Basics of Economics solved MCQs

1 of 8

1. The economic problem arises since

a. wants are unlimited

B. resources are limited

c. resources are capable of alternative uses

d. all of the above

2. Economic problem arises in

a. planned economies

B. free market economies

c. mixed economies

d. all of the above

3. The resources are :

a. limited

B. unlimited

c. not only limited but are capable of alternative uses

d. none of the above

4. ----- is not an example of free good

a. sunlight

B. car

c. petrol

d. computer

5. The term production refers to:

a. producing things which are capable of satisfying human wants

B. creation or addition of utilities

c. transformation of inputs into output

d. all of the above

6. The problem of allocation of resources is concerned with:

a. what to produce

B. how to produce

c. for whom to produce

d. all of the above

7. The distribution of national product among the members of the societyis the problem of:

a. what to produce

B. how to produce

c. for whom to produce

d. all of the above

8. Which one of the following come under macro economics:

a. per capita income

B. study of a firm

c. individual income

d. theory of factor pricing

9. Which one of the following is not come under macro economics

a. national income

B. per capita income

c. disposable income

d. individual income

10. Partial equilibrium analysis come under:

a. micro economics

B. macro economics

c. welfare economics

d. international economics

11. “The starting point of all economic activity is the existence of humanwants” Who said this?

a. adam smith

B. selligman

c. ricardo

d. alfred marshall

12. Production and consumption takes place simultaneously in the case of

a. goods

B. services

c. both in the case of goods and services

d. neither in the case of goods and services

13. Economic growth can be achieved through

a. advanced technology

B. expansion of resources

c. both a & b

d. neither a & b

14. Micro economics doesn’t deal with:

a. the study of individual economic units

B. determination of factor prices

c. price determination of commodities

d. general equilibrium analysis

15. Name the economist who analyses the subject matter of economics intotwo branches: micro economic analysis and macro economic analysis.

a. adam smith

B. alfred marshall

c. ragner frisc

d. p a samuelson

16. Transformation of inputs into outputs is known as

a. production

B. consumption

c. distribution

d. exchange

17. ----- is an example of secondary input

a. land

B. labour

c. capital

d. raw material

18. Odd-man out from the following

a. steel

B. medicine

c. education

d. train

19. The choice of techniques of production is related to the problem of

a. what to produce

B. how to produce

c. for whom to produce

d. none of the above

20. The functional relationship between inputs and outputs is called

a. production function

B. consumption function

c. investment function

d. saving function

21. Firms owned by one individual is known as

a. proprietorship

B. partnership

c. corporations

d. none of the above

22. Firms owned by two or more individuals is known as

a. proprietorship

B. partnership

c. corporations

d. none of the above

23. Firms owned by stock holders are known as

a. proprietorship

B. partnership

c. corporations

d. none of the above

24. The major objective of a firm is

a. profit maximization

B. revenue maximization

c. sales maximization

d. none of the above

25. Which one of the following is an example of fixed input

a. raw materials

B. casual workers

c. plant and equipments

d. all of the above

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