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61 views9 pagesQuestions-Microeconomics-Chapter 1
cbse class 11 chapter one questions for micro economics
Uploaded by
ignitedjoelCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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/ 9
Multiple Choice Questions: Choose the Correct Answer
1. Which of the following is not concerned with the problem of choice?
(a) Excessive income
(c) Unlimited wants
(b) Alternative use of resources
(d) Limited (scarce) resources
. Principal characteristics of resources are:
(a) they are scarce in relation to our needs (b) they have alternative uses
(c) both (a) and (b)
(d) none of these
In which of the following situations, does scarcity arise?
(a) Supply of resources > Demand for resources (b) Supply of resources < Demand for resources
(0) Supply of resources = Demand for resources (d) None of these
4
Economic problem arises due to the fact that:
(a) resources are scarce
Y
(b) human wants are unlimited
(d) all of these
The resources for satisfying human wants are:
(a) limited
(c) resources have alternative uses
s
(b) unlimited
(©) available at zero prices
-
(d) none of these
Scarcity of resources exists:
(a) at the micro level (b) at the macro level
(d) none of these
Positive economics involves statements which are:
(a) verifiable
(c) micro as well as macro level
-
(b) not verifiable
(d) none of these
Astatement which does not offer any suggestion is known as:
(a) positive statement
(b) normative statement
(c) both (a) and (b)
(c) may or may not be verifiable
tal
(d) none of these
9. Normative economics deals with:
(a) facts (b) opinions
(c) both (a) and (b) (d) none of these
10. Which of the following is the example of economic activity?
(a) Production (b) Consumption
(c) Exchange (d) All of these
nM.
Who controls economic activities under centrally planned economies?
(a) Industrialists
(b) Private firms
(c) Government
(d) Consumers.
12.
The government does not interfere in the process of decision-making under:
(a) market economy
(b) centrally planned economy
(c) mixed economy (d) all of these 13, Consumer
{a} controlled economy (b) fee economy
(d) both (b) and (¢)
(c) mixed economy
answers |
ra 26 30) 4 5a) 6 nay 8.(a) 9.06) 10.(a)
ni B@) B@)
11.Choose appropriate word and fill in the blank
ice is the f
1. Choice isthe outcome of ____ (sarcity/decision-making)
Study of economy as a whole is called conomics. °
ee
Sa (macro/micro)
icroeconomics studies the economi
3. Mi jae tits. (individual/non-economie)
of economic issues which are subject to verification.
activities of
4, economies relates to the study
(Positive/Normative)
' ‘sasystem by which people ofan area ear their ving, (Economy/Economics)
jin Ssonomy; Private sector dominates the economic activity. (market/mixed)
7 Inftee economy, economic activities are controlled by the (government/market forces)
Answers
1. scarcity 2. macro 3.individual 4, Positive 5.Economy 6, market
7. market forces
Il. True-False Alternatives
Inthe following questions (1-2), two statements are given. Read the statements carefully and choose the correct
alternative amsong those given below:
Alternatives:
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and Statement 2 is false
(6) Statement 2 is true and Statement | is false
1. Statement 1; Positive statements are verifiable for truth.
+ Normative statements lead to controversies and debates.
+ Ina free economy, the consumer buys goods according to his choice.
+ Ina mixed economy, the consumer is not sovereign.
Statement 2
2 Statement 1
Statement 2
Answers
L@ 26)
'V.Choose the Correct Pair of Statements/Identify the Correct Sequence of Alternatives
1. Fromthe ‘set of statements given in Column and Column II, choose the correct pair of statements:
Columa I Column I
‘A, Microeconomics
B. Choice
(i) Deats with the aggregates atthe level of the economy asa whole
(ii) Process of selection from available limited alternatives
C. Positive economics
(ii) Involves value judgment
(iv) Statements as based on facts and figures related to past, present
or future
D. Normative statements,
EE
sovereign under: Alternatives:
(a) A—(i) (b) B—Gii)
(c) C—Gii) (4) Div)
2. Identify the correct sequence of alternatives given in Column II by matching them y;,
respective items in Column I: "q
Column Column II
‘A. Macroeconomics (i) Unlimited )
B. Human wants (ii) Economics of ‘what ought to be’
C. Normative economics (iii) A system by which people of an area earn their living
D.Economy (iv) Studies the problem of choice at the level of the countrys
awhole
Alternatives:
(a) A“(iv), B—(), C—Gi), D—(iii) (b) A—(ii), B—(i), Civ), D—(iii)
(©) A~(iv), B—Gii), C—(i), D—Gi) (a) A—Gii), B—@), C—(ii), D—(iv)
Answers
1, (b) 2.)
V. Assertion and Reasoning
Inthe following questions (1-2), a statement of Assertion (A) is followed by a statement of Reason (R). Choose the
correct alternative among those given below: .
