GK: Production Possibility curve. Microeconomics

1. Economic problem arises due to

A) Scarcity of resources
B) Unlimited wants
C) Resources can be put to alternative uses
D) All of these

... Answer is D)

2.Which of the following is an assuption of Production Possibility Frontier?

A) Resources are not fully eployed
B) Resources are not equally efficient for production of two goods
C) Resources are not efficiently employed
D) Resources availavle are not fixed

... Answer is B)

3.Production Possibility curve will shift to left when there is

A) under-utilisation of resources
B) growth of resources
C) technological improvement
D) loss of resources because of natural calamity

... Answer is D)

4.The central problem of an economy are:

A) what to produce
B) how to produce
C) whom to produce
D) all of these

... Answer is D)

5. Value of a factor in its next best alternative use is

A) social cost
B) opportunity cost
C) marginal rate of substitution
D) PPC

... Answer is B)

6.PPC is concave when marginal opportunity cost

A) falls
B) remains constant
C) rises
D) all of these

... Answer is C)

7. which of the following countries will face the central problems?

A) India
B) China
C) Japan
D) All of these

... Answer is D)

8.Rightward shift of PPC indicates:

A) growth of resources
B) under-utilisation of resources
C) decrease in availability of resources
D) none of these

... Answer is A)

9.In case of inefficient utilisation of resources:

A) PPC will shift to left
B) PPC will shift to right
C) economy operates inside PPC
D) none of the above

... Answer is C)

10.microeconomics is the study of:

A) A consumer
B) A producer
C) An industry
D) all of these

... Answer is D)

11. the central problem of 'How to produce' is the problem of deciding the use of:

A) Labour intensive technology only
B) capital intensive technology only
C) Both labour and capital intensive techniques as per objectives of the producer
D) All of these

... Answer is C)

12.PPC is straight line when:

A) MRT decreases
B) MRT constant
C) MRT increases
D) None of these

... Answer is B)
MRT=Marginal rate of transformation

13. ________ does not lead to shift in PPC

A) Improvement of technology
B) Invention of new resources
C) Destruction of resources
D) Massive unemploymment

... Answer is D)

14. Which of these is a normative economics?

A) 30% population of India is below poverty line
B) Increase in FDI has increased GDP of India
C) Government increased Repo rate and check inflation
D) Equal distribution of income in India will solve the problem of poverty.

... Answer is D)

15. opportunity cost:

A) is always lower than the given value of a factor
B) is always higher than the given value of a factor
C) is equal to the given value of a factor
D) can be less than, more than or equal to the given value of a factor

... Answer is D)

16.Positive economic analysis is concerned with____

A) Facts
B) suggestion
C) Value judgement
D) Opinions

... Answer is A)

17. One dollar can be exchanged for Rs 80 is a ____________ statement

A) Normative
B) Positive
C) Both (a) and (b)
D) Neither (a) nor (b)

... Answer is B)

18. PPC can be a ____________ curve

A) convex shaped
B) concave shaped
C) straight line
D) all of these

... Answer is D)

19. Central problem of ________ to produce deals with the choice of technique of production.

A) what
B) how
C) for whom
D) both (a) and (b)

... Answer is B)

20.Scarcity is a situation in which____________

A) wants exceed the resources available to satisfy them
B) something is being wasted
C) people are poor
D) none of them

... Answer is A)