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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 Mangoes (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 actual 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.
27.When can PPC be a straight line?
28.Do all attainable combinations point to the same level of output?
29 A shift from steam engines to diesel and electric engines has increased capacity of the Indian
Railways both for the passenger traffic and the goods traffic. How would you reflect this change using
the concept of PPC?
30. Distinguish between positive and Normative economic analysis.
31. Economic slowdown in some parts of the world has adversely affected demand for Indian exports,
What will be its effect on the production possibilities frontier of India? Explain.
32. Suppose that there is full employment of resources in an economy. But still the economy is
operating inside its PPC instead of on the PPC. What can be reason behind this happening?
33. What will be the impact of recently launched ‘Clean India Mission’ (Swachh Bharat Mission) on the
production Possibilities curve of the economy and why?
34. What is likely to be the impact of “Make in India” appeal to the foreign investors by the Prime
Minister of India, on the production possibilities frontier of India? Explain
35What is the likely impact of import substitution policy on the PPC relating to domestic production?
Illustrate diagrammatically.
36. Union Health Minister of India has recently launched ‘Mission Indradhanush’: Full Immunization for
All Children by 2020. State its impact on production possibility curve of the economy.
37. Explain the concepts of opportunity cost and marginal rate of transformation using a production
possibility schedule based on the assumption that no resource is equally efficient in production of all
goods.
38. What will be the impact of “ Education for All Campaign” (Sarv Shiksha Abhiyan) on the production
possibilities curve of the Indian economy and why?
39. What will likely be the impact of large scale inflow of foreign capital in India on production
possibilities curve and why?
40 What will likely be the impact of large scale outflow of foreign capital on production possibilities
curve of the economy and why?