Topic 1: Scarcity, Choice and Opportunity Cost
Q1. Match the situation with the economic concept involved.
Column A
A. A student has only one evening to prepare for two tests.
B. A farmer uses land for wheat instead of vegetables.
C. A family has many wants but limited income.
D. A student selects studying instead of watching a movie.
Column B
- Opportunity cost
- Scarcity
- Choice
- Limited resources
Options:
A. A-2, B-1, C-4, D-3
B. A-1, B-4, C-3, D-2
C. A-4, B-3, C-2, D-1
D. A-3, B-2, C-1, D-4
Q2. Match each situation with the most appropriate concept.
Column A
A. Time available for completing homework is limited.
B. Choosing a bicycle instead of a bus may mean giving up another alternative.
C. The next best alternative given up is identified.
D. A consumer decides which product to buy with limited money.
Column B
- Opportunity cost
- Scarcity
- Choice
- Trade-off
Options:
A. A-4, B-2, C-3, D-1
B. A-2, B-4, C-1, D-3
C. A-1, B-3, C-4, D-2
D. A-3, B-1, C-2, D-4
Q3. Match the example with the correct interpretation.
Column A
A. Limited water during a drought
B. Using water for crops instead of lawns
C. Giving up one alternative to select another
D. The best alternative sacrificed
Column B
- Choice
- Scarcity
- Opportunity cost
- Trade-off
Options:
A. A-1, B-3, C-2, D-4
B. A-4, B-2, C-3, D-1
C. A-2, B-1, C-4, D-3
D. A-3, B-4, C-1, D-2
Q4. Match the decision with what it demonstrates.
Column A
A. A family postpones buying a television to pay school fees.
B. A student chooses cricket over a movie.
C. The movie that the student gives up
D. Limited family income
Column B
- Opportunity cost
- Scarcity
- Choice
- Resource constraint
Options:
A. A-4, B-2, C-1, D-3
B. A-1, B-3, C-2, D-4
C. A-2, B-4, C-3, D-1
D. A-3, B-1, C-4, D-2
Q5. Match the economic condition with its consequence.
Column A
A. Limited resources
B. Multiple wants
C. Choosing one option
D. Best alternative forgone
Column B
- Requires prioritisation
- Creates alternatives
- May require giving up another
- Opportunity cost
Options:
A. A-2, B-1, C-3, D-4
B. A-3, B-4, C-2, D-1
C. A-1, B-2, C-4, D-3
D. A-4, B-3, C-1, D-2
Topic 2: What Do Economists Do?
Q6. Match the economic activity with its purpose.
Column A
A. Studying rising food prices
B. Studying consumer response to prices
C. Comparing alternative government programmes
D. Studying resource allocation
Column B
- Understanding behaviour
- Policy evaluation
- Analysing market conditions
- Understanding choices
Options:
A. A-1, B-4, C-3, D-2
B. A-4, B-2, C-1, D-3
C. A-3, B-1, C-2, D-4
D. A-2, B-3, C-4, D-1
Q7. Match the situation with the role of economic analysis.
Column A
A. Government compares two infrastructure projects.
B. Economist studies why demand for a product fell.
C. Study of unemployment trends
D. Study of consumer reactions to price changes
Column B
- Demand analysis
- Cost-benefit comparison
- Labour-market analysis
- Behavioural analysis
Options:
A. A-3, B-4, C-2, D-1
B. A-4, B-2, C-3, D-1
C. A-2, B-1, C-3, D-4
D. A-1, B-3, C-4, D-2
Q8. Match the question with the economic area involved.
Column A
A. Why has the price of wheat increased?
B. How do consumers react to a price increase?
C. Where should a limited public budget be spent?
D. How can scarce resources be used efficiently?
Column B
- Resource allocation
- Market analysis
- Consumer behaviour
- Economic decision-making
Options:
A. A-3, B-2, C-1, D-4
B. A-2, B-3, C-4, D-1
C. A-4, B-1, C-3, D-2
D. A-1, B-4, C-2, D-3
Q9. Match the economist’s activity with its likely outcome.
Column A
A. Collecting economic data
B. Studying incentives
C. Comparing policies
D. Examining resource use
Column B
- Evidence-based analysis
- Understanding responses
- Better-informed decisions
- Identifying allocation issues
Options:
A. A-2, B-3, C-4, D-1
B. A-4, B-1, C-2, D-3
C. A-1, B-2, C-3, D-4
D. A-3, B-4, C-1, D-2
Q10. Match the economic question with the most suitable approach.
Column A
A. Why are consumers buying less?
B. Which public project is preferable?
C. Why are some resources unused?
D. How will a policy affect producers?
Column B
- Study incentives and behaviour
- Compare costs and benefits
- Examine resource allocation
- Analyse likely responses
Options:
A. A-4, B-3, C-2, D-1
B. A-1, B-2, C-3, D-4
C. A-2, B-1, C-4, D-3
D. A-3, B-4, C-1, D-2
Topic 3: Production, Distribution and Consumption
Q11.
Column A
A. Farmer grows wheat.
B. Truck carries wheat to a market.
C. Family uses flour to make food.
D. Bakery makes bread.
Column B
- Consumption
- Production
- Distribution
- Production
Options:
A. A-3, B-2, C-4, D-1
B. A-4, B-1, C-2, D-3
C. A-1, B-4, C-3, D-2
D. A-2, B-3, C-1, D-4
Q12.
