Commerce Exam  >  Commerce Tests  >  Economics Class 11  >  Test: Introduction To Economics - 4 - Commerce MCQ

Test: Introduction To Economics - 4 - Commerce MCQ


Test Description

25 Questions MCQ Test Economics Class 11 - Test: Introduction To Economics - 4

Test: Introduction To Economics - 4 for Commerce 2024 is part of Economics Class 11 preparation. The Test: Introduction To Economics - 4 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Introduction To Economics - 4 MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Introduction To Economics - 4 below.
Solutions of Test: Introduction To Economics - 4 questions in English are available as part of our Economics Class 11 for Commerce & Test: Introduction To Economics - 4 solutions in Hindi for Economics Class 11 course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Introduction To Economics - 4 | 25 questions in 30 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Economics Class 11 for Commerce Exam | Download free PDF with solutions
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Introduction To Economics - 4 - Question 1

One or more persons living together and having a common budget is called:

Detailed Solution for Test: Introduction To Economics - 4 - Question 1

Allocation of resource means distribution of resource. Distribution of resource means factory of production i.e land, labour , capital and entreprenureship . so allocation of resource result in production of goods and services

Test: Introduction To Economics - 4 - Question 2

Who gets how much in an economy is best described by which of the following central problems? 

Detailed Solution for Test: Introduction To Economics - 4 - Question 2

For whom to produce refers to selection of the category of people who will ultimately consume the goods, i.e. whether to produce goods for more poor and less rich or more rich and less poor. Since resources are scarce in every economy, no society can satisfy all the wants of its people.

Test: Introduction To Economics - 4 - Question 3

The positive economic analysis deals with the variables

Detailed Solution for Test: Introduction To Economics - 4 - Question 3

Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect behavioral relationships and includes the development and testing of economics theories.

Test: Introduction To Economics - 4 - Question 4

Microeconomics studies the behaviour of 

Detailed Solution for Test: Introduction To Economics - 4 - Question 4

The term Micro Economics is derived from the Greek work “Mikros” which means “Small”. Micro economics gives a detailed analysis of one part of the economy or society. It studies the behaviour of individual units of the economy, such as households, firms, industries and markets.

Test: Introduction To Economics - 4 - Question 5

The subject of a Microeconomic study is

Detailed Solution for Test: Introduction To Economics - 4 - Question 5

Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms

Test: Introduction To Economics - 4 - Question 6

The normative economic analysis deals with the variables

Detailed Solution for Test: Introduction To Economics - 4 - Question 6

Normative economic analysis refers to the analysis in which we study whether a particular mechanism is desirable or not. In this analysis, we study what ought to be the desired situation or in what ways the economic problems should be solved. In other words, it is concerned with what should be and what should not be, and what is desirable and what is not? 

Test: Introduction To Economics - 4 - Question 7

As they see Opportunity cost means 

Detailed Solution for Test: Introduction To Economics - 4 - Question 7

Opportunity cost, also known as alternative cost, is the value (not a benefit) of the choice of a best alternative cost while making a decision. A choice needs to be made between several mutually exclusive alternatives; assuming the best choice is made, it is the "cost" incurred by not enjoying the benefit that would have been had by taking the second best available choice.

Test: Introduction To Economics - 4 - Question 8

One or more persons living together and having a common budget is called:

Detailed Solution for Test: Introduction To Economics - 4 - Question 8

household consists of one or more people who live in the same dwelling and share meals. It may also consist of a single family or another group of people.

Test: Introduction To Economics - 4 - Question 9

The problem of ‘ How to produce’ is making a choice between

Detailed Solution for Test: Introduction To Economics - 4 - Question 9

Technology means the correct proportion in which the different factors of production are to be employed. There are two types of techniques. A labour-intensive technique would employ relatively more labour and less capital. On the other hand, capital- intensive technique means more capital and less labour.The context of how to produce is  ‘which techniques are to be adopted’? 

Test: Introduction To Economics - 4 - Question 10

What to produce also deal with what quantities to produce.

Detailed Solution for Test: Introduction To Economics - 4 - Question 10

The quantity in which a commodity is to be produced is set at that level where demand equals supply. If quality produced is more or less, then there will be dis equilibrium in the market and price will fluctuate. Hence, to maintain stable equilibrium price it becomes necessary to make demand and supply equal. 

Test: Introduction To Economics - 4 - Question 11

Can there be an economy without economic problems 

Detailed Solution for Test: Introduction To Economics - 4 - Question 11

The economic problem – sometimes called the basic or central economic problem – asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. It assumes that human wants are unlimited, but the means to satisfy human wants are scarce.

