MCQs For NCERT Class 12 Economics Chapter 1 Introduction to Micro Economics

Please refer to the MCQ Questions for Class 12 Economics Chapter 1 Introduction to Micro Economics with Answers. The following Introduction to Micro Economics Class 12 Economics MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Economics with Answers for all chapters in your NCERT Class 12 Economics book.

Introduction to Micro Economics Class 12 MCQ Questions with Answers

See below Introduction to Micro Economics Class 12 Economics MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. In which of the following situations, does scarcity arise?
(a) Supply of resources > Demand for resources
(b) Supply of resources < Demand for resources
(c) Supply for resources = Demand for resources
(d) none of these 

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

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 pair is incorrect?
Codes
(a) A–(i)
(b) B-(ii)
(c) C-(iii)
(d) D-(iv)   

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 ` 500 to see the movie. You are willing to pay ` 1,500 for the cricket match. The opportunity cost of going to the movie is 
(a) ` 1,000
(b) ` 500
(c) ` 1,500
(d) None of these 

Question. Write the correct pair. 43 Codes
(a) A–(i)
(b) B-(ii)
(c) C-(iii)
(d) None of these 

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. 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 microeconomics or macroeconomics
(d) None of the above  

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. 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. Identify the correct sequence of alternatives given in column II by matching them with respective terms in column I. 44 Codes A B C A B C
(a) (i) (ii) (iii)
(b) (ii) (iii) (i)
(c) (iii) (i) (ii)
(d) (ii) (i) (iii)  

Question. Which of following is a study of micro Economics?
(a) Aggregate consumption
(b) national income
(c) Software industry
(d) none of these 

Question. The government does not interfere in the process of decision-making under:
(a) Market economy
(b) centrally planned economy
(c) mixed economy
(d) none of these 

Question. Which of the following is the example of economic activity?
(a) Production
(b) consumption
(c) exchange
(d) all of these 

Question. The shape of transformation curve is changed by:
(a) Opportunity cost
(b) total cost
(c) marginal opportunity cost
(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. Economic problem arises due to:
(a) Limited wants
(b) scarce means
(c) alternative uses
(d) both (b) and (c) 

Question. Which of the following is not concerned with the problem of choice?
(a) Excessive income
(b) alternative use of resources
(c)unlimited wants
(d) scare resources 

Question. Which of the following is related to the problem ‘how to produce’?
(a) Factoral distribution of income
(b) the choice of technique
(c) the choice of product
(d) none of these 

Question. Microeconomics studies the economic activities of …………… units.
(a) Non-economic
(b) scare
(c) individual
(d) none of these 

Question. Normative economics deals with:
(a) Facts
(b) opinions
(c) both (a) and (b)
(d) none of these 

Question. Which of the following is a study of Macroeconomics?
(a) An economy
(b) an industry
(c) a firm
(d) a consumer 

Question. …………… is driven by the forces of supply and demand.
(a) Mixed economy
(b) market economy
(c) social economy
(d) centrally planned economy 

Question. The resources for satisfying human wants are:
(a) Limited
(b) unlimited
(c) available at zero prices
(d) none of these 

Question. Which of following is an alternative name given to Micro economics …..?
(a) Factor price theory
(b) income & employment theory
(c) price theory
(d) none of hese 

Question. Consumer is sovereign under:
(a) Controlled economy
(b) free economy
(c) mixed economy
(d) both (a) and (c) 

Question. Which of the following is Not an economic activity ….?
(a) Public finance
(b) a teacher teaching in a class
(b) (c) a minister in the cabinet
(d) mother teaching his son 

Question. The problem of ‘what to produce’ relates to:
(a) The choice of technique
(b) distribution of income
(c) market value of the goods and services
(d) the choice of goods and services 

Question. Who controls economic activity under centrally planned economies?
(a) Industrialists
(b) private firms
(c) government
(d) consumers 

Question. Positive economic involves statements which are:
(a) Verifiable
(b) not verifiable
(c) may or may not be verifiable
(d) none of these 

Case Based MCQ Questions Class 12 Economics Chapter 1 Introduction to Micro Economics to Microeconomics

Direction Read the following case study and answer questions on the basis of the same.

Economics is about how people make decisions given their limited resources. The decisions are taken with regard to the basic economic activities such as production and consumption of goods and services and saving and investment. However, taking decision is not easy or simple. One must estimate the wants and the availability of resources while taking decisions on production of goods and services. Similarly, distribution of the produced goods in the society needs to be done properly. The basic problems central to any economy, therefore, relate to production, consumption and distribution.

Question. Assertion (A) The third economic problem is related to the economic activity of distribution.
Reason (R) Government needs to decide the distribution of goods depending upon the economic situation of the population.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Question. The basic central problem of an economy is related to
(a) production
(b) consumption
(c) distribution
(d) All of these

Question. Unlimited human wants are the most dominant reason behind the economic problems. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. Which of the following components impacts the production decision in an economy?
(a) Wants
(b) Availability of resources
(c) Both (a) and (b)
(d) Neither (a) nor (b)

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

Direction Read the following case study and answer questions on the basis of the same.

Economists frequently distinguish between ‘positive’ and ‘normative’ economics. Positive economics is concerned with the development and testing of positive statements about the world that are objective and verifiable. Normative statements derive from an opinion or a point of view. Thus, the words ‘should’, ‘ought to’ or ‘it is better to’ frequently occur.
The validity of normative statements can never be tested. Positive statements, on the other hand, can be tested, at least in theory, if not always in practice. For anyone working at a management position, it is helpful to distinguish between positive and normative statements. Managers and the people they work with, or are advised by, are likely to make liberal use of both, although normative statements may sometimes be disguised as positive statements. Whilst both types of statement may deserve attention, better management de cisions are likely to result when the distinction between them is recognised. It is often possible to rephrase normative statements in such a way that they become positive ones. For example, the normative statement ‘‘the subsidies of the European Union’s Common Agricultural Policy (CAP) should be removed’’ could be rephrased as the positive statement ‘‘removing CAP
subsidies will raise farm prices in developing countries’’. The validity of the latter statement could, in theory, be tested.

Question. ‘‘Removal of Common Agricultural Policies related to subsidies will raise farm prices in developing countries.’’ The above statement is a … economics.
(a) positive
(b) normative
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Question. Assertion (A) Positive economics is concerned with the development and testing of positive statements. 
Reason (R) As the economy grows, validity of the facts becomes difficult with the same piece of information.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Question. The validity of normative science can ……… be tested using any statistical method.
(a) always
(b) never
(c) sometimes
(d) None of these

Question. Normative statements can be rephased to make it positive statement with any change in the actual purpose. Choose from the options below.
(a) True
(b) False
(c) Partially true
(d) Incomplete statement

Question. People working at management positions use both positive and normative statements due to which of the following reasons?
(a) It helps in understanding different situations that may prevail in the organisation
(b) It helps to deal with changingmarket conditions related to production
(c) It helps in understanding the impact of economics in the economy
(d) All of the above