Basic Concepts of Micro economics-Part I

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  • Q1

    Identify the correct meaning of Utility from the following given options.

    Marks:1
    Answer:

    It is the ability of a good to satisfy a want

    Explanation:

    Utility is the ability of a good to satisfy a want. For example utility of an apple is the satisfaction obtained from consuming it at a particular moment of time.

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  • Q2

    The act of using goods and services to satisfy human wants is called ________.

    Marks:1
    Answer:

    Consumption

    Explanation:

    The act of using goods and services to satisfy human wants is called consumption. It is the process through which human wants are satisfied for example we use consumption of an orange to satisfy our hunger.

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  • Q3

    A particular want can be satisfied by two or more goods. Identify toward which the feature of the human want.the given statement indicate.

    Marks:1
    Answer:

    Substitution of wants

    Explanation:

    A particular want can be satisfied by two or more goods. The statement indicates a feature of human wants i.e. substitution of wants. For example if we want to go from one place to another we can either take auto or bus.

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  • Q4

    The type of wants necessary for existence of human beings like food, clothes and shelter are part of _______________.

    Marks:1
    Answer:

    Primary wants

    Explanation:

    The wants necessary for existence of human beings like food, clothes and shelter are part of Primary wants. They are necessary for the maintenance of normal efficiency.

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  • Q5

    The basis of all economic activities is the existence of ____________.

    Marks:1
    Answer:

    Human Wants

    Explanation:

    The basis of all economic activities is the existence of human wants. The process of satisfying human wants is at the root of all economic activities.

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