Column A
A. Manufacturing furniture
B. Transporting furniture
C. Household using furniture
D. Retailer making furniture available to customers
Column B
- Consumption
- Distribution
- Production
- Distribution
Options:
A. A-1, B-4, C-2, D-3
B. A-3, B-2, C-1, D-4
C. A-4, B-1, C-3, D-2
D. A-2, B-3, C-4, D-1
Q13.
Column A
A. Raw materials converted into goods
B. Goods moved to consumers
C. Goods used to satisfy wants
D. Poor roads prevent goods from reaching markets
Column B
- Production
- Distribution
- Consumption
- Distribution problem
Options:
A. A-3, B-1, C-2, D-4
B. A-4, B-2, C-1, D-3
C. A-1, B-2, C-3, D-4
D. A-2, B-3, C-4, D-1
Q14.
Column A
A. A factory makes school bags.
B. A wholesaler sends bags to shops.
C. A student uses a school bag.
D. A shortage of transport delays delivery.
Column B
- Production
- Distribution
- Consumption
- Distribution constraint
Options:
A. A-2, B-1, C-4, D-3
B. A-1, B-2, C-3, D-4
C. A-4, B-3, C-2, D-1
D. A-3, B-4, C-1, D-2
Q15.
Column A
A. Creating a service
B. Making goods available in markets
C. Using a service
D. Failure to deliver goods to consumers
Column B
- Production
- Distribution
- Consumption
- Distribution difficulty
Options:
A. A-4, B-3, C-2, D-1
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-1, D-2
D. A-1, B-2, C-3, D-4
Topic 4: Economics and Policy-Making
Q16.
Column A
A. Limited government budget
B. Studying policy effects
C. Comparing school and hospital spending
D. Predicting people’s response to a policy
Column B
- Need for choice
- Policy evaluation
- Resource allocation
- Behavioural analysis
Options:
A. A-2, B-4, C-1, D-3
B. A-1, B-2, C-3, D-4
C. A-3, B-1, C-4, D-2
D. A-4, B-3, C-2, D-1
Q17.
Column A
A. Government chooses between two programmes.
B. A policy changes consumer behaviour.
C. Money spent on one programme cannot be used elsewhere.
D. Government has limited funds.
Column B
- Opportunity cost
- Policy response
- Resource constraint
- Choice
Options:
A. A-1, B-3, C-2, D-4
B. A-3, B-1, C-4, D-2
C. A-4, B-2, C-1, D-3
D. A-2, B-4, C-3, D-1
Q18.
Column A
A. Assessing benefits of a policy
B. Assessing costs of a policy
C. Studying possible responses
D. Choosing among alternatives
Column B
- Policy evaluation
- Cost analysis
- Behavioural analysis
- Decision-making
Options:
A. A-4, B-3, C-1, D-2
B. A-2, B-1, C-4, D-3
C. A-1, B-2, C-3, D-4
D. A-3, B-4, C-2, D-1
Q19.
Column A
A. Limited tax revenue
B. Selecting a spending priority
C. Benefit given up from the next best programme
D. Studying who gains from a policy
Column B
- Scarcity
- Choice
- Opportunity cost
- Distributional effect
Options:
A. A-2, B-3, C-4, D-1
B. A-1, B-2, C-3, D-4
C. A-4, B-1, C-2, D-3
D. A-3, B-4, C-1, D-2
Q20.
Column A
A. Policy has benefits and costs.
B. People change behaviour after a policy.
C. Government cannot fund every programme.
D. One programme is chosen over another.
Column B
- Trade-off
- Response
- Scarcity
- Choice
Options:
A. A-3, B-1, C-4, D-2
B. A-2, B-4, C-1, D-3
C. A-1, B-2, C-3, D-4
D. A-4, B-3, C-2, D-1
Topic 5: Economics and Real-World Problems
Q21.
Column A
A. People unable to find jobs
B. General rise in prices
C. Limited resources among competing uses
D. Increase in fuel cost affecting transport
Column B
- Inflation
- Unemployment
- Resource allocation
- Cost effect
Options:
A. A-2, B-1, C-3, D-4
B. A-3, B-4, C-1, D-2
C. A-4, B-3, C-2, D-1
D. A-1, B-2, C-4, D-3
Q22.
Column A
A. Rising prices reduce purchasing power.
B. A worker cannot find a job.
C. A country decides where limited resources should go.
D. Higher fuel prices raise delivery costs.
Column B
- Inflation
- Unemployment
- Allocation
- Indirect economic effect
Options:
A. A-4, B-3, C-2, D-1
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-1, D-2
D. A-1, B-2, C-3, D-4
Q23.
Column A
A. Joblessness
B. Price rise
C. Poor resource allocation
D. Fuel price increase
Column B
- Underuse of labour
- Reduced purchasing power
- Inefficient use of resources
- Higher transportation cost
Options:
A. A-3, B-4, C-1, D-2
B. A-1, B-2, C-3, D-4
C. A-4, B-3, C-2, D-1
D. A-2, B-1, C-4, D-3
Q24.
