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VisionIAS - Online Self Test
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Questions for practice
1)

Consider the following statements:

  1. Opportunity cost is borne by the Decision Maker.
  2. Opportunity Cost is the benefit foregone when a decision is taken.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only 

(c)Both 1 and 2

(d)Neither 1 nor 2

2)

Consider the following statements about Production Possibility Frontier (PPF).

1. It is a possibility curve that depicts various possibilities of results with the limited resources at our disposal in an efficient way

2. The production of one commodity can be increased by compromising the production of the other commodity.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only 

(c)Both 1 and 2 

(d)Neither 1 nor 2

3)

Consider the following statements about the Marginal Cost and Opportunity Cost.

  1. Marginal Cost means benefit foregone by exercising one option/choice over another option
  2. Opportunity Cost is the increase or decrease in the cost of production for making one additional unit of an item.

Which of the following options is/are correct?

(a)1 only 

(b)2 only

(c)Both 1 and 2 

(d)Neither 1 nor 2

4)

Which of the following statements is/are correct with respect to Production Possibility Frontier (PPF):

1. Points below the PPF Curve are achievable but inefficient in nature

2. Points above this curve are nearly impossible to be achieved.

Select the correct answer from the codes given below:

(a)1 only

(b)2 only

(c)Both 1 and 2 

(d)Neither 1 nor 2

5)

Consider the following statements about Production Possibility Frontier (PPF).

1. PPF is a hypothetical curve and it can be expanded with an enhancement of production possibility

2. The difference between the expected and reality PPF curve is more in the United States than in India.

Which of the statements given above is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2 

(d)Neither 1 nor 2

6)

Production points inside the Production Possibility Frontier are-

(a)Efficient but not attainable.

(b)Efficient and attainable.

(c)Inefficient and not attainable

(d)Inefficient and attainable.

7)

Consider the following statements in reference to the production possibility curve (PPC):

1. Measures the maximum output of two goods using a fixed amount of input.

2. By describing this trade-off, the curve demonstrates the concept of opportunity cost.

Which of the above statements is/are correct?

(a)1 only

(b)2 only

(c)Both 1 and 2

(d)Neither 1 nor 2

8)

Which of the following statements is/are CORRECT in terms of economic decisions:

1. Economic decisions are made to serve the goals of individuals and private organizations, private goals, and society as a whole, public goals.

2. In microeconomics, both individuals and consumers take the opportunity cost of their actions into account when making their decisions.

Select the correct answer from the codes given below:

(a)1 only

(b)2 only

(c)Both 1 and 2.

(d)Neither 1 nor 2.

9)

Write short notes on- (10 Marks/150 Words)

1. Normal and inferior goods.

2. Necessary and luxury goods

10)

Elaborate the following terms (10marks/ 150words)

1. Substitute goods 

2. Complementary goods



Answers
1) c
2) c
3) d
4) c
5) a
6) d
7) c
8) c