Introduction to Microeconomics Test 19

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Introduction to Microeconomics Test 19

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Weekly Quiz Competition

Question 1
1 / -0

Which combination of goods cannot be produced with the resources the country has?

A
Point S

B
Point A

C
Point B

D
Point R

Solution

Point R appears outside the production possibility curve of guns and butter which states that with the given resources and technology it is not possible and feasible to produce the quantities in point R.
Hence, option D is correct.
Question 2
1 / -0

Identify the incorrect statement.

A
In Inductive Method, logic proceeds from the particular to the general

B
Micro-Economics and Macro-Economics are inter-dependent

C
In a Mixed Economy, there are three sector viz Private, Public and Joint

D
PPC is the basis for studying Demand and Supply relationship in an economy
Question 3
1 / -0

In Economics, the 'central economic problem' means __________.

A
consumers do not have as much money as they would wish

B
there will always be a certain level of unemployment

C
resources are not always allocated in an optimum way

D
output is restricted to the limited availability of resources
Solution
The central problems of an economy deals in the production of goods as resources are scarce so there is need to answer some questions where it is decide that :
- · What to produce? Consumer goods or capital goods?
- · How to produce? Using labour or capital?
- · For whom to produce? Rich people or poor people?
Question 4
1 / -0

Which of the following statements is not true about positive and normative science ?

A
Positive economics says nothing about the ends.

B
Positive economics is not concerned with moral judgments.

C
Positive economics is concerned with moral judgements.

D
A normative statement involves ethical considerations.

Solution

Positive statements refers to those statements that describe matters which have been proven through facts and figures after careful observations and are verifiable. It is not concerned with moral and ethical considerations and is free from value judgments.
Question 5
1 / -0

Which of the following statements is not true about positive statements?

A
Positive economics says nothing about the ends.

B
Positive economics says about the objective statements that can be accepted or rejected

C
Positive economics is concerned with moral judgements.

D
A normative statement involves ethical values.

Solution

Positive economics is not concerned with moral judgements, because it does not pass value or moral judgements, and is rather based on facts and cause and effect relationship.
Question 6
1 / -0

If the marginal (additional) opportunity cost is a constant then the PPC would be ____________.

A
convex

B
a straight line

C
backward bending

D
concave

Solution

The slope of production possibility curve is marginal opportunity cost which refers to the additional sacrifice that needs to be made when resources and technology are shifted from production of one commodity to the other. Therefore, if marginal opportunity cost remains constant then PPC will be a straight line owing to constant slope.
Question 7
1 / -0

____________ helps us to understand the problem of scarcity better, by showing what can be produced with given resources and technology.

A
Isoquant curve

B
Production possibility frontier

C
Giffen's paradox

D
Isocost curve

Solution

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. So it helps us to understand how the scarce resources are efficiently utilized in order to satisfy the wants of the people.
Question 8
1 / -0

The PPC does not give the desirable point of production it only indicates the possible combination of __________ that can be produced with the available resources.

A
two goods

B
three goods

C
number of goods

D
single good

Solution

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. It sets a comparison between two goods which can be produced with the given resources.
Question 9
1 / -0

Which of the following is a normative economic statement?

A
The federal minimum wages should be raised to $$\$$$ $$4.50$$ per hour.

B
Economics is a social science that studies human behaviour.

C
Microeconomics deals with the behaviour of the individuals

D
The United States spends a $$\$$$ $$1$$ trillion on national defence.

Solution

A normative economic statement refers to "what ought to be" or it makes an assessment of an activity and offers advice. Hence, the federal minimum wages should be raised to $$\$$$ $$4.50$$ per hour is a normative statement.
Question 10
1 / -0

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

A
Resources are over utilized

B
Resources are under utilized

C
There is unemployment in the economy

D
Both b and c

Solution

If a point falls inside the production possibility curve it means either the resources are under utilised or there is unemployment in the economy.

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Introduction to Microeconomics Test 19

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Introduction to Microeconomics Test 19

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SHARING IS CARING

Question 1

Point S

Point A

Point B

Point R

Solution

Question 2

In Inductive Method, logic proceeds from the particular to the general

Micro-Economics and Macro-Economics are inter-dependent

In a Mixed Economy, there are three sector viz Private, Public and Joint

PPC is the basis for studying Demand and Supply relationship in an economy

Question 3

consumers do not have as much money as they would wish

there will always be a certain level of unemployment

resources are not always allocated in an optimum way

output is restricted to the limited availability of resources

Solution

Question 4

Positive economics says nothing about the ends.

Positive economics is not concerned with moral judgments.

Positive economics is concerned with moral judgements.

A normative statement involves ethical considerations.

Solution

Question 5

Positive economics says nothing about the ends.

Positive economics says about the objective statements that can be accepted or rejected

Positive economics is concerned with moral judgements.

A normative statement involves ethical values.

Solution

Question 6

convex

a straight line

backward bending

concave

Solution

Question 7

Isoquant curve

Production possibility frontier

Giffen's paradox

Isocost curve

Solution

Question 8

two goods

three goods

number of goods

single good

Solution

Question 9

The federal minimum wages should be raised to $$\$$$ $$4.50$$ per hour.

Economics is a social science that studies human behaviour.

Microeconomics deals with the behaviour of the individuals

The United States spends a $$\$$$ $$1$$ trillion on national defence.

Solution

Question 10

Resources are over utilized

Resources are under utilized

There is unemployment in the economy

Both b and c

Solution

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