Column A
A. Unemployment
B. Inflation
C. Poverty
D. Scarcity
Column B
- Labour resource not fully used
- General price-level increase
- Difficulty meeting basic needs
- Limited resources relative to wants
Options:
A. A-2, B-3, C-4, D-1
B. A-3, B-4, C-1, D-2
C. A-1, B-2, C-3, D-4
D. A-4, B-1, C-2, D-3
Q25.
Column A
A. A shortage of workers with required skills
B. A continuous rise in general prices
C. Limited funds for many social programmes
D. Rising transport costs affecting product prices
Column B
- Labour-market issue
- Inflation
- Resource constraint
- Indirect effect
Options:
A. A-4, B-3, C-2, D-1
B. A-2, B-1, C-4, D-3
C. A-3, B-4, C-1, D-2
D. A-1, B-2, C-3, D-4
Topic 6: Three Central Problems of an Economy
Q26.
Column A
A. Deciding between food and luxury goods
B. Choosing labour or machinery
C. Deciding who receives goods
D. Limited resources
Column B
- What to produce
- How to produce
- For whom to produce
- Basic economic problem
Options:
A. A-2, B-3, C-4, D-1
B. A-4, B-1, C-2, D-3
C. A-1, B-2, C-3, D-4
D. A-3, B-4, C-1, D-2
Q27.
Column A
A. More hospitals or more luxury malls?
B. Labour-intensive or machine-intensive method?
C. Who should receive the produced goods?
D. Why must these questions be answered?
Column B
- What to produce
- How to produce
- For whom to produce
- Scarcity
Options:
A. A-2, B-3, C-4, D-1
B. A-1, B-2, C-3, D-4
C. A-4, B-1, C-2, D-3
D. A-3, B-4, C-1, D-2
Q28.
Column A
A. Selecting the type of goods
B. Selecting the production technique
C. Determining distribution among people
D. Limited inputs
Column B
- What
- How
- For whom
- Scarcity
Options:
A. A-4, B-3, C-2, D-1
B. A-1, B-2, C-3, D-4
C. A-2, B-4, C-1, D-3
D. A-3, B-1, C-4, D-2
Q29.
Column A
A. Choosing between producing rice and cars
B. Choosing between manual and automated production
C. Deciding who will get the output
D. Unlimited wants with limited resources
Column B
- What to produce
- How to produce
- For whom to produce
- Scarcity
Options:
A. A-3, B-4, C-1, D-2
B. A-2, B-1, C-4, D-3
C. A-4, B-3, C-2, D-1
D. A-1, B-2, C-3, D-4
Q30.
Column A
A. Product priority
B. Production technique
C. Distribution of output
D. Resource limitation
Column B
- What
- How
- For whom
- Why choices are necessary
Options:
A. A-2, B-3, C-4, D-1
B. A-1, B-2, C-3, D-4
C. A-4, B-1, C-2, D-3
D. A-3, B-4, C-1, D-2
Topic 7: Opportunity Cost
Q31.
Riya has ₹500. She can either buy a reference book for her Economics preparation or spend the money on a movie with her friends. She chooses the reference book.
Column A
P. Choice made
Q. Opportunity cost
R. Scarce resource
S. Benefit received
Column B
- Movie with friends
- Reference book
- ₹500
- Better preparation
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q32.
A farmer has a limited piece of land. He uses it to grow wheat instead of vegetables because wheat is expected to give him a better return.
Column A
P. Limited resource
Q. Choice
R. Opportunity cost
S. Decision basis
Column B
- Vegetables
- Land
- Growing wheat
- Expected better return
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–3, R–1, S–4
C. P–2, Q–1, R–3, S–4
D. P–3, Q–2, R–1, S–4
Q33.
A student has two hours before an examination. He spends the entire time revising Economics instead of watching a television programme.
Column A
P. Scarce resource
Q. Selected activity
R. Opportunity cost
S. Purpose of choice
Column B
- Watching television
- Two hours
- Economics revision
- Examination preparation
Options:
A. P–2, Q–3, R–1, S–4
B. P–2, Q–1, R–3, S–4
C. P–3, Q–2, R–1, S–4
D. P–2, Q–3, R–4, S–1
Q34.
A small shop owner has enough money to either renovate the shop or purchase additional stock. He chooses additional stock because he expects higher sales.
Column A
P. Alternative given up
Q. Choice made
R. Opportunity cost
S. Reason for decision
Column B
- Additional stock
- Renovation
- Limited money
- Expected higher sales
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q35.
A family has a limited amount of time on a Sunday. They choose to visit an elderly relative instead of going shopping.
Column A
P. Scarce resource
Q. Choice
R. Opportunity cost
S. Chosen benefit
Column B
- Shopping
- Time
- Visiting the relative
- Spending time with the relative
Options:
A. P–2, Q–1, R–3, S–4
B. P–2, Q–3, R–1, S–4
C. P–3, Q–2, R–1, S–4
D. P–2, Q–1, R–4, S–3
Topic 8: Opportunity-Cost Examples
Q36.
A college student spends a Saturday working part-time instead of attending a sports event.
Column A
P. Chosen activity
Q. Opportunity cost
R. Scarce resource
S. Possible benefit of choice
Column B
- Sports event
- Part-time work
- Saturday time
- Income earned
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q37.
A school uses an empty room as a computer laboratory rather than converting it into an additional classroom.
