Micro Economics MCQ
Micro Economics MCQ Definition: Microeconomics is the study of individuals, households and firms’ behavior in decision making and allocation of resources. It generally applies to markets of goods and services and deals with individual and economic issues.
1. The curve showing the possibilities of production of desired good is known as:
(A) Indifference curve
(B) Production possibility curve
(C) Revealed preference curve
(D) None of these
2. Which one of the following definition of Economics is associated with the name of Lionel Robbins?
(A) Welfare definition
(B) Scarcity definition
(C) Growth definition
(D) Wealth definition
3. A hypothesis is tested by:
(A) The realism of its assumptions
(B) The lack of realism of its assumptions
(C) Its ability to predict accurately an outcome that follows logically from the
(D) None of these
4. In a free enterprise economy, the problems of what, how and for whom to produce are solved by :
(A) A Planning Committee
(B) The Price mechanism
(C) The Planning Commission
(D) None of these.
5. Who considered Political Economy as “an enquiry into the nature and causes of the
wealth of nations”?
(A) Adam Smith
6. Which of the following definitions of Economics include the economic concept of
‘scales of Preferences’?
(A) Wealth definition
(B) Welfare definition
(C) Scarcity definition
(D) Growth definition
7. 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.
8. The fundamental problem faced by an economy is one of :
(B) Decision making by the government
(C) Economic welfare
(D) Scarcity of resources and multiplicity of wants.
9. 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
10. 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