
unit of output is minimize.

18 This is essentially the problem of distribution of income between

the different groups of the society. This problem has limited
resources. Because of scarcity, city of resources, producers are
unable to produce everything in desired quantity. But they will
have to make a choice as to which one is important as a whole,
so that limited resources can be rationally managed.