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

Q1 | The economic problem arises since
  • wants are unlimited
  • resources are limited
  • resources are capable of alternative uses
  • all of the above
Q2 | Economic problem arises in
  • planned economies
  • free market economies
  • mixed economies
  • all of the above
Q3 | The resources are :
  • limited
  • unlimited
  • not only limited but are capable of alternative uses
  • none of the above
Q4 | ----- is not an example of free good
  • sunlight
  • car
  • petrol
  • computer
Q5 | The term production refers to:
  • producing things which are capable of satisfying human wants
  • creation or addition of utilities
  • transformation of inputs into output
  • all of the above
Q6 | The problem of allocation of resources is concerned with:
  • what to produce
  • how to produce
  • for whom to produce
  • all of the above
Q7 | The distribution of national product among the members of the societyis the problem of:
  • what to produce
  • how to produce
  • for whom to produce
  • all of the above
Q8 | Which one of the following come under macro economics:
  • per capita income
  • study of a firm
  • individual income
  • theory of factor pricing
Q9 | Which one of the following is not come under macro economics
  • national income
  • per capita income
  • disposable income
  • individual income
Q10 | Partial equilibrium analysis come under:
  • micro economics
  • macro economics
  • welfare economics
  • international economics
Q11 | “The starting point of all economic activity is the existence of humanwants” Who said this?
  • adam smith
  • selligman
  • ricardo
  • alfred marshall
Q12 | Production and consumption takes place simultaneously in the case of
  • goods
  • services
  • both in the case of goods and services
  • neither in the case of goods and services
Q13 | Economic growth can be achieved through
  • advanced technology
  • expansion of resources
  • both a & b
  • neither a & b
Q14 | Micro economics doesn’t deal with:
  • the study of individual economic units
  • determination of factor prices
  • price determination of commodities
  • general equilibrium analysis
Q15 | Name the economist who analyses the subject matter of economics intotwo branches: micro economic analysis and macro economic analysis.
  • adam smith
  • alfred marshall
  • ragner frisc
  • p a samuelson
Q16 | Transformation of inputs into outputs is known as
  • production
  • consumption
  • distribution
  • exchange
Q17 | ----- is an example of secondary input
  • land
  • labour
  • capital
  • raw material
Q18 | Odd-man out from the following
  • steel
  • medicine
  • education
  • train
Q19 | The choice of techniques of production is related to the problem of
  • what to produce
  • how to produce
  • for whom to produce
  • none of the above
Q20 | The functional relationship between inputs and outputs is called
  • production function
  • consumption function
  • investment function
  • saving function
Q21 | Firms owned by one individual is known as
  • proprietorship
  • partnership
  • corporations
  • none of the above
Q22 | Firms owned by two or more individuals is known as
  • proprietorship
  • partnership
  • corporations
  • none of the above
Q23 | Firms owned by stock holders are known as
  • proprietorship
  • partnership
  • corporations
  • none of the above
Q24 | The major objective of a firm is
  • profit maximization
  • revenue maximization
  • sales maximization
  • none of the above
Q25 | Which one of the following is an example of fixed input
  • raw materials
  • casual workers
  • plant and equipments
  • all of the above