Test: Introduction To Economics - 4 - Question 12

A movement along a PPC implies

Detailed Solution for Test: Introduction To Economics - 4 - Question 12

The movement along the PPC from left to right shows that in order to produce more units of capital goods, the economy must sacrifice some amount of consumer goods.

Test: Introduction To Economics - 4 - Question 13

Increasing MOC mean

Detailed Solution for Test: Introduction To Economics - 4 - Question 13

It reflects that as the output of good X is increased,the output of goodY is decreasing. Therefore the shape of ppc becomes concave to the origin. The slope of ppc shows increasing moc which tends to rise when resources are shifted from the production of one good to another .

Test: Introduction To Economics - 4 - Question 14

Larger production of ___________ goods would lead to higher production in the future.

Detailed Solution for Test: Introduction To Economics - 4 - Question 14

A capital good is a durable good that is used in the production of goods or services. Capital goods are one of the three types of producer goods, the other two being land and labour which are also known collectively as primary factors of production.

Test: Introduction To Economics - 4 - Question 15

The branch of economics dealing with the problem of allocation of resources is 

Detailed Solution for Test: Introduction To Economics - 4 - Question 15

Microeconomics is the social science that studies the implications of individual human action, specifically about how those decisions affect the utilization and distribution of scarce resources. Microeconomics shows how and why different goods have different values, how individuals make more efficient or more productive decisions, and how individuals best coordinate and cooperate with one another.

Test: Introduction To Economics - 4 - Question 16

Labour intensive technique would get chosen in

Detailed Solution for Test: Introduction To Economics - 4 - Question 16

The labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ratios. In such situations, the marginal product of laboris likely to fall below a bargaining wage, related to the average rather than the marginal product.

Test: Introduction To Economics - 4 - Question 17

Capital intensive technique would get chosen in

Detailed Solution for Test: Introduction To Economics - 4 - Question 17

Capital surplus is a term used by economists to denote capital inflows in excess of capital outflows on a country's balance of payment's.

Test: Introduction To Economics - 4 - Question 18

The basic economic problem arises in

Detailed Solution for Test: Introduction To Economics - 4 - Question 18

Economic problem arises mainly due to two reasons- (i) human wants are unlimited (ii) means to satisfy human wants are scarce. The problem of scarcity is faced by an individual and the society. With wants unlimited and resources scarce, our wants cannot be fulfilled. 

Test: Introduction To Economics - 4 - Question 19

What causes an economy to produce more of Good X and no less of Good Y?

Detailed Solution for Test: Introduction To Economics - 4 - Question 19

Technology is the advancement of the society as a whole. Better technology means that you can figure out more efficient production techniques thereby leading the economy to create a scope to move the PPC further to the right.

Test: Introduction To Economics - 4 - Question 20

Does production takes place only on PPC?

Detailed Solution for Test: Introduction To Economics - 4 - Question 20

When all resources are employed on ideal situation, production can take place on PPC

Test: Introduction To Economics - 4 - Question 21

Positive economic analyses

Detailed Solution for Test: Introduction To Economics - 4 - Question 21

Positive economics is objective and fact based, statements do not have to be correct, but they must be able to be tested and proved or disproved.

Test: Introduction To Economics - 4 - Question 22

Normative economics analyses

Detailed Solution for Test: Introduction To Economics - 4 - Question 22

Normative economics  is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.

Test: Introduction To Economics - 4 - Question 23

What does a point below a PPC show

Detailed Solution for Test: Introduction To Economics - 4 - Question 23

A PPF graph shows the maximum production level for one commodity for any production level of the other commodity. A point below the curve signifies inefficiency.

Test: Introduction To Economics - 4 - Question 24

All attainable combinations will lie

Detailed Solution for Test: Introduction To Economics - 4 - Question 24

A production possibilities frontier (PPF) is a diagram that illustrates the possible production points for an economy based on its resources and technology.Production points on a PPF are possible and efficient. Production points on a PPF represent efficient use of all of the economy’s resources.

Test: Introduction To Economics - 4 - Question 25

All unattainable combinations will lie

Detailed Solution for Test: Introduction To Economics - 4 - Question 25

Points outside the PPF are unattainable production points given current resources and technologies. It is impossible for an economy to produce outside its PPF. The PPF can change, however, with changes in resources or technology.

82 videos|278 docs|48 tests
Information about Test: Introduction To Economics - 4 Page
In this test you can find the Exam questions for Test: Introduction To Economics - 4 solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Introduction To Economics - 4, EduRev gives you an ample number of Online tests for practice

Up next

82 videos|278 docs|48 tests
Download as PDF

Up next

Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!