CMA Foundation MCQ Quiz Economics Lesson 1.2January 22, 2026 Maven Leave a Comment Welcome to the CMA Foundation MCQ Quiz Economics Lesson 1.2 Quiz! Name Email 1. Utility differs from usefulness because utility depends on price is psychological in nature is always measurable depends on income None 2. Which statement correctly explains “creation of utility”? Utility is created only at consumption Utility is created at production and realised at consumption Utility is created at exchange Utility is independent of production None 3. Which of the following cannot be treated as wealth in economics? Shares of a company Machinery Public road Personal skill None 4. Government bonds held by citizens are considered national wealth social wealth personal wealth non-wealth None 5. Which of the following best explains the relation between wealth and income? Both are flows Both are stocks Income generates wealth Wealth generates income only None 6. Increase in wealth does not necessarily increase welfare because income may fall resources may be wasted wealth may be unevenly distributed production may decline None 7. Which activity is NOT considered production in economics? Teaching in a school Selling vegetables in a market Cooking food for one’s family Manufacturing furniture for sale None 8. A straight-line Production Possibility Curve indicates increasing opportunity cost constant opportunity cost decreasing opportunity cost zero opportunity cost None 9. The slope of the PPC represents marginal cost marginal utility marginal rate of transformation average cost None 10. A shift of the PPC outward indicates unemployment inflation economic growth inefficiency None 11. Which of the following represents capital formation? Buying shares from stock market Producing new machines Lending money to friend Purchasing gold ornaments None 12. Portfolio investment differs from real investment because portfolio investment increases production creates employment does not increase capital stock increases national income None 13. Gross investment includes only net addition to capital depreciation only depreciation and net investment savings only None 14. If gross investment equals depreciation, then net investment is positive net investment is negative net investment is zero capital stock increases None 15. Savings equal investment in equilibrium because both are decisions of firms both are decisions of households aggregate demand equals aggregate supply prices remain constant None Time's upRelated Posts:CMA Foundation MCQ Quiz Economics Lesson 1.1CMA Foundation MCQ - Sources of LawCMA Foundation MCQ - Legislative Process in IndiaCMA Foundation MCQ - Legal Method and Court System in India
Leave a Reply