MCQ Question for Class 12 Economics Chapter 1 Introduction to Micro Economics

Check the below NCERT MCQ Class 12 Economics Chapter 1 Introduction to Micro Economics with Answers available with PDF free download. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Introduction to Micro Economics Class 12 Economics MCQs Questions with answers which will help students to revise and get more marks in exams

Introduction to Micro Economics Class 12 Economics MCQ Questions with Answers

Refer below for MCQ Class 12 Economics Chapter 1 Introduction to Micro Economics with solutions. Solve questions and compare with the answers provided below

Question. Farming in which crops are produced to provide for the basic needs of the family is called:
(a) stagnant agriculture
(b) subsistence agriculture
(c) commercial agriculture
(d) none of these​

Question. Decay of handicrafts was caused by:
(a) British tariff policy
(6) Competition from machine-made products
(c) Change in patterns of demand
(d) All of these

Question. Suez canal was opened in :   
(a) 1867
(c) 1869
(b) 1868
(d) 1870

Question. On the eve of independence, the proportion of population engaged in agricultural sector:           
(a) approx. 40%
(b) approx. 60%
(c) approx. 65%
(d) approx. 70%

Question. Stagnant economy is the one which shows:
(a) little growth in income
(c) low level of productivity
(b) high growth in income
(d) both (a) and (c)

Question. During colonial period, India’s demographic profile showed:- : 
(a) High birth rate
(b) High death rate
(c) High infant mortality
(d) All of these

Question. On the eve of independence, bulk of the population was engaged in :   
(a) agriculture sector
(b) trade andcommerce
(c) mining sector
(d) industrial sector

Question. High infant mortality is a sign of: 
(a) extreme poverty
(b) poor healthcare
(c) both (a) and (b)
(d) none of these

Question. Gender-bias in the society on the eve of independence was indicated by :
(a) Mortality rate
(b) Literacy rate
(c) Death rate
(d) Life expe

Question. Which sector was the major contributor to G D P of the country as well as the biggest employer on the eve of independence? 
(a) Agriculture
(b) Industry
(c) Services
(d) Manufacturing

Question. The first railway line in India was laid in: 
(a) 1854
(b) 1853
(c) 1855
(d) 1850

Question. Which industry of India got severely affected under the colonial rule?     
(a) Sugar industry
(b) Iron & Steel industry
(c) Handicraft industry
(d) Paper industry

Question. The Indian economy on the eve of the independence was: 
(a) developed
(b) underdeveloped
(c) stagnant
(d) both (b) and (c)

Question. Land holding sat the time of independence were: 
(a) fragmented
(b) large
(c) small
(d) both (a) and (c)

Question. On the eve of independence, India was net exporter of:   
(a) primary products
(b) industrial products
(c) capital goods
(d) all of these

Question. If with the rise in price of good Y, demand for good X rises, the two goods are:
(a) Substitutes
(b) Complements
(c) Not related
(d) Jointly demanded

Question. Which of the shaded area in the diagrams below represents total utility?

Question. A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and `20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X?
(a) 100 units
(b) 25 units
(c) 250 units
(d) 4 units

Question. After reaching the point of satiety, consumption of additional units of the commodity causes:
(a) TU falls and MU increases
(b) Both TU and MU increase
(c) TU falls and MU falls and becomes negative
(d) TU becomes negative and MU falls

Question. A consumer consumes only two goods X and Y whose prices are ₹3 and ₹`4 per unit respectively. If the consumer chooses a combination of the two goods with marginal utility of X equal to 4 and that of Y equal of 3, then the consumer will ________.
(a) Buy more units of both, X and Y
(b) Buy more units of Y and less of X
(c) Buy more units of X and less of Y
(d) Buy less units of both, X and Y

Question. Change in demand implies _____________ .
(a) Increase or decrease in demand of a good due to change in its price
(b) Increase or decrease in demand of a good due to change in the price of its substitute goods
(c) Increase or decrease in demand of a good due to change in the price of its complementary goods
(d) Shifting of demand curve

Question. When demand for a commodity is perfectly inelastic, an increase in price by 2%, leads to increase in quantity demanded by ______________.
(a) 10%
(b) 0%
(c) 3%
(d) 2%

Question. When marginal utility is zero, total utility is
(a) zero
(b) minimum
(c) maximum
(d) negative

Question. If Marginal Rate of Substitution is constant throughout, the Indifference curve will be:
(a) Parallel to the X-axis.
(b) Downward sloping concave.
(c) Downward sloping convex.
(d) Downward sloping straight line.

