CUET Economics MCQs Unit I Introduction to Microeconomics

Question :  What satisfying power of commodity is called :

a) Consumption        

b) Utility

c) Production

d) Value addiction

Answer :  Utility

Question :  Which of the following is not concerned with the problem of choice ?

a) Excessive income 

b) Alternative use of resources

c) Unlimited wants 

d) Limited (scarce) resources

Answer :  Excessive income 

Question :  The problem of 'what to produce' relates to:

a) The choice of technique 

b) Distribution of income

c) Market value of the goods and services 

d) The choice of goods and services

Answer :  The choice of goods and services

Question :  Consuming two goods, consumer attains equilibrium when :

a) MU1 > MU2

b) MU2> MU1

c) MU1 = MU2 

d) TU1 = TU2

Answer :  MU1 = MU2 

Question :  Who controls economic activities under centrally planned economics ?

a) Industrialists           

b) Private firms

c) Government        

d) Consumers

Answer :  Government     

Question :  The following table show the production of cricket bats and sarres of an imaginary economy :

If the production of cricket bats is increased from 3 thousand to 4 thousand, how much production of sarees will he to be sacrificed by the economy ?

a) Zero

b) 8 lakh sarees

c) 30 lakh sarees 

d) 20 lakh sarees

Answer :  20 lakh sarees

Question :  Example of micro economic variable is:

a) Wholesale price index

b) National income

c) Market demand 

d) Aggregate demand

Answer :  Market demand 

Question :  Increase (growth) of resources implies that production possibility curve :

a) Shifts to the Right 

b) Shifts to the left

c) Rotates to the right 

d) None of these

Answer :  Shifts to the Right 

Question :  When marginal utility is negative, total utility is :

a) Zero

b) Diminishing 

c) Maximum 

d) Minimum

Answer :  Diminishing 

Question :  Slope of production curve is:

a) a straight line 

b) convex to the point of origin ‘O’

c) concave to the point of ‘O’ 

d) none of these

Answer :  concave to the point of ‘O’