MCQ Questions Chapter 1 Introduction to Micro Economics Class 12 Economics

Please refer to MCQ Questions Chapter 1 Introduction to Micro Economics Class 12 Economics with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 12 Economics issued for the current academic year. We have provided MCQ Questions for Class 12 Economics for all chapters on our website. Students should learn the objective based questions for Chapter 1 Introduction to Micro Economics in Class 12 Economics provided below to get more marks in exams.

Chapter 1 Introduction to Micro Economics MCQ Questions

Please refer to the following Chapter 1 Introduction to Micro Economics MCQ Questions Class 12 Economics with solutions for all important topics in the chapter.

MCQ Questions Answers for Chapter 1 Introduction to Micro Economics Class 12 Economics

Question. 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

Question. 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

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

Question. 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

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

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

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

Question. 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

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

Question. 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

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

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

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

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

Question. 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

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

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

Question. 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

Question. Which of the following are types of economic systems?
(a) Market Economy
(b) Planned Economy
(c) Mixed Economy
(d) All of these

Question. During the covid-19 pandemic, there was nation wide lockdown which led to migration of labour across states. State government should have taken necessary steps to reduce the migration of people. This statement indicates
(a) normative statement
(b) positive statement
(c) general statement
(d) None of the above

Question. Viaan decided to join a NCC camp this year which required an entry fee of Rs 1,500 during the summer vacation by not opting for usual part time job which he used to do in other years and earn Rs 5,000. What will be the opportunity cost in this case?
(a) Rs 1,500
(b) Rs 5,000
(c) Rs 6,500
(d) Can’t be determined

Question. According to Prof. Lionel Robbins, means are
(a) scarce
(b) unlimited
(c) undefined
(d) All of these

Question. Central problems of economy and the problem of choice are one and the same thing. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. In the production process, if goods worth Rs 2,000 are produced by four factors of production, then labour will get Rs 500. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Which of the central problem is related to distribution of income?
(a) What to produce?
(b) How to produce?
(c) For whomto produce?
(d) None of these

Question. Economics cost is equal to
(a) accounting cost
(b) opportunity cost
(c) sum of accounting cost and opportunity cost
(d) difference of accounting cost and opportunity cost

Question. Which of the following is a microeconomic concept?
(a) The reasons for the rise in general prices in an economy
(b) Reducing inequality of income and wealth
(c) Maintaining the foreign exchange reserves
(d) None of the above

Question. There is no degree of aggregation in microeconomics. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Which of the following is a macroeconomic concept?
(a) The reasons why Viaan buys less orange juice
(b) The reasons why employment decreased at a factory
(c) The reasons for a decline in price of a good
(d) None of the above

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

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

Question: Slope of production curve is:
(a) a straight line
(b) convex to the point of origin ‘O’
(c) concave to the point of ‘O’
(d) none of these   

Question. According to Robbins, ‘means’ are: 
(a) Scarce
(b) Unlimited
(c) Undefined
(d) All of these

Question. 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

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

Question. A growth of resources in an economy is shown on PPC by:
(a) Leftward Shift
(b) Unchanged PPC
(c) Rightward Shift
(d) None of the above

Question. Which of is/are the reason/s for Economic problems?
(a) Scarcity of resources
(b) Alternative uses of resources
(c) Unlimited human wants
(d) All of the above

Question. There are many economies in the world which are technologically advanced, these economies further focus upon development of latest technologies. In this way, these economies will be able to solve the economic problems once for all. Choose from the options below
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. All newspaper headlines are positive statements. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Scarcity requires that people must do which of the following things?
(a) Trade
(b) Cooperate
(c) Make choices
(d) Competition

Question. Choose the correct statement from the given below.
(a) In a centrally planned economy, economic decisions are governed by profit motive as per decision of Central Bank of the country. 
(b) Normative statements are those which pass value judgement and economic problems as they are.
(c) There is limited degree of aggregation present in microeconomics whereas macroeconomics has greater degree of aggregation.
(d) Central problems of an economy and problem of choice are two different issues that only mixed economies faces.

Question. Central government of India announced relief packages for migrant labourer during the pandemic of 2020. This statement is ……… .
(a) normative statement
(b) positive statement
(c) general statement
(d) None of the above

Question. Which of the following is/are true about an economy?
(a) It is the system of arrangement of all economic activities
(b) It is comprised of all the regions of a country
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question. The possibility of third wave of covid-19 pandemic can be reduced by following covid appropriate behaviour. Identify the type of statement from given below.
(a) Normative statement
(b) Positive statement
(c) Both (a) and (b)
(d) None of the above

Question. Which of the central problem is related to selection of techniques of production?
(a) What to produce?
(b) How to produce?
(c) For whomto produce?
(d) None of these

Question. In broad terms, the difference between microeconomics and macroeconomics is that
(a) they use different schools of thought.
(b) microeconomics studies the effects of fiscal policy on the unemployment rate while macroeconomics does not.
(c) macroeconomics studies the effects of fiscal policy on the price of individual goods and services whereas microeconomics does not.
(d) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.

