Micro Economics 1 Set 9

Bachelor of Arts in Economics (BA Economics)

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This set of Micro Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 1 Set 9

Q1 | Imputed value of good is added to the GDP because:
  • They indeed represent value
  • There is no market price for that
  • They increase consumption
  • None of the above
Answer: There is no market price for that
Q2 | GDP Deflator is also called as:
  • Implicit Cost Deflator
  • GDP at Factor Cost
  • Implicit Wage Deflator
  • Implicit Price Deflator
Answer: Implicit Price Deflator
Q3 | Personal Income includes:
  • Dividend distributed
  • Social insurance contributions
  • Corporate profit
  • None of the above
Answer: Dividend distributed
Q4 | Disposable Income does not include:
  • Excise duty paid
  • Income tax
  • Customs duty paid
  • None of the above
Answer: Income tax
Q5 | Investment is reckoned by which method for computing GDP:
  • Income Method
  • Product method
  • Expenditure Method
  • Value added Method
Answer: Expenditure Method
Q6 | Adam Smith, the father of modern economic theory, defined economics as a subject, which is mainly concerned with the study of nature and causes of generation of ______
  • Wealth
  • Welfare
  • Hipness
  • Scarcity
Answer: Wealth
Q7 | _________ introduced the concept of welfare in the study of economics:
  • Fischer
  • Alfred Marshall
  • J S Mill
  • Adam Smith
Answer: Alfred Marshall
Q8 | Who defined economics as: a science which studies human behavior as a relationship between ends and scarce means which have alternative uses:
  • J B Say
  • Alfred Marshall
  • David Ricardo
  • Robbins
Answer: Robbins
Q9 | The problem of scarcity and choice making can be depicted using the tool of ___ curve.
  • Demand
  • Isoquant
  • Indifference
  • Production possibility
Answer: Production possibility
Q10 | Macroeconomics is primarily concerned with aggregates. Which of the following is not a macroeconomic aggregate?
  • Decision making by a household
  • The unemployment rate, and inflation levels
  • National income
  • The supply of money
Answer: Decision making by a household
Q11 | Scientific attempts to describe economic relationships are :
  • Factual and can never be wrong
  • Accurate ways to predict political viewpoints
  • Known as positive economics
  • Directed at the fairness of social programs
Answer: Known as positive economics
Q12 | The ________ method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions.
  • Inductive
  • Deductive
  • Empirical
  • Scientific
Answer: Deductive
Q13 | ________is a term referring to an intellectual controversy over epistemology, research methodology between Carl Menger, and Gustav von Schmoller.
  • Methodenstreit
  • Laissez-faire
  • Cetris Paribus
  • Quid Proquo
Answer: Methodenstreit
Q14 | Inductive method which also called empirical method was adopted by the:
  • Marginalist school
  • Mercantilists
  • Physiocrats
  • Historical School of Economists
Answer: Historical School of Economists
Q15 | Decisions made in households, firms, and government are the focus of:
  • Positive economic
  • Microeconomics
  • Normative economics
  • Macroeconomics
Answer: Normative economics
Q16 | Knowledge used to combine resources productively is called:
  • Comparative advantage
  • Capitalism
  • Entrepreneurship
  • Technology
Answer: Technology
Q17 | Economic efficiency for the entire economy requires that :
  • Potential gains to anyone necessitate losses to another
  • All goods be produced at their lowest possible opportunity costs
  • Maximum-valued output is obtained from given resource
  • All of the above
Answer: All of the above
Q18 | Theories are:
  • Much more complicated than common sense
  • Scientific only if based on normative value judgments
  • Proven if only a few unimportant exceptions exist
  • Developed when we collect data, try to explain how things work, and then
Answer: Developed when we collect data, try to explain how things work, and then
Q19 | Division of Labour is limited by the extent of:
  • Supply
  • Demand
  • Price
  • Market
Answer: Market
Q20 | Milton Friedman restated the :
  • Labour Theory
  • Profit Theory
  • Quantity Theory of Money
  • Wage theory
Answer: Quantity Theory of Money
Q21 | If the value of a variable varies as a consequence of the variation in the value of some other variable, it is called:
  • Exogenous variable
  • Endogenours v ariable
  • Stock
  • Flow
Answer: Exogenous variable
Q22 | Saving is a function of:
  • Export
  • Investment
  • Improvement in productivity
  • Income
Answer: Income
Q23 | In the classical theory the equlity between saving and investment is brought about by:
  • Income
  • Rate Interest
  • Consumption
  • None of these
Answer: Rate Interest
Q24 | Economic Laws are:
  • Statement of tendencies
  • Exact and predictable
  • Definite
  • None
Answer: Statement of tendencies
Q25 | Which of the following concepts are most closely associated with J.M. Keynes?
  • Control of the money supply
  • Marginal utility theory
  • Indifference curve analysis
  • Marginal efficiency of capital
Answer: Marginal efficiency of capital
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