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.
21. Which of the following is incorrect?
(A) Microeconomics is concerned primarily with the problem of what , how
and for whom to produce
(B) Microeconomics is concerned primarily with the economic behavior of
individual decision making units when at equilibrium
(C) Microeconomics is concerned primarily with the time path and processes
by which one equilibrium position evolves into another
(D) Microeconomics is concerned primarily with comparative statics rather
than dynamics.
Answer:C
22. Which of the following statements is most closely associated with general equilibrium 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
Answer:A
23. The meaning of the word ‘economic’ is most closely associated with the word:
(A) Free
(B) Scarce
(C) Unlimited
(D) Unrestricted
Answer:B
24. 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
Answer:C
25. 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
Answer:B
26. The word micro was first used in Economics by:
(A) Keynes
(B) Ragnar Frisch
(C) J.R.Hicks
(D) Marshall
Answer:B
27. 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.
Answer:D
28. 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
Answer:A
29. The subject matter of economics is the study of:
(A) Wealt
(B) Welfare
(C) Scarcity
(D) Scarcity and Choice
Answer:D
30. To whom do you attribute the ‘growth’ definition of economics?
(A) Paul Samuelson
(B) Lionel Robbins
(C) Milton Friedman
(D) Alfred Marshall
Answer:A
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