Chapter 1 Introduction to Micro

Economics with Answers

January 27, 2021 by Veerendra

Check the below NCERT MCQ Questions for Class 11 Economics Chapter 1
Introduction to Micro Economics with Answers Pdf free download. MCQ Questions
for Class 11 Economics with Answers were prepared based on the latest exam
pattern. We have provided Introduction to Micro Economics Class 11 Economics
MCQs Questions with Answers to help students understand the concept very well.

Introduction to Micro Economics Class 11 MCQs

Questions with Answers
Question 1.
Which Economist divided Economics in two branches of micro and macro on the
basis of economic activity?
(a) Marshall
(b) Ricardo
(c) Ragnar Frish
(d) None of these

Answer
Answer: (d) None of these

Question 2.
Which of the following is studied under Micro Economics ?
(a) Individual unit
(b) Economic Aggregate
(c) National Income
(d) None of these

Answer
Answer: (d) None of these
Question 3.
Which of the following economic activities are included in the subject-matter of
Economics?
(a) Economic Activities related to Unlimited Wants
(b) Economic Activities related to Limited Resources
(c) Both (a) and (b)
(d) None of these

Answer
Answer: (c) Both (a) and (b)

Question 4.
On which base structure of economic problems has been installed?
(a) Unlimited Wants
(b) Limited Resources
(c) Both (a) and (b)
(d) None of the above

Answer
Answer: (c) Both (a) and (b)

Question 5.
‘Micros’, which means ‘Small’ belongs to:
(a) Arabian word
(b) Greek word
(c) German word
(d) English word

Answer
Answer: (b) Greek word

Question 6.
Which of the following statement is true?
(a) Human wants are infinite
(b) Resources are limited
(c) Scarcity problem gives birth to choice .
(d) All of these

Answer
Answer: (c) Scarcity problem gives birth to choice

Question 7.
Which of the following is the salient feature of factors (or resources) ?
(a) These are limited as compared to wants
(b) These have alternative uses
(c) Both (a) and (b)
(d) None of the above

Answer
Answer: (c) Both (a) and (b)

Question 8.
Which is a central problem of an economy ?
(a) Allocation of Resources
(b) Optimum Utilisation of Resources
(c) Economic Development
(d) All of these

Answer
Answer: (d) All of these

Question 9.
Which of the following Is a type of economic activities ?
(a) Production
(b) Consumption
(c) Exchange and Investment
(d) All of these

Answer
Answer: (d) All of these

Question 10.
To which factor, economic problem is basically related to:
(a) Choice
(b) Consumer’s Selection
(c) Firm Selection
(d) None of these

Answer
Answer: (a) Choice

Question 11.
Economy may be classified as:
(a) Capitalist
(b) Socialist
(c) Mixed
(d) All of these

Answer
Answer: (d) All of these

Question 12.
Which economy has a co-existence of private and public sectors ?
(a) Capitalist
(b) Socialist
(c) Mixed
(d) None of these

Answer
Answer: (c) Mixed
Question 13.
The main objective of a socialist economy is…….
(a) Maximum production
(b) Economic freedom
(c) Earning profit
(d) Maximum public welfare

Answer
Answer: (d) Maximum public welfare

Question 14.
In which economy decisions are taken on the basis of price mechanism ?
(a) Socialist
(b) Capitalist
(c) Mixed
(d) All of these

Answer
Answer: (b) Capitalist

Question 15.
The slope of a production possibility curve falls:
(a) From left to right
(b) From right to left
(c) From top to bottom
(d) From bottom to top

Answer
Answer: (c) From top to bottom

Question 16.
Production Possibility Curve is:
(a) Concave to the axis
(b) Convex to the axis
(c) Parallel to the axis
(d) Vertical to the axis

Answer
Answer: (a) Concave to the axis

Question 17.
Mention the name of the curve which shows economic problem:
(a) Production Curve
(b) Demand Curve
(c) Indifference Curve
(d) Production Possibility Curve

Answer
Answer: (d) Production Possibility Curve

Question 18.
Which of the following is studied under Macro Economics ?
(a) National Income
(b) Full. Employment
(c) Total Production
(d) All of these

Answer
Answer: (d) All of these

Question 19.
Which of the following Is a branch of Micro Economics ?
(a) Product Price Determination
(b) Factor Price Determination
(c) Economic Welfare
(d) All of these

Answer
Answer: (d) All of these

Question 20.
Which of the following is a source of production ?
(a) Land
(b) Labour
(c) Capital
(d) All of these