Question. When an individual saves a part of his income, then this is considered as a way to meet uncertainties of future but national savings leads to economics slowdown. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Income statement

Question. There are ……… central problems in an economy.
(a) two
(b) three
(c) four
(d) None of these

Question. The fact that people with higher incomes get to consume more goods and services addresses the … question.
(a) “When”
(b) “Where”
(c) “For whom”
(d) “How”

Question. Theories of microeconomics and macroeconomics are interdependent. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Which of the following is also known as theory of income determination?
(a) Microeconomics
(b) Macroeconomics
(c) Statistics for economics
(d) None of the above

Question. Suppose that you have to decide between seeing a movie and going to see a cricket match on a particular Saturday evening. You are willing to pay Rs 500 to see the movie. You are willing to pay Rs 1,500 for the cricket match. The opportunity cost of going to the movie is
(a) Rs 1,000
(b) Rs 500
(c) Rs 1,500
(d) None of these

Question. Opportunity cost refers to which of the following?
(a) Accounting cost minus the marginal benefit
(b) Monetary costs of an activity
(c) Highest valued alternative forgone
(d) Accounting cost minus the marginal cost

Question. The most fundamental economic problem is related to
(a) scarcity of resources
(b) unlimited human wants
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question. An entrance examination has 200 questions in total. Each correct answer gives 1 mark with a negative mark of 1/4 for each incorrect answer. What is the opportunity cost of 30 incorrect questions?
(a) 7.5
(b) 30
(c) 37.5
(d) Can’t be determined

Question. As an economic concept, scarcity applies to ……… .
(a) money but not time
(b) time but not money
(c) Both money and time
(d) Neither time nor money

Question. Economics is the study of ……… . 
(a) the choices we make because of scarcity of resources
(b) the allocation of resources only
(c) the distribution of surplus goods to those in need
(d) ways to reduce wants to eliminate the problem of scarcity

Question. Which of the following is true for micro-macro paradox?
(a) Something which is true in microeconomics does not hold true in macroeconomics
(b) Something which does not holds true in either microeconomics or macroeconomics
(c) Something which holds true both in
(d) None of the above

Question. The following headline appeared in “Hindustan Times” dated 25th July 2018, “Getting insurance for rain damage cars an uphill task”. This statement is
(a) positive economics
(b) normative economics
(c) general economics
(d) None of the above

Question. Economics is always about making choice with given ……… .
(a) goods
(b) production
(c) investment
(d) resources

Question. Which of the following is/are features of resources in an economy? 
(a) Limited supply
(b) Alternative uses
(c) Both (a) and (b)
(d) None of these

Question. Which of the following is/are not a feature of a mixed economy?
(a) Modern and traditional industries working together
(b) Public takes the leading role in the economic activity
(c) Foreign and domestic industries working together
(d) All of the above

Question. Studying the determination of prices in individual markets is primarily a concern of 
(a) negative economics
(b) positive economics
(c) microeconomics
(d) macroeconomics

Question. Which of the following is also known as theory of price determination?
(a) Microeconomics
(b) Macroeconomics
(c) Statistics for economics
(d) None of the above

Question. There is ……… degree of aggregation in macroeconomics.
(a) constant
(b) lower
(c) higher
(d) no

Question. Which of the following is/are not the feature(s) of human wants?
(a) Limited
(b) Recurring
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question. Microeconomics focuses on all of the following except the
(a) buying and selling decisions by an individual consumer and seller respectively.
(b) effect of increasing the money supply in inflation.
(c) effect on tobacco sales of an increase in the tax on cigarettes.
(d) hiring decisions made by a business.

Fill in the blanks:

Question. ……………………economics is the study of individual economic units.
Answer : Micro-economics
Question. Micro and Macro-economics are ……………………… to each other.
Answer : Complement
Question. Economy is a group of ………………….. units.
Answer : Production
Question. The goods and services which help in the production of other goods and services are ………………………. goods.
Answer : Intermediate

State true or false:

Question. Central problem in the capitalist economy is solved by price mechanism.
Answer : True
Question. Today all economics of the world are almost mixed economics.
Answer : True
Question. In socialism, the feeling of personal profit is prominent.
Answer : False

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