Economics

Introduction to Microeconomics

Question:

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

Answer:

When unemployment is reduced due to the measures taken by the government, the economy will be able to realize its production potential (Full employment) level.
Value: Efficient utilization of resources

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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.

Define Marginal Opportunity Cost.[AI 2008]

Q 4.

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

Q 5.

What is economics?

Q 6.

What is meant by economy?

Q 7.

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

Q 8.

Give two examples of growth of resources.

Q 9.

Why do all economies have similar central problems?

Q 10.

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 11.

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

Q 12.

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

Q 13.

Which type of science is economics?

Q 14.

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

Q 15.

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 16.

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

Q 17.

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 18.

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

Q 19.

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

Q 20.

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

Q 21.

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

Q 22.

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-24

Q 23.

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

Q 24.

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

Q 25.

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 26.

Why does an economic problem arise? [CBSE 2007]
Or
What gives rise to an economic problem? [CBSE, Sample Paper 2008] Or
Why does the problem of choice arise? [CBSE 2004]

Q 27.

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

Q 28.

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 29.

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

Q 30.

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

Q 31.

As water resources are limited in our country, how can we economise the water resources so that it could not cause a future problem for us? Give any two suggestions.

Q 32.

A teacher is getting Rs 6,000 per month as salary. If he leaves the job and starts tuition work, he is expected to earn Rs 5,000 per month. What would be his opportunity cost?

Q 33.

What is meant by central problem of an economy?

Q 34.

Economic problem arises due to plenty of resources.

Q 35.

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

Q 36.

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 37.

In the context of an economy when we talk about scarcity', we refer to short supply of land.

Q 38.

What is a production possibility frontier?

Q 39.

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

Q 40.

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

Q 41.

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

Q 42.

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 43.

Growth of resources shifts PPC towards left.

Q 44.

Economy always operates on PPC.

Q 45.

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

Q 46.

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

Q 47.

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

Q 48.

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

Q 49.

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 50.

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.