Answer
Answer: (d) All of these

Question 21.
Who said, “Economics is a science of wealth.”
(a) Marshall
(b) Robbins
(c) Adam Smith
(d) J.K. Mehta

Answer
Answer: (c) Adam Smith

Question 22.
“Economics is a science of logic.’’ Who said it ?
(a) Hicks
(b) Keynes
(c) Robbins
(d) Marshall

Answer
Answer: (c) Robbins
Question 23.
Micro Economics includes:
(a) Individual unit
(b) Small units
(c) Individual price determination
(d) All of these

Answer
Answer: (d) All of these

Question 24.
Who was the father of Economics ?
(a) I. B. Say
(b) Malthus
(c) Adam Smith
(d) Joan Robinson

Answer
Answer: (c) Adam Smith

Question 25.
Who gave the definition of Economics related to welfare ?
(a) Adam Smith
(b) Marshall
(c) Robbins
(d) Samuelson

Answer
Answer: (b) Marshall

Question 26.
The word ‘micro’ was firstly used by:
(a) Marshall
(b) Boulding
(c) Keynes
(d) Ragnar Frish

Answer
Answer: (d) Ragnar Frish

Question 27.
According to whom, Economics is a science of human welfare ?
(a) A Marshall
(b) Paul Samuelson
(c) J. S. Mill
(d) Adam Smith

Answer
Answer: (a) A Marshall

Question 28.
Which of the following is not a factor of production ?
(a) Land
(b) Labour
(c) Money
(d) Capital

Answer
Answer: (c) Money

Question 29.
The central problem of an economy is:
(a) What to produce ?
(b) How to produce ?
(c) How to distribute produced goods ?
(d) All of these

Answer
Answer: (d) All of these

Question 30.
Consumer behaviour is studied in:
(a) Micro Economics
(b) Income Theory
(c) Mac o Economics
(d) None of these

Answer
Answer: (a) Micro Economics

Question 31.
Indian economy is:
(a) Centrally planned economy
(b) Market economy
(c) Mixed economy
(d) None of these.

Answer
Answer: (c) Mixed economy

Question 32.
Who used the word ‘micro’ for the first time:
(a) Marshall
(b) Boulding
(c) Keynes
(d) Ragnar Frisch

Answer
Answer: (d) Ragnar Frisch
Question 33.
Who said economics is the ‘Science of wealth:
(a) Prof. Robbins
(b) Prof. J.K. Mehta
(c) Prof. Marshall
(d) Prof. Adam Smith

Answer
Answer: (d) Prof. Adam Smith

Question 34.
What is the shape of production possibility curve:
(a) Concave to the origin
(b) Concave
(c) Straight line
(d) None of the above.

Answer
Answer: (a) Concave to the origin

Question 35.
The reason for downward shape of production possibility curve is:
(a) Increasing opportunity cost
(b) Decreasing opportunity cost
(c) Same opportunity cost
(d) Negative opportunity cost

Answer
Answer: (b) Decreasing opportunity cost

Question 36.
The point of optimum utilization of resources lies on which side of PPC curve:
(a) Towards left
(b) Towards right
(c) Inside
(d) Upwards

Answer
Answer: (d) Upwards

Fill in the blanks:

1. Every person has ………………… quantity of goods.

Answer
Answer: Few

2. ……………………economics is the study of individual economic units.

Answer
Answer: Micro-economics

3. Opportunity cost ………………….. in production list.

Answer
Answer: Changes

4. Micro and Macro-economics are ……………………… to each other.

Answer
Answer: Complement
5. Economic growth is related to ………………………… economics.

Answer
Answer: Macro

6. Economy is a group of ………………….. units.

Answer
Answer: Production

7. Mixed economy is composed of ………………………. and …………………………

Answer
Answer: Socialism, Capitalism

8. The goods and services which help in the production of other goods and services
are ………………………. goods.

Answer
Answer: Intermediate

State true or false:

1. Production possibility curve is convex towards main point.

Answer
Answer: False

2. Central problem in the capitalist economy is solved by price mechanism.

Answer
Answer: True

3. An economy can be capitalist, socialist or opportunist.

Answer
Answer: False

4. Today all economics of the world are almost mixed economics.

Answer
Answer: True

5. Macro-economics is the study of the problems of unemployment, price inflation

etc.

