DOON PUBLIC SCHOOL, PASCHIM VIHAR, NEW DELHI

Class-11
2024-25
ASSIGNMENT
 Assignment work is based on the PT-1 Syllabus.
 Kindly paste assignment sheets in the respective subject register only.

Subject: ECONOMICS (Introductory Micro Economics)

Chapter number & name: Chapter 1- INTRODUCTION

1. Which of the following is one of the major causes of economic problems?

a. One of the major causes of economic problems is unlimited human wants
b. One of the major causes of economic problems is the alternative usage of resources
c. One of the major causes of economic problems is the scarcity of economic resources
d. All of the above
2. Which of the following statements about the production possibility curve is accurate?
a. The main reason for the rightward shift of the production possibility curve is war
b. The main reason for the rightward shift of the production possibility curve is migration
c. The main reason for the rightward shift of the production possibility curve is skill development
programs
d. The main reason for the rightward shift of the production possibility curve is natural disasters
3. Which of the following statements about the production possibility frontier is accurate?
a. The production possibility frontier can be a straight line when there is a decrease in the production of
both goods
b. The production possibility frontier can be a straight line when more amount of both the goods can be
produced
c. The production possibility frontier can be a straight line when all the resources are equally efficient
for the production of both the goods
d. None of the above
4. Which of the following statements about the marginal cost is true?
a. When there is an increase in the marginal cost, the production possibility curve is concave to the
origin
b. When there is an increase in the marginal cost, the production possibility curve is convex to the origin
c. When there is an increase in the marginal cost, the production possibility curve is similar to the origin
d. None of the above
5. Which of the following statements about the economy is correct?
a. An economy is a system that helps in the production of goods and also enables people to earn a living
b. An economy is a system that helps in the production of services and also enables people to earn a
living
c. Both a and b are correct
d. Both a and b are incorrect
6. Which of the following statements reflect the correct situation related to the allocation of the resources?
a. Allocation of the resources comes under the causes of economic problems
b. Allocation of the resources comes under the causes of opportunity cost
c. Allocation of the resources comes under the causes of central problems
d. Allocation of the resources comes under the causes of marginal demand
7. Which of the following conclusions is true about the statement ‘Rich people should be taxed more’?
 a. The statement ‘rich people should be taxed more is an example of positive economic analysis
b. The statement ‘rich people should be taxed more is an example of productive economic analysis
c. The statement ‘rich people should be taxed more is an example of normative economic analysis
d. The statement ‘rich people should be taxed more is an example of negative economic analysis
8. Which of the following statements reflects the actual relationship between the marginal opportunity cost and
production possibility frontier?
a. When the marginal opportunity cost remains constant, the production possibility frontier is a
downward-sloping straight line
b. When the marginal opportunity cost remains constant, the production possibility frontier is an
upward-sloping straight line
c. When the marginal opportunity cost remains constant, the production possibility frontier is a central
sloping straight line
d. There is no relation between the marginal opportunity cost and the production possibility frontier
9. Which of the following statements is the actual meaning of scarcity?
a. The actual meaning of scarcity is that there is an increase in the resources
b. The actual meaning of scarcity is that there is a shortage in the resources
c. The actual meaning of scarcity is that there is no change in the resources
d. None of the above
10. Which of the following statements about the production possibility curve is true?
a. If a point falls inside the production possibility curve, it indicates that the resources are over-utilised
b. If a point falls inside the production possibility curve, it indicates that the resources are underutilized
c. If a point falls inside the production possibility curve, it indicates that there is adequate employment
in the economy
d. If a point falls inside the production possibility curve, it indicates that there is inadequate
employment in the economy
11. Which of the following is a sign of a free economy?
a. The prices are regulated
b. The prices are partly regulated
c. The prices are determined with the help of the forces of demand and supply
d. None of these
12. Which of the following is a part of microeconomics?
a. Factor pricing
b. National income
c. Both a and b are correct
d. Both a and b are incorrect
13. Which of the following is true, according to Robbins?
a. Means are undefined
b. Means are scarce
c. Means are unlimited
d. All of the above
14. In which economy do consumers and producers make choices based on market forces of supply and demand?
a. Market economy
b. Open economy
c. Controlled economy
d. Command economy
15. The branch of economics that deals with the allocation of resources is ______.
a. Econometrics
b. Macroeconomics
c. Microeconomics
 d. None of the above

