Class 11 Economics Practice Questions

Q1. Microeconomics studies the economic behaviour of: 📊

1. Individual units like households and firms
2. National income
3. The entire economy
4. Government spending

Q2. The law of demand states that, other things being equal, as price increases: 📊

1. Demand decreases
2. Demand stays constant
3. Demand increases
4. Supply decreases

Q3. Statistics in economics is primarily used for: 📊

1. Collecting and interpreting economic data
2. Predicting weather patterns
3. Writing government policies
4. Literary analysis

Q4. The central problem of economics arises because of: 📊

1. Scarcity of resources
2. Lack of government regulation
3. Overproduction of goods
4. Unlimited resources

Q5. A perfectly competitive market has: 📊

1. One seller
2. Few buyers and sellers
3. Many buyers and sellers with homogeneous products
4. Government-controlled prices

Q6. Mean of the data set {4, 8, 6, 10, 2} is: 📊

1. 8
2. 5
3. 6
4. 7

Q7. Opportunity cost is defined as: 📊

1. Total expenditure on goods
2. The value of the next best alternative foregone
3. The cost of production
4. The price of a good in the market

Q8. Which of the following is NOT a factor of production? 📊

1. Money
2. Labour
3. Land
4. Capital

Q9. The median of the data {3, 5, 7, 9, 11} is: 📊

1. 7
2. 9
3. 6
4. 5

Q10. When supply exceeds demand, the market price tends to: 📊

1. Remain the same
2. Fall
3. Rise
4. Double

Q11. The branch of economics that studies individual units like households and firms is:

1. Microeconomics
2. Macroeconomics
3. Statistics
4. Accountancy

Q12. A market structure with only one seller is called:

1. Perfect competition
2. Monopoly
3. Oligopoly
4. Duopoly

Q13. The desire for a good backed by ability and willingness to pay is called:

1. Supply
2. Utility
3. Demand
4. Cost

Q14. The branch of economics that studies the economy as a whole (GDP, inflation) is:

1. Microeconomics
2. Book-keeping
3. Marketing
4. Macroeconomics

Q15. The total market value of all final goods and services produced in a country in a year is called:

1. GDP
2. CPI
3. EMI
4. GST

Q16. Which is the central bank of India?

1. State Bank of India
2. Reserve Bank of India
3. SEBI
4. NABARD