Answer
Answer: True

6. In socialism, the feeling of personal profit is prominent.

Answer
Answer: False

Q1. What do you mean by the supply of goods?

a) Stock available for sale
b) Total stock in the warehouse
c) The actual production of the goods
d) Quantity of the goods offered for sale at a particular price per unit of time
Answer:- d
Q2. What do you mean by ‘under conditions of a perfect competition in the product
market’?
a) MRP = VMP
b) MRP > VMP
c) VMP > MRP
d) None of the above
Answer:- a
Q3. Which of the following is the relation that the law of demand defines?
a) Income and price of a commodity
b) Price and quantity of a commodity
c) Income and quantity demanded
d) Quantity demanded and quantity supplied
Answer:- b

Important Topics in Economics:

 Consumer Protection Act

 What is Demand?
 Accounting Multiple Choice Questions
 Business Studies MCQs
 Statistics MCQs
Q4. What do you mean by a mixed economy?
a) Modern and traditional industries
b) Public and private sectors
c) Foreign and domestic investments
d) Commercial and subsistence farming
Answer:- b
Q5. What do you mean by the demand of a commodity?
a) Desire for the commodity
b) Need for the commodity
c) Quantity demanded of that commodity
d) Quantity that consumers are able and willing to buy at various prices during any particular
period of time
Answer:- d
Q6. Starting from the time of independence, why did India follow a planned economy?
1.India followed a five-year plan and required an outlook.
2.Directive Principles of Indian Constitution  indicated the planned vision of India.
3.There was no indication whatsoever from the five year plans regarding how much of each and
every good and service is to be produced.
Choose the correct statements from the given options
     a) Only 2
     b) 2 and 3
    c) 1 and 3
    d) All of the above
Answer:- b
Q7. What do you mean by Gross National Product?
a) The total value of goods and services produced in the country
b) The total value of all the transactions in the country
c) The depreciation in the total value of goods and services produced in the country
d) The total value of goods and services produced in the country and the net factor income from
abroad
Answer:- d
Q8. Which of the following is the reason for the decline in the child sex ratio in India? 
a) Low fertility rate.
b) Female foeticide
c) Incentives for a boy child from the government
d) None of the above
Answer:- b
Q9. What factors are taken into consideration while revising the poverty line periodically?
a) By conducting a survey every five years
b) Survey carried out by National Sample Survey Organisation
c) Both a and b
d) None of the above
Answer:- c
Q10. In India, which banks/institutions have the highest share in the disbursement of
credit to agriculture and allied activities?
a) Cooperative banks
b) Regional Rural Banks
c) Commercial banks
d) Microfinance institutions
Answer:- c
Q11. Which of the following is/are linked with the financial sector of India and controlled
by the Reserve Bank of India (RBI)?
a) Commercial bank
b) Money lenders
c) Stock exchange operations
d) All of the above
Answer:- c
Q12. When price floor is set above equilibrium price it will result in?
a) Shortage
b) Surpluses
c) Equilibrium
d) None of the above
Answer:- b
Q13. What is Gross Domestic Product?
a) The total value of goods and services manufactured in the country
b) The total value of all the transactions in the country
c) The reduction in the total value of goods and services produced in the country
d) The monetary value of all finished goods and services made within a country during a specific
period.
Answer:- d
Q14. Why is the unemployment rate low in India statistically?

1. Unemployment is calculated only from the age group of 15 years to 59 years.

2. Unemployment survives only when an individual cannot find a job.
3. People are not interested in working outside the domestic area.

Choose the correct option.

a) Only 3
b) 2 and 3
c) Only 2
d) All of the above
Answer:- c
Q15. What does the bowed-out shape of the production possibilities curve illustrate?
a) Law of increasing opportunity cost
b) The production is inefficient
c) The production is unattainable
d) The demand is relatively elastic
Answer:- a
Q16. What is the main economic problem faced by the society?
a) Unemployment
b) Inequality
c) Poverty
d) Scarcity
Answer:- d
Q17. What does “Capitalism” refer to?
a) The use of market
b) Government ownership of capital
c) Private ownership of capital goods
d) Private ownership of homes and& cars
Answer:- c
Q18. The goal of a pure market economy is to meet the desire of ______ .
a) Consumers
b) Companies
c) Workers
d) The government
Answer:- a
Q19. What does the law of demand mean?
a) As the quantity demanded rises, the price rises.
b) As the price rises, the quantity demanded rises.
c) As the price rises, the quantity demanded falls.
d) As the supply rises, the demand rises.
Answer:- c
Q20. Which of the following is an example of an agricultural price support program?
a) A price ceiling
b) A price floor
c) Equilibrium pricing
d) None of the above
Answer:- b

Q1. Example of microeconomic variable is:

A)Wholesale price index
B)National Income
C)Market demand
D)Aggregate Demand

Show Answer
C)Market demand

Q2. Issues related to unemployment are

studied at the _______.
A)micro-level
B)macro-level
C)micro as well as macro-level
D)none of the above

Show Answer
B)macro-level

Q3. Positive economics involves statements

which are ________.
A)verifiable
B)not verifiable
C)may or may not be verified
D)none of these

Show Answer
A)verifiable

Q4. What do you mean by a mixed economy?

