Have you micro economics mcq subject in your academic course exam? If yes, you can prepare Micro economics mcq with answer set 1. After all set of mcq, must give online exam quiz and assess your knowledge.
MCQ of Micro economics set 1
Q1. Economics is often referred to as a —– science.
a. social
b. physical
c. Both A and B
Answer
a. social
Q2. Theory of ‘Invisible Hands’ was given by—–
a. Carl
b. Adam Smith
c. None of these
Answer
b. Adam Smith
Q3. As per Marshall, economics is the study of —– in ordinary business of life.
a. mankind
b. cipla
c. None of these
Answer
a. mankind
Q4. Resources are —– and human wants are —–
a. limited, unlimited
b. unlimited, limited
c. None of these
Answer
a. limited, unlimited
Q5. Scarce resources should be used with maximum —– to get optimum results.
a. efficiency
b. power
c. None of these
Answer
a. efficiency
Q6. —– problems involve decisions about installation of additional machines or hiring of extra labour.
a. Queuing
b. assignment
c. Both A and B
Answer
a. Queuing
Q7. Any firm works for profits and optimal or near maximum profits depend upon accurate —–decisions.
a. price
b. man power
c. Both A and B
Answer
a. price
Q8. —– helps in empirical testing of the economic theory.
a. Books
b. Statistics
c. None of these
Answer
b. Statistics
Q9. Demand for machinery in industries is a —– demand.
a. Derived
b. Market
c. Both A and B
Answer
a. Derived
Q10. Shoes and socks are —– goods.
a. Free
b. Complementary
c. None of these
Answer
b. Complementary
Q11. The most basic source of demand is —– of the individuals.
a. Need
b. cost
c. Both A and B
Answer
a. Need
Q12. The shape of the demand curve is —– sloping.
a. Upward
b. Downward
c. None of these
Answer
b. Downward
Q13. Usually, income of the individuals and demand have a —– relationship.
a. Positive
b. Negative
c. Both A and B
Answer
a. Positive
Q14. —– is a position at which there is no surplus or shortage in the economy.
a. Slope
b. Equilibrium
c. None of these
Answer
b. Equilibrium
Q15. As per law of supply, more goods will be supplied at —– price.
a. higher
b. lower
c. Both A and B
Answer
a. higher
Q16. The supply curve is —– sloping.
a. Inward
b. upward
c. None of these
Answer
b. upward
Q17. There is only one possible price at which quantity supplied is —– quantity demanded
a. equal to
b. minus
c. Both A and B
Answer
a. equal to
Q18. In price ceiling, price is purposely held —– the equilibrium price.
a. above
b. below
c. None of these
Answer
b. below
Q19. If the market price is lower than the price fl oor, then —– is generated.
a. surplus
b. scarcity
c. Both A and B
Answer
a. surplus
Q20. Elasticity of demand measures responsiveness of demand of a commodity to —–,—–and—–
a. price, income of consumers and price of other goods
b. man power, income of consumers and price of other goods
c. None of these
Answer
a. price, income of consumers and price of other goods
Q21. Such horizontal demand curves, where quantity demanded is infinitely responsive to price changes, are called —–
a. demand
b. perfectly elastic
c. Both A and B
Answer
b. perfectly elastic
Q22. Demand curves which have an elasticity coefficient as 1 are called —–
a. unit elastic
b. perfectly elastic
c. None of these
Answer
a. unit elastic
Q23. All such demand curves where quantity demanded is totally unresponsive to changes in price are called —–
a. more elastic
b. perfectly elastic
c. Both A and B
Answer
b. perfectly elastic
Q24. The demand is —– in the long run.
a. more elastic
b. perfectly elastic
c. None of these
Answer
a. more elastic
Q25. The total utility reaches a maximum value, when marginal utility approaches—–
a. 1
b. zero
c. Both A and B
Answer
b. zero
Q26. The goal of consumption is to maximize —–
a. total utility
b. money
c. Both A and B
Answer
a. total utility
Q27. The law of diminishing marginal utility assumes constant marginal utility of —–
a. Commodity
b. money
c. Both A and B
Answer
b. money
Q28. Utility is measured in fictional units called—–
a. Utils
b. Commodity
c. Both A and B
Answer
a. Utils
Q29. A blanket is made to protect people from cold. This is —–related utility.
a. Commodity
b. Price
c. Both A and B
Answer
a. Commodity
Q30. Indifference curve represents a particular level of —–
a. satisfaction
b. dis-satisfaction
c. Both A and B
Answer
a. satisfaction
Q31. Macro and micro economics are two distinct branches of economics that have no connection with each other.
a. True
b. False
Answer
b. False
Q32. Micro economics takes a top-down approach and macro economics takes a bottom-up approach in analyzing the economy.
a. True
b. False
Answer
b. False
Q33. The optimal economic activity is to optimise the attainment of ends, given the means and their scarcities.
a. True
b. False
Answer
b. False
Q34. In macro analysis, the focus is on a single individual in an economy.
a. True
b. False
Answer
b. False
Q35. Demand of petrol is direct demand.
a. True
b. False
Answer
b. False
Q36. Demand is just a want or desire to purchase a product or a service.
a. True
b. False
Answer
b. False
Q37. When the price of bread goes up, the demand for butter usually goes up.
a. True
b. False
Answer
b. False
Q38. A trader has 10 bags of cement in his store. This represents supply of cement.
a. True
b. False
Answer
b. False
Q39. When quantity demanded is more than quantity supplied, the prices tend to fall.
a. True
b. False
Answer
b. False
Q40. Price fl oor can be imposed by anyone in the market.
a. True
b. False
Answer
b. False
Other Micro Economics Exam MCQ set
- Micro economics mcq with answer set 1
- Micro economics mcq with answer set 2
- Micro economics mcq with answer set 3
- Micro economics mcq with answer set 4
- Micro economics mcq with answer set 5
