MCQs of Economics – Introduction To Economics

Resources in an economy:

Human wants are:

The sacrifice involved when you choose a particular course of action is called the:

Which of the following is not one of the basic economic questions?

The basic economic problems will not be solved by:

The free market involves:

A mixed economy:

In a command (planned) economy:

The public sector includes:

Which of the following is a normative statement in economics?

The economics the central problem is:

Indicate below what is NOT a factor of production.

Macroeconomics deals with:

Microeconomics is not concerned with the behaviour of:

The study of inflation is part of:

Aggregate supply is the total amount.

The total demand for goods and services in an economy is known as:

Inflation is:

A recession is:

Unemployment means that:

If marginal benefit is greater than marginal cost, a rational choice involves:

A student chooses to study because the marginal benefit is greater than the ____ cost.

The concept of opportunity cost:

Opportunity cost is:

A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a

Periods of less than full employment correspond to:

The circular flow of goods and incomes shows the relationship between.

In a free market system, the amount of goods and services that any one household gets depends upon its:

In a planned or command economy, all the economics decisions are taken by the:

Which one of the following is a normative statement?

Which of the following involves a trade – off?

Trade-offs are required because wants are unlimited and resources are:

Economics is the study of:

A rational person does not act unless

Raising taxes and increasing welfare payments:

Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is:

Foreign trade.

-7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then

Which of the following activities is most likely to produce an externality?

Which of the following products would be least capable of producing an externality?

Which of the following situations describes the greatest market power?

Which of the following statements is true about a market economy?

Workers in Western Europe enjoy a high standard of living because:

High and persistent inflation is caused by:

The Phillips curve shows that:

An increase in the price of beef providers information which

You are planning to run a hot dog stand during a forthcoming fair, you originally estimated that you will generate sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand the hot dog stand is nearly completed but now you estimated total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location You can complete the hot dog stand for another Rs 300. Should you complete the hot dog stand? Assume that there are no other costs the hot dogs are costless to you.)

You ar planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you estimate total sales to be only Rs 800 because the fair clashes with a major music festival in a nearby location. You can complete the hot dog stand for another Rs 300 Your decision rule should be to complete the hot dog stand as long as the cost to complete the stand is less than

Which of the following is not part of the opportunity cost of going on holiday?

Productivity can be increased by:

Economics is the study of:

A resource is scarce if supply exceeds demand at zero price

The opportunity cost of a good is:

A market can accurately be described as

A command economy decides resource allocation by government planning

In a free market.

In the mixed economy

positive economics studies objective explanations of the working of the econmy

Normative economics Forms ____ based on ______

Microeconomics is concerned with

Macroeconomics is the study of:

An economic model is a physical representation of an economy

Data are important in economics because ____ and ____

Time series data show information

Index number express base data in relation to some relative value

The retail price index is used to

A real value can be derived from a nominal value by:

To find the percentage change in a number divide the absolute change by the original number and multiply by 100

If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by

A straight-line diagram can be drawn knowing the ____ and ____

On a graph , a positive linear relationship

If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of:

When we know the quantity of a product that buyers wish to purchase at each possible price we know

Supply is the quantity of a good sellers wish to sell each time the market opens

The equilibrium price clears the market it is the price at which _____ ___

when a market is in equilibrium

____ and ___ do not directly affect the demand curve

A change in price can cause a shift of a demand curve

A demand curve can shift because changing

A supply curve is directly affected by

An increase in price will cause a supply curve to shift to the left

If a price increase of good A increases the quantity demanded of good B, then good B is a

An increase in consumer income will increase demand for a ____ but decrease demand for a:

Price ceilings are imposed increase price above the free market equilibrium price