NAME:

HOMEROOM:
SUBJECT: ECONOMICS

INTRODUCTORY MICROECONOMICS
CHAPTER-1
INTRODUCTION TO ECONOMICS & ECONOMIC PROBLEM
Q1) Which of the following is a microeconomic study? (Choose the correct alterna ve)
(a) General price level (b) Money supply
(c) Co on tex le industry (d) Foreign exchange rate
Q2) Which of the following is an example of posi ve economics? (Choose the correct alterna ve)
(a) India should take steps to control rising prices
(b) There are inequali es of income in our country.
(c) India should control its rising popula on.
(d) Income inequali es should be reduced.
Q3) Giving reason, classify the following statements into posi ve or norma ve economics:
(a) The COVID-19 crisis has led to an increase in the country's unemployment rate to 27.11%.
(b) Subsidies should be o ered very carefully.
Q4) Match the terms given in column A with the correct op ons given in column B.

Q5) Iden fy the central problem which deals with deciding the quan ty of goods to be produced. (Choose
the correct alterna ve)
(a) What to Produce (b) How to Produce
(c) For whom to Produce (d) None of these
Q9) Discuss the central problem which deals with the ‘choice of technique’ of produc on.
Q10) An economy achieves “produc ve e ciency” when:
(a) Resources are employed in their most highly valued uses.
(b) The best resources are employed.
(c) The total number of produced goods is the greatest.
(d) Goods and services are produced at least cost and no resources are wasted.
Using the gure gives below answer the following (Q 11 to Q13)
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NAME:
HOMEROOM:
SUBJECT: ECONOMICS

Q11) Which point on PPF shows a “produc vely e cient” level of output?
(a) A (b) B
(c) C (d) All of the above.

Q 12) Which of the following clearly represents a movement toward greater produc ve e ciency?
(a) A movement from point A to point B.
(b) A movement from point C to point D.
(c) A movement from point F to point C.
(d) A movement from point E to point B.

Q 13) Which one of the following alterna ves illustrate a decrease in unemployment using the PPF?
(a) A movement down along the PPF.
(b) A rightward shi of the PPF.
(c) A movement from a point on the PPF to a point inside the PPF.
(d) A movement from a point inside the PPF to a point on the PPF.

Q14) If the PPF is linear, i.e., a straight line, which one of the following statements is true?
(a) As the produc on of a good increases, the opportunity cost of that good rises.
(b) As the produc on of a good increases, the opportunity cost of that good falls.
(c) Opportunity costs are constant.
(d) The economy is not at full employment when opera ng on the PPF.

Q15) Which one of the following statements is a reason for the nega ve slope of PPF?
(a) The inverse rela onship between the use of technology and the use of natural resources.
(b) Scarcity at any point of me due to limited amounts of produc ve resources.
(c) Resource specialisa on.
(d) Increasing opportunity costs.

Q16) Which one of the following op ons is likely to cause an inward shi in a country’s PPC?

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NAME:
HOMEROOM:
SUBJECT: ECONOMICS

(a) Earthquake destroying resources of the country.

(b) Scien sts discovering new machines.
(c) Workers ge ng jobs in a new metro- project.
(d) The country nds new reserves of crude oil.
Q17) Which of the following is an assump on of Produc on Possibility Fron er?
(a) Resources are not fully employed.
(b) Resources are not equally e cient for produc on of the two goods.
(c) Resources are not e ciently employed.
(d) Resources available are not xed.
Q18) Why does an economic problem arise? Give reasons.
Q19) Discuss the central problem which deals with the ‘choice of technique’ of produc on.

Q20) Give any four reasons for outward shi in PPC.

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