AMITY INTERNATIONAL SCHOOL PUSHP VIHAR

XI ECONOMICS

CH-1 INTRODUCTION ( MICROECONOMICS)

Competency Based Questions :-

1.Read the following statements - Assertion (A) and Reason (R):

Assertion (A) – PPC is concave to the origin
Reason(R) –   as more of 1 good can be produced only by taking resources away from the production of
another good.
From the given alternatives choose the correct one:
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

2.Identify the correct sequence of alternative given in column II by matching them with the respective
items in column I.
Column I Column II
A. Optimum Utilization of resources s i.Outside the
PPC
B. Over ulitization of Resources ii.On the PPC
C. Increase in Resource for one good iii. Shift
D. Increase in Resource for both goods iv.Rotation

3. Read the following statements carefully and choose the correct alternatives given below:
Statement 1- Both microeconomics and macroeconomics have same degree of aggregation
Statement 2- microeconomics involves limited degree of aggregation an microeconomics involves the
highest degree of aggregation
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

4. Read the following statements - Assertion (A) and Reason (R):

Assertion (A) – PPC is convex to the origin
Reason(R) –   it is due to increasing marginal rate of transformation.
From the given alternatives choose the correct one:
Alternatives:
 a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

5. Read the following statements carefully and choose the correct alternatives given below:
Statement 1- Economy can never operate outside the production possibility frontier with the given
resources and technology.

Statement 2- production possibility frontier shift towards right when an economy moves from a
situation of under utilisation of resources to fuller utilisation of resources
Alternatives:
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

SUBJECTIVE Question and Answer :-

1. What is 'Marginal Rate of Transformation'? Explain with the help of an example.(3)

2. Why is a production possibility curve concave? Explain.(3)

3. Show the following situation with PPF (PPC). (3)
(a) Fuller utilisation
(b) Increase in the resources
(c) Under utilisation of resources.

4. Distingush between positive economics and normative economics. (4)

5. A lot of people died and many factories were destroyed because of a severe earthquake
in a country. How will it affect the country's PPF? (4)
6. Calculate MRT from following table. What will be the shape of PPF and why? (4)

Good X Good Y
1 25
2 20
3 17
4 15