A)Modern and traditional industries
B)Public and private sectors
C)Foreign and domestic investments
D)Commercial and subsistence farming

Show Answer
B)Public and private sectors

Q5. ‘Economics is the study of mankind in the

ordinary business of life’. This definition was
given by :
A)Adam Smith
B)Lord Robbins
C)Alfred Marshall
D)Samuelson

Show Answer
C)Alfred Marshall

Q6. The branch of economic theory, that deals

with the
A)problem of allocation of resources is :
B)Micro Economics
C)Macro Economics
D)Econometrics
E)None of these

Show Answer
A)problem of allocation of resources is :

Q7. A study of how increase in the corporate

income tax rate , will affect the natural
unemployment rate is an example of :
A)Macro Economics
B)Descriptive Economics
C)Micro Economics
D)Normative Economics

Show Answer
A)Macro Economics

Q8. In which type of economy do consumers

and producers make their choices based on
the market forces of demand and supply?
A)Open Economy
B)Controlled Economy
C)Command Economy
D)Market Economy

Show Answer
D)Market Economy
Q9. Under a free economy, prices are :
A)Regulated
B)etermined through free interplay of demand and supply
C)Partly regulated
D)None of these

Show Answer
B)etermined through free interplay of demand and supply

Q10. Which of the following falls under

microeconomics?
A)National income
B)General price level
C)Factor pricing
D)National saving and investmen

Show Answer
C)Factor pricing

Q11. Which of the following economic

activities are included in the subject-matter of
Economics?
(a) Economic Activities related to Unlimited Wants
(b) Economic Activities related to Limited Resources
(c) Both (a) and (b)
(d) None of these
Show Answer
(c) Both (a) and (b)

Q12. On which base structure of economic

problems has been installed?
(a) Unlimited Wants
(b) Limited Resources
(c) Both (a) and (b)
(d) None of the above

Show Answer
(c) Both (a) and (b)

Q13. ‘Micros’, which means ‘Small’ belongs to:

(a) Arabian word
(b) Greek word
(c) German word
(d) English word

Show Answer
(b) Greek word

Q14. Which of the following statement is true?

(a) Human wants are infinite
(b) Resources are limited
(c) Scarcity problem gives birth to choice .
(d) All of these
Show Answer
(c) Scarcity problem gives birth to choice .

Q15. Which of the following is the salient

feature of factors
(or resources) ?
(a) These are limited as compared to wants
(b) These have alternative uses
(c) Both (a) and (b)
(d) None of the above

Show Answer
(c) Both (a) and (b)

Q16. Which is a central problem of an

economy ?
(a) Allocation of Resources
(b) Optimum Utilisation of Resources
(c) Economic Development
(d) All of these

Show Answer
(d) All of these

Q17. Which of the following Is a type of

economic activities ?
(a) Production
(b) Consumption
(c) Exchange and Investment
(d) All of these

Show Answer
(d) All of these

Q18. To which factor, economic problem is

basically related to:
(a) Choice
(b) Consumer’s Selection
(c) Firm Selection
(d) None of these

Show Answer
(a) Choice

Q19. Economy may be classified as:

(a) Capitalist
(b) Socialist
(c) Mixed
(d) All of these

Show Answer
(d) All of these
Q20. Which economy has a co-existence of
private and public sectors ?
(a) Capitalist
(b) Socialist
(c) Mixed
(d) None of these

Show Answer
(c) Mixed

https://arinjayacademy.com/economics-mcqs-2/

https://successroar.com/free-online-mcq-questions-of-class-11-microeconomics-chapter-1/

Q1. What do you mean by the supply of goods?

1. a) Stock available for sale

2. b) Total stock in the warehouse
3. c) The actual production of the goods
4. d) Quantity of the goods offered for sale at a particular price per unit of time
Answer:- d

Q2. What do you mean by ‘under conditions of a perfect competition in the

product market’?

1. a) MRP = VMP
2. b) MRP > VMP
3. c) VMP > MRP
4. d) None of the above
Answer:- a

Q3. Which of the following is the relation that the law of demand defines?

