Introduction to Microeconomics Test

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Introduction to Microeconomics Test - 8

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Weekly Quiz Competition

Question 1
1 / -0.25

Labour intensive technique would get chosen in

A
Labour surplus economy

B
Developing economies

C
Developed economies

D
Capital surplus economy

Solution

The labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ratios. In such situations, the marginal product of labor is likely to fall below a bargaining wage, related to the average rather than the marginal product.
Question 2
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Capital intensive technique would get chosen in

A
Capital surplus economy

B
Developed economies

C
Developing economies

D
Labour surplus economy

Solution

Capital surplus is a term used by economists to denote capital inflows in excess of capital outflows on a country 's balance of payment 's.
Question 3
1 / -0.25

The basic economic problem arises in

A
All Economies

B
Mixed Economies

C
Socialist economies

D
Market Economies

Solution

Economic problem arises mainly due to two reasons- (i) human wants are unlimited (ii) means to satisfy human wants are scarce. The problem of scarcity is faced by an individual and the society. With wants unlimited and resources scarce, our wants cannot be fulfilled.
Question 4
1 / -0.25

What causes an economy to produce more of Good X and no less of Good Y?

A
Technology to produce Good X improves

B
Technological development

C
Good Y becomes expensive

D
Good X becomes cheaper

Solution

Technology is the advancement of the society as a whole. Better technology means that you can figure out more efficient production techniques thereby leading the economy to create a scope to move the PPC further to the right.
Question 5
1 / -0.25

Does production takes place only on PPC?

A
No

B
Sometimes

C
Yes

D
Can ’t say

Solution

When all resources are employed on ideal situation, production can take place on PPC
Question 6
1 / -0.25

Positive economic analyses

A
Central problems of an economy

B
Cause and effect relationship

C
Distribution of national product

D
The problem of What to produce

Solution

Positive economics is objective and fact based, statements do not have to be correct, but they must be able to be tested and proved or disproved.
Question 7
1 / -0.25

Normative economics analyses

A
The problem of What to produce

B
Ethical aspects of economic decisions

C
Distribution of national product

D
Central problems of an economy

Solution

Normative economics is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.
Question 8
1 / -0.25

What does a point below a PPC show

A
Underutilization of resources

B
The optimum combination of two goods

C
Overutilization of resources

D
Growth of resources

Solution

A PPF graph shows the maximum production level for one commodity for any production level of the other commodity. A point below the curve signifies inefficiency.
Question 9
1 / -0.25

All attainable combinations will lie

A
Under the PPC only

B
On the PPC only

C
On and under the PPC

D
Above the PPC only

Solution

A production possibilities frontier (PPF) is a diagram that illustrates the possible production points for an economy based on its resources and technology.Production points on a PPF are possible and efficient. Production points on a PPF represent efficient use of all of the economy ’s resources.
Question 10
1 / -0.25

All unattainable combinations will lie

A
Under the PPC only

B
On and under the PPC

C
On the PPC only

D
Above the PPC only

Solution

Points outside the PPF are unattainable production points given current resources and technologies. It is impossible for an economy to produce outside its PPF. The PPF can change, however, with changes in resources or technology.

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Re-Attempt Weekly Quiz Competition

Introduction to Microeconomics Test - 8

Result

Introduction to Microeconomics Test - 8

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SHARING IS CARING

Question 1

Labour surplus economy

Developing economies

Developed economies

Capital surplus economy

Solution

Question 2

Capital surplus economy

Developed economies

Developing economies

Labour surplus economy

Solution

Question 3

All Economies

Mixed Economies

Socialist economies

Market Economies

Solution

Question 4

Technology to produce Good X improves

Technological development

Good Y becomes expensive

Good X becomes cheaper

Solution

Question 5

No

Sometimes

Yes

Can ’t say

Solution

Question 6

Central problems of an economy

Cause and effect relationship

Distribution of national product

The problem of What to produce

Solution

Question 7

The problem of What to produce

Ethical aspects of economic decisions

Distribution of national product

Central problems of an economy

Solution

Question 8

Underutilization of resources

The optimum combination of two goods

Overutilization of resources

Growth of resources

Solution

Question 9

Under the PPC only

On the PPC only

On and under the PPC

Above the PPC only

Solution

Question 10

Under the PPC only

On and under the PPC

On the PPC only

Above the PPC only

Solution

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