Economics and Economy MCQ — Class 11

Test your understanding of Economics and Economy with 20 free questions across Easy and Moderate. Hard and Extreme require Premium. Choose a level in the interactive quiz to answer questions and review explanations.

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Key concepts to revise

Scarcity

Scarcity: resources are limited relative to human wants

Choice

Choice: selection among available alternatives because resources are scarce and have alternative uses

Microeconomics

Microeconomics: study of economic behaviour and problems of individual units such as consumers, firms, industries or specific markets

Macroeconomics

Macroeconomics: study of aggregates and economic problems at the level of the economy as a whole

Positive economics

Positive economics: analysis of statements that can be verified as true or false

Normative economics

Normative economics: analysis involving value judgements about what ought to be

Economy

Economy: a system through which people of an area earn their living and organise production, distribution and consumption

Individual economic unit

Individual economic unit: a single consumer, household, firm, industry or specific market studied in microeconomics

Economic aggregate

Economic aggregate: a total or economy-wide magnitude such as national income, total employment or general price level

Scarcity-and-choice link

Scarcity-and-choice link: scarcity together with alternative uses of resources creates the need to choose and allocate resources

Try these sample MCQs

1. Which concept best matches this situation? A household has limited income but many competing wants.

  1. Choice
  2. Scarcity
  3. Macroeconomics
  4. Economy
Check answer and explanation

Scarcity. Scarcity: resources are limited relative to human wants

2. Which concept best matches this situation? A student chooses books instead of a movie with the same limited money.

  1. Microeconomics
  2. Positive economics
  3. Choice
  4. Individual economic unit
Check answer and explanation

Choice. Choice: selection among available alternatives because resources are scarce and have alternative uses

3. Which concept best matches this situation? A researcher studies the demand for tea in one market.

  1. Macroeconomics
  2. Normative economics
  3. Economic aggregate
  4. Microeconomics
Check answer and explanation

Microeconomics. Microeconomics: study of economic behaviour and problems of individual units such as consumers, firms, industries or specific markets

After the quiz

Write down the concepts you missed. Explain each one in your own words, give an example, and attempt the level again without notes. A high score on a short quiz does not replace revision of the whole chapter.

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