Question. If the demand curve is a rectangular hyperbola, value of price elasticity of demand is _____________.
(a) 1
(b) 0
(c) infinity
(d) less than one

Question. _________ measures the slope of indifference curve.
(a) Budget Line
(b) Marginal Rate of Substitution
(c) Marginal Rate of Transformation
(d) Price Ratio

Question. If the demand curve is vertical, value of price elasticity of demand is ____________.
(a) zero
(b) less than one
(c) more than one
(d) infinity

Question. The formula for calculating marginal utility is _________ .
(a) TU_n – TU_n – 1
(b) TU_n + TU_n – 1
(c) MU⁰ = MU₂ = MU₃ 
(d) MU₁ + MU₂ + MU₃ + … + MU_n

Question. If two commodities are complements, this means that a rise in the price of one commodity will result in _______.
(a) a rightward shift of demand curve of the other commodity
(b) a rise in the price of the other commodity
(c) no shift in demand curve of the other commodity
(d) a leftward shift in demand curve of the other commodity

Question. When income of the consumer falls the impact on price-demand curve of an inferior good is:
(a) Shifts to the right.
(b) Shifts to the left.
(c) There is upward movement along the curve.
(d) There is downward movement along the curve.

Question. If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be:
(a) Downward sloping convex
(b) Downward sloping concave
(c) Downward sloping straight line
(d) Upward sloping convex

Question. Which one of the following commodities will not have inelastic demand?
(a) Salt
(b) Medicine
(c) Mobile phone
(d) School uniform

Question. If due to fall in the price of good X, demand for good Y rises, the two goods are:
(a) Substitutes
(b) Complements
(c) Not related
(d) Competitive

Question. The demand for cooking gas is not falling inspite of regular hike in the price of cooking gas. What will be the elasticity of demand for cooking gas? Give reason in support of your answer. 

Question. What policy initiatives can the government undertake to increase the demand of milk in the country? Mention any one.

Question. Ceteris Paribus, if the government provides subsidies on electricity bills, what would be the likely change in the market demand of desert coolers?

Question. Suggest any one economic measure by which the government can promote consumption of ‘Khadi’. 

Question. What economic measure can the Government take to reduce demand for commodity X which is harmful for health? 

Question. On the eve of independence, Indian economy was a (feudal economy/semi -feudal economy)

Question. Zamindari system of land revenue worked through the system of middlemen called (jagirdars/zamindars)

Question. An economy made to serve the interests of its colonial rulers is called a (colonial economy/feudal economy)

Question. is a form of farming in which crops are produced to provide for the basic needs of the family. (Commercial farming/Subsistence farming)

Question. infrastructure includes educatinal, health and housing facilities. (Economic/Social)

Question. During the colonial rule, India was a of finished products from/to Britain . (net exporter/net importer)

Question. The year is regarded as the ‘ Year of Great Divide’ in the history of demographic transition of India . (1921/1931)

Question. Occupational structure refers to the distribution of across primary, secondary and tertiary sectors of the econom. (population/working population)

Question. as a production activity, belongsto primary sector of the economy. (Animal husbandry/Storage)

Question. At the time of independence, secondary and stage of growt h . sectors were in their infant (primary/tertia ry)

Question. Landholdings on the eve of independence were fragmented .(True/False)

Question. It was owing to the discriminatory tariff policy of the colonial government that handicraft industry in India got destroyed .(True/False)

Question. Per capita income refers to the income per head of the total work force of the country. (True/False)

Question. Railways were developed by the colonial government to promote the market for British goods in India . (True/False)

Question. From the year 1921 , total population inIndia never declined . (True/False)

Question. During British period, India was treatedasa colony supplying raw material to the British industries. (True/False)

Question. Commercialisation of agriculture refers to a shift from cultivation for self-consumption to cultivation for sale in the market. (True/False)

Question. On the eve of independence, only heavy and basic industries were developed in the Indian economy. (True/False)

Question. Infant mortality rate refers to the death rate of children below the age of 2 year per 1000 live births. (True/False)

Question. Muslin is a type of cotton textile which had its origin in Bengal . (True/False)

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