Micro

Introduction

Easy

Which of the following are the two basic economic problems faced by an economy?

Allocation of limited resources and Distribution of goods and services.

Allocation of unlimited resources and Technology to be used for production.

Advance technology to be used for production and Optimal utilization of resources.

Optimal utilisation of resources and Distribution of goods and services.

✅ Correct Option: 1

Because resources are scarce and have alternative uses, every economy must decide how to allocate its limited resources among the production of different goods and services, and how the final output gets distributed among individuals. These allocation and distribution problems are the basic economic problems.

2025: 29 May Shift 2

Whether to have more consumption goods or to have investment goods which will boost production and consumption tomorrow, is a part of which of the central problem?

2023: 20 June Shift 1

Which of the following is not a central problem of an economy?

2025: 29 May Shift 1

Positive Economics deals with_______________

2025: 31 May Shift 1

Choose the correct statements from the following.

(A) The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called the production possibility frontier.

(B) Slope of production possibility frontier is called marginal opportunity cost.

(D) Scarcity of resources gives rise to the problem of choice.

2022: 19 July Shift 2

A hypothetical economy has a piece of land which, in order of priority, can be used for building a school, a hospital, a factory and a residential complex. What is the opportunity cost of choosing the best alternative ?

2023: 20 June Shift 1

Which statement is not related to Normative Economics?

Which of the following are the two basic economic problems faced by an economy?

Solution

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