Introduction To Economics CBSE Questions & Answers

Introduction To Economics

This is Economics Class 12 Introduction to Economics CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
If an economy was producing 10 billion tonnes of steel and 3 billion tonnes of wheat. What will be the opportunity cost of producing wheat if it was producing 15 tonnes of steel and 2 billion tonnes of wheat?
  • A
    5 tonnes of steel
    Correct
  • B
    1 ton of steel
  • C
    25 tonnes of steel
  • D
    30 tonnes of steel
2
What will be the Marginal Rate of Transformation?
  • A
    None of these
  • B
    The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of same good, assuming that both goods require the same scarce inputs.
  • C
    The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of another good, assuming that both goods require the same scarce inputs.
    Correct
  • D
    The rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of another good, assuming that both goods require the different scarce inputs.
3
If MOC decreases, the shape of PPC will be
  • A
    Inverted
  • B
    Convex
  • C
    Straight
  • D
    Concave
    Correct
4
If MOC increases, the shape of PPC will be
  • A
    Straight
  • B
    Inverted
  • C
    Concave
  • D
    Convex
    Correct
5
If MOC is constant, the shape of PPC will be
  • A
    Inverted
  • B
    Straight
    Correct
  • C
    Concave
  • D
    Convex
6
The problem of growth in an economy means
  • A
    Having enough goods and services to enjoy a high standard of living
  • B
    Having more goods and services to enjoy a high standard of living
    Correct
  • C
    Having limited goods and services to enjoy a high standard of living
  • D
    Having same goods and services to enjoy a high standard of living
7
Improvement in technology shifts PPC to the right because
  • A
    Economy’s choice to produce increases
  • B
    Economy’s capacity to produce decreases
  • C
    Economy’s capacity to produce increases
    Correct
  • D
    Individual’s capacity to produce increases
8
A correct example of growth of resources is
  • A
    Increase in production
  • B
    Increase in capital formation
    Correct
  • C
    Improvement in technology
  • D
    Increase in consumption
9
If many people die due to an earthquake, it will shift the country’s PPC to the
  • A
    Not affected
  • B
    Can’t say
  • C
    Right
  • D
    Left
    Correct
10
If many people die due to a flood, it will shift the country’s PPC to the
  • A
    Can’t say
  • B
    Not affected
  • C
    Left
    Correct
  • D
    Right
11
If there is a recession, it will shift the country’s PPC to the
  • A
    Can’t say
  • B
    Left
  • C
    No effect
    Correct
  • D
    Right
12
Massive unemployment shifts the PPC to the
  • A
    Right
  • B
    No effect
    Correct
  • C
    Can’t say
  • D
    Left
13
For a farmer increasing sacrifice of potatoes for each unit of onions will produce _______ shape of his PPC.
  • A
    Straight
  • B
    Concave
    Correct
  • C
    Hyperbola
  • D
    Convex
14
Which of the following is the correct expression of Marginal Rate of Transformation/
  • A
    2Y
  • B
    1:2
    Correct
  • C
    2Y for 1X
  • D
    2:1
15
Capita A tutor earns Rs. 1000 per hour teaching economics. If he joins a school, he would earn on an average Rs. 300 per hour. What is the opportunity cost of teaching in school?
  • A
    Rs. 1000
    Correct
  • B
    s, 700
  • C
    Rs. 300
  • D
    Rs. 1300