This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Economics Macro Economics > Class 12 Economics (Macro Economics) Chapter 1 Introduction – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Economics (Macro Economics) Chapter 1 Introduction Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One of the following is not a type of economy A) Centrally planned. B) Mixed economy. C) Market economy. D) Basic economy. Show Answer Correct Answer: D) Basic economy. 2. How do consumers decide how much of each good to buy? A) Micro. B) Macro. C) All the above. D) None of the above. Show Answer Correct Answer: A) Micro. 3. The statements like Economy should control pollution or unemployment in the economy ought to be reduced fall within the scope of A) Normative statement. B) Positive statement. C) Both A and B. D) None of these. Show Answer Correct Answer: A) Normative statement. 4. One measure of the economy macroeconomists pay attention to to study the pace of growth in the economy is A) Supply. B) Inflation. C) Demand. D) Equilibrium price. Show Answer Correct Answer: B) Inflation. 5. Which of the following is an exmple of Micro Economics? A) Producer's Equilibrium. B) Determination of general price level. C) Economy's Equilibrium. D) Both A and C. Show Answer Correct Answer: A) Producer's Equilibrium. 6. "General Theory of Employment, Interest and Money"-this book was published by ..... A) Prof. Alfred marshall. B) Irving Fisher. C) Adam Smith. D) Maynard Keynes. Show Answer Correct Answer: D) Maynard Keynes. 7. The reward gained by risk taking when the revenue earned from selling a given amount of output exceeds the total cost of producing that output A) Profit. B) Asset. C) Expenses. D) Revenue. Show Answer Correct Answer: A) Profit. 8. Scarcity is the economic law that needs and wants are ..... but resources are ..... A) Benefits / costs. B) Costs / benefits. C) Unlimited / limited. D) Limited / unlimited. Show Answer Correct Answer: C) Unlimited / limited. 9. Economic problem is the problem of ..... A) Need. B) Want. C) Choice. D) None. Show Answer Correct Answer: C) Choice. 10. Which part of the economic theory aims at the producer's behaviour and the level of output by a firm? A) Micro Economics. B) Macro Economics. C) Welfare Economics. D) Both Micro economics and Macro Economics. Show Answer Correct Answer: A) Micro Economics. 11. What happens when there is a surplus of a product in the market? A) The price of the product increases. B) The demand for the product increases. C) The price of the product decreases. D) The supply of the product decreases. Show Answer Correct Answer: C) The price of the product decreases. 12. Which of the following is not a flow A) Capital. B) Investment. C) Depreciation. D) Income. Show Answer Correct Answer: A) Capital. 13. Which of the following is a normative statement A) Govt should be concerned with how to reduce unemployment. B) More than 10% of the houses in Indian cities are lying vacant, a study estimate. C) Accommodation of the refugees is posing big problem in European nations. D) Economics is a study of choices/alternatives. Show Answer Correct Answer: A) Govt should be concerned with how to reduce unemployment. 14. Which of the following is NOT a basic question of economic systems? A) For whom should it be produced?. B) How should it be produced?. C) What should be produced?. D) How long should it be produced?. Show Answer Correct Answer: D) How long should it be produced?. 15. Which is an example of scarcity? A) There were too many apples for everyone in school. B) There were only 3 notebooks to give the 10 students. C) The older boy took the bottle of water and didn't give the student. D) Water is available only at 3 in the afternoon. Show Answer Correct Answer: B) There were only 3 notebooks to give the 10 students. 16. Lawmakers asking the question "Will cutting taxes end the current recession?" is a A) Microeconomic question. B) Macroeconomic question. C) Both a micro and macro economic question. D) None of the above. Show Answer Correct Answer: B) Macroeconomic question. 17. A teacher gives extra credit if a student completes a test study guide ..... This is an example of? A) Negative Incentives. B) Voluntary Exchange. C) Freedom of Choice. D) Positive Incentives. Show Answer Correct Answer: D) Positive Incentives. 18. Is this a micro-economic or a macro-economic Problem?Inflation and/or deficit A) Micro-economic. B) Macro-economic. C) All the above. D) None of the above. Show Answer Correct Answer: B) Macro-economic. 19. Who is known as "Father of economics" A) Alfred Marshall. B) Lionel Robbins. C) Adam Smith. D) Paul Samuelson. Show Answer Correct Answer: C) Adam Smith. 