Test: Introduction To Microeconomics - 1


30 Questions MCQ Test Economics for CA CPT | Test: Introduction To Microeconomics - 1


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This mock test of Test: Introduction To Microeconomics - 1 for CA Foundation helps you for every CA Foundation entrance exam. This contains 30 Multiple Choice Questions for CA Foundation Test: Introduction To Microeconomics - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Introduction To Microeconomics - 1 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: Introduction To Microeconomics - 1 exercise for a better result in the exam. You can find other Test: Introduction To Microeconomics - 1 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.
QUESTION: 1

Which one of the following is not correct for deductive method:

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QUESTION: 2

A capitalist economy uses _______ as the principal means of allocating resources

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QUESTION: 3

In a free market economy, when consumers increase their purchase of a goods and the level of _______ exceeds ________ then prices tend to rise: 

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QUESTION: 4

Which one is not the characteristic of capitalistic economy?

Solution:

Collective ownership refers to the joint venture where jointly the private parties as well as the government run a business for personal gains as well as social welfare. A capitalist economy is the one where the ownership of economy's resources is in the hands of the private sector. Thus, collective ownership is not possible in a capitalist economy.

QUESTION: 5

‘Economics is the study of mankind in the ordinary business of life’ was given by:

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QUESTION: 6

What will be the shape of PPC Curve when marginal opportunity cost is constant?

Solution:

The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that a firm makes when they shift resources and technology from production of one commodity to the other. Therefore, if marginal opportunity cost remains constant then Production possibility curve will be a straight line owing to constant slope of the line. 

QUESTION: 7

A free Market economy solves its Central Problems through________

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QUESTION: 8

If the opportunity cost is constant, then PPC would be:

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QUESTION: 9

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

Solution:

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to increase. Raising prices will always cause total revenue to increase.

QUESTION: 10

Who gave the positive aspect of science?

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QUESTION: 11

According to Robbins, ‘means’ are:

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QUESTION: 12

Under a free economy, prices are:

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QUESTION: 13

When did the Great Depression hit the United States?

Solution:

The economic depression began after the stock market crash of 1929 that eventually led to the loss of over 13-15 million jobs.

QUESTION: 14

Micro economics is also known as _______

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QUESTION: 15

If a point falls inside the production possibility curve, what does it indicate?

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QUESTION: 16

In which among the following system the ‘right to property’ exists

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QUESTION: 17

Deductive and Inductive methods are complimentary to each other It is:

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QUESTION: 18

Production Possibility Curve is also known as:

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QUESTION: 19

Where does price mechanism exists?

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QUESTION: 20

“Economics is neutral between ends”. The statement is given by:

Solution:

According to Prof. Lionel Robbins economics is neutral between ends. Ends refer to wants. Human wants are unlimited. When want is satisfied, other wants crop up.

QUESTION: 21

If the demand for a good is inelastic, an increase in its price will cause the total expenditure of the consumers of the good to:

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QUESTION: 22

A Capitalist Economy follows the policy of:-

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QUESTION: 23

In inductive method, logic proceeds from:

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QUESTION: 24

Which of the following is a part of the subject matter of macroeconomics?

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QUESTION: 25

The term “Mixed Economy” denotes:

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QUESTION: 26

In a capitalist economy the allocation of resources is performed by:

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QUESTION: 27

Normative Economics is based on:

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QUESTION: 28

Socialist Economy is also known as

Solution:

A mixed economy is a planned economy in which government has a clear and definite economy plan.
Socialist economy is also known as centrally planned economy because there is central authority to set and accomplish socio-economic goals.

QUESTION: 29

Which of the following falls under micro economics?

Solution:

Micro economics deals with the study of economics from the view point of an individual unit.  Factor pricing refers to the prices of various factors (like land, labor, capital and entrepreneurship) of production which is decided on the basis of market forces, i.e. demand, supply, and income which are micro variables. 

QUESTION: 30

Which of the following is a macroeconomic issue?

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