MCQ Chapter 1 Introduction to Micro Economics Class 12 Economics

Please refer to Introduction to Micro Economics MCQ Questions Class 12 Economics below. These MCQ questions for Class 12 Economics with answers have been designed as per the latest NCERT, CBSE books, and syllabus issued for the current academic year. These objective questions for Introduction to Micro Economics will help you to prepare for the exams and get more marks.

Introduction to Micro Economics MCQ Questions Class 12 Economics

Please see solved MCQ Questions for Introduction to Micro Economics in Class 12 Economics. All questions and answers have been prepared by expert faculty of standard 12 based on the latest examination guidelines.

MCQ Questions Class 12 Economics Introduction to Micro Economics

Question. Slope of production curve is:
a) a straight line
b) convex to the point of origin ‘O’
c) concave to the point of ‘O’
d) none of these 

Question. Which of the following is a microeconomic concept?
a) The reasons for the rise in general prices in an economy
b) Reducing inequality of income and wealth
c) Maintaining the foreign exchange reserves
d) None of the above   

Question. Which of the central problem is related to selection of techniques of production?
a) What to produce?
b) How to produce?
c) For whomto produce?
d) None of these 

Question. Central problems of economy and the problem of choice are one and the same thing.
Choose from the options below.
a) True
b) False
c) Partially true
d) Incomplete statement   

Question. There is ……… degree of aggregation in macroeconomics.
a) constant
b) lower
c) higher
d) no 

Question. Which of the following is a macroeconomic concept?
a) The reasons why Viaan buys less orange juice
b) The reasons why employment decreased at a factory
c) The reasons for a decline in price of a good
d) None of the above 

Question. Microeconomics focuses on all of the following except the
a) buying and selling decisions by an individual consumer and seller respectively.
b) effect of increasing the money supply in inflation.
c) effect on tobacco sales of an increase in the tax on cigarettes.
d) hiring decisions made by a business. 

Question. There is no degree of aggregation in microeconomics.
Choose from the options below.
a) True
b) False
c) Partially true
d) Incomplete statement   

Question. Central government of India announced relief packages for migrant labourer during the pandemic of 2020.
This statement is ……… .
a) normative statement
b) positive statement
c) general statement
d) None of the above 

Question. During the covid-19 pandemic, there was nation wide lock down which led to migration of labour across states. State government should have taken necessary steps to reduce the migration of people. This statement indicates
a) normative statement
b) positive statement
c) general statement
d) None of the above 

Question. The possibility of third wave of covid-19 pandemic can be reduced by following covid appropriate behaviour.
Identify the type of statement from given below.
a) Normative statement
b) Positive statement
c) Both a) and b)
d) None of the above 

Question. Economics cost is equal to 
a) accounting cost
b) opportunity cost
c) sum of accounting cost and opportunity cost
d) difference of accounting cost and opportunity cost 

Question. All newspaper headlines are positive statements.
Choose from the options below.
a) True
b) False
c) Partially true
d) Incomplete statement 

Question.Studying the determination of prices in individual markets is primarily a concern of
a) negative economics
b) positive economics
c) microeconomics
d) macroeconomics 

Question. Opportunity cost refers to which of the following?
a) Accounting cost minus the marginal benefit
b) Monetary costs of an activity
c) Highest valued alternative forgone
d) Accounting cost minus the marginal cost 

Question. The following headline appeared in “Hindustan Times” dated 25th July 2018, “Getting insurance for rain damage cars an uphill task”. This statement is
a) positive economics
b) normative economics
c) general economics
d) None of the above 

Question. In broad terms, the difference between microeconomics and acroeconomics is that
a) they use different schools of thought.
b) microeconomics studies the effects of fiscal policy on the unemployment rate while macroeconomics does not.
c) macroeconomics studies the effects of fiscal policy on the price of individual goods and services whereas microeconomics does not.
d) microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy. 

Question. Which of the following is also known as theory of income determination?
a) Microeconomics
b) Macroeconomics
c) Statistics for economics
d) None of the above 

Question. Which of the following is also known as theory of price determination?
a) Microeconomics
b) Macroeconomics
c) Statistics for economics
d) None of the above 

Question. Who controls economic activities under centrally planned economics ?
a) Industrialists
b) Private firms
c) Government
d) Consumers

Question. What satisfying power of commodity is called :
a) Consumption
b) Utility
c) Production
d) Value addiction

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) Limited (scarce) resources 

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. Increase (growth) of resources implies that production possibility curve :
a) Shifts to the Right
b) Shifts to the left
c) Rotates to the right
d) None of these

Question. Example of micro economic variable is:
a) Wholesale price index
b) National income
c) Market demand
d) Aggregate demand

Question. Consuming two goods, consumer attains equilibrium when :
a) MU1 > MU2
b) MU2> MU1
c) MU1 = MU2
d) TU1 = TU2

Question. When marginal utility is negative, total utility is :
a) Zero
b) Diminishing
c) Maximum
d) Minimum 

Question. Mention the name of the curve which shows economic problem:
a) Production Possibility Curve 
b) Demand Curve
c) Indifference Curve
d) Production Curve

Question. Who said economics is the ‘Science of wealth:
a) Prof. Robbins
b) Prof. Adam Smith 
c) Prof. Marshall
d) Prof. J.K. Mehta