20. The price of any good will rise. A) When the buyer demand more. B) When the buyer not demanded. C) When supply increase. D) When production increase. Show Answer Correct Answer: A) When the buyer demand more. 21. Microeconomics is also called A) Income and employment. B) Classical theory. C) Keynesian theory. D) Price theory. Show Answer Correct Answer: D) Price theory. 22. Goods means which types of good which we use to satisfy people's wants and needs? A) . Physical. B) . Tangible. C) . Intangible. D) . Both (a) and (b). Show Answer Correct Answer: D) . Both (a) and (b). 23. What encourages firms to produce what consumer demand? A) The desire to attract new firms into industry. B) The chance to earn high profit. C) The desire to keep revenue as low as possible. D) The chance to experience high unit costs of production. Show Answer Correct Answer: B) The chance to earn high profit. 24. The Opportunity cost of 500 kg of wheat produced on a land which can produce 400 kg of rice is: A) 100 kg of rice. B) 400 kg of rice. C) 0.8 kg of rice. D) 900 kg of rice. Show Answer Correct Answer: B) 400 kg of rice. 25. A decision making unit can be. A) A single person. B) A group. C) Any organization. D) All of above. Show Answer Correct Answer: D) All of above. 26. ..... analysis helps in allocation of resources. A) Micro Economics. B) Macro Economics. C) All the above. D) None of the above. Show Answer Correct Answer: A) Micro Economics. 27. Opportunity cost of an activity is: A) Cost of Forgone Opportunity. B) Cost of Units sacrificed. C) Value of Next Best Alternative sacrificed. D) None of these. Show Answer Correct Answer: C) Value of Next Best Alternative sacrificed. 28. Which of the following is a statement of normative nature in economics A) Economics is a study of choices /alternatives. B) Accommodation of refugees is posing a big problem for Europe. C) The government should be concerned with how to reduce unemployment. D) According to the estimate, in spite of severe shortage, more than 10% of houses in Indian cities are vacant. Show Answer Correct Answer: C) The government should be concerned with how to reduce unemployment. 29. Find odd word out: A) General equilibrium analysis. B) Slicing method. C) Limited scope. D) Study of Individual unit. Show Answer Correct Answer: A) General equilibrium analysis. 30. Which of the following is the basic economics problem faced by the society. A) Allocation of the limited resources. B) To satisfy all the wants. C) Wants are limited. D) Resources are unlimited. Show Answer Correct Answer: A) Allocation of the limited resources. 31. How many central problems will be there due to resource allocation A) 4. B) 3. C) 2. D) 1. Show Answer Correct Answer: B) 3. 32. If Marginal rate of transformation is constant, then PPC would be ..... to the point of origin. A) Concave. B) Straight Line. C) Convex. D) None. Show Answer Correct Answer: B) Straight Line. 33. The study of economics is divided into A) Choice and sacrcity. B) Big and small economics. C) Labour and capital economics. D) Macroeconomics and Microeconomics. Show Answer Correct Answer: D) Macroeconomics and Microeconomics. 34. Which economic prblm involves selection os category of people who will ultimately consume the goods A) How to produce. B) For whom to produce. C) What to produce. D) None of these. Show Answer Correct Answer: B) For whom to produce. 35. Which of the following best describes the central problem of 'For whom to produce' A) Whether rich or poor will purchase the commodities. B) Who will purchase the commodities. C) The distribution of national income. D) None of these. Show Answer Correct Answer: C) The distribution of national income. 36. What is meant by market forces? A) The interaction of demand and supply. B) The interaction of firms and the government. C) The power of producers. D) The power of the state. Show Answer Correct Answer: A) The interaction of demand and supply. 37. Economics is a queen of social science. This term stated by whom A) Paul Samuelson. B) J M Keynes. C) David Ricardo. D) Adam Smith. Show Answer Correct Answer: A) Paul Samuelson. 38. It is a Financial Gain, especially the difference between the amount earned and the amount spent A) Capital. B) Expenditure. C) Investment. D) Profit. Show Answer Correct Answer: D) Profit. 39. Principal characters of resources are: A) They are scarce in relation to demand. B) They have alternative uses. C) Scarce and with Alternative uses both. D) None of these. Show Answer Correct Answer: C) Scarce and with Alternative uses both. 40. Is this a micro-economic or a macro-economic Problem?Shortage in national steel production A) Micro-economic. B) Macro-economic. C) All the above. D) None of the above. Show Answer Correct Answer: A) Micro-economic. 