2) Trade-offs are required because wants are unlimited and resources are

Answer is:

scarce

Micro Economics MCQ (GK Set-1) with Answers

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Related Micro Economics MCQ (GK Set-1) with Answers

3) Economics is the study of

Answer is:

how society manages its scarce resources

4) A rational person does not act unless

Answer is:

the action produces marginal benefits that exceed marginal costs

5) Suppose you find Rs.20. If you choose to use the Rs.20 to go to a football match, your opportunity cost of going to the game is

nothing, because you found the money

Rs.20 (because you could have used the Rs.20 to buy other things) plus the value of your time spent at the game

Rs.20 (because you could have used the Rs.20 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game

Rs.20 (because you could have used the Rs.20 to buy other things).

Answer is:

Rs.20 (because you could have used the Rs.20 to buy other things) plus the value of your time spent at the game

6) Since people respond to incentives, we would expect that, if the average salary of accountants increases by 50% while the average salary of teachers increases by 20%, then

Answer is:

fewer students will take degree courses in education and more will take accounting courses

Micro Economics MCQ (GK Set-1) with Answers

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