R.N Institute of Professional Studies
D-12 Main Kanti Nagar Krishna Nagar Delhi-51
“Introduction of Micro Economics”
1. Define the followings
Economy, Economising of resources, Scarcity of resources, Economic Problems, Opportunity cost,
Micro Eco., Macro Eco., Resources
2. Explain the central Problem of an Economy.
3. Define PPC. Explain its Properties.
4. Why does PPC look concave to the point of origin.
5. An Economy always produces on and not inside PPC. True or False. Explain.
6.A lot of people died and many factories were destroyed in an earthquake. How will it affect PPF of
the country?
7. Massive unemployment will shift the PPF to the left. True or False.
8. Identify the following into micro and macro economics.
(i) Production of a sugar mill (ii) Textile industry (iii) Inflation rate (iv) Allocation of resources
(v) Market demand for applies (vi) Market demand for fruits (vii) Price determination (viii) General
price level
9. Why do Problem’s related to allocation of resources in an economy arise. Explain.
10. Production in an economy is below its potential due to unemployment . Govt. starts employment
generation schemes. Explain its effect using PPC.
11. Discuss the subject matter of economics.
12. A country’s resources are fully and efficiently employed. The problem of scarcity exit’s. What
advice will be given to raise the & efficiency level of the human resources to fight scarcity?
13. Unemployment is reduced due to the measures taken by the govt. state its economic value in the
content of PPC.
14. Name the economic value achieved through the spread of education in the content of Production
potential.
15. Name the factors responsible for shift in PPC.
16. PPF shifts towards right when an eco moves from a situation of under utilization to fuller
utilization of resources. True or False.
17. Why do technological advancement or growth of resources shift the PPC to the right?
18. Explain the meaning of opportunity cost with the help of production possibility curve.
19. Draw PPC showing the following situation
(a) Full employment of resources
(b) Under utilization of resources
(c)Growth of resources
20. Why do technological advancement or growth of resources shift the PPC to the right.
21. Explain how a PPC is affected when resources are inefficiently employed in an economy.
22. Distinguish actual and potential level of output with the help of PPC. The actual level of output in
the Indian eco is less than its potential level. Does it mean than the level of PPC could be higher than
what is it now.
23. Rahul have three options of a job, offering him a salary of Rs 20,000, Rs 25,000 and 30,000. What is
Rahul’s opportunity cost.
24. Scarcity and choice always move together. Explain.
25. Does PPC indicate equal level of output or potential level of output.
26. The government has started permoting foreign capital. What is its economics value in contest of
PPC.