41. What determines the price and quantity of individual goods and services? A) Micro. B) Macro. C) All the above. D) None of the above. Show Answer Correct Answer: A) Micro. 42. A firm's total earnings from a specified level of sales within a specified period A) Expenses. B) Asset. C) Profit. D) Revenue. Show Answer Correct Answer: B) Asset. 43. The term 'micro' is derived from Greek word ..... A) Mikros. B) Makros. C) Micros. D) None of the above. Show Answer Correct Answer: A) Mikros. 44. What factors can cause a shift in the demand curve? A) Changes in the price of the good itself. B) Changes in consumer income, tastes, and prices of related goods. C) Changes in technology. D) Changes in government policies. Show Answer Correct Answer: B) Changes in consumer income, tastes, and prices of related goods. 45. The value of Indonesia's Rupiah (IDR) will decreased if people decided to use more of Singaporean Dollar (SGD). A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. What factors can cause a shift in the supply curve? A) Changes in consumer preferences. B) Changes in the number of suppliers. C) Changes in the price of the good itself. D) Changes in technology, input prices, and government policies. Show Answer Correct Answer: D) Changes in technology, input prices, and government policies. 47. Micro economics:slicing method::Macro economics: ..... A) Partitioning method. B) Lumping method. C) Division method. D) None of the above. Show Answer Correct Answer: B) Lumping method. 48. Labour intensive Technique are chosen in a A) Developed economy. B) Labour surplus economy. C) Developing Economy. D) Capital surplus economy. Show Answer Correct Answer: B) Labour surplus economy. 49. Steps for Decision Making after group members determine their needs and decide what they want to accomplish, they should write a general goal (or goals) for their project. A) Discover Alternatives. B) Forecast the Consequences. C) Determine the Objective. D) Define the Problem. Show Answer Correct Answer: C) Determine the Objective. 50. Considered as Economics applied to "Problem of Choice" . A) Business Economics. B) Managerial Economics. C) Decision Making. D) Applied Economics. Show Answer Correct Answer: B) Managerial Economics. 51. Consumer is sovereign under: A) Controlled economy. B) Free economy. C) Mixed economy. D) Both (b) & (c). Show Answer Correct Answer: D) Both (b) & (c). 52. In a centrally planned market economy, the economic problem of what goods should be produced and how it is distributed is usually solved by A) Customer. B) Market. C) Government. D) Supplier. Show Answer Correct Answer: C) Government. 53. The credit of developing Macro economic approach goes to ..... A) David Ricardo. B) Kenneth Boulding. C) Lord Keynes. D) Adam Smith. Show Answer Correct Answer: C) Lord Keynes. 54. How do firms decide how much output to produce and what price to charge? A) Micro. B) Macro. C) All the above. D) None of the above. Show Answer Correct Answer: A) Micro. 55. 2, How does a market economy solve central economic problems? A) Central planning. B) Price mechanism. C) Both (i) and (ii. D) None of the above. Show Answer Correct Answer: B) Price mechanism. 56. 'Ceteris paribus' means ..... A) Other things being changed. B) Other things being affected. C) Other things remaining constant. D) Other remaining parallel. Show Answer Correct Answer: C) Other things remaining constant. 57. Characteristics of Managerial Economics that concerned with what management should do under particular circumstances A) Profit Management. B) Normative economics. C) Positive Economics. D) Capital Management. Show Answer Correct Answer: B) Normative economics. 58. PPC shows alternative production possibilities of two goods with: A) Full employment of given resources. B) Available technology. C) Efficient use of resources. D) Available technology and full and efficient employment of given resources. Show Answer Correct Answer: D) Available technology and full and efficient employment of given resources. 59. The Opportunity Cost can best be described as A) The money lost by purchasing something instead of making it yourself. B) The value lost of the next best alternative choice you could have made. C) The money you must pay to the government to produce goods. D) How much money your product can be sold for. Show Answer Correct Answer: B) The value lost of the next best alternative choice you could have made. 60. It helps in efficient employment of resources. A) Macro Economics. B) Micro Economics. C) Both. D) None. Show Answer Correct Answer: B) Micro Economics. 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