Question 1

Who is considered the father of economics according to the study material?

Accepted Answer

Adam Smith

Question 2

Which book written by Adam Smith is regarded as the foundation of modern economics?

Accepted Answer

The Wealth of Nations

Question 3

According to the study material, which economist introduced the concept of 'Economic Man'?

Accepted Answer

Adam Smith

Question 4

Which of the following is NOT a characteristic of microeconomics?

Accepted Answer

It deals with national income and employment.

Question 5

Microeconomics is primarily concerned with:

Accepted Answer

Individual consumer and producer behavior

Question 6

Which economist is associated with the definition of economics as the study of wealth?

Accepted Answer

Adam Smith

Question 7

According to Alfred Marshall, economics is the study of:

Accepted Answer

Welfare

Question 8

Which of the following best describes the concept of 'Scarcity' in economics?

Accepted Answer

Limited resources and unlimited wants

Question 9

Which of the following is a microeconomic issue?

Accepted Answer

Price determination of a specific good

Question 10

If the price of a commodity increases, what is the likely effect on its quantity demanded, according to the law of demand?

Accepted Answer

Quantity demanded will decrease

Question 11

Which formula represents the law of demand?

Accepted Answer

$$Q_d = f(P)$$

Question 12

Suppose the demand function for a product is $$Q_d = 100 - 2P. If $$the price increases from 10 to 20, what is the change in quantity demanded?

Accepted Answer

Decrease by 40 units

Question 13

Which of the following statements is true about microeconomics?

Accepted Answer

It focuses on individual markets and decision-makers.

Question 14

Who defined economics as the science which studies human behavior as a relationship between ends and scarce means?

Accepted Answer

Lionel Robbins

Question 15

Which of the following is NOT a definition of economics mentioned in the study material?

Accepted Answer

Economics as the study of biology

Question 16

If a consumer has a fixed income and the price of one good increases, what is the likely effect on the consumer's ability to purchase that good?

Accepted Answer

Consumer will buy less of the good

Question 17

Which economist is associated with the welfare definition of economics?

Accepted Answer

Alfred Marshall

Question 18

Which of the following is a real-world example of a microeconomic decision?

Accepted Answer

A consumer choosing between tea and coffee

Question 19

Which of the following best describes the scope of microeconomics?

Accepted Answer

It studies the behavior of individual economic units.

Question 20

If the supply function is $$Q_s = 20 + 3P$$ and the market price is $$P = 10$$, what is the quantity supplied?

Accepted Answer

$$Q_s = 50$$

Introduction to Microeconomics: Definitions, Scope, and Key Contributors

Study Guide - Practice Questions