chapter-1,2 Micro Economics

Which of the following is not a matter of micro economics?

• Producer's Behaviour
• Market Demand
• Monetary Policy
• Price Determination

What is an economic problem?

• Problem of making optimum utilization of resouces
• Making choice in the presence of scarcity 
• Problem of coice of techenique of production
• Problem of allocation of resources

Economics is the study of

• how society manages its unlimited resources.
• how to reduce our wants until we are satisfied.
• how to fully satisfy our unlimited wants.
• how to avoid having to make trade-offs.

Which of the following statements is normative?

• a. Large government deficits cause an economy to grow more slowly.
• People work harder if the wage is higher.
• The unemployment rate should be lower.
• Printing too much money causes inflation.

Positive statements are

• macroeconomic.
• microeconomic.
• statements of description that can be tested.
• statements of prescription that involve value judgments.

Who is the Father of Modern Economics?

• Ragnar Frisch

• Adam Smith

• Marshall

• None of these.

What are the basic problems/questions in economy?

• What to produce

• How to produce

• For whom to produce

• None of the above

Economics is...

• studying goods, services, and how people can get them.
• studying trees, bushes, and other plants.
• studying animals and wildlife.
• studying food, and how food is made.

The government makes all economic decisions

• Traditional
• Command
• Market

In this type of economy, the government places control on businesses, but the individual decides what to make. 

• Mixed
• Market
• Command 
• Traditional