Column A
P. Resource
Q. Use selected
R. Opportunity cost
S. Reason for evaluation
Column B
- Additional classroom
- Empty room
- Computer laboratory
- Alternative use of the room
Options:
A. P–2, Q–3, R–1, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–1, R–3, S–4
D. P–3, Q–2, R–1, S–4
Q38.
A government spends a limited amount of money on improving public hospitals rather than constructing a new stadium.
Column A
P. Selected priority
Q. Resource
R. Opportunity cost
S. Basis of decision
Column B
- New stadium
- Government funds
- Hospital improvement
- Public priority
Options:
A. P–1, Q–2, R–3, S–4
B. P–3, Q–2, R–1, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–1, R–2, S–4
Q39.
A family decides to save money for higher education instead of buying a new television.
Column A
P. Choice made
Q. Opportunity cost
R. Scarce resource
S. Expected benefit
Column B
- New television
- Higher education saving
- Available family income
- Future educational opportunity
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q40.
A business uses its limited advertising budget for digital advertising instead of newspaper advertisements.
Column A
P. Scarce resource
Q. Selected option
R. Opportunity cost
S. Expected objective
Column B
- Newspaper advertising
- Advertising budget
- Digital advertising
- Reaching potential customers
Options:
A. P–2, Q–1, R–3, S–4
B. P–2, Q–3, R–1, S–4
C. P–3, Q–2, R–1, S–4
D. P–2, Q–1, R–4, S–3
Topic 9: Economists’ Study
Q41.
A town faces rising prices of vegetables. An economist studies consumer demand, production costs and supply conditions before suggesting possible reasons.
Column A
P. Economic issue
Q. Factor studied
R. Another factor
S. Purpose
Column B
- Consumer demand
- Rising vegetable prices
- Production costs
- Understand the causes
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q42.
An economist studies why some resources remain unused while certain products are in high demand.
Column A
P. Main concern
Q. Market signal
R. Resource issue
S. Purpose of study
Column B
- Resource allocation
- High demand
- Unused resources
- Understand economic choices
Options:
A. P–2, Q–3, R–1, S–4
B. P–1, Q–2, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Q43.
A government wants to understand why unemployment is increasing. Economists examine production, investment and employment conditions.
Column A
P. Problem
Q. Factor examined
R. Another factor
S. Objective
Column B
- Production
- Unemployment
- Investment
- Understand economic conditions
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q44.
A researcher studies how households divide their income between food, education, savings and other needs.
Column A
P. Unit being studied
Q. Resource involved
R. Decisions studied
S. Economic purpose
Column B
- Household
- Income
- Spending and saving
- Understand allocation of resources
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Q45.
An economist compares how different economic systems decide what goods should be produced and how resources should be used.
Column A
P. Subject of comparison
Q. Decision studied
R. Resource issue
S. Main objective
Column B
- Economic systems
- What to produce
- Use of resources
- Understand different allocation methods
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Topic 10: Production
Q46.
A bakery combines flour, labour, ovens and electricity to make bread.
Column A
P. Output
Q. Input
R. Human input
S. Physical input
Column B
- Flour
- Bread
- Labour
- Oven
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–2, Q–1, R–4, S–3
Q47.
A farmer uses land, seeds, water, labour and machinery to grow wheat.
Column A
P. Natural resource
Q. Human effort
R. Produced input
S. Agricultural output
Column B
- Machinery
- Land
- Labour
- Wheat
Options:
A. P–2, Q–3, R–1, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–1, R–3, S–4
D. P–3, Q–2, R–1, S–4
Q48.
A furniture producer purchases wood and uses workers and machines to produce tables.
Column A
P. Raw material
Q. Labour
R. Capital equipment
S. Final output
Column B
- Workers
- Tables
- Wood
- Machines
Options:
A. P–3, Q–1, R–4, S–2
B. P–1, Q–3, R–4, S–2
C. P–3, Q–4, R–1, S–2
D. P–4, Q–1, R–3, S–2
Q49.
A factory introduces better machines and trains its workers. Its production increases without a proportional increase in the number of workers.
Column A
P. Change introduced
Q. Human improvement
R. Result
S. Key idea
Column B
- Better machines
- Worker training
- Higher production
- More effective use of inputs
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Q50.
A small producer must decide whether to use limited resources to produce notebooks or school bags.
Column A
P. Limited factor
Q. First production option
R. Second production option
S. Economic issue
Column B
- Notebooks
- Available resources
- School bags
- Choice in production
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Topic 11: Consumption
Q51.
A family buys food, pays school fees and spends on electricity. These expenditures satisfy different household needs.
Column A
P. Consumption
Q. Food
R. School fees
S. Electricity
Column B
- Use of goods and services
- Household need
- Education service
- Household service
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Q52.
A student buys a notebook to write class notes and pays for an online educational course.
Column A
P. Physical good
Q. Service
R. Purpose
S. Activity
Column B
- Online course
- Notebook
- Education
- Consumption
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q53.
A family has limited income and decides to spend more on essential food before purchasing a new decorative item.
Column A
P. Limited resource
Q. Priority
R. Lower-priority purchase
S. Economic decision
Column B
- Decorative item
- Family income
- Essential food
- Choosing according to needs
Options:
A. P–2, Q–3, R–1, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–1, R–3, S–4
D. P–2, Q–3, R–4, S–1
Q54.
