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

Q1 | The subject matter of economics is concerned with
  • Production
  • Consumption
  • Distribution and exchange
  • All of the above
Q2 | The economic problem arises since
  • Wants are unlimited
  • Resources are limited
  • Resources are capable of alternative uses
  • All of the above
Q3 | The wants of the people are
  • Limited
  • Satiable
  • Unlimited
  • All of the above
Q4 | Economic problem arises in
  • Planned economies
  • Free market economies
  • Mixed economies
  • All of the above
Q5 | The resources are :
  • Limited
  • Unlimited
  • Not only limited but are capable of alternative uses
  • None of the above
Q6 | Which one of the following is an example of an economic good
  • Sunlight
  • Air
  • Petrol
  • None of the above
Q7 | ----- is not an example of free good
  • Sunlight
  • Car
  • Petrol
  • Computer
Q8 | 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
Q9 | The problem of allocation of resources is concerned with:
  • What to produce
  • How to produce
  • For whom to produce
  • All of the above
Q10 | The distribution of national product among the members of the society is the problem of:
  • What to produce
  • How to produce
  • For whom to produce
  • All of the above
Q11 | Production is said to be efficient when:
  • The re-allocation of resources cannot increase the production o the article even by one unit
  • More output is produced with the given input
  • Resources are fully employed
  • All of the above
Q12 | Which one of the following come under macro economics:
  • Per capita income
  • Study of a firm
  • Individual income
  • Theory of factor pricing
Q13 | Which one of the following is not come under macro economics
  • National income
  • Per capita income
  • Disposable income
  • Individual income
Q14 | Partial equilibrium analysis come under:
  • Micro economics
  • Macro economics
  • Welfare economics
  • International economics
Q15 | “The starting point of all economic activity is the existence of human wants” Who said this?
  • Adam Smith
  • Selligman
  • Ricardo
  • Alfred Marshall
Q16 | 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
Q17 | Economics is a social science because
  • The central point in economics is man and his problems
  • Economics uses scientific approach to derive its laws
  • Like History, Politics and Psychology economics deals with the problems of human being
  • All of the above
Q18 | Economic growth can be achieved through
  • Advanced technology
  • Expansion of resources
  • Both A & B
  • Neither A & B
Q19 | Micro economics doesn’t deal with:
  • The study of individual economic units
  • Determination of factor prices
  • Price determination of commodities
  • General equilibrium analysis
Q20 | Name the economist who analyses the subject matter of economics into two branches: micro economic analysis and macro economic analysis.
  • Adam Smith
  • Alfred Marshall
  • Ragner Frisch
  • P A Samuelson
Q21 | Transformation of inputs into outputs is known as
  • Production
  • Consumption
  • Distribution
  • Exchange
Q22 | ----- is an example of secondary input
  • Land
  • Labour
  • Capital
  • Raw material
Q23 | Odd-man out from the following
  • Steel
  • Medicine
  • Education
  • Train
Q24 | 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
Q25 | The functional relationship between inputs and outputs is called
  • Production function
  • Consumption function
  • Investment function
  • Saving function