16. Select an incorrect statement about the study of economics

(a) study of consumption

(b) study of production

(c) study of distribution

(d) study of investment

17. Interest are distributed to

(a) labor

(b) entrepreneur

(c) land

(d) capital

Answer. d) capital

18. Which of these is not a cause of economic problem?

(a) unlimited wants

(b) limited resources

(c) exchange

(d) alternate uses

Answer. c) exchange

19. Which of the following is an economic activity?

(a) Production

(b) consumption

(c) distribution

(d) all of the above

20. Which of the following indicates a stage of statistical study?

(a) Presentation of data

(b) Collection of data

(c) Analysis of data

(d) all of these

21. The person who produces or sells goods and services for the generation of Income is....…
(a) Consumers

(b) Buyers

(c) Producers

(d) Entrepreneurs

22. ...........is used to generate income:-

(a) wages

(b) capital

(c) assets

(d) land

23 Which among these is a factor of production?

(a) Questionnaires

(b) Respondent

(c) Entrepreneurs

(d) Investment

24. Which is not a type of factor payment?

(a) Rent

(b) Interest

(c) profit

(d) investment

25. Method /techniques used for collection, organization, and presentation of data are termed as

(a) sample techniques

(b) statistical tools

(c) averages

(d) graphs

Chapter number & name: Chapter 2 & 3- CONSUMER EQUILIBRIUM & DEMAND

1. Which of Gossen’s laws is the First?

A. Law of Diminishing Marginal Utility
B. Law of Demand
C. Surplus of the Consumer
D. Law of Equi-marginal Utility
2. Which of the statements below is correct?
A. Utility means desire-satisfying power
B. The utility is a function of desire intensity
C. Consumption desire gives rise to utility
 D. All of the above.
3. Who was the one who coined the term “utility”?
A. Pigou
B. Marshall
C. Hicks
D. Samuelson
4. Which of the following describes a utility characteristic?
A. Utility is subjective
B. The utility is a relative concept
C. The utility is a psychological phenomenon
D. All of the above
5. What is the formula for calculating marginal utility?
A. ∆MU/∆Q
B. ∆TU/∆Q
C. ∆Q/∆MU
D. ∆Q/∆TU
6. Who was the one who first proposed the concept of the Law of Equimarginal Utility?
A. J. S. Mill
B. Ricardo
C. Marshall
D. Gossen
7. What is the ability to satisfy the human desire for good?
A. Satisfaction
B. Productivity
C. Profitability
D. Utility
8. Who was the one who first proposed the ordinal utility theory?
A. Hicks and Allen
B. Pigou
C. Marshall
D. Ricardo
9. What is the most important factor in determining demand?
A. Availability of adequate resources
B. Desire to consume
C. Willingness to consume
D. All of the above
10. In which goods does a decrease in price not lead to an increase in demand?
A. Comfort Goods
B. Necessities Goods
C. Luxuries Goods
D. None of the preceding
11. A demand function is defined as which of the following?
A. DX = PX
B. Dx = (Px)
C. PX
D. None of these
12.Which of the below is a cause of reduced demand?
A. Fall in Number of Buyers
B. Fall in Income
C. Fall in Taste of Consumer
D. All the above
13. As the price of coffee rises, so makes the demand for tea:
A. Remains stable
B. Falls
C. Rises
D. None of these
14.What is the cause of the shift in demand?
A. Change in price of related goods
B. Population increase
C. Change in consumer’s income
D. All of these
15. There is no fluctuation for which of the following changes?
A. Change in income
 B. Change in price
C. Change in taste and fashion
D. None of these
16. When prices rise, demand for ‘Giffin’ goods:
A. Decreases
B. Remains constant
C. Increases
D. Becomes unstable
17. Which commodities do consumers reduce their consumption when their income rises?
A. Normal goods
B. Giffin goods
C. Inferior goods
D. All the three
18. Which one of the following has less than one elasticity?
A. Comforts
B. Luxuries
C. Necessity Goods
D. All of the Above
19.What approach is used to determine the elasticity of demand?
A. Point Method