A consumer compares prices and quality before buying a refrigerator because the household budget is limited.
Column A
P. Constraint
Q. Factors compared
R. Decision
S. Reason for comparison
Column B
- Price and quality
- Limited budget
- Refrigerator purchase
- Better use of available income
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q55.
A person chooses a less expensive product of acceptable quality so that money remains available for other important needs.
Column A
P. Constraint
Q. Choice
R. Selected product
S. Economic reasoning
Column B
- Other important needs
- Limited income
- Less expensive product
- Efficient use of income
Options:
A. P–2, Q–3, R–1, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–2, R–3, S–4
D. P–3, Q–2, R–1, S–4
Topic 12: Distribution
Q56.
A farmer sells wheat to a trader, who supplies it to a wholesaler and eventually to retailers.
Column A
P. Producer
Q. Intermediate participant
R. Final seller
S. Movement of product
Column B
- Retailer
- Farmer
- Trader
- Producer to consumers through intermediaries
Options:
A. P–2, Q–3, R–1, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–1, R–3, S–4
D. P–3, Q–2, R–1, S–4
Q57.
A manufacturer produces school bags and supplies them to distributors, who then supply retailers.
Column A
P. Manufacturer
Q. Distributor
R. Final seller
S. Distribution process
Column B
- Retailer
- School-bag producer
- Distributor
- Movement through different stages
Options:
A. P–2, Q–3, R–1, S–4
B. P–3, Q–2, R–1, S–4
C. P–2, Q–1, R–3, S–4
D. P–1, Q–3, R–2, S–4
Q58.
A dairy cooperative collects milk from several farmers and sends it to a processing unit before it reaches consumers.
Column A
P. Original producers
Q. Collection organisation
R. Processing stage
S. Final users
Column B
- Consumers
- Dairy farmers
- Dairy cooperative
- Processing unit
Options:
A. P–2, Q–3, R–4, S–1
B. P–3, Q–2, R–4, S–1
C. P–2, Q–4, R–3, S–1
D. P–1, Q–3, R–2, S–4
Q59.
A book publisher sells books through distributors and bookstores so that students in different locations can purchase them.
Column A
P. Producer
Q. Intermediary
R. Retail outlet
S. Purpose of distribution
Column B
- Students
- Publisher
- Bookstore
- Make books available in different places
Options:
A. P–2, Q–3, R–1, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–2, R–3, S–4
D. P–3, Q–2, R–1, S–4
Q60.
A producer can sell directly to consumers online instead of using traditional intermediaries.
Column A
P. Traditional method
Q. New method
R. Possible advantage
S. Distribution objective
Column B
- Direct online sale
- Intermediaries
- Direct connection with consumers
- Making products available to buyers
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Topic 13: Resource Allocation
Q61.
A government has limited funds and must decide whether to spend more on healthcare or road construction.
Column A
P. Scarce resource
Q. First possible use
R. Second possible use
S. Economic problem
Column B
- Healthcare
- Government funds
- Roads
- Allocation between competing uses
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q62.
A factory has limited machine time and must decide whether to use it for producing chairs or tables.
Column A
P. Scarce resource
Q. First use
R. Alternative use
S. Allocation decision
Column B
- Chairs
- Machine time
- Tables
- Choosing between products
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q63.
A school has limited funds and decides to purchase science equipment before decorative furniture.
Column A
P. Limited resource
Q. Priority use
R. Alternative use
S. Allocation principle
Column B
- Science equipment
- School funds
- Decorative furniture
- Giving priority to an important need
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q64.
A farmer has limited water and must decide how much should be used for different crops.
Column A
P. Scarce resource
Q. Competing uses
R. Decision required
S. Economic concept
Column B
- Different crops
- Water
- Amount allocated to each crop
- Resource allocation
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q65.
A hospital has a limited number of beds and must decide how to use them among different patients according to medical need.
Column A
P. Scarce resource
Q. Competing claimants
R. Allocation criterion
S. Economic issue
Column B
- Patients
- Hospital beds
- Medical need
- Allocation of a limited resource
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Topic 14: Central Problems of an Economy
Q66.
An economy has limited resources and must decide which goods and services should be produced.
Column A
P. Basic economic problem
Q. Resource constraint
R. Decision required
S. Underlying reason
Column B
- What to produce
- Limited resources
- Selection of goods and services
- Resources have alternative uses
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q67.
A producer must decide whether to use labour-intensive or machine-intensive methods for producing a particular good.
Column A
P. Central problem
Q. Alternative methods
R. Decision criterion
S. Underlying constraint
Column B
- How to produce
- Labour or machines
- Efficient use of resources
- Resources are limited
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Q68.
A government must decide whether production should focus more on luxury goods or essential goods.
Column A
P. Production decision
Q. Alternative
R. Social consideration
S. Economic reason for choice
Column B
- Essential goods
- What to produce
- Luxury goods
- Limited resources
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q69.
An economy must decide who should receive the goods and services produced.
Column A
P. Central problem
Q. Main question
R. Concern
S. Resource background
Column B
- For whom to produce
- Distribution of output
- Who receives goods and services
- Scarcity
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Q70.
An economy chooses to produce more essential medicines using available resources rather than increasing production of luxury products.
