Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Introduction to Microeconomics — Practice Worksheet
Name: ____________________
Roll No.: __________
Date: ____________
General Instructions
- All questions are compulsory.
- Choose the correct option (A, B, C or D) for each question.
- The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each)
15 × 1 = 15 marks
1.
The branch of economics that studies individual units (a firm, a market) is:
- A.Macroeconomics
- B.Microeconomics
- C.Statistics
- D.Normative economics
2.
The study of national income and total employment belongs to:
- A.Microeconomics
- B.Macroeconomics
- C.Price theory
- D.Statistics
3.
Microeconomics is also called:
- A.Income theory
- B.Price theory
- C.Growth theory
- D.Trade theory
4.
A statement of 'what is' that can be tested as true or false is:
- A.Positive economics
- B.Normative economics
- C.Macroeconomics
- D.An opinion
5.
'The rich should be taxed more' is a ____ statement.
- A.Positive
- B.Normative
- C.Factual
- D.Statistical
6.
The root of all economic problems is:
- A.Scarcity
- B.Money
- C.Government
- D.Banks
7.
Economics is often called the science of:
- A.Money
- B.Choice
- C.Numbers
- D.Trade
8.
Opportunity cost is the value of the:
- A.Chosen good
- B.Next-best alternative foregone
- C.Cheapest good
- D.Sum of all options
9.
Which is NOT one of the three central problems of an economy?
- A.What to produce
- B.How to produce
- C.For whom to produce
- D.When to retire
10.
'How to produce' refers to the choice of:
- A.Technique/method of production
- B.Who gets the goods
- C.Which goods to make
- D.The price level
11.
The PPC shows combinations of two goods produced using resources:
- A.Partly
- B.Fully and efficiently
- C.Wastefully
- D.Not at all
12.
The PPC slopes downward because:
- A.Resources are unlimited
- B.More of one good means less of the other
- C.Prices rise
- D.Technology is fixed forever
13.
A point inside the PPC shows:
- A.Efficiency
- B.Under-utilisation of resources
- C.Unattainable output
- D.Maximum output
14.
A point outside the PPC is:
- A.Efficient
- B.Unattainable with current resources
- C.Inefficient
- D.On the frontier
15.
Economic growth shifts the PPC:
- A.Leftward (inward)
- B.Rightward (outward)
- C.Downward only
- D.It cannot shift
Section B — Challenge / Olympiad (2 marks each)
10 × 2 = 20 marks
16.
Deciding the price of a single product, like a cup of tea, is a matter for:
- A.Microeconomics
- B.Macroeconomics
- C.Normative economics
- D.National income accounting
17.
A farmer uses his only field to grow wheat instead of rice. The opportunity cost of the wheat is:
- A.The rice he could have grown
- B.The money he spent on seeds
- C.Nothing
- D.The wheat itself
18.
If an economy moves from a point inside the PPC to a point on the PPC, it has:
- A.Used its idle resources, raising output
- B.Reduced its resources
- C.Become unattainable
- D.Shifted the curve left
19.
The PPC is concave to the origin because, as more of one good is produced, the opportunity cost:
- A.Rises (increasing opportunity cost)
- B.Stays constant
- C.Falls to zero
- D.Disappears
20.
Which pair of statements is positive then normative?
- A.'Unemployment rose to 8%' ; 'The government should create more jobs'
- B.'The government should act' ; 'Unemployment rose'
- C.Both are positive
- D.Both are normative
21.
A new invention that makes all factories more productive will shift the PPC:
- A.Outward to the right
- B.Inward to the left
- C.It will not move
- D.Straight down
22.
The problem 'for whom to produce' is essentially about the:
- A.Distribution of output among people
- B.Choice of technique
- C.Choice of goods
- D.Price level
23.
During a recession with many unemployed workers, the economy is most likely producing at a point:
- A.Inside the PPC
- B.On the PPC
- C.Outside the PPC
- D.At the origin only
24.
Choosing a labour-intensive method over a machine-intensive one answers which central problem?
- A.How to produce
- B.What to produce
- C.For whom to produce
- D.When to produce
25.
If wants could somehow be fully satisfied with available resources, the basic economic problem would:
- A.Disappear, since there would be no scarcity
- B.Get worse
- C.Stay the same
- D.Become macroeconomic
Answer Key
Section A — Multiple Choice (1 mark each)
- (B) Microeconomics
- (B) Macroeconomics
- (B) Price theory
- (A) Positive economics
- (B) Normative
- (A) Scarcity
- (B) Choice
- (B) Next-best alternative foregone
- (D) When to retire
- (A) Technique/method of production
- (B) Fully and efficiently
- (B) More of one good means less of the other
- (B) Under-utilisation of resources
- (B) Unattainable with current resources
- (B) Rightward (outward)
Section B — Challenge / Olympiad (2 marks each)
- (A) Microeconomics
- (A) The rice he could have grown
- (A) Used its idle resources, raising output
- (A) Rises (increasing opportunity cost)
- (A) 'Unemployment rose to 8%' ; 'The government should create more jobs'
- (A) Outward to the right
- (A) Distribution of output among people
- (A) Inside the PPC
- (A) How to produce
- (A) Disappear, since there would be no scarcity
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