Basics of Economics Solved MCQs

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
Answer» 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
Answer» 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
Answer» C. not only limited but are capable of alternative uses
4.

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

A. sunlight
B. car
C. petrol
D. computer
Answer» A. sunlight
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
Answer» 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
Answer» A. what to produce
7.

The distribution of national product among the members of the society is the problem of:

A. what to produce
B. how to produce
C. for whom to produce
D. all of the above
Answer» C. for whom to produce
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
Answer» A. per capita income
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
Answer» D. individual income
10.

Partial equilibrium analysis come under:

A. micro economics
B. macro economics
C. welfare economics
D. international economics
Answer» A. micro economics
11.

“The starting point of all economic activity is the existence of human wants” Who said this?

A. adam smith
B. selligman
C. ricardo
D. alfred marshall
Answer» B. selligman
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
Answer» B. services
13.

Economic growth can be achieved through

A. advanced technology
B. expansion of resources
C. both a & b
D. neither a & b
Answer» C. both 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
Answer» D. general equilibrium analysis
15.

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

A. adam smith
B. alfred marshall
C. ragner frisc
D. p a samuelson
Answer» C. ragner frisc
16.

Transformation of inputs into outputs is known as

A. production
B. consumption
C. distribution
D. exchange
Answer» A. production
17.

----- is an example of secondary input

A. land
B. labour
C. capital
D. raw material
Answer» D. raw material
18.

Odd-man out from the following

A. steel
B. medicine
C. education
D. train
Answer» C. education
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
Answer» B. how to produce
20.

The functional relationship between inputs and outputs is called

A. production function
B. consumption function
C. investment function
D. saving function
Answer» A. production function
21.

Firms owned by one individual is known as

A. proprietorship
B. partnership
C. corporations
D. none of the above
Answer» A. proprietorship
22.

Firms owned by two or more individuals is known as

A. proprietorship
B. partnership
C. corporations
D. none of the above
Answer» B. partnership
23.

Firms owned by stock holders are known as

A. proprietorship
B. partnership
C. corporations
D. none of the above
Answer» C. corporations
24.

The major objective of a firm is

A. profit maximization
B. revenue maximization
C. sales maximization
D. none of the above
Answer» A. profit maximization
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
Answer» C. plant and equipments
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