Column A
P. What-to-produce decision
Q. Alternative
R. Reason for choice
S. Economic constraint
Column B
- More essential medicines
- Luxury products
- Social priority
- Limited resources
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–1, Q–3, R–2, S–4
D. P–3, Q–2, R–1, S–4
Topic 15: Economic Systems
Q71.
In an economy, major production decisions are largely made by a central authority.
Column A
P. Economic system
Q. Main decision-maker
R. Allocation approach
S. Characteristic
Column B
- Central authority
- Planned economy
- Central planning
- Major decisions are centrally directed
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q72.
In an economy, producers and consumers make many economic decisions through market interactions.
Column A
P. Economic system
Q. Main decision-makers
R. Coordination mechanism
S. Characteristic
Column B
- Consumers and producers
- Market economy
- Market interaction
- Decentralised decisions
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q73.
An economy combines market forces with government intervention in certain areas.
Column A
P. Economic system
Q. Market element
R. Government element
S. Main feature
Column B
- Government intervention
- Mixed economy
- Market forces
- Combination of approaches
Options:
A. P–3, Q–2, R–1, S–4
B. P–2, Q–3, R–1, S–4
C. P–2, Q–1, R–3, S–4
D. P–1, Q–2, R–3, S–4
Q74.
A government provides social support to vulnerable groups while allowing markets to operate in many areas.
Column A
P. Market role
Q. Government role
R. Welfare objective
S. Broader approach
Column B
- Social support
- Market activities
- Support vulnerable groups
- Combining economic activity with welfare
Options:
A. P–2, Q–1, R–3, S–4
B. P–1, Q–2, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
Q75.
Two economies use different methods to allocate scarce resources. One relies mainly on central decisions, while the other relies more on market interactions.
Column A
P. First approach
Q. Second approach
R. Main difference
S. Common economic issue
Column B
- Market interactions
- Central decisions
- Method of resource allocation
- Scarce resources
Options:
A. P–1, Q–2, R–3, S–4
B. P–2, Q–1, R–3, S–4
C. P–2, Q–3, R–1, S–4
D. P–3, Q–2, R–1, S–4
DETAILED ANSWER KEY
Q1–Q5: Scarcity, Choice and Opportunity Cost
Q1 — A.
A limited evening represents scarcity. Using land for wheat means giving up vegetables, which represents opportunity cost. Limited family income represents limited resources, while selecting studying demonstrates choice.
Q2 — B.
Limited homework time represents scarcity. Giving up an alternative when choosing a bicycle represents a trade-off. The next best alternative given up is opportunity cost. Deciding what to buy with limited money represents choice.
Q3 — C.
Limited water during a drought is scarcity. Using water for crops instead of lawns involves a choice. Giving up one alternative to select another represents a trade-off, while the best alternative sacrificed is opportunity cost.
Q4 — B. Postponing the television purchase involves an opportunity cost. Choosing cricket instead of a movie is a choice. The movie given up represents the relevant forgone alternative, while limited family income is the resource constraint.
Q5 — A. Limited resources create alternatives and require prioritisation. Multiple wants require prioritisation. Choosing one option may mean giving up another, and the best alternative forgone is opportunity cost.
Q6–Q10: What Do Economists Do?
Q6 — C.
Rising food prices require analysis of market conditions. Consumer responses concern behaviour. Comparing government programmes involves policy evaluation, while resource allocation involves understanding choices.
Q7 — C.
Comparing infrastructure projects involves cost-benefit comparison. Studying why demand fell involves demand analysis. Unemployment trends involve labour-market analysis, while reactions to prices involve behavioural analysis.
Q8 — B.
The rise in wheat prices concerns market analysis. Consumer reactions concern consumer behaviour. Deciding where a public budget should be spent is economic decision-making, while efficient use of scarce resources concerns resource allocation.
Q9 — C.
Economic data support evidence-based analysis. Studying incentives helps understand responses. Comparing policies supports better-informed decisions, while examining resource use helps identify allocation issues.
Q10 — B.
Consumer purchases are studied through incentives and behaviour. Public projects can be compared using costs and benefits. Unused resources raise questions of resource allocation, while policy effects on producers require analysing likely responses.
Q11–Q15: Production, Distribution and Consumption
Q11 — D.
Growing wheat and making bread are production activities. Carrying wheat to the market is distribution. Using flour to make food represents consumption.
Q12 — B.
Manufacturing furniture is production. Transporting furniture is distribution. Household use is consumption. A retailer making furniture available to customers is also part of distribution.
Q13 — C.
Converting raw materials into goods is production. Moving goods to consumers is distribution. Using goods to satisfy wants is consumption. Poor roads preventing market access represent a distribution problem.
Q14 — B.
A factory making bags is production. A wholesaler moving bags to shops is distribution. A student using a bag is consumption. Transport shortage causing delayed delivery is a distribution constraint.
Q15 — D
Creating a service is production. Making goods available in markets is distribution. Using a service is consumption. Failure to deliver goods is a distribution difficulty.
Q16–Q20: Economics and Policy-Making
Q16 — B.
A limited government budget creates a need for choice. Studying policy effects is policy evaluation. Comparing spending on schools and hospitals involves resource allocation. Predicting people’s responses involves behavioural analysis.
Q17 — C.
