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JAIIB IE&IFS Unit 12 — Fundamentals of Economics — Micro, Macro & Types of Economies: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 12 — Fundamentals of Economics — Micro, Macro & Types of Economies (Module B — Economic Concepts Related to Banking). The Mock Centre holds 47 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module B47 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Economy < Greek 'oikonomia' = household management.
  2. Definitions: Smith — wealth (Wealth of Nations 1776, father of modern economics, invisible hand); Marshall — welfare (Principles 1890); Robbins — scarcity (1932 Essay; ends = wants, means = scarce with alternative uses); economics = science of choice.
  3. Micro = individual entities (consumers/firms/markets); macro = economy as a whole (GDP + unemployment + prices — all of the above).

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Adam Smith defined economics as the:
Why (c): Adam Smith defined economics as THE STUDY OF WEALTH — an inquiry into its nature and causes, per his 1776 title.
Question 2 of 5
MICROECONOMICS concerns the behaviour of:
Why (b): MICROECONOMICS studies INDIVIDUAL ENTITIES — one consumer, one firm, one market: the trees, not the forest.
Question 3 of 5
The three fundamental questions of economic organisation are:
Why (b): The three fundamental questions of economic organisation: WHAT to produce, HOW to produce, and FOR WHOM — Samuelson's trio.
Question 4 of 5
The market economy is also called the:
Why (b): The market economy is also called the CAPITALISTIC economy — private capital owning and deciding.
Question 5 of 5
A MIXED economy features:
Why (c): A MIXED economy features BOTH market AND command elements — private decisions inside a state-shaped frame. Most real economies live here.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Smith (wealth)Marshall (welfare)1776 vs 1890 definitions
MarshallRobbinsWelfare vs scarcity
Practise all 47 questions on Unit 12. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.