Introduction to Microeconomics Test 2

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Introduction to Microeconomics Test 2

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Weekly Quiz Competition

Question 1
1 / -0

Marginal utility theory was originated by _____________.

A
Keynes

B
Marshall

C
Mayo

D
Maslow

Solution

The concept of marginal usefulness grew out of an attempt by economists to explain the force of mind of cost. The term “marginal utility”, attributed to the Austrian economist Friedrich von Wiser by Alfred Marshall was a translation of Weser’s term “Grenznutzen”. Marginal utility theory examines the enlarge in satisfaction customers gain from consuming an extra unit of a good. Effectiveness is the idea that people get a certain level of satisfaction/happiness/utility from consuming goods and services. Marginal utility is the advantage of strong an extra unit.
Question 2
1 / -0

Which kind of economics explains the phenomenon of cause and effect relationship?

A
Normative

B
Positive

C
Micro

D
Macro

Solution

Positive economics: It studies the fact of life i.e it deals with 'things as they are'. It deals with what are the economic problems and how are they actually solved. It explains the cause and effect relationship and avoids giving suggestions.
Question 3
1 / -0

India has been witnessing high rate of inflation because __________.

A
public expenditure and money supply both are continuously increasing.

B
the agricultural and industrial sectors have not performed adequately.

C
both agricultural and administered prices have been hiked.

D
all of the above.

Solution

Since last two decades, the money supply in India is increasing due to development in the economy which increases the purchasing power of an individual due to which aggregate demand increases which leads to increase in public expenditure on consumption of goods and services.
Question 4
1 / -0

Which of these points on the PPF is inefficient?

A
On the axis

B
Above the PPF

C
Below the PPF

D
On the PPF

Solution

The production possibility curve points are inefficient as they are not using the resources to the fullest.
Question 5
1 / -0

The central problems of an economy is ___________.

A
what to produce

B
how to produce

C
for whom to produce

D
all the above
Solution
The central problems of an economy deals with the allocation of its scarce uses, having alternative uses, for production of goods. The central problems are outlined as:
- What to produce? Consumer goods or capital goods?
- How to produce? Using labour or capital intensive techniques?
- For whom to produce? Rich people or poor people
Question 6
1 / -0

The Production Possibility Curve is ______.

A
Upward sloping and flat

B
Upward sloping curve

C
Downward sloping cure

D
Upwards sloping line

Solution

The production possibilities frontier is downward sloping: producing more of one good requires producing less of others. The production of a good has an opportunity cost. As time passes, the production possibilities frontier shifts outward due to the accumulation of inputs and technological progress.
Question 7
1 / -0

"Economics is what it ought to be", This statement refers to which of the following terms in economics?

A
Normative economics

B
Positive economics

C
Monetary economics

D
Fiscal economics

Solution

Normative economics deals with 'what ought to be'. It is opinion based .It does not deal with facts and data.It generally expresses a value judgement.
Question 8
1 / -0

Microeconomics is derived from the Greek word _________.

A
Makro

B
Mikro

C
Micro

D
Micros

Solution

Micro economics is derieved from the Greek word "Mikro" meaning small.
Question 9
1 / -0

What is the function of Production Possibility Frontier?

A
Efficient allocation of scarce resources

B
Inefficient allocation of scarce resources

C
Identifying the market equilibrium

D
Showing the money supply in the economy

Solution

Production possibility frontier is the graph which indicates the various production possibilities of two commodities when resources are fixed. The production of one commodity can only be increased by sacrificing the production of the other commodity. It is also called the production possibility curve or product transformation curve.
Question 10
1 / -0

_________ used the term microeconomics for the first time.

A
Ragnar Frisch

B
Ricardo

C
Marshall

D
Adam Smith

Solution

Ragnar Frisch used the term microeconomics for the first time in 1933.

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Re-Attempt Weekly Quiz Competition

Introduction to Microeconomics Test 2

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Introduction to Microeconomics Test 2

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SHARING IS CARING

Question 1

Keynes

Marshall

Mayo

Maslow

Solution

Question 2

Normative

Positive

Micro

Macro

Solution

Question 3

public expenditure and money supply both are continuously increasing.

the agricultural and industrial sectors have not performed adequately.

both agricultural and administered prices have been hiked.

all of the above.

Solution

Question 4

On the axis

Above the PPF

Below the PPF

On the PPF

Solution

Question 5

what to produce

how to produce

for whom to produce

all the above

Solution

Question 6

Upward sloping and flat

Upward sloping curve

Downward sloping cure

Upwards sloping line

Solution

Question 7

Normative economics

Positive economics

Monetary economics

Fiscal economics

Solution

Question 8

Makro

Mikro

Micro

Micros

Solution

Question 9

Efficient allocation of scarce resources

Inefficient allocation of scarce resources

Identifying the market equilibrium

Showing the money supply in the economy

Solution

Question 10

Ragnar Frisch

Ricardo

Marshall

Adam Smith

Solution

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