Choosing between government programmes represents choice. A policy changing behaviour represents a policy response. The benefit given up when money is spent elsewhere represents opportunity cost. Limited government funds represent a resource constraint.
Q18 — C.
Assessing policy benefits is policy evaluation. Assessing costs is cost analysis. Studying possible responses is behavioural analysis. Choosing among alternatives is decision-making.
Q19 — B.
Limited tax revenue represents scarcity. Selecting a spending priority represents choice. The benefit given up from the next best programme is opportunity cost. Studying who gains concerns distributional effects.
Q20 — C.
costs creates a trade-off. Behaviour changes represent a response. The inability to fund every programme represents scarcity. Selecting one programme over another represents choice.
Q21–Q25: Economics and Real-World Problems
Q21 — A.
People unable to find jobs represent unemployment. A general rise in prices is inflation. Deciding among competing uses of limited resources involves resource allocation. Higher fuel costs affecting transport represent a cost effect.
Q22 — D.
rise in prices reducing purchasing power is inflation. A worker unable to find a job represents unemployment. Deciding where limited resources should go is allocation. Higher fuel prices raising delivery costs are an indirect economic effect.
Q23 — B.
Joblessness represents underuse of labour. Price increases can reduce purchasing power. Poor resource allocation can cause inefficient resource use. Higher fuel prices can increase transportation costs.
Q24 — C.
Unemployment involves labour not being fully used. Inflation is a general increase in the price level. Poverty involves difficulty meeting basic needs. Scarcity means limited resources relative to wants.
Q25 — D.
A shortage of workers with required skills is a labour-market issue. A continuous rise in general prices is inflation. Limited funds create a resource constraint. Higher transport costs affecting product prices are an indirect effect.
Q26–Q30: Three Central Problems of an Economy
Q26 — C.
Deciding between food and luxury goods concerns what to produce. Choosing labour or machinery concerns how to produce. Deciding who receives goods concerns for whom to produce. Limited resources create the basic economic problem.
Q27 — B.
Choosing hospitals or luxury malls concerns what to produce. Choosing labour-intensive or machine-intensive methods concerns how to produce. Deciding who receives goods concerns for whom to produce. Scarcity explains why these questions arise.
Q28 — B.
The type of goods concerns what to produce. The production technique concerns how to produce. Distribution among people concerns for whom to produce. Limited inputs represent scarcity.
Q29 — D.
Choosing rice or cars concerns what to produce. Choosing manual or automated production concerns how to produce. Deciding who gets output concerns for whom to produce. Unlimited wants and limited resources represent scarcity.
Q30 — B.
Product priority concerns what to produce. Production technique concerns how to produce. Distribution of output concerns for whom to produce. Resource limitation explains why choices are necessary.
Q31–Q35: Opportunity Cost
Q31 — A.
The reference book is the choice made. The movie is the alternative given up and therefore the opportunity cost. ₹500 is the scarce resource available, while better preparation is the benefit received.
Q32 — C.
Land is the limited resource. The farmer chooses wheat instead of vegetables. Vegetables are the opportunity cost, while expected better return is the basis of the decision.
Q33 — A.
The two hours are scarce. Economics revision is selected. Watching television is the opportunity cost, and examination preparation is the purpose of the choice.
Q34 — B.
Renovation is the alternative given up. Additional stock is the choice made. Limited money is the resource constraint, and expected higher sales explain the decision.
Q35 — A.
Time is scarce. The family chooses to visit the relative. Shopping is the opportunity cost, while spending time with the relative is the chosen benefit.
Q36–Q40: Opportunity-Cost Examples
Q36 — B.
The student chooses part-time work. The sports event is the alternative forgone. Saturday time is scarce, and income is the possible benefit.
Q37 — C.
The empty room is the resource. It is selected for use as a computer laboratory. An additional classroom is the opportunity cost, while comparing alternative uses explains the decision.
Q38 — B.
Hospital improvement is the selected priority. Government funds are scarce. The new stadium is the opportunity cost, and public priority is the basis for the decision.
Q39 — A.
The family chooses higher-education saving and gives up the new television. Available family income is scarce, while future educational opportunity is the expected benefit.
Q40 — A.
The advertising budget is scarce. Digital advertising is selected. Newspaper advertising is the opportunity cost, while reaching potential customers is the objective.
Q41–Q45: Economists’ Study
Q41 — B.
Rising vegetable prices are the economic issue. Consumer demand is one factor studied, production costs are another, and the purpose is to understand the causes.
Q42 — C.
The main concern is resource allocation. High demand is the market signal, unused resources are the resource issue, and the purpose is to understand economic choices.
Q43 — A.
Unemployment is the problem. Production is one factor examined, investment is another, and the objective is to understand economic conditions.
Q44 — A.
The researcher studies households. Income is the resource involved, spending and saving are the decisions, and the purpose is to understand allocation of resources.
Q45 — B.
Economic systems are being compared. The decision studied is what to produce, the resource issue concerns use of resources, and the objective is to understand different allocation methods.
Q46–Q50: Production
Q46 — B.
Bread is the output. Flour is an input. Labour is the human input, while the oven is physical production equipment.
Q47 — A.
Land is the natural resource. Labour is human effort. Machinery is a produced input, and wheat is the agricultural output.
Q48 — A.