1. a) Income and price of a commodity

2. b) Price and quantity of a commodity
3. c) Income and quantity demanded
4. d) Quantity demanded and quantity supplied
Answer:- b

Important Topics in Economics:

  Consumer Protection Act
 What is Demand?
 Accounting Multiple Choice Questions
 Business Studies MCQs
 Statistics MCQs
Q4. What do you mean by a mixed economy?

1. a) Modern and traditional industries

2. b) Public and private sectors
3. c) Foreign and domestic investments
4. d) Commercial and subsistence farming
Answer:- b

Q5. What do you mean by the demand of a commodity?

1.a) Desire for the commodity

2.b) Need for the commodity
3.c) Quantity demanded of that commodity
4.d) Quantity of the commodity demanded at a certain price during any
particular period of time
Answer:- d

Q6. Starting from the time of independence, why did India follow a planned
economy?

1.India followed a five-year plan and required an outlook.

2.Directive Principles of Indian Constitution  indicated the planned vision of India.

3.There was no indication whatsoever from the five year plans regarding how
much of each and every good and service is to be produced.

Choose the correct statements from the given options

1. a) Only 2
2. b) 2 and 3
3. c) 1 and 3
4. d) All of the above
Answer:- b

Q7. What do you mean by Gross National Product?

1. a) The total value of goods and services produced in the country

2. b) The total value of all the transactions in the country
3. c) The depreciation in the total value of goods and services produced in the
country
 4. d) The total value of goods and services produced in the country and the net
factor income from abroad
Answer:- d

Q8. Which of the following is the reason for the decline in the child sex ratio in
India? 

1. a) Low fertility rate.

2. b) Female foeticide
3. c) Incentives for a boy child from the government
4. d) None of the above
Answer:- b

Q9. What factors are taken into consideration while revising the poverty line
periodically?

1. a) By conducting a survey every five years

2. b) Survey carried out by National Sample Survey Organisation
3. c) Both a and b
4. d) None of the above
Answer:- c

Q10. In India, which banks/institutions have the highest share in the

disbursement of credit to agriculture and allied activities?

1. a) Cooperative banks
2. b) Regional Rural Banks
3. c) Commercial banks
4. d) Microfinance institutions
Answer:- c

Q11. Which of the following is/are linked with the financial sector of India
and controlled by the Reserve Bank of India (RBI)?

1. a) Commercial bank
2. b) Money lenders
3. c) Stock exchange operations
4. d) All of the above
Answer:- c

Q12. What does price flooring mean?

1. a) Shortage
2. b) Surpluses
3. c) Equilibrium
4. d) None of the above
Answer:- b
Q13. What is Gross National Product?

1. a) The total value of goods and services manufactured in the country

2. b) The total value of all the transactions in the country
3. c) The reduction in the total value of goods and services produced in the
country
4. d) The total worth of goods and services generated in the country and the net
factor income from abroad.
Answer:- d

Q14. Why is the unemployment rate low in India statistically?

1. Unemployment is calculated only from the age group of 15 years to 59

years.
2. Unemployment survives only when an individual cannot find a job.
3. People are not interested in working outside the domestic area.
Choose the correct option.

1. a) Only 3
2. b) 2 and 3
3. c) Only 2
4. d) All of the above
Answer:- c

Q15. What does the bowed-out shape of the production possibilities curve
illustrate?

1. a) Law of increasing marginal cost

2. b) The production is inefficient
3. c) The production is unattainable
4. d) The demand is relatively elastic
Answer:- a

Q16. What is the main economic problem faced by the society?

1. a) Unemployment
2. b) Inequality
3. c) Poverty
4. d) Scarcity
Answer:- d

Q17. What does “Capitalism” refer to?

1. a) The use of market

2. b) Government ownership of capital
3. c) Private ownership of capital goods
4. d) Private ownership of homes and& cars
Answer:- c

Q18. The goal of a pure market economy is to meet the desire of ______ .

1. a) Consumers
2. b) Companies
3. c) Workers
4. d) The government
Answer:- a

Q19. What does the law of demand mean?

1. a) As the quantity demanded rises, the price rises.

2. b) As the price rises, the quantity demanded rises.
3. c) As the price rises, the quantity demanded falls.
4. d) As the supply rises, the demand rises.
Answer:- c

Q20. Which of the following is an example of an agricultural price support

program?

1. a) A price ceiling
2. b) A price floor
3. c) Equilibrium pricing
4. d) None of the above
Answer:- b