Class 11 Microeconomics - Important Questions
1. Introduction to Microeconomics
- What is Microeconomics? How is it different from Macroeconomics?
- Explain the central problems of an economy with examples.
- What are the different types of economic systems? (Capitalist, Socialist, Mixed)
- Define opportunity cost with an example.
- Explain Production Possibility Curve (PPC) and what it represents.
- What causes a rightward or leftward shift in the PPC?
- Distinguish between positive economics and normative economics.
2. Consumer Equilibrium and Demand
- What is utility? Differentiate between total utility (TU) and marginal utility (MU).
- State and explain the Law of Diminishing Marginal Utility (DMU) with a diagram.
- What is consumer equilibrium under cardinal utility analysis?
- Explain the Indifference Curve (IC) approach and its properties.
- What is budget line? How is it affected by changes in income or price?
- Define demand and explain the Law of Demand with exceptions.
- Differentiate between movement along the demand curve and shift in demand.
- Explain Price Elasticity of Demand (PED) and its measurement.
3. Producer Behavior and Supply
- Define production function. Differentiate between short run and long run production.
- Explain the Law of Variable Proportions with a diagram.
- What is the relationship between Total Product (TP), Marginal Product (MP), and Average Product
(AP)?
- Differentiate between returns to a factor and returns to scale.
- Explain Total Cost (TC), Fixed Cost (FC), and Variable Cost (VC) with examples.
- Define Marginal Cost (MC) and Average Cost (AC). How are they related?
- Explain the concepts of Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR).
- What is the relationship between AR, MR, and elasticity of demand?
4. Forms of Market and Price Determination
- What are the main types of market structures? Explain with examples.
- Explain the features of perfect competition.
- How is price determined under perfect competition?
- Define monopoly and explain its characteristics.
- Differentiate between monopoly and monopolistic competition.
- What is oligopoly? Explain with examples.
- What is the difference between price discrimination and price differentiation?
- Explain the concept of equilibrium price.
5. Simple Applications of Demand and Supply
- How does taxation affect the demand and supply of goods?
- Explain the impact of subsidies on market equilibrium.
- How does the black market arise due to price ceilings?
- Why do governments impose minimum support prices?
- What happens when the government fixes prices below or above the equilibrium level?
Top 15 Must-Do Questions Before Exam
1. What are the central problems of an economy? Explain with examples.
2. Explain the Production Possibility Curve (PPC). What causes shifts in the PPC?
3. State and explain the Law of Demand. What are its exceptions?
4. Explain the Law of Diminishing Marginal Utility (DMU) with a diagram.
5. Differentiate between movement along the demand curve and shift in demand.
6. Explain the Law of Variable Proportions with a diagram.
7. Differentiate between fixed cost, variable cost, total cost, and marginal cost.
8. What is the relationship between total revenue (TR), average revenue (AR), and marginal
revenue (MR)?
9. What are the features of perfect competition?
10. Explain price determination under perfect competition with a diagram.
11. Differentiate between monopoly and monopolistic competition.
12. How do an increase in demand and a decrease in supply affect equilibrium price?
13. What is price elasticity of demand (PED)? How is it measured?
14. Explain the effect of price ceilings and price floors on market equilibrium.
15. How does taxation and subsidies affect the demand and supply of goods?