Wood is the raw material. Workers provide labour. Machines are capital equipment, and tables are the final output.
Q49 — A.
Better machines and worker training are introduced. Production increases, demonstrating more effective use of inputs.
Q50 — A.
Available resources are limited. The producer considers notebooks as one option and school bags as another, creating a choice in production.
Q51–Q55: Consumption
Q51 — A.
Consumption involves using goods and services. Food satisfies a household need, school fees represent an education service, and electricity is a household service.
Q52 — B.
The notebook is a physical good, while the online course is a service. Both are connected with education and represent consumption.
Q53 — C.
Family income is limited. Essential food receives priority, while the decorative item is the lower-priority purchase. The decision reflects choosing according to needs.
Q54 — B.
The limited household budget is the constraint. The consumer compares price and quality and then makes a refrigerator purchase to use available income better.
Q55 — A.
Limited income is the constraint. The person chooses a less expensive product, leaving money available for other important needs. This represents efficient use of income.
Q56–Q60: Distribution
Q56 — A.
The farmer is the producer. The trader is an intermediate participant. The retailer is the final seller, and the product moves from producer to consumers through intermediaries.
Q57 — A.
The manufacturer is the school-bag producer. The distributor is the intermediary, the retailer is the final seller, and distribution takes place through different stages.
Q58 — A.
Dairy farmers are the original producers. The dairy cooperative is the collection organisation. The processing unit is the processing stage, and consumers are the final users.
Q59 — A.
The publisher is the producer. The bookstore is the retail outlet, students are the final users, and distribution makes books available in different places.
Q60 — A.
Traditional distribution uses intermediaries. Direct online selling is the new method. Direct connection with consumers can be an advantage, while making products available to buyers remains the distribution objective.
Q61–Q65: Resource Allocation
Q61 — A.
Government funds are scarce. Healthcare is one possible use and roads are another. The economic problem is allocation between competing uses.
Q62 — B.
Machine time is scarce. It can be used for chairs or tables, creating an allocation decision between products.
Q63 — A.
School funds are the limited resource. Science equipment is prioritised over decorative furniture because the school gives priority to an important need.
Q64 — A.
Water is scarce. Different crops compete for it, so the farmer must decide how much water should be allocated to each crop.
Q65 — B.
Hospital beds are scarce. Patients are competing claimants, medical need is the allocation criterion, and the situation represents allocation of a limited resource.
Q66–Q70: Central Problems of an Economy
Q66 — B.
The basic economic problem involves deciding what to produce. Limited resources are the constraint, selection of goods and services is the decision, and resources have alternative uses.
Q67 — A.
Choosing between labour-intensive and machine-intensive methods concerns how to produce. Labour and machines are the alternative methods, efficient resource use is the criterion, and limited resources are the underlying constraint.
Q68 — A.
The production decision concerns what to produce. Essential goods and luxury goods are alternatives, social considerations can influence the choice, and limited resources create the economic reason for choosing.
Q69 — A.
The central problem is for whom to produce. It concerns distribution of output and who receives goods and services, with scarcity as the underlying resource background.
Q70 — A.
The economy chooses more essential medicines. Luxury products are the alternative. Social priority provides the reason, while limited resources create the constraint.
Q71–Q75: Economic Systems
Q71 — B.
The economic system is a planned economy. The central authority is the main decision-maker, central planning is the allocation approach, and major decisions are centrally directed.
Q72 — B.
The system is a market economy. Consumers and producers are the main decision-makers, market interaction provides coordination, and decisions are decentralised.
Q73 — B.
The system is a mixed economy. Market forces form the market element, government intervention is the government element, and the main feature is a combination of approaches.
Q74 — A.
Market activities continue while the government provides social support. Supporting vulnerable groups is the welfare objective, and the broader approach combines economic activity with welfare.
Q75 — B.
The first approach relies mainly on central decisions, while the second relies more on market interactions. Their main difference is the method of resource allocation, although both face the common problem of scarce resources.
FINAL TABULAR ANSWER KEY
| Q. | Ans. | Q. | Ans. | Q. | Ans. | Q. | Ans. |
| 1 | A | 20 | C | 39 | A | 58 | A |
| 2 | B | 21 | A | 40 | A | 59 | A |
| 3 | C | 22 | D | 41 | B | 60 | A |
| 4 | B | 23 | B | 42 | C | 61 | A |
| 5 | A | 24 | C | 43 | A | 62 | B |
| 6 | C | 25 | D | 44 | A | 63 | A |
| 7 | C | 26 | C | 45 | B | 64 | A |
| 8 | B | 27 | B | 46 | B | 65 | B |
| 9 | C | 28 | B | 47 | A | 66 | B |
| 10 | B | 29 | D | 48 | A | 67 | A |
| 11 | D | 30 | B | 49 | A | 68 | A |
| 12 | B | 31 | A | 50 | A | 69 | A |
| 13 | C | 32 | C | 51 | A | 70 | A |
| 14 | B | 33 | A | 52 | B | 71 | B |
| 15 | D | 34 | B | 53 | C | 72 | B |
| 16 | B | 35 | A | 54 | B | 73 | B |
| 17 | C | 36 | B | 55 | A | 74 | A |
| 18 | C | 37 | C | 56 | A | 75 | B |
| 19 | B | 38 | B | 57 | A |