The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Borrowing in government budget is: (choose the correct alternative)

1. Revenue deficit.
2. Fiscal deficit.
3. Primary deficit.
4. Deficit in taxes.

If due to fall in the price of good X, demand for good Y rises, the two goods are:

1. Substitutes.
2. Complements.
3. Not related.
4. Competitive.

Given the fact that MRS between goods X and Y is diminishing, IC is:

1. Convex to the origin.
2. Concave to the origin.
3. Straight line.
4. None of these.

The law of variable proportions is drawn under all of the assumptions mentioned below except the assumption that:

1. The technology is changing.
2. There must be some inputs whose quantity is kept fixed.
3. We consider only physical inputs and not economically profitability in monetary terms.
4. The technology is given and stable.

If Marginal Rate of Substitution is increasing throughout, the Indifference Curve will be: (Choose the correct alternative)

1. Downward sloping convex.
2. Downward sloping concave.
3. Downward sloping straight line.
4. Upward sloping convex.

Selling cost is insignificant under:

1. Perfect competition.
2. Monopoly.
3. Monopolistic competition.
4. All of the above.

______ refers to selling of government approved securities by RBI to general public and commercial banks in case of excess demand.

1. Bank rate.
2. CRR.
3. SLR.
4. Open market operation.

Potato chips and popcorn are substitutes. A rise in the price of potato chips will .............. the demand for popcorn and the demand of potato chips will

1. Increase; increase.
2. Increase; decreases.
3. Decrease; decrease.
4. Decrease; increase.

In which analysis  can utility be measured in definite numbers such as 1,2,3,4 etc?

1. Cardinal utility analysis.
2. Ordinal utility analysis.
3. Both of these.
4. None of these.

Increase in the value of domestic currency by the government is called _______.

1. depreciation.
2. devaluation.
3. revaluation.
4. appreciation.