Introduction to Microeconomics

_________ is a system which provides people, the means to work and earn a living.

• Economics

• Economy

• Demand

• Scarcity

________ is the root of all economic problems.

• Alternatives

• Planning

• Wants

• Scarcity

Economics is the study of __________ .

• Human behavior

• Resources

• Human wants

• Scarcity

________ deals with what ought to be or how the economic problems should be solved.

• Positive economics

• Social science

• Normative economics

• Microeconomics

Microeconomics is also known as

• Aggregates

• Price theory

• Income theory

• Employment theory

A farmer produces100 kg of wheat on a piece of land with the help of a given quantity of resources. If this farmer can also produce 70 kg of rice with the same quantity of resources, then what is the Opportunity cost of producing wheat?

• 70 kg

• 100 kg

• 170 kg

• 30 kg

The opportunity cost of a machine which can produce only one product is high.

• True

• False

The fundamental economic problem being faced is

• Unlimited human wants

• Limited want and unlimited resources

• Unlimited want and scarcity of resources

• Limited want and limited resources

Which of the following each and assumption of production possibility Frontier?

• Resources of not fully employed

• Resources are not equally efficient for production of of the two good

• Resources are not efficiently employed

• Resources available or not fixed

What are the central problem of an economy?

• What to produce

• How to produce

• For whom to produce

• All the above