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(©) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true [
1, Assertion (A) : Choice is the process of selection from available limited alternatives.
Reason(R) —_ : Resources are scarce and have alternative uses. 1
2. Assertion (A) : Positive economics deals with economic issues (or economic behaviour) related t9
past, present and future.
Reason (R) _: Positive economics does not involve value judgement.
Answers
1 (a) 2.(b)
VI. One Liners: Answer with Reason
Read the following statements carefully. Write True or False with a reason.
1. Economic problem and scarcity of resources are not related to each other.
‘Ans. False, Economic problem arises because of scarcity of resources. Hence, the two are related t0
other.
2. Scarcity exists even when certain goods are available at zero price.
‘Ans, True, Scarcity is a situation when demand for a good exceeds its supply even at a zero price. :
each @ hospital is not a scarce commod: y.
at zer0 price, : ‘
PCC, yet itis a scarce commodity. Because, it involves
3, A free medicine given to the patients in
« false. Although medicine is available
some opportunity cost,
Ans.
[Note: A good is not scarce only when: (i) its
available at zero pri
= » and (ii) it involves no opportunity
cost :
4, Lack of scarcity implies lack of economic problem,
True. Scarcity is the root cause of economic
problem.
5, Ifthere were no choices in resource allocation, economics would not have existed.
. True, Ifthere were no alternative choices in resource allocation, there would be no economic problem.
Accordingly, economics would not have existed,
Problem. Lack of scarcity definitely implies lack ofeconomic
6, All resources are not equally scarce all the time,
‘Ans. True tis possible that some resources are more scarce than the others t 4 point of time, In India, for
example, abour is certainly less scarce than eapital :
7, Problem of resource allocation would not arise if resources had no alternative uses,
er—r—rhr—sesi—“‘=é§ECOC—h—m—mUhmC—CD
problem if piece of land can only be used for the production of rice? Grow rice and relax!
8, Positive statements are the statements of truth,
Ans. False, Positive statements are not the statements of truth. Positive statements may be true or filse. One
can verify these statements as true or false,
9. Anormative statement offers suggestions or opinions.
‘Ans, True, Normative economics deals with such issues which are suggestive in nature and are not verifable,
10, Itisa positive statement that Virat Kohli is a good batsman as he has scored highest number of
centuries in test cricket,
Ans. True. Itis a positive statement, as it can be verified,
Competency Based Learning: Data/Picture Based & Case-Study Based Questions
uData/Picture Based Questions
14
Public sector
‘dominates the
‘activity.
Economie
(aco ae
mmotveo!
saci
welfare.
The consumer
Is not sovereign
On the basis of the above chart answer the following question:
Choose the correct alternative to be filled in given blank
(2) Centrally planned economy (b) Market economy
(©) Mixed economy (a) Free economy
"S (a) Centrally planned economy. -what-is-it
(05/ microeconomics mi
trom ac ae following branch of economics is also
microeconomics html
Taking clue from the image above suggest
known as the Theory of Price.
(a) Microeconomics
(c) Both (a) and (b)
Ans. (a) Microeconomics.
3 Picture-A
(b) Macroeconomics
(d) None of these
Higher education should be free.
should alternative fuels be subsidized?
We must try te boost disposable income.
Basic healthcare to all iizens should be free.
Unemployment is more harmful than inflation.
“The minimum wage should be raised by 20%.
Market mechanisms should be allowed to work freely
Does a currency devaluation ueTinflation?
‘Ave ol prices contributing toa GOP
slowdown?
Disposable income has declined by 153%
‘over the past four years
When disposable incomes fall the demand
for own-label supermarket foods rises
in order to make sure resources are best allocated.
Recenvenani aie ere eae
Identify the above two images as belonging to ‘positive economics’ and ‘normative economics’
respectively on the basis of the statements mentioned in each image. Also differentiate
between the two concepts with examples.
‘Ans, Picture-A represents ‘positive economics’ concept while Picture-B represents ‘normative economics)
concept, The difference between the two concepts is as follows:
(i) Positive economics is that branch of economics which deals with such issues which ifiabl
Example: 218 of population in India is below poverty line, On the other hand, Meas
economics is that branch of economics which deals with such issues which i eae
judgement, and are not verifiable, Example: Farmers should always be ee oe
good returns on their investment, granted subsidies to ensure
(ii) Statements of positive economics relate to ‘what was’
at was, what is and :
hand, statements of normative economics relate to ‘what eal ‘what would be’. On the other
e.
