Micro Economics MCQ (GK Set-1) with Answers

261) Which of the following is not required for a country to be producing at a point on its production possibility frontier?

Answer is:

Stable prices

262) Which of the following statements is true?

The production possibility frontier is steeper at the right end than the left because some resources are better suited to making some products than others

The production possibility frontier is straight because some resources are better suited to making some products than others

The production possibility frontier is steeper at the left end than the right because some resources are better suited to making some products than others

The production possibility passes the point which represents total wants in the economy

Answer is:

The production possibility frontier is steeper at the right end than the left because some resources are better suited to making some products than others

263) Which of the following will not shift a country’s production possibility frontier?

Answer is:

A fall in unemployment

264) Which of the following types of economy describes the economy of the UK

Answer is:

A mixed economy

265) All the following government policies are likely to increase the quantity of some products that are produced. But with one policy, this effect is a side-effect rather than the aim. Which policy is that?

Answer is:

261) Which of the following is not required for a country to be producing at a point on its production possibility frontier?

Stable prices

262) Which of the following statements is true?

The production possibility frontier is steeper at the right end than the left because some resources are better suited to making some products than others

263) Which of the following will not shift a country’s production possibility frontier?

A fall in unemployment

264) Which of the following types of economy describes the economy of the UK

A mixed economy

265) All the following government policies are likely to increase the quantity of some products that are produced. But with one policy, this effect is a side-effect rather than the aim. Which policy is that?

The introduction of taxes on the rich and transfers to the poor