Question : The guiding principle of problem of how to produce is ___________.

Option 1: Allocate the resources in a manner which gives maximum aggregate satisfaction

Option 2: Combine factors of production in such a manner so that maximum output is produced at minimum cost

Option 3: Ensure that urgent wants of each productive factor are fulfilled to the maximum possible extent

Option 4: None of the above

Question : What is the guiding principle of the problem of for whom to produce?

Option 1: Allocate the resources in a manner which gives maximum aggregate satisaction

Option 2: Combine factors of production in such a manner so that maximum output is produced at minimum cost

Option 3: Ensure that urgent wants of each productive factor are fulfilled to the maximum possible extent

Option 4: All of the above

Question : An indifference curve measures the same level of:

Option 1: output from two factors

Option 2: satisfaction from two commodities

Option 3: satisfaction from income and capital

Option 4: satisfaction from expenditure and saving

Question : Market failure occurs when:

Option 1: Markets allocate resources efficiently
 

Option 2: Markets allocate resources inequitably
    

Option 3: Markets fail to allocate resources efficiently

Option 4: Markets fail to allocate resources inequitably

Question : The study of how individuals allocate their limited resources to satisfy unlimited wants is known as:

Option 1: Public economics

Option 2: Welfare economics

Option 3: Microeconomics

Option 4: Development economics