m Case-Study Based Questions
1. Read the following case study carefully and answer the questions 1-6 on the basi
‘An economic system is a set of principles based on which an the basis of the same:
©
which goods and services to produce, how to produce and e ‘conomy can run and make decisions about
x
‘change them, how should the income fro™ ction be distributed among the factor resources
he pre and what shall be the rig
oo nd private sector a hat shall be the rig
public sector an market mechani
r system based on certain principles, hike provision af priv
ht balance between
n and regulation, Capitalism is an
d that between free
econo
and allowiN
inimal governmet
ite property rights, free market econom
economic agents (consti ee
ersand producers) to purst
ervention. In an open
eel Pen economy and free trade environment, countries
we fg ponte the pooxls domestically in which they have compara mee .
jestates that ifa country can produce a particular gon
Jrthe world, then the country has comparative
ue private motives and self-interest with
ve advantage. Comparative advantage
least opportunity cost comparatively than
advantage in producing that good
principl
the rest of
Salman Shaikh, Comparative Economie Systems—A Brief Review, 2012
AD » the degree of consumer sovereignty is highest.
(Fill up the blank with co
(b) centrally planned economy
(d) both (a) and (c)
2. Which of the following is not a feature of centrally planned economy? (Choose the cor
(a) Control of central authority
(b) Ownership of resources by government
(©) Consumer sovereignty
(a) market economy
(c) mixed economy
(a) Dominance over economic activity by public sector
3. Which among the following countries is not capitalistic or market driven in nature?
(Choose the ¢
ect alterna
(a) Hong Kong (b) Ireland
(c) Russia (@) Canada
4 economy is an economy in which the degree of interdependence and exchange is of
moderate degree. (Fill up the blank with correct alternativ
(a) Simple (b) Complex
(c) Both (a) and (b) (d) None of these
5. Read the following statements carefully and choose the correct alternative among those given below:
Statement 1: Ina simple economy, income level of the people is low.
Statement 2: Inacomplex economy, wants are multiple as well as enormous.
Alternatives:
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and Statement 2 is false
(4) Statement 2 is true and Statement | is false
6. Inmixed economy, both public and private sectors dominate the economic activity. (True or False
Answers
Lid) 24) 3.(c) 4. (a) 5. (a) 6. True
4M Read the following text carefully and answer the questions 1-2 on the basis of the same:
nacentrally planned economy, the government or the central authority plans all the important activities
the economy. The central authority may try to achieve a particular allocation of resources and a conseque
4istibution of the final combination of goods and services which is thought to be desirable for society a
4 Whole, For example, if itis found that a good or service which is very important for the prosperity and
Jin adequate amount by the individuals on their own,
“cll-Leing of the economy asa whole is not produces Introductory Microeconomics
nt of such a good OF service
vo produce adequatesmount hag ‘
‘or in question.
dividual ut
wo produce the ood oF Ser
jecide 10 prod a ams
rmigght try 10 induce tht
may itself
the gover
oral ly, the government 1
arket economy.
1. State one difference between centrally planned cconony an i —s
ryhich economic activities @
a thor ee es sonmen - ee i ee -onomy is @ free economy towne economic
fuuthority oF the government. Whereas, a market 6 ae
activities are controlled by the market forces of supply ‘and demand (Invisible hat
fa centrally planned economy:
‘ned economy are as follows:
hat, how and for whom to produce are taken
2. State three characteristics o
. Three major characteristics of a centrally plam
decisions relating to W!
(i) In centrally planned economy,
government
by some central authority appointed by the
(ii) Market forces are regulated or controlled by the government:
(iii) Economie decisions are driven exclusively by he consideration of social welfare.
Competency Based Learning: Descriptive Questions
I. Concept-based Questions
1. Define economics.
‘Ane, Economics isa science of human behaviour concerned with allocation of scarce resources/menns in
such a manner that consumers can maximise their satisfaction, producers can maximise their profits
and the society can maximise its social welfare.
2. Define scarcity.
‘Ans. Scarcity is a situation when demand for resources exceeds its supply.
3, State the two characteristics of resources.
‘Ans. (i) Resources are scarce in relation to the goods we wish to produce for the satisfaction of human
‘wants, and
(ii) Resources have alternative uses.
4, What is the problem of choice?
‘Ans. Problem of choice is the problem of allocating scarce resources to alternative uses.
5, Why does the problem of choice arise?
‘Ans. Problem of choice arises because:
(i) resources are limited in relation to our wants, and
(ii) resources have alternative uses.
6. What is meant by an economy?
‘Ans, Economy is a system by which people of an area earn their living.
7. Define microeconomics.
‘Ans. Microeconomics is that branch of economics which studies economic problems (or economic issues)
the level of an individual—an individual firm, an individual household or an individual consumer.
8. Define macroeconomics.
‘Ans. Macroeconomics is that branch of economics which studies ec« i
i onomic problems (or economi sues)
at the level of the economy as a whole, ‘ aa
9. State one principal difference between microeconomics and macroeconomics.
‘Ans, Microeconomics studies economic activites (focusing on scarcity and choice) of individual units while
macroeconomics studies economic activities atthe level ofthe economy asa whole.
le.
20. PTET