B. Percentage or Proportionate Method
C. Total Expenditure Method.
D. All of the above
20.Who was the first to propose the proportionate or percentage approach to calculating demand elasticity?
A. Flux
B. Hicks
C. Marshall
D. None of these
21. How many different types of demand elasticity does demand have?
A. Five
B. Six
C. Three
D. Seven
22. Which of the following influences demand elasticity?
A. Price Level
B. Nature of Goods
C. Income Level
D. All of these
23. In which analyses may utility be expressed as a precise number, such as 1, 2, 3, and so on?
A. Ordinal utility analysis
B. Cardinal utility analysis
C. Both (a) and (b)
D. None of these
24. The ordinal utility notion expresses utility in terms of:
A. level of satisfaction
B. Constants
C. Units
D. none of these
25. The overall usefulness of a commodity____________ as we use more units of it ever, but at a decreasing rate:
A. Decreases
B. Increases
C. becomes zero
D. remains constant
26. Does indifference curve analysis require one of the following assumptions?
A. Declining marginal rate of substitution
B. Cardinal numbers
C. Monotonic preference of the consumer
D. All of the above
27. The slope of IC tends to ___________ drop as we walk along the indifference curve (left to right).
A. Zero
B. Rise
C. Decline
D. Unity
28. When the following conditions are met, total utility is at its peak:
A. The marginal utility is Zero
B. The average utility is maximum
C. The average utility is Zero
D. Marginal utility is maximum
29. _______displays numerous combinations of these two products that provide the same level of satisfaction:
A. Indifference curve
B. Marginal utility curve
C. ISO cost curve
D. ISO quant
30. Which of the statements below is correct?
A. The utility is a function of the intensity of desire
B. The desire for consumption gives birth to utility
C. Utility means want-satisfying power
D. All of the above
31. When the price of commodities ‘X’ declines, increasing in demand for goods ‘Y,’ both goods are:
A. Complementary goods
B. Substitute goods
C. Not related
D. Competitor
32. The following is a diagrammatic representation of the set of consumer indifference:
A. budget line
B. utility curve
C. indifference curve
D. transformation curve
33. Indifference curve analysis requires which of the following assumptions?
A. Declining marginal rate of substitution
B. Cardinal numbers
C. Monotonic preference of the consumer
D. All of the above
34. When only one unit is utilized, the following results are obtained:
A. MU=TU
B. MU> TU
C. MU=0
D. MU+TU
35. When two commodities are used, equilibrium is reached when the rupee value of satisfaction is the same for both:
A. True
B. False
C. can not say
D. none of these
36. The Demand Curve has a general slope of:
A. Downward from left to right
B. Parallel to X-axis
C. Parallel to Y-axis
D. Upward from left to right
37. The line that depicts all different combinations of two things that a consumer can buy by spending all of his income,
given the money income and the price, is called:
A. production line
B. iso-cost line
C. price ratio
D. budget line
38. The budget line denotes:
A. cost-benefit analysis
B. percentage of income
C. Ratio of output
D. the cost-benefit ratio
39. It must be true that when the marginal is negative,
A. The average is negative
B. The average is positive
C. The total is decreasing
D. The total is negative
40. Since they are convex to the origin, indifference curves are convex as,
A. Two goods are imperfect substitutes
 B. Two goods are perfect substitutes
C. Two goods are perfect complementary goods
D. None
41. When Marginal Utility = 0, Total Utility is
A. Laws of return
B. Minimum
C. Maximum
D. None of the above
42. The concept of diminishing marginal value is the foundation of
A. Laws of return
B. Law of demand
C. Law of supply
D. None
43. If MU is positive, TU will be
A. Is highest
B. Remains constant
C. Decreases
D. Increases
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