Economics

Introduction to Microeconomics

Question:

How does Maruti Udyog Ltd. fix the prices of its cars, is it studied in macroeconomics?

Answer:

False: Macroeconomics is the study of aggregates e.g., determination of general price level in an economy. The principles underlying the pricing of a single good by a single firm or single industry are studied in microeconomics.

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Introduction to Microeconomics

Q 1.

Give two examples of underutilisation of resources.

Q 2.

Name any three variables of macroeconomics.

Q 3.

Why do all economies have similar central problems?

Q 4.

Why is it that on one hand coal is found in plenty, yet it is scarce while on the other, a rotten vegetable is rare but not scarce?

Q 5.

Define Marginal Opportunity Cost.[AI 2008]

Q 6.

What is meant by economising of resources? [CBSE 2003]

Q 7.

What is meant by economy?

Q 8.

What is economics?

Q 9.

Which type of science is economics?

Q 10.

If a PPF shifts to the right, the new PPF will be parallel to the original.

Q 11.

The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?

Q 12.

Give two examples of growth of resources.

Q 13.

Define Opportunity Cost. [CBSE 2007]
Or
Give the meaning of  Opportunity Cost'. [CBSE 2008, 09]

Q 14.

Define microeconomics.[CBSE 2007C; AI 2005, 2012]
Or
Give the meaning of microeconomics.[CBSE 2009]

Q 15.

A Production Possibility Frontier' (PPF) is always represented as a upward sloping curve.

Q 16.

State the central problems of an economy. [CBSE Sample Paper 2014]

Q 17.

With the same amount of resources a farmer can feed the following combination of goats and horses:
ncert-solutions-for-class-12-micro-economics-introduction-to-economics-12
Taking into consideration the options available with him, find out the opportunity cost of the farmer of feeding one horse.

Q 18.

Although water is useful, yet it is cheap. On the contrary, diamond is not much of use, still it is very expensive. Give an economic reason for this paradox.

Q 19.

State any two central problems under ‘problem of allocation of resources’.[CBSE Sample Paper 2016]

Q 20.

Why PPC is concave to the point of origin? [CBSE 2011, AI 2007]

Q 21.

Whether the cotton textile industry is an example of micro or macroeconomics?

Q 22.

"Scarcity and choice go all together". Defend or refute.

Q 23.

In an underdeveloped economy why there is the need of efficient utilization of resources?

Q 24.

Scarcity of resources is a universal phenomenon and is not confined to poor and backward countries only. Comment.

Q 25.

A farmer is getting more profit by producing opium rather than that of wheat. In situation of famine which crop should be produced?

Q 26.

Large number of technical training institutions have been started by the government. State its economic value in the context of production possibility frontier.

Q 27.

Production in an economy is below to its potentiality due to unemployment. Government starts employment generation schemes. Explain its effects by using production possibility curve.
ncert-solutions-for-class-12-micro-economics-introduction-to-economics-9

Q 28.

State two features of resources that give rise to an economic problem.

Q 29.

Define Marginal Rate of Transformation (MRT). [CBSE 2012]

Q 30.

A job guarantee scheme will lead to a rightward shift of PPF.

Q 31.

Economy can never operate outside PPC with the given resources and technology.

Q 32.

What is likely to be the impact of Make in India' appeal to the foreign investors by the Prime Minister of India, on the production possibilities frontiers of India? Explain.

Q 33.

Why does an economic problem arise? [CBSE 2006, 07C, 09;  Or AI 2007]
State any two causes of economic problem. [CBSE 2005C, 09C, 12;Or AI 2007]
State two characteristics of the economic resources which give rise to economic problem.Or [AI 2007]
Why does problem of choice arise?[CBSE 2004, 05C, 06, 07] Or
Explain three factors that lead to an economic problem.

Q 34.

Give reasons for the following statements:

  1. Every economy has to make the decision relating to what to produce.
  2. Problem of choice arises because available resources have alternative uses.

Q 35.

PPC is concave shaped as production of one good can be increased only by reducing quantity of another good.

Q 36.

India is a labour abundance and capital scarce economy. Which technique of production should be used to produce the commodity?

Q 37.

Unemployment is reduced due to the measures taken by the government. State its economic value in the context of production possibilities frontier.

Q 38.

Discuss the central problems of an economy.

Q 39.

What do you mean by the production possibilities of an economy?

Q 40.

Give one/two examples of microeconomics study.[CBSE 2004C, 09, 09C, 11C;AI 2004, 05, 07, 11]
Or
Name any three variables of micro-economics.

Q 41.

Why is Production Possibilities Curve concave? Explain.[CBSE 2011, AI 2014, 2007]

Q 42.

Give reasons for the following statements:

  1. A Production Possibility Frontier is always a downward sloping concave curve.
  2. An efficient economy would always produce a combination of goods
    that lies on the given Production Possibility Frontier.
  3. Growth of an economy is represented in the form of a rightward shift of a Production Possibility Frontier.

Q 43.

The problems of scarcity of resources and their alternate uses arise everywhere but particularly in backward countries. For their solution non-economic considerations can be stressed. How?

Q 44.

Giving reason comment on the shape of Production Possibilities curve based on the following schedule. 
ncert-solutions-for-class-12-micro-economics-introduction-to-economics-21

Q 45.

Discuss the subject matter of economics.

Q 46.

Define Production Possibility Curve and state its properties.[CBSE, All India 2013 C]

Q 47.

State any three assumptions on which a production possibilities curve is based. [CBSE 2013 Q]

Q 48.

Economic problem arises due to plenty of resources.

Q 49.

If the economy operates inside PPC, it shows full utilisation of resources.

Q 50.

Economy always operates on PPC.