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
Positive economic analyses
  • A
    Cause and effect relationship
    Correct
  • B
    Distribution of national product
  • C
    Central problems of an economy
  • D
    The problem of What to produce
2
Normative economics analyses
  • A
    Distribution of national product
  • B
    Central problems of an economy
  • C
    The problem of What to produce
  • D
    Ethical aspects of economic decisions
    Correct
3
What does a point below a PPC show
  • A
    Underutilization of resources
    Correct
  • B
    The optimum combination of two goods
  • C
    Growth of resources
  • D
    Overutilization of resources
4
All attainable combinations will lie
  • A
    On and under the PPC
    Correct
  • B
    Under the PPC only
  • C
    On the PPC only
  • D
    Above the PPC only
5
All unattainable combinations will lie
  • A
    Above the PPC only
    Correct
  • B
    Under the PPC only
  • C
    On the PPC only
  • D
    On and under the PPC
6
The basic economic activities put in order are
  • A
    Consumption, exchange and production
  • B
    Production, Exchange and consumption
    Correct
  • C
    Exchange, production and consumption
  • D
    Production, consumption and exchange
7
A PPC can shift its position if and only if
  • A
    If technology remains constant
  • B
    If resources remain constant
  • C
    None of these
  • D
    If technology improves
    Correct
8
Do you agree that the PPC indicates maximum production capacity of an economy
  • A
    Yes
    Correct
  • B
    Never
  • C
    No
  • D
    Sometimes
9
Can a PPC rotate along the X axis also
  • A
    Never
  • B
    No
  • C
    Yes
    Correct
  • D
    Can’t say
10
The shape of an ideal PPC is due to which of the following
  • A
    Decreasing Marginal Opportunity cost
  • B
    Increasing Marginal Opportunity Cost
    Correct
  • C
    Increasing Marginal Rate of Substitution
  • D
    Constant Marginal Rate of Substitution
11
A PPC can be a straight line due to which of the following
  • A
    Decreasing Marginal Opportunity cost
  • B
    Constant Marginal Opportunity Cost
    Correct
  • C
    Constant Marginal Rate of Substitution
  • D
    Increasing Marginal Rate of Substitution
12
PPC is a mathematical tool for an economy to solve:
  • A
    Central problems of an economy
    Correct
  • B
    Distribution problems of the resources
  • C
    Economic problems of an individual
  • D
    Scarcity problems of an economy
13
The perspective of positive economic analysis to study the economic mechanisms is
  • A
    Where are the mechanisms
  • B
    How the mechanisms function
    Correct
  • C
    What is the mechanism
  • D
    None of these
14
The perspective of normative economic analysis to study the economic mechanisms is
  • A
    None of these
  • B
    Where are the mechanisms working
  • C
    What is the mechanism called
  • D
    Are the mechanisms desirable
    Correct
15
The Marginal opportunity cost of producing Good X is
  • A
    The money spent on producing Good X
  • B
    The cost of production
  • C
    The marginal cost of Good X produced
  • D
    The quantity of the Good Y sacrificed
    Correct