XII ECONOMICS

QUESTION BANKS
CH.1 INTRODUCTION TO MICROECONOMICS
AND MACRO ECONOMICS.
Q 1.A). Give economic Terms (one mark for each
correct answer).
1) Study of large economic unit.
2) The theory which deals with the price determination of
individual commodity by forces of demand and supply.
3) Maximum satisfaction of people due to efficiency in the
allocation of resources.
4) Price determination of factors of production.
5) Determination of the prices of goods and services as well as
factors of production.
6) Study of small or millionth part of economic unit.

7) Equal distribution of Produce goods and services to the

society for consumption .
8) Production of most desired goods and services.
9) This concept is the key tool of micro economics
10) The two main branches of modern economics.
11) Assumption of micro economics i.e. other things
remaining constant .
12) A type of economy wherein economic decisions regarding the
production of goods are taken at individual level.

13) This branch of economics explains determination of

currency exchange rates of any two countries.
14) The theory which explains the cause of
underdevelopment and poverty.
15) The theory which deals with the relative shares of rent ,wages,
interest, profit in the total national income .
16) The method which engages in the study of whole economy
rather than its part.
17) The average of all prices of goods and services currently
being produced in the economy.
18) Policy oriented science.
19) The process of measuring, monitoring and reporting to
stakeholders the social and environmental effects of an
organization's actions.
20) This macro theory is a part and parcel of the theory of
income and employment.
21) Policy oriented science.
22) The process of measuring, monitoring and reporting to
stakeholders the social and environmental effects of an
organization's actions.
23) This macro theory is a part and parcel of the theoryof
Income and employment.

Q1.B) .ASSERTION AND REASONING

(one mark for each correct answer)
A) A is true but R is false.
B) A is false but R is true .
C) Both A and R are true but R is the correct
explanation of A.
D) Both A and R true but R is not the correct explanation of A .
Please write correct option .
1) A) Micro and Macro economics were two branchesof
modern economics .
B) These two terms were coined by prof Alfred Marshall.
Ans .

2) A) Micro economics is known as price theory

B) Micro economics deals with determination of prices of goods
and services as well as prices of factors of production.
Ans .

3) A) Micro economics begin with certain assumptions.

B)The assumptions make micro theories/analysis complex.
Ans .
4) A) General equilibrium deals with the behavior of
individual price of a commodity.
B) Lumping method is the study of aggregates.
Ans .

Q1.C-Choose the correct options:

1)-________ tool is used in micro economics.
a) Marginalism principles b) allocation of resources
c)profit d)satisfaction
2)-_______ balance between 2 factors.
a) Equilibrium b) Partial
c) General d) Disequilibrium
3)-______ method studies each factor separately .
a) Lumping b) Slicing
c) Production d)Cost
4)- _________ economists compare economy with
human body.
a) Maurice Dobb b) A.P.Learner
c)Adam Smith d)Alfred Marshall
5)-________ economist popularized micro economics.
a) Adam Smith b) Prof. Ricardo
c) J.S.Mill d) Alfred Marshall
Q1.D)Complete the correlation.
1) Individual Demand : Micro Economics ::
Macro Economics.
2) : Micro Economics :: Lumping method
Macro Economics.
3) Partial equilibrium : Micro Economics ::
Macro Economics.
4) Micro : MIKROS::Macro : .
5)Micro economics :Marshall::Macro economics: .
6) Micro : Isolation :: : Macro Economics.
7) Personal income : Micro ::Macro : Macro
Economics.
8) :Micro Economics ::Study of aggregate
variables : Macro Economics.
Q1.E) Odd Word Out.
1) Micro economic variable:
Individual supply, Individual firm, Individual Income,
National Income.
2) Features of Micro :
Slicing Method ,Partial equilibrium, Slicing method,
Interdependence.
3)Economist who develop micro branch:
Keynes , Mrs. Joan Robinson, Micks, Pigou.
4)Classification of market on competition:
Perfect Competition, Monopoly, Monopolistic Competition,
Wholesale Market.
5)Assumptions of Micro:
Full employment, Ceteris Paribus, Pure Capitalism,
Short Period .
6) Economic efficiency:
Efficiency in Production, Efficiency in Consumption, Overall
Efficiency , Skill Efficiency.
7)Scope of Micro:
Theory of Product Pricing, Theory of business cycle, Theory
of Factor Pricing, Theory of economic welfare.
8)Importance of Micro :
Economic model building, Foreign Trade, National Income,
Price determination.
9) Scope of Macro:
Theory of Growth and Development, Theory of Factor Pricing,
Theory of Business Cycle, Theory of general Price level and
Inflation.
Q1.E.Choose the correct options:
i)-
A B
1.Ragner Frisch a.1950
2.Lord Keynes b.1973
3.Marginalism principle c.1933
4.Micro Economics d.Useful for economic decision
5.Macro Economics e.1936
f.1940
g.Limited Scope
h.Wide Scope
 Options:
1). 1-g ,2-h, 3-d,4-c,5-e
2). 1-c ,2-e, 3-d,4-g,5-h
3). 1-e ,2-f, 3-c,4-b,5-a
4). 1-a,2-b, 3-c,4-d,5-e

ii)-
A B
1.Production of goods a.Overall efficiency
which one most desired
by the people
2.Market economy b.No government
intervention
3.Micro Economics c.Full employment
4.Macro Economics d.Example of forest
e.Example of leaf
f.Example of tree
d.Government control

Options:
Options:
1).
1).1-g
1-a,2-h,
,2-b,3-d,4-c,5-e
3-f,4-c
2).
2).1-c
1-a,2-e,
,2-b,3-d,4-g,5-h
3-c,4-d
3).
3).1-e
1-d,2-f,
,2-c,3-c,4-b,5-a
3-a,4-b
4).
4).1-a,2-b,
1-f,2-h, 3-c,4-d,5-e
3-b,4-d
Q2) Identify and explain the concept .
(Two marks for each correct answer )
1) Through Public distribution system rationing shops
distribute goods to poor people.
2) Rakesh divided his departmental store into two separate
divisions i.e. grocery items and garments to find actual
profitability separately.
3) When Government increases investment in employment
generation schemes then there will be an increase in the level of
employment and finally increases the economic growth.
4) Government collect whole information about
population through census.

Q3.) State with reasons whether you agree or

disagree with the following statements.
(1 mark for agree or disagree answer and 3 marksfor correct
reason)
1) The scope of Macro economics is limited.
2) Micro economics is a microscopic study.
3) Micro economics studies behavior of individual economic
unit.
4)Micro economic theories are based on certain
assumptions
5) Macro economics is individualistic.
6) Macro analysis is based on general equilibrium.
7) Macro economics is based on interdependence between
aggregate economic variables .
8) Macro economics is useful to the government.
9) Micro economics is different from Macro economics.