Question. Which of the following central problems of an economy deals with deciding the quantity of goods to be produced?
a) What to produce
b) How to produce
c) For whom to produce
d) When to produce

Question. Which of the following is the salient feature of factors (or resources) ?
a) These are limited as compared to wants
b) These have alternative uses
c) Both (a) and (b)
d) None of the above

Question. Which Economist divided Economics in two branches of micro and macro on the basis of economic activity?
a) Marshall
b) Ricardo
c) Ragnar Frish
d) None of these

Question. Which of the following economic activities are included in the subject-matter of Economics?
a) Economic Activities related to Unlimited Wants
b) Economic Activities related to Limited Resources
c) Both (a) and (b)
d) None of these

Question. Total output of an economy is the sum of total output of individual producers. This statement proves that:
a) macroeconomics depends on microeconomics
b) there is no correlation between micro and macroeconomics
c) study of micro and macro economics is independent of each other
d) microeconomics is dependent on macroeconomics

Question. Which of the following central problem of an economy deals with the distribution of National Income?
a) How to produce
b) What to produce
c) For whom to produce
d) None of these

Question. __ of resources is necessary for the development of the economy.
a) Utilisation
b) Growth
c) Wastage
d) Non-utilisation

Question. 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

Question. Under the Inductive method, the logic proceeds from :
a) General to particulars
b) Particular to general
c) both a and b
d) None

Question. Which of the following is true for microeconomics 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. The opportunity cost of watching a movie will be equal to:
a) the time lost while watching the show
b) the pleasure that could have been enjoyed watching TV instead
c) the pleasure enjoyed by watching the show
d) the amount paid to buy the tickets

Question. On which base structure of economic problems has been installed?
a) Unlimited Wants
b) Limited Resources
c) Both a) and b)
d) None of the above

Question. To which factor, economic problem is basically related to:
a) Choice
b) Consumer’s Selection
c) Firm Selection
(d) None of these

Question. Micro Economics includes:
a) Individual unit
b) Small units
c) Individual price determination
d) All of these

Question. Which of the following is/are not the feature of human wants
a) Limited
b) Recurring
c) Both (a) and (b)
d) Neither (a) nor (b)

Question. The activities which are linked with use of goods and services for the satisfaction of wants directly are known as:
a) production
b) consumtption
c) distribution
d) exchange

Question. Which of the following is a source of production ?
a) Land
b) Labour
c) Capital
d) All of these

Question. In which economy decisions are taken on the basis of price mechanism ?
a) Socialist
b) Capitalist
c) Mixed
d) All of these

Question. Which of is/are the reasons for Economic problems?
a) Scarcity of resources
b) Alternative uses of resources
c) Unlimited human wants
d) All of the above

Question. Example of microeconomic variable is:
a) Wholesale price index
b) National Income
c) Market demand
d) Aggregate Demand

Question. Which of the following Is a type of economic activities ?
a) Production
b) Consumption
c) Exchange and Investment
d) All of these

Question. Consumer behaviour is studied in:
a) Micro Economics
b) Income Theory
c) Mac o Economics
d) None of these

Question. ‘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

Question. The point of optimum utilization of resources lies on which side of PPC curve:
a) Towards left
b) Towards right
c) Inside
d) Upwards

Question.‘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

Question. Which of the following is not a central problem?
a) What to produce
b) When to produce
c) How to produce
d) For whom to produce

Question. Which of these is normative economics?
a) 25 percent population of India is below the poverty line.
b) Increase in FDI has increased the GDP of India
c) Equal distribution of income will make India poverty free
d) Higher welfare spending by the government increases the Aggregate Demand

Question. Under a free economy, prices are :
a) Regulated
b) etermined through free interplay of demand and supply
c) Partly regulated
d) None of these

Question. Which of the following is not an example of macroeconomics?
a) National income
b) Unemployement
c) Population growth
d) None of the above

Question. The word ‘micro’ was firstly used by:
a) Marshall
b) Boulding
c) Ragnar Frish 
d) Keynes

Question. What is known as the study of individual units?
a) Macroeconomics
b) Microeconomics
c) Income and Employment Theory
d) Development economics

Question. Which of the following subject matter study in microeconomics
a) Money supply
b) Aggregate demand
c) Market demand of a good
d) National income

Question. ositive economic analysis deals with things __ .
a) ‘as they ought to be’
b) ‘as they are’
c) Both (a) and (b)
d) None of these

Question. Central problem of an economy is/are
a) What to produce and in what quantities
b) How to produce
c) For whom to produce
d) All of these

Question. Which of the following is also known as thoery of income determination?
a) Microeconomics
b) Macroeconomics
c) Statistics for economics
d) None of the above

Question. What is the name of the book written by J.M. Keynes?
a) Wealth of Nation
b) Political economy
c) The General Theory of Employment, Interest and Money
d) None of these

Question. Which economic problem involves selection of category of people who will ultimately consume the goods?
a) For whom to produce 
b) How to produce
c) What to produce
d) None of these

Question. Positive economic analysis is concerned with:
a) Opinions
b) Value judgements
c) Facts and Figures
d) Ideals

Question. The central problem of how to produce is a problem of choice regarding:
a) distribution
b) technique of production
c) quantity to be produced
d) commodities to be produced