Economics MCQs- Chapter 1 – Introduction to Micro Economics MCQ

Introduction to Micro Economics MCQ, which is covered in this chapter, relates to the topic, Introduction to Micro Economics. Introduction to Micro Economics MCQ Test contains 10 questions. Answers to Introduction to Micro Economics MCQ are available after clicking on the answer.

1.‘Economics is the study of mankind in the ordinary business of life. This definition was given by: –

(a)    Adam Smith
(b)    Lord Robbins
(c)     Alfred Marshall
(d)    Samuelson

Answer

Answer: (c)     Alfred Marshall

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2. The branch of economic theory, that deals with the problem of allocation of resources is :

(a)    Micro Economics
(b)    Macro Economics
(c)     Econometrics
(d)    None of these

Answer

Answer: (a)    Micro Economics

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3. A study of how an increase in the corporate income tax rate, will affect the natural unemployment rate is an example of :

(a)    Macro Economics
(b)    Descriptive Economics
(c)     Micro Economics
(d)    Normative Economics

Answer

Answer: (a)    Macro Economics

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4. If a point falls inside the production possibility curve, what does it indicate?

(a)    Resources are over-utilized
(b)    Resources are underutilized
(c)     There is employment in the economy
(d)    Both (b) and (c)

Answer

Answer: (b)    Resources are underutilized

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5. In which type of economy do consumers and producers make their choices based on the market forces of demand and supply?

(a)    Open Economy
(b)    Controlled Economy
(c)     Command Economy
(d)    Market Economy

Answer

Answer: (d)    Market Economy

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Economics MCQs- Introduction to Micro Economics MCQ

6. Under a free economy, prices are :

(a)    Regulated
(b)    Determined through the free interplay of demand and supply
(c)     Partly regulated.
(d)    None of these

Answer

Answer: (b)    Determined through the free interplay of demand and supply

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7. Which of the following falls under microeconomics?

(a)    National income
(b)    General price level
(c)     Factor pricing
(d)    National saving and investment

Answer

Answer: (c)     Factor pricing

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8. In a free market economy, when consumers increase their purchase of a goods and the level of _______ exceeds _______ then prices tend to rise

(a)    Demand, Supply
(b)    Supply, Demand
(c)     Prices, Demand
(d)    Profits, Supply

Answer

Answer: (a)    Demand, Supply

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9. Under the Inductive method, the logic proceeds from :

(a) General to particulars
(b) Particular to general
(c) both a and b
(d) None

Answer

Answer: (b)    Particular to general

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10. According to Robbins, ‘means’ are:

(a)    Scarce
(b)    Unlimited
(c)     Undefined
(d)    All of these

Answer

Answer: (a)    Scarce