GRADE XI CLASS TEST FOR ACADEMIC YEAR 2024-2025
SUBJECT: ECONOMICS TOTAL MARKS: 50
Q1. True Or False: (5)
a) The production possibility curve can shift outward with an increase in resources or
technological advancements.
b) Money is considered a factor of production in economics.
c) Microeconomics examines aggregate economic phenomena such as national income
and inflation.
d) The law of diminishing marginal utility states that as a person consumes more of a
good, the additional satisfaction gained from each additional unit tends to increase.
e) Economic welfare is solely determined by the amount of wealth possessed by
individuals in an economy.
Q2. Choose the correct alternative: (5)
a) Which one of the following activities is the subject matter of economics?
a. Political issues like the nature of the government and its political activities.
b. Social relations and social interaction among the people.
c. Economic questions about the functioning of the economy.
d. A mother looking after her child.
b) Which of the following is not part of real investment in an economy?
a. Purchase of shares of a company by an individual
b. Producers' fixed investment
c. Investment in residential houses
d. Addition to the stock of raw material
c) Which of these is not true about the production possibility curve?
a. A production possibility curve shows various combination of two goods that can be
produced with given number of resources and with the available technique of
production.
b. It slopes downward to the right.
c. It is concave from the origin.
d. It is a straight-line curve.
PROF. NAZNEEN SIDDIQUI M.COM, B. ED, BMS, PGDHRM
d) Which of these economic problem deals with 'choice of method' or 'technique of
production'?
a. What to produce
b. How to produce
c. For whom to produce
d. None of these
e) Which one of the following definitions of economics is the most comprehensive
definition?
a. Economics is a science which deals with wealth.
b. Economics is concerned with the study of the economic welfare of mankind.
c. Economics is the study of how people and society choose to employ scarce
productive resources to produce various commodities over time and distribute
them now or in the future among multiple people and groups.
d. Economics is the science which studies human behaviour as a relationship
between ends and scarce means.
Q3 Answer the following very short answers (5)
a) State the wealth definition of economics
b) State 2 features of Marshalls welfare definition of economics.
c) State 4 phases of trade cycle.
d) What is economic problem?
e) What is meant by ‘opportunity cost’?
Q4. Answer the following short answers (any 5): (10)
a) Explain the wealth definition of economics.
b) Explain the welfare definition of economics.
c) Define utility and explain its basic features.
d) Distinguish between economic welfare and non-economic welfare.
e) Explain the economic problem of an economy.
f) 'Scarcity is the root cause of the problem of choice which every economy has to face.'
Discuss.
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Q5. Answer the following long answers (any 5): (25)
a) what is the growth-oriented definition of economics explain the main virtues of this
definition
b) differentiate between microeconomics and macroeconomics
c) Explain the economic problem of an economy.
d) What is a production possibility curve? Upon what assumptions is it based? Explain
its characteristics.
e) Draw and define a production possibility curve and show the following situations on
the diagram
i. full employment of resources,
ii. Underutilisation of resources,
iii. growth of resources.
g) Define national wealth and state its various components.
h) Define inflation. Distinguish between demand-pull and cost-push inflation.
PROF. NAZNEEN SIDDIQUI M.COM, B